Valassis and AOL to Deliver More Coupon Offers Through Retail Frequent Shopper Programs

LIVONIA, Mich., Jan. 25, 2011 /PRNewswire/ -- Valassis (NYSE: VCI), one of the nation's leading media and marketing services companies, announced today that they have formed a strategic relationship with AOL Inc. (NYSE: AOL), a leading global web services company, creating one of the largest paperless digital coupon footprints in the United States, including over 7,500 grocery retail stores. This agreement also enables the sharing of digital coupon offer content across each other's online and mobile networks.  Offers will be live on AOL's Shortcuts.com, on Valassis' web properties and across the participating retailer websites in the RedPlum™ Digital Network and AOL's network of web and mobile sites.

This joint effort between two industry leaders provides advertisers with a vast distribution channel, capable of reaching 127 million frequent shopper cardholders across the country on a weekly basis. The coupons will be delivered via electronic downloads to participating retailer frequent shopper cards and loyalty program IDs. According to research conducted by Valassis and BIGresearch, 80% of shoppers subscribe to grocery/drug frequent shopper programs and two out of three of these consumers have expressed an interest in saving coupons from the Internet directly to their frequent shopper cards/IDs.

Shoppers browse, select and save their preferred coupons in real time with ease and convenience. They download offers to their loyalty card or ID from participating retailer websites, AOL's Shortcuts.com, Valassis' web properties or a mobile device. The coupons are ready for redemption as soon as they are downloaded.  At the checkout, eligible savings are automatically subtracted from the total cost.

Valassis' DigitalOfferExpert™ is the proprietary engine that manages coupon distribution across the RedPlum Network, pairing deals with today's tech-savvy and on-the-go shopper.  The Shortcuts Digital Couponing System™ manages content and coupon distribution across the AOL Network.

"Our goal is to provide our advertisers with a digital reach for their brand promotions like no other while providing consumers with valued content no matter where or how they seek savings," said John Lieblang, President of Valassis Digital Media. "Valassis and AOL are enhancing both the advertiser and consumer shopping and saving experience by leveraging the strength of our combined network reach and breadth of our digital offerings."

"We are excited to be partnering with Valassis in our efforts to continue to lead and grow the paperless digital and mobile couponing market," said Tara Trocki, GM of AOL's Shortcuts.com.  "This new, high growth channel provides simplified savings that appeal to a broad base of consumers which in turn delivers tremendous value to our consumer packaged goods (CPG) and retail partners."

More and more consumers today are investing time and seeking out money-saving deals from multiple sources including coupon, retailer and brand websites, the mail, the newspaper and in store.  This program offers shoppers a robust selection of coupons they can readily download to their loyalty card or frequent shopper ID. Valassis offers advertisers the ability to deliver a blended solution incorporating print and digital offerings in a campaign to reach shoppers how, when and where they want.  AOL's Shortcuts provides extensive consumer reach in distribution of digital coupon offers as well proprietary advances in technology which enable CPG partners to gain online and offline consumer behavioral insights and leverage targeting mechanisms not available through other channels.

Proprietary research conducted by Valassis and BIGresearch indicates:  

• 44.2% of U.S. adults are seeking coupons online at least once a week;

• 57% of consumers print one to five coupons from the Internet weekly – 26% print more than six weekly; and

• To date, 20% of consumers have reported downloading coupons to their loyalty cards/IDs; 80% have then used the downloaded coupons to get savings at their local stores.

About Valassis

Valassis is one of the nation's leading media and marketing services companies, offering unparalleled reach and scale to more than 15,000 advertisers. Its RedPlum™ media portfolio delivers value on a weekly basis to over 100 million shoppers across a multi-media platform – in-home, in-store and in-motion. Through its digital offerings, including redplum.com and save.com, consumers can find compelling national and local deals. Headquartered in Livonia, Michigan with approximately 7,000 associates in 28 states and eight countries, Valassis is widely recognized for its associate and corporate citizenship programs, including its America's Looking for Its Missing Children® program. Valassis companies include Valassis Direct Mail, Inc., Valassis Canada, Promotion Watch, Valassis Relationship Marketing Systems, LLC and NCH Marketing Services, Inc.  For more information, visit http://www.valassis.com, http://www.redplum.com and http://www.save.com. To learn about advertising opportunities with RedPlum, please call 1-800-437-0479.

About AOL & Shortcuts

AOL Inc. (NYSE: AOL) is a leading global Web services company with an extensive suite of brands and offerings and a substantial worldwide audience. AOL's business spans online content, products and services that the company offers to consumers, publishers and advertisers. AOL is focused on attracting and engaging consumers and providing valuable online advertising services on both AOL's owned and operated properties and third-party websites. In addition, AOL operates one of the largest Internet subscription access services in the United States, which serves as a valuable distribution channel for AOL's consumer offerings.  The Shortcuts Digital Couponing System™ enables digital and mobile savings offerings for millions of consumers, leading Retailers, and manufacturers.  Shortcuts.com, a free service of AOL powered by the Shortcuts Couponing System, is a comprehensive savings destination that offers consumers multiple ways to save including Electronic Coupons, Printable Coupons, Mobile Coupons, Online Coupon Codes and Cash Back savings.  Partnering with top companies such as News America Marketing, Kroger, Safeway, Campbell's, ConAgra, and many more, Shortcuts.com is the consumer destination for free savings offers.  For more information, visit http://www.shortcuts.com.

Cautionary Statements Regarding Forward-looking Statements

This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: price competition from our existing competitors; new competitors in any of our businesses; a shift in client preference for different promotional materials, strategies or coupon delivery methods, including, without limitation, as a result of declines in newspaper circulation; an unforeseen increase in paper or postal costs; changes which affect the businesses of our clients and lead to reduced sales promotion spending, including, without limitation, a decrease of marketing budgets which are generally discretionary in nature and easier to reduce in the short-term than other expenses; our substantial indebtedness, and ability to refinance such indebtedness, if necessary, and our ability to incur additional indebtedness, may affect our financial health; the financial condition, including bankruptcies, of our clients, suppliers, senior secured credit facility lenders or other counterparties; our ability to comply with or obtain modifications or waivers of the financial covenants contained in our debt documents; certain covenants in our debt documents could adversely restrict our financial and operating flexibility; ongoing disruptions in the credit markets that make it difficult for companies to secure financing; fluctuations in the amount, timing, pages, weight and kinds of advertising pieces from period to period, due to a change in our clients' promotional needs, inventories and other factors; our failure to attract and retain qualified personnel may affect our business and results of operations; a rise in interest rates could increase our borrowing costs; we may be required to recognize additional impairment charges against goodwill and intangible assets in the future; possible governmental regulation or litigation affecting aspects of our business; the credit and liquidity crisis in the financial markets could continue to affect our results of operations and financial condition; uncertainty in the application and interpretation of applicable state sales tax laws may expose us to additional sales tax liability; and general economic conditions, whether nationally, internationally, or in the market areas in which we conduct our business, including the adverse impact of the ongoing economic downturn on the marketing expenditures and activities of our clients and prospective clients as well as our vendors, with whom we rely on to provide us with quality materials at the right prices and in a timely manner. These and other risks and uncertainties related to our business are described in greater detail in our filings with the United States Securities and Exchange Commission, including our reports on Forms 10-K and 10-Q and the foregoing information should be read in conjunction with these filings.  We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Valassis