Market Research

Free Standing Inserts on the Decline

How changes in the media and marketing world are diminishing FSI success

Author

Mercedes Del Real

Marketing Coordinator

Friday, June 19, 2020

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Restaurants, grocery, and retail stores have been using free standing printed advertisements in newspapers and mail coupon publications for years, but now consumers are demanding personalized campaign messaging. This has turned the use of FSIs into a thing of the past.

Our research has shown a modernized shift in consumer and brand relationships where most people prefer to be sent customized campaigns that are tailored to their specific wants and needs; rather than generalized messaging. In fact, customized marketing campaigns are seeing triple digit increases in ROIs, store visits and increased ticket sizes.

In Q3 of 2019 News America Marketing (NAM), the leading FSI distributor in the nation, saw a 10% drop in production, while News Corporation, a mass media company who owns a majority of US print publishers like The New York Post and HarperCollins, stock has dropped 40% since the start of 2020. This dramatic decrease is causing FSIs to consistently lose advertisers as brands phase printed inserts out of their marketing strategies.

This decline of general print advertising comes at the same time as News Corp. has decided to make a major cut. On March 30, 2020 they announced they had sold 85% of NAM to private equity firms like the Charlesbank Capital Partners.

As more people are reading their news online, some newspaper companies are drastically minimizing their distribution, some are even closing their doors. In 2019 alone, the US saw a 9% decrease in print circulation as most brands shift to digital. Brands who are leaving FSIs behind and adopting customized campaigns (hyper targeted direct mail or digital) are proving to be more successful than those sticking with FSI and general print inserts. Brands are noticing consumer disengagement and with the decline in general print media circulation, FSIs are struggling to compete.

In a world where modern marketing tools give brands the opportunity to directly target the right consumers at the right time with the right message, the ability to personalize is growing stronger customer relationships by creating higher consumer engagement, ROI, store visits and larger ticket sizes. It’s time to move on from FSI and general print coupons, and give your customers the experience they are craving.