Valassis has pulled its Red Plum coupons from the Los Angeles Times, the largest newspaper yet to lose its insert revenue. Valassis previously axed coupons at the Dallas Morning News and the Cleveland Plain Dealer in favor of mailing them directly via the U.S. Postal Service. Graphic Arts Online gives this list of territories in which Valassis as transferred coupons from papers to the mail:
Ohio, Indiana, Pennsylvania, New Jersey, Utah, Virginia, Washington, D.C., North Carolina, Maryland, and Texas. The distribution shift is in response to declining newspaper circulation ...my BNET colleagues -- have bemoaned the financial damage the web has done to the news business, less attention has been paid to the impact of axing coupons in favor of direct mail and coupon web sites.
Valassis ultimately believes the most efficient way to distribute coupons is over its RedPlum web site. That strategy has yet to pay off -- over the last two quarters, newspaper coupons (FSI) has been its strongest revenue and profit segment.
- See BNET's previous coverage of the in-store marketing wars:
- Clients Overcharged by News America Listed in Court; Sara Lee: NAM "Is Raping Us and Enjoying It"
- News America Marketing Q2: Numbers Support Valassis' Monopoly Case
- News America Marketing's Carlucci Is Touchy About The Untouchables
- Valassis Q2: "We Have Hit Bottom," Says CEO Schultz; Legal Bills 23% of Profits
- News America Exec Tells How Ahold Account Was Won; Paid Kroger $25M
- The Day After: News America CEO Carlucci Finds Options Limited
- Valassis Wins $300M Verdict in News America Monopoly Case
- News America Exec Testifies Unilever, Conagra and Kraft Got Higher Prices for Not Taking Bundled Ad Deals
- Valassis Uses News America's Own Clients Against It in Trial; Feel the Wrath of Sara Lee!