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REVERSAL OF FORTUNES

HEADNOTE

PERQ/HCI SPECIALTIES AD REVIEW 2004 MID-YEAR

The specialty journals sector has undergone somewhat of a flip-flop in revenues for the first half of 2004 - last year's losing specialties are this year's big gainers, and vice versa. Eugene M. May reports on the

most-advertised companies and brands in key specialty markets.

PERQ/HCI's Journal Ad Review (JAR) reports an increase in ad spending in five of the eight specialty markets audited during the first half of 2004 (Fig. 1). Those with the strongest gains - ophthalmology (lf.1 percent), optometry (9.2 percent) and laboratory (8.1 percent) - represent a reversal of losses during the first half of 2003. Conversely, the segments with lower ad expenditures - nursing (down 7.6 percent) and radiology (down 6.1 percent) - registered strong gains a year ago. As for the other specialties, dental and pharmacy recorded modest gains of 5.2 percent and 1.3 percent, respectively, while hospital management remained unchanged.

Importantly, five markets reported an increase in ad pages: dentistry, laboratory, nursing, ophthalmology and optometry.

Marginal gain for pharmacy journals

Ad spending in pharmacy journals increased by only 1.3 percent during the first half 2004. In the year-ago period, this market registered a gain of 11.2 percent, and in 2002 it grew 5.9 percent.

Pfizer continued as the top advertiser, with just under 6 percent of all spending in this segment (Fig. 2a), while Forest Laboratories jumped from 24th to second as ad outlays increased for Namenda. A 59 percent boost in spending moved AstraZeneca from seventh to third, due largely to Crestor, while Teva Pharmaceuticals advanced from sixth to fourth following higher ad expenditures for a number of generic product introductions. The Bristol-Myers Squibb and Otsuka partnership, which promotes Abilify, slipped from third to fifth following a 28 percent cut in ad expenditures.

Eli Lilly jumped from 19th to sixth following a 77 percent boost in spending, mostly for Cialis and Symbyax, while GlaxoSmithKline dropped from second to seventh and Janssen climbed from 26th to eighth as ad outlays grew 100 percent.

Namenda, the new Forest drug for Alzheimer's disease, was by far the most heavily advertised product in pharmacy journals (Fig. 2b), accounting for more than 4 percent of all spending in this segment. Abilify slipped from first to second after ad outlays were cut by 39 percent, and a new Pfizer product, Inspra, finished third. Seroquel climbed from seventh to fourth, while Janssen's new entry, Risperdal Consta injection, was fifth and AstraZeneca's Crestor was sixth.

Double-digit boost for ophthalmology

Ophthalmology journals posted an 11.1 percent gain in ad expenditures. In the first six months of 2003, this segment lost 0.7 percent and at mid-year 2002, it was down 8.3 percent.

Pfizer Ophthalmics, which advertises three of the top 10 products/services in this specialty market, jumped from third to first as ad outlays increased by 45 percent (Fig. 3a), while Alcon Laboratories slipped from first to second following a 17 percent cut in ad spending. Allergan also fell one position to third even though spending increased 12 percent. Advanced Medical Optics repeated in fourth, and Carl Zeiss Meditee moved from sixth to fifth.

The first of four advertisers new to this year's top K) was Bausch & Lomb, up from 27th to sixth following a 194 percent boost in spending. A joint marketing effort between Inspire Pharmaccuticals and Allergan to promote Elestat, a new ophthalmic solution, ranked seventh. A 184 percent boost in spending moved Novartis Ophthalmics from 35th to ninth, while Heidelberg Engineering climbed from 18th to 10th due largely to higher ad outlays for the Heidelberg Retina Tomograph II.

The two most heavily promoted products/services - Xalatan (unchanged in first place) and the Tecnic Foldable IOL (up from fourth to second) - are both from Pfizer Ophthalmics (Fig. 3b). Allergan's Zymar jumped from 13th to third as ad spending rose by 149 percent, while a Pfizer Ophthalmics seminar ad, new this year, came in fourth. Alcon's Ladarvision 4000 advanced three spots to fifth, while Allergan's Lumigan fell from third to sixth. Vigamox, up from 28th to seventh on a 317 percent boost in spending, and Travatan, down from second to eighth, are both from Alcon.

Hospital management on the level

After a 12.1 percent gain during the first half 2003, spending in hospital management journals was unchanged this year.

Siemens Medical Systems, one of only three advertisers that carried over from the top 10 last time, repeated in first place (Fig. 4a), while Lawson Software advanced from sixth to second after a 61 percent gain in ad outlays. GE Medical Systems, second a year ago, is now seventh following a 51 percent cut in spending.

New entrants to the lop 10 this year include Welch Allyn (fourth), in part due to outlays associated with a wireless patient monitoring system, and Brother International (sixth), due largely to ad spending for multi-function CTR/print/copy/fax machines.

At the product level, only the top three carried over from the first six months of 2003 (Fig. 4b). Siemens' Soarian Information Solution advanced two spots to first, a Lawson ad jumped from ninth to second and GE Healthcare Financial Services slipped from second to third following a 42 percent budget cut. Previously unadvertised products/services include Brother Multi-Function CTR machines and a Windows Server System from Microsoft.

IMAGE GRAPH1

1 Change in specialty Journal ad revenues, Jan-Jun 2004

IMAGE TABLE2

2a PHARMACY JOURNALS: Leading Arivnrtisfirs hy Company, Jan-Jun 2004

2b PHARMACY JOURNALS: Leading Advertisers by Products and Services, Jan-Jim 2DQ4

IMAGE TABLE3

3a QPHTHALMOLGGY JOURNALS: Leading Advertisers by Company, Jan-Jun 2004

3b GPHTHALMOLGGY JOURNALS: Lfiading Arivfirtisers by Products and Services, Jan-Jun 2GG4

4a HOSPITAL MANAGEMENT JOURNALS: Leading Advertisers hyCnrnpanyJan-Jun 2004

4b HOSPITAL MANAGEMENT JOURNALS: Lfiariing Arivfirtisfirs by Pmductsand Seryices^ao^Uin 2004

AUTHOR_AFFILIATION

Eugene M. May is director of marketing research atACNielsen HCI.

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