April 2006

News from the DTC NATIONAL Conference

DRUG-STORE BASED MARKETING BECOMING PRIME DTC MEDIA OPTION

(WASHINGTON, DC, April 25, 2006) – Drug-store based promotions of pharmaceutical products are gaining wide industry acceptance as brand managers realize their potential for increasing prescription volume and producing greater returns on investment than other consumer media campaigns, according to data presented today at the DTC NATIONAL Conference, a national forum devoted to direct-to-consumer marketing of pharmaceutical products.

Gary Norman, executive vice president and general manager for Rx EDGE, a leading pharmacy-based, direct-to-consumer marketing firm, reported in-store promotions are an emerging trend in which pharmaceutical marketers are boosting their emphasis on patient information and education, and shifting from television to more targeted, measurable media. Norman was a panelist in a pre-conference workshop titled “Beyond Broadcast and Print…A Full Analysis of DTC Media Vehicles.”

“Retail pharmacies are attractive, cost-effective and perhaps underutilized outlets for reaching consumers who want to learn about various conditions and treatment options,” said Norman. “Our clients are reaching consumers through some 17,000 drug stores that account for 30 percent of US prescription volume. This channel offers a unique advantage for educating consumers because a pharmacist is on hand to answer questions. Research shows 60 percent of drug store customers ask for a pharmacist’s advice about new prescription drugs.”

He added that recent IMS survey data shows the overall return on investment for direct-to-consumer media campaigns was just $2.20 compared with $6.40 for every dollar invested in Rx EDGE in-store programs. Further, matched-panel research has shown the campaigns deliver an average prescription lift of 10 percent.

For many pharmaceutical brands, in-store campaigns also are proving effective in extending the reach of consumer advertising by providing detailed information about specific health conditions and treatment alternatives.

“Brand managers know they can differentiate benefits of their medications more effectively through in-store promotions than is possible with TV ads,” said Norman.
“For a wide variety of therapeutic categories, in-store marketing is proving to be a high-impact way to reach consumers when and where they are most receptive to a brand message,” he said.

About Rx EDGE

Rx EDGE is a business unit of LeveragePoint Media, which provides a broad array of retail-marketing solutions. Through a network of more than 17,000 US pharmacies,
Rx EDGE promotes pharmaceutical brands with at-shelf dispensers, counter displays, counter mats and other in-store media. The firm’s clients include several of the leading global pharmaceutical manufacturers.