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Does return-on-investment (ROI) change when years on market are taken into consideration?

As a product moves from its introductory phase to an established brand, there is a steady increase in return-on-investment for both detailing and for print promotion.

A recent ACNielsen HCI analysis of 63 CTS Rx campaigns (representing a base of 126,000 MDs), shows a steady increase over time in the ROI for print only, detailing only, and for the combination of print and detailing. It should be noted that each of the 63 products included in this analysis had campaigns in which the sales aid and journal ad shared similar copy and graphics, and each communicated a believable and relevant message.

The following table shows that of the 63 campaigns, 21 were for products that were on the market for 1 year or less. Print and especially detailing are required to stimulate usage of a new product. These promotional vehicles (by themselves) generate little more than a break-even return on investment. However, physicians who were exposed to both print and detailing did average a return of $1.68/$1.00.

As a product moves into the 1-4 year stage of marketing, there is a significant increase in ROI for print only, and in detailing only … and especially when print is overlaid on detailing. With products marketed for more than 4 years, further gains in return-on-investment were seen in all promotional categories. Most significant is the ROI of $4.64/$1.00 when print is overlaid on detailing. This return represents an increase of 40% over detailing only.

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Do's and Don'ts
 Do's
  Recognize that it takes time for a new product to generate a positive return-on-investment.
  Use print promotion to leverage detailing.
  Develop a uniform campaign which communicates a believable and relevant message.

 Dont's
  Don't expect to recover the costs associated with detailing and print promotion during the first year of marketing a new, non-unique product that enters a competitive therapeutic class.



Sources of Information  Core Messages  Sales Effort
Professional Advertising  Promotional Campaigns  Consumer Advertising
ROI/Maximizing Promotional Efficiency  FAQs Main Page

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