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"NURSING LEADS THE CHARGE" - MM&M May, 2004

by Eugene M. May

While large increases in DTC spending for 2003 grabbed the headlines, specialty journal advertising was making some notable gains of its own. Eugene M. May reports on the companies and brands making the push.

Five of the eight specialty markets tracked by PERQ/HCI’s Journal Ad Review (JAR) reported higher ad spending during 2003. The strongest growth was observed in nursing (24.1 percent), followed by radiology (10 percent) and pharmacy (8.7 percent). The 4.4 percent increase in hospital management and the 3.7 percent gain in ophthalmology reverse two years of losses for both segments. The good news for the three markets that saw a decline is that losses were relatively low. Dental was down just 0.7 percent, laboratory declined 2.5 percent and optometry fell 4.1 percent.
     When year-to-year comparisons are made based on ad pages, four markets appear on the plus side. Of the segments reporting higher revenues in 2003, all but ophthalmology reported gains in ad pages. A brief review of each specialty market follows.

Dental registers marginal decline While there was a slight recovery in dental ad spending during the second half of 2003, the increase was not enough to generate a gain for the year as a whole. In fact, the 0.7 percent loss reverses a threeyear trend of single-digit gains.
     Ultradent stayed on top, with a 3.2 percent share of all ad spending in dental journals. GC America climbed from eighth to second as ad expenditures rose 40 percent. The one new firm on this year’s top 10 list was Trident Dental, up 12 places to third as ad outlays climbed 48 percent due largely to the introduction of a new ceramic restoration product. 3M ESPE slipped one place to fourth, while Kerr/SDS Sybron and Den-Mat traded the fifth and sixth spots. Glidewell climbed from tenth to seventh even though ad expenditures increased just 6 percent. A 56 percent decline in ad spending dropped Discus Dental from second place to eighth, while Ivoclar Vivadent fell six spots, from fourth to tenth, following a 37 percent reduction in ad outlays.
     Only three of the products on 2002’s top 10 list carried over into 2003, including Arestin Minocycline HCI (up from ninth to third), Ultradent Tissue Management (up one spot to fifth) and the Oral- B 3D Excel Toothbrush (down from third to eighth following a 21 percent cut in spending). A 227 percent boost in spending moved Brasseler Instrument from 31st to first, while Imtec’s MDI Sendax implant system jumped from 73rd to tenth following an 87 percent increase in ad outlays.
     Four new products also appear on this year’s top 10: Smartprep Instruments from SS White Burs ranked second, Gradia Direct Multi Layer Restoration was fourth, Trophy RVG Filmless Digital X-Ray took sixth and Biscover Liquid Polish finished seventh.


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Hospital management reports gains
A 4 percent spending increase in hospital management journals during the first half of 2003 was followed by a near 5 percent gain for the second half, resulting in a 4.4 percent jump for the year as a whole. This trend follows losses of 2.3 percent in 2002 and 27.7 percent in 2001.
     There were three companies new to the top 10 this year: Philips Medical System jumped from 46th to first after a 475 percent gain in ad outlays, while Cardinal Health soared from 183rd to fourth and Lawson Software went from 34th to fifth following a 216 percent boost in spending. Siemens Medical Systems and GE Medical Systems remained in second and third, respectively.
     Companies not advertising in 2002 but appearing on the 2003 list include Hewlett-Packard (sixth) and Dictaphone (eighth). The leading advertiser in 2002, Cerner Corp., was seventh, while IDX slipped from sixth to ninth and Sodexho USA dropped from fourth to tenth as ad expenditures were cut 24 percent.
     Six of the top 10 products or services advertised in hospital management journals were new to the 2003 list. A 143 percent boost in spending moved GE Healthcare Financial Services from 18th to first, while a 322 percent jump for Lawson Software was responsible for its move from 44th to second. Although prescription products typically do not receive strong support in hospital management journals, a 321 percent increase in ad spending moved GSK’s oral diabetic combination, Avandamet, from 82nd to seventh. A new entry from Microsoft (.Net Connected Software) was eighth. Completing the top 10 were 3M Health Information Systems, down from eighth to ninth, and Siemens’ Soarian Information Solution, which dropped from second to tenth.


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Laboratory journals edge downward
After registering a 4.7 percent gain in 2002, ad spending in laboratory journals dropped 2.5 percent last year. During 2001, this market fell 12.5 percent.
     Roche Diagnostics continued as the top advertiser by a wide margin, with a 6.9 percent share of spending. Bayer Diagnostics moved from fourth to second even though ad outlays increased only 3 percent. Olympus America jumped four spots to third, while Beckman Coulter slipped from second to fourth following a 43 percent drop in spending. Genentech Bio Oncology advanced from ninth to sixth, while Abbott Diagnostics dropped from fifth to eighth following a 35 percent budget cut. Inova Diagnostics slipped from eighth to tenth as ad outlays were reduced 12 percent.
     The first of three firms new to the top 10 was Gen-Probe, up from 124th to fifth due largely to a pair of newly advertised molecular diagnostic products. Bio-Rad was up from 15th to seventh following a 55 percent boost in spending, while Cytyc jumped from 44th to ninth as ad outlays increased in support of a new imagining system.
     It’s not surprising that only two products from the prior year’s top 10 list carried over into 2003, as this market relies heavily on new entries to sustain growth. Genentech Bio Oncology’s Herceptin retained the top spot, while the BD Vacutainer family of products dropped from second to tenth.
     Newly advertised products in 2003 include Roche Diagnostics’ fully automated CHF assay (second), Cytyc’s Thinprep imaging system (fourth), Gen-Probe’s molecular diagnostic products (sixth) and Inova’s Quanta Life Elisa (ninth). Previously advertised products moving into the top 10 include Integrated Modular Analytics from Roche, up from 70th to third following a 340 percent boost in spending, and Abbott Diagnostic Instruments, up from 49th to fifth as ad budgets gained 186 percent.


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Nursing exceptionally strong
Ad spending in nursing journals continued to show exceptional growth, as evidenced by a 24.1 percent gain during 2003. In 2002, this market registered an increase of 14.6 percent. Since all but one of the top 10 advertisers is involved with recruitment/staffing, it is quite clear that there continues to be a high demand for personnel within the nursing profession.
     Nurses Service Organization, which provides liability insurance for nurses, remains the leading advertiser. The first of the recruitment/ staffing companies, Supplement Health Care Services, edged up one spot to second, as did recruitment efforts in Texas (mostly from hospitals), which ranked third. A 15 percent reduction in ad outlays at American Traveler resulted in a drop from second to fourth. Those maintaining their year-ago position include Cross Country Travcorps (fifth), North Carolina recruitment (eighth) and Vita Medical Staffing (ninth). The only new name in the top group is RN Network, which climbed from 36th to 10th as ad spending increased 208 percent.
     Liability Insurance for Nurses, from Nurses Services Organization, was by far the most heavily advertised product/service, with a 3.8 percent share of spending. Supplemental Health Care Staff Recruitment (second) and Cross Country Travcorps Recruitment (third) were each up one position from a year ago, while American Travel slipped two spots to fourth. New products or services moving into the top 10 include RN Network Florida Recruitment, from 27th to seventh, Travel Nursing.Com, from 12th to eighth, and Medical Staffing Network Recruitment, from 18th to 10th following a 99 percent increase in ad outlays.


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Ophthalmology turns around
The 0.8 percent loss reported for ophthalmology journals during the first half 2003 was more than offset by an 8.9 percent increase during the second half, with the end result being a 3.7 percent increase for full-year 2003. Importantly, this gain follows losses of 8.5 percent in 2002 and 4.7 percent in 2001.
     Alcon Laboratories, one of the six companies that made the top 10 list in 2002 and 2003, repeated in first place as ad spending increased 20 percent. Allergan retained second with a 36 percent boost in ad outlays, while Pfizer Ophthalmics moved from fourth to third. The introduction of quinolone ophthalmic solutions from both Alcon and Allergan, coupled with a significant spending boost from Pfizer Ophthalmics, was a major factor influencing the turnaround observed in 2003.
     Companies moving into the top 10 include Carl Zeiss Meditec, up from 12th to ninth following a 215 percent increase in spending for its Stratus Optical Coherence Tomography product, and Allergan Pharmaceuticals, up from 43rd to sixth following the introduction of Restasis, a product for dry eye disease. Also moving up was Pfizer Laboratories, which advanced two spots to ninth, while Bausch & Lomb climbed from 28th to 10th due largely to a 236 percent gain in spending for Lotemax.
     The two most heavily advertised ophthalmology products were Pfizer Ophthalmics’ Xalatan, which repeated in first place, and the Tecnis Foldable IOL, which advanced from ninth to second as ad expenditures increased 128 percent. Previously advertised products moving into the top 10 include Alcon’s Ladarvision 4000, up from 20th to ninth, and Santen’s Quixin, up from 14th to 10th.


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Optometry advertising falls
The negative spending trend in optometry journals observed during the first six months of 2003 continued during the second half of the year — but at a lesser rate — resulting in a 4.1 percent loss for the year. This follows a 3 percent gain during 2002.
     Alcon Laboratories became the top advertiser in this segment (up from fourth) as spending increased 56 percent. Marchon Eyeware and Viva International repeated in second and third place, respectively, while CIBA Vision fell from first to fourth. The first of four companies new to the top 10 list was Signet Armorlite, which climbed from 29th to fifth following a 159 percent boost in spending. Essilor Group and Vision Expo each advanced three spots to eighth and ninth, respectively, while Clearvision Optical moved from 15th to 10th.
     There tends to be considerable turnover among the top 10 products, and 2003 was no exception. The half-dozen new entries on the list were led by Transition Lightweight Plastic Lenses, which soared from 190th to first as ad spending increased 909 percent. Kodak Precise Progressive Lens also took a significant jump, from 233rd to third, following a 920 percent boost in ad outlays. Others new to the top 10 include Alcon’s Travatan Ophthalmic Solution, up from 16th to 5th, and Focus Night & Day Continuous Wear Contact Lenses, up from 15th to sixth. Optical Tints, Chemicals and Instruments from Brain Power advanced from 31st to seventh, and Resolution Polycarbonate Lens from Optima moved from 14th to 10th.


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Pharmacy journals remain strong
The 8.7 percent spending increase in pharmacy journals during 2003 was driven largely by the launch of several new drug products. This gain builds on a 6.1 percent boost in 2002.
     Again, Pfizer was by far the top advertiser in this market, with a 4.7 percent share of spending. Among those new to the top 10 were Bristol-Myers Squibb and Otsuka Pharmaceuticals (from 198th to second on spending for their new antipsychotic product, Abilify), and Mallinckrodt Pharmaceuticals (from 18th to sixth following a 114 percent spending increase spread among a number of products). Roche advanced from 13th to seventh due largely to Pegasys, a new interferon agent, while Eli Lilly climbed from 92nd to eighth following the initiation of prelaunch advertising that appears to be setting the stage for their new SSRI/SNRI, Cymbalta.
     All others in the top 10 carried over from the prior year. GSK slipped one spot to third, Teva advanced from sixth to fourth, and AstraZeneca fell from third to fifth. A 44 percent cut in ad outlays dropped Wyeth from fourth to ninth, while Mylan slipped from eighth to 10th.
     All but one product was new to 2003’s top 10 list. Abilify ranked first, with a 3.8 percent share of all expenditures in this segment. Two products from Pfizer were next: Vfend, up from 12th to second, and Neurontin, up from 40th to third. Newly advertised Ortho Tri-Cyclen Lo ranked fourth, while the one carryover from 2003, AstraZeneca’s Seroquel, dropped from first to fifth. A Mylan company ad was sixth (up from 856th), while Ranbaxy’s Sotret was seventh. A 580 percent boost in ad spending moved Avandamet from 168th to ninth, while a Lilly ad dealing with depression, in anticipation of Cymbalta’s debut, was 10th.


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Radiology growth hits double digits
The 10 percent spending gain reported in radiology journals during 2003 was the best seen in the last three years. In 2002, this segment registered a 3.8 percent increase — in 2001, 1.1 percent.
     At the company level, Siemens Medical Systems repeated in first place, while Philips Medical Systems was unchanged in second. Amersham Health (third) and GE Medical Systems (fourth) traded places when compared with 2002, and Fuji Medical Systems edged up one spot to fifth.
     The first of four companies new to the top 10 was Toshiba, which advanced from 11th to sixth after increasing ad outlays 85 percent. This increase can be attributed in large part to the introduction of a new CT scanner. Higher ad expenditures for imaging solutions were partly responsible for Eastman Kodak’s advance from 12th to seventh. CPSI, a new advertiser in 2003, took ninth, while a 190 percent increase in ad outlays attributed to a dry film imager moved Sony from 57th to 10th.
     There were seven products that entered the top 10 list in 2003. The newly advertised LSO Crystal Detector from CPSI ranked first, followed by the Philips Medical System, which climbed from 18th to second after a 51 percent increase in ad spending. An Amersham Health company ad advanced from 68th to third, the Sony Filmstation Drug Film Imager climbed from 31st to fourth, as ad outlays increased 190 percent, and Berlex’s Ultravist/X-Ray Contrast Media jumped from 730th to fifth.


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About ACNielsen HCI
Based in Princeton, NJ, ACNielsen HCI is a national pharmaceutical promotion research organization and a recognized leader in physician and consumer promotion planning, measurement and analysis. Since 1982, ACNielsen HCI's strategic promotion planning and evaluation expertise has powered sales, profitability and competitive advantage for pharmaceutical companies through the application of its unique blend of integrated quantitative and qualitative research. Leveraging the insight, knowledge and deep normative data gathered through analysis of more than 6,400 promotional campaigns, ACNielsen HCI provides research solutions addressing critical marketing and sales issues. The company has strong and deep norms in most therapeutic areas.

CONTACT:
Gene M. May
ACNielsen HCI
(609) 630-6450
gmay@acnielsenhci.com

Jennifer Ort
Creative Marketing Alliance
(609) 799-6000 x64
jort@cmasolutions.com


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