Finance Articles

National Survey Reveals Direct-to-Consumer Advertising is Achieving Return on Investment; Results Unveiled at Event Sponsored by Guideline and Med Ad

New York (PRWeb) March 19, 2007 -- According to a national study by Guideline, Inc. (OTCBB: GDLN), one of the nation's largest providers of custom business research and analysis, direct-to-consumer advertising (DTC) continues to have a significant impact on consumer choice in the Post-Vioxx Era.

In cooperation with Med Ad News, a leading pharmaceutical business publication, Guideline interviewed consumers and pharmaceutical marketing executives to uncover their thoughts and opinions regarding DTC advertising.

The survey reveals 7 of every 10 consumers (68%) agreed that DTC advertising increases consumers' awareness of conditions and treatments. Six of every 10 consumers (57%) agree that advertising seems to be done more responsibly than it was in the past and more than half (52%) believe current DTC advertising provides enough information for them to decide if they should discuss the drug with a doctor.

Pharmaceutical companies are spending billions to achieve a return-on-investment in their DTC advertising. In fact, they spent an estimated $4.5 billion on DTC in 2006, eclipsing 2005 spending by 9%. According to Guideline's survey, the enormous investment is paying off for the advertised medications. Among all consumers surveyed, 37% had a discussion with their physician about a specific medication advertised and slightly under half of these (46%) indicated that the discussion led to actually prescribing the advertised medication(s).

In addition, pharmaceutical marketing executives are generally satisfied with the ROI on DTC advertising. Among the Med Ad News subscribers interviewed, 6 of every 10 (61%) voice some degree of satisfaction. Far fewer subscribers, 2 in 10, are dissatisfied. Notably, 62% of executives feel that new "Vioxx-inspired" practices, such as the use of medical spokespersons, helped to achieve a better balance of risks and benefits compared to two years ago.

"Guideline's study affirms that the practices put in place after the Vioxx hearings improved the perception of DTC advertising among both consumers and pharmaceutical executives," said Dr. Whitcup, Managing Director of Guideline's pharmaceutical research practice. "DTC advertising remains a key part of the marketing mix, although it will continue to be challenged by the emergence of new media and technology."

Although DTC advertising plays an important role, consumers are relying more and more upon the Internet to learn about diseases and medications. According to Guideline's survey, 6 of every 10 consumers (58%) utilized the Internet, while 4 in 10 (42%) rely upon commercials or ads in newspapers/magazines.

Guideline's research also implies that DTC advertising will be challenged not only by the Internet, but by emerging media and the fragmentation of the consumer marketplace in the near future. New focused technologies and media, such as opt-in CRM, on-demand video, podcasts, and mobile and satellite radio are already seen as important channels by more than 3 in 10 pharmaceutical executives in the Guideline study.

Dr. Whitcup will present the full survey findings Wednesday, March 28 from 8 to 10 a.m. EST at an event co-sponsored by Guideline and Med Ad News at the Harvard Club in New York City. A panel of pharmaceutical industry executives, representing Med Ad News, Novartis and GSW Worldwide (one of the largest DTC agencies) and Guideline will respond to the results and participate in an interactive Q&A session moderated by Chris Truelove, Editor, Med Ad News.

In addition to Guideline's live event on March 28, Med Ad News will publish a supplement with the full Guideline Trend Report and feature other relevant news regarding DTC advertising in March.

Guideline will also conduct a webinar focused on this topic on Tuesday, April 17, 2007 at 11 a.m. EST. To register for the webinar, please visit http://www.guideline.com/events/. For additional information on this study, please contact Dr. Morris S. Whitcup at 212-329-1001.

About Guideline, Inc.
Founded in 1969, Guideline (OTC Bulletin Board: GDLN) is the nation's premier provider of customized research and analysis designed to help companies make more informed decisions about critical business issues. Our suite of research capabilities includes Custom Market Research, Strategic Intelligence and On-Demand Research. Guideline specializes in nearly all major industries, including healthcare and pharmaceuticals, consumer packaged goods, financial and business services, media and communications, technology and manufacturing. Guideline, Inc. is located at 625 Avenue of the Americas, New York, N.Y., 10011. More information is available by calling 212-645-4500 or visiting www.guideline.com.

About Med Ad News
The pharmaceutical industry's publication of record for 25 years, Med Ad News provides broad coverage and incisive analysis of the issues, events, trends, and strategies shaping pharmaceutical business, marketing, and sales. More than 16,000 readers -- comprising corporate executives, marketing, sales, and product managers -- receive Med Ad News 12 times annually. For more information, call at Engel Publishing Partners at 215-867-0044, or visit www.pharmalive.com.

Forward-Looking Statements
The discussion of forward-looking information requires management of the Company to make certain estimates and assumptions regarding the Company's strategic direction and the effect of such plans on the Company's financial results. The Company's actual results and the implementation of its plans and operations may differ materially from forward-looking statements made by the Company. The Company encourages readers of forward-looking information concerning the Company to refer to its prior filings with the Securities and Exchange Commission that set forth-certain risks and uncertainties that may have an impact on future results and direction of the Company. The Company does not report on its progress during a quarter until after the quarter has been completed and appropriately disclosed its results.

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