© Copyright 2009 PERQ/HCI Corp. All rights Reserved. Data in This Report May Not Be Reproduced...

© Copyright 2009 PERQ/HCI Corp. All rights Reserved. Data in This Report May Not Be Reproduced Without The Written Permission of PERQ/HCI Corp.

Online Advertising in THIS Economy – What’s Next and How Do We Make It

Work

Presented by:

Jaime Trapp, National Sales Manager,

609 987-5576


Trivia!

What do Michelangelo, Mark Twain, and Tina Fey all have in common?


Intellectual Property Rights

• Michelangelo signed one piece during his life time (Pieta) because he overheard people attributing it to another sculptor.

• Mark Twain spoke to the 1906 Congress copyright committee and stated “…a book does consist solely of ideas, that is the best argument in the world that it is property.”

• Tina Fey was instrumental in the recent Writers Guild of America strike which eventually resulted in the writers receiving a percentage of the digital revenues from their work.


How does this pertain to us?

• If you do not protect your intellectual property online, it will be difficult to monetize.

• The internet devalues content providers, NOT the content, because you cannot control the consumption of it.

• Open access versus restricted access– B-to-B publishing is looking at a “fee for content” model– Associations are starting to restrict access to member-

only– Publishers are offering “digital editions” in lieu of print – So, what’s happening in print?


Publication Print Ad Dollars by All Healthcare Spend (minus Veterinary)

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

1,000,000

2002 2003 2004 2005 2006 2007 2008

TOTAL HEALTHCARE PUBLICATIONS Multispecialty

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

1,000,000

2002 2003 2004 2005 2006 2007 2008

TOTAL HEALTHCARE PUBLICATIONS Multispecialty

* Source: PERQ/HCI, MORe

In 000’s


Publication Print Ad Dollars by SpecialtyThree Year Trend

0 50,000 100,000 150,000 200,000 250,000

GASTROENTEROLOGY

PEDIATRICS

ORTHOPEDIC SURGERY

OBSTETRICS & GYNECOLOGY

DERMATOLOGY

INTERNAL MEDICINE

CARDIOLOGY

PSYCHIATRY

ONCOLOGY

MULTISPECIALTY

2008 2007 2006

0 50,000 100,000 150,000 200,000 250,000

GASTROENTEROLOGY

PEDIATRICS

ORTHOPEDIC SURGERY

OBSTETRICS & GYNECOLOGY

DERMATOLOGY

INTERNAL MEDICINE

CARDIOLOGY

PSYCHIATRY

ONCOLOGY

MULTISPECIALTY

2008 2007 2006* Source: PERQ/HCI, MORe

In 000’s



0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

OSTEOPATHY

ALLERGY

OTORHINOLARYNGOLOGY

EMERGENCY MEDICINE

PLASTIC SURGERY

UROLOGY

PAIN MANAGEMENT

RHEUMATOLOGY

ANESTHESIOLOGY

SURGICAL SPECIALTIES

PULMONARY DISEASE

NEPHROLOGY

INFECTIOUS DISEASE

DIABETES/ENDOCRINOLOGY

GENERAL SURGERY

NEUROLOGY

2008 2007 2006

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

OSTEOPATHY

ALLERGY

OTORHINOLARYNGOLOGY

EMERGENCY MEDICINE

PLASTIC SURGERY

UROLOGY

PAIN MANAGEMENT

RHEUMATOLOGY

ANESTHESIOLOGY


PULMONARY DISEASE

NEPHROLOGY

INFECTIOUS DISEASE

DIABETES/ENDOCRINOLOGY

GENERAL SURGERY

NEUROLOGY

2008 2007 2006* Source: PERQ/HCI, MORe In 000’s



0 20,000 40,000 60,000 80,000 100,000

EXTENDED HEALTHCARE

LABORATORY

PA/NP

RADIOLOGY

HOSPITAL MANAGEMENT

OPHTHALMOLOGY

MANAGED HEALTHCARE

OPTOMETRY

NURSING

PHARMACY

DENTAL

2008 2007 2006

0 20,000 40,000 60,000 80,000 100,000

EXTENDED HEALTHCARE

LABORATORY

PA/NP

RADIOLOGY

HOSPITAL MANAGEMENT

OPHTHALMOLOGY

MANAGED HEALTHCARE

OPTOMETRY

NURSING

PHARMACY

DENTAL

2008 2007 2006


In 000’s


Publication Print Ad Dollars by Specialty% Change 2008 versus 2007

-5.0

-2.3

-2.0

3.4

4.6

6.2

6.7

8.0

11.3

13.9

PLASTIC SURGERY

OTORHINOLARYNGOLOGY

ONCOLOGY


INFECTIOUS DISEASE

PSYCHIATRY

RHEUMATOLOGY

ORTHOPEDIC SURGERY

PAIN MANAGEMENT

CARDIOLOGY

-5.0

-2.3

-2.0

3.4

4.6

6.2

6.7

8.0

11.3

13.9

PLASTIC SURGERY

OTORHINOLARYNGOLOGY

ONCOLOGY


INFECTIOUS DISEASE

PSYCHIATRY

RHEUMATOLOGY

ORTHOPEDIC SURGERY

PAIN MANAGEMENT

CARDIOLOGY



ALLERGY, -34.0

NEUROLOGY, -31.5

UROLOGY, -29.6

EMER MED, -26.8

PULM DIS, -22.3

PEDIATRICS, -22.3

GASTRO, -22.0

MULTSPEC, -19.3

IM, -17.8

OB/GYN, -15.6

GEN SURG, -13.9

DO, -13.4

NEPHROLOGY, -13.3

DIA/ENDO, -11.8

DERM, -8.2

ANESTH, -7.3

ALLERGY, -34.0

NEUROLOGY, -31.5

UROLOGY, -29.6

EMER MED, -26.8

PULM DIS, -22.3

PEDIATRICS, -22.3

GASTRO, -22.0

MULTSPEC, -19.3

IM, -17.8

OB/GYN, -15.6

GEN SURG, -13.9

DO, -13.4

NEPHROLOGY, -13.3

DIA/ENDO, -11.8

DERM, -8.2

ANESTH, -7.3




RADIOLOGY, -16.1

HOSPITAL MANAGEMENT, -16.1

NURSING, -11.8

PHARMACY, -11.7

OPHTHALMOLOGY, -10.5

LABORATORY, -6.8

MANAGED HEALTHCARE, -6.4

OPTOMETRY, -2.2

DENTAL, 0.7

PA/NP, 1.1

EXTENDED HEALTHCARE, 4.1

RADIOLOGY, -16.1

HOSPITAL MANAGEMENT, -16.1

NURSING, -11.8

PHARMACY, -11.7

OPHTHALMOLOGY, -10.5

LABORATORY, -6.8

MANAGED HEALTHCARE, -6.4

OPTOMETRY, -2.2

DENTAL, 0.7

PA/NP, 1.1

EXTENDED HEALTHCARE, 4.1




Challenge #1 – The Perfect Storm Continues to Rage

• Decline in promotional spend is continuing in 2009– Market slowdown– Print promotion is down– Buyer confidence is down

• Limited FDA drug approvals slated for 2009; those that are will be specialized

• Shift away from the personal selling model as pharmaceutical companies lay off detail reps

• “Block-buster” drug model is disappearing in favor of new drugs with narrow indications

• Pfizer announcements in 2008– Shutting down its cardiovascular business– Will no longer be funding third-party CME

• Pfizer announcements in 2009– Laid off 2500 detail reps– Just bought Wyeth


Challenge #2 – Supplant?

• “Online advertising is of increasing concern to publishers as it supplants print advertising.”– “Prices for online display ads took a big tumble in

2008’s final quarter compared with the year-earlier period, with the average price for Web advertising falling by about 53%, compared with the fourth quarter of 2007 (Pubmatic, Pubmatic AdPrice Index released January 20, 2009).

• How about online advertising supplements print advertising?


Challenge #3 – Online ad revenue isn’t returning big dollars

• Online ad revenue is returning pennies-on-the-dollar– “So, while brands continue to invest in the Web, and there have

been many documented cases of ROI, the real money continues to stay in traditional media — TV, radio and even print — despite the Internet’s gains in audience.”

– Who is accessing your content is the unknown

• Selling on the basis of online ad impressions isn’t returning big dollars – “A small ad blinking away for a few seconds may be optimal for

direct response advertising … but it cannot drive enough revenue to support the rest of the Web.

– And frequency — showing the same weak ad 12 times — doesn’t make Web advertising more compelling.”

John R. Burbank, CEO, Nielsen Online, January 7, 2009, Adweek.


Challenge #4: What Are Your Currencies?

• The audience consuming your content• You have to be more than a content

provider… you have to manage your audience– Identify them– Serve them– Market to them

• Your audience is a database that needs to be measured, both in print and online– Must be a third party– Must be syndicated


Opportunity – Drive Online Revenue with Metrics

• PERQ/HCI and Nielsen Online are measuring over 500+ medical websites– Meaningful – numbers in context– Credible – 3rd party auditing– Standardized – apples to apples– One-Stop Shop – Expedites the buying process– Captures both Global and Domestic traffic

• Persistent cookie-based technology– Code that is put on the footer of a template page– Running a standard demographic survey to capture

who is accessing the site


Quick Online Stats: January 1-31, 2009Global Traffic Report

• 2,029,343 Million Unique Browsers• 7,750 filled out a survey (this attaches to

the cookie)• 833,733 said they were a

physician/resident/medical student• 92,957 said they were a PA or NP• 137,995 said they were

patients/consumers


Top Sites in January 2009


What does all this mean?

• Protect your intellectual property so you can monetize it

• Understand that your currency is the audience consuming your intellectual property

• Measuring your audience’s consumption of online content is critical to managing it and selling it!


Thank you!

© Copyright 2009 PERQ/HCI Corp. All rights Reserved. Data in This Report May Not Be Reproduced...

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