Wednesday, January 23, 2008

What Do Casual Games And Pharmaceuticals Have In Common?

From Video Insider - I recently flipped through an issue of Time magazine and noticed that pharmaceutical companies not only push their latest sleep aids, cholesterol suppressors and erectile dysfunction meds, but they also compete for market share amongst themselves.

The issue I looked at had ads for Actonel, AdVair, Ambien, Cymbalta, Cypher Stent, Medco, Rozerem and Zetia. My first thought was, There is an awful lot of money used to advertise these well-known drug brands. At the same time, I thought about the value proposition of online video advertising:

* touches millions of consumers each month.
* has sophisticated consumer targeting and tracking with each ad served.

Out of curiosity I looked at Time's online rate card, and with simple math I calculated the combined monthly ad-spend of all the pharmaceutical companies to be in the neighborhood of $3 million — just one issue. I looked deeper into what Time offers advertisers and found that the magazine guarantees 19.5 million impressions per month, charges a hefty $48 CPM for black-and-white full-page ads and a whopping $74 CPM for full-page color ads. I also noticed that each pharmaceutical ad was two full pages:

* Page one — the actual full-color ad.
* Page two — the full-page disclosure that generally appears on the back of the page of the color ad

This suggests each drug company buys two pages per month for an average cost per thousand of $61. WOW. | Read full article

No comments: