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Mags Hooked on Drug Ads, Trouble Ahead?

  • Mediaweek, Sunday, November 1, 2009 10:09 PM

Magazines have become more dependent on pharmaceutical ads, just as those ads are facing a rash of potential curbs. With healthcare issues on the front burner, lawmakers are taking aim at the tax deduction on ad expenses for prescription drugs, while TV ads for sex aids like Viagra are coming under scrutiny.

But magazines apparently prefer to look the other way. "The [real] pressure is on results. Talk about regulations has been there a while and until it comes, you've still got to do business, says Dick Porter, CEO, Publishing Group of America. From 2003-'08, ads for drugs and remedies in consumer magazines soared 58% to $2.2 billion, ranking it No. 2 behind toiletries & cosmetics. "Print is seen as educational. You can still tear out that ad page and bring it to your doctor. It's a top-of-funnel medium, says Stephanie George, executive VP, Time Inc.

At Meredith, integrated deals have paid off so far this year. Pharma ad revenue grew 12.6% to more than $200 million in the first nine months of 2009, even as the category has spent less in magazines overall. Execs credit the gain to cross-platform packages Meredith has created that involve print, online, doctor's office and pharmacy presence, and Big Communications, its recently acquired healthcare communications firm.

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