• by Erik Sass , June 6, 2008

Meredith Corporation is bolstering its custom-marketing capabilities yet again, with the acquisition of Big Communications, a health-care marketing company. Big, which currently employs over 100 people, will join other marketing firms folded into a new division called Meredith Integrated Marketing. They include O'Grady Meyers, Genex, New Media Strategies, and Directive.

 

The terms of the deal were not disclosed.

Like its counterparts in Meredith's custom-marketing portfolio, Big already had relationships with a number of "big" clients--a virtual who's who of pharmaceutical manufacturing and health-care services, including Amgen, Bristol-Meyers, GlaxoSmithKline, Merck, Novartis, Roche and Sanofi Aventis.

Meredith's President and CEO, Stephen M. Lacy, boasted that "we are now in a position to offer Big's clients Meredith's full array of content expertise, digital assets and marketing services."

Big's capabilities span print, digital and mobile channels--targeting a variety of audiences, including pharmaceutical sales forces, caregivers, medical professionals and patients.

It's not surprising that Meredith is targeting the health advertising category for strategic expansion. The drugs and remedies category was the single largest for consumer magazines in terms of revenue in 2007. Plus, it is one of the fastest-growing, according to the Publishers Information Bureau. Revenues grew 7.1% over 2006 to about $2.58 billion.

Although revenues were off slightly in the first quarter of this year (down 3.1% to $578 million), the category still holds promise for consumer magazines--especially ones that target women, a Meredith stronghold. Surveys publicized in January by CVS found that women influence 80% of health-care decisions in their households, wielding buying power of about $1.2 trillion.

Pharmaceutical companies are likely to continue using magazines as platforms for direct-to-consumer advertising. Recently, DTC was the subject of controversy and debate in Congress; some representatives have called for greater restrictions.

Magazine publishers have responded to criticism from consumer advocates with studies that found DTC advertising resulted in none of the ill effects often alleged; for example, Rodale found that DTC did not lead to people receiving an inappropriate drug, simply because they demanded it from their doctor.