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DoubleClick Sponsored Study Shows Online to Be the Most Cost Effective Advertising Medium at Driving incremental Sales for Prescription Drug Brand.

 Media Mix Model Shows How Altering the Marketing Mix Can Increase
 Incremental Sales
 (iMedia Brand Summit) DEER VALLEY, Utah, Sept. 24 /PRNewswire-FirstCall/

-- -- DoubleClick Inc. , the leading provider of marketing tools for advertisers, direct marketers and web publishers, today announced the results of a Media Mix Modeling Case Study that was conducted on behalf of a prescription allergy drug brand. The study, which uses econometric modeling to determine the relative impact that various marketing activities have on incremental sales, shows TV as the biggest driver of incremental sales, as was expected due to the mix of budget allocated to TV, and reveals online advertising to be the most cost-effective advertising medium at driving incremental sales.

The model attributes 78% of the allergy drug prescriptions to baseline sales and seasonality. The incremental 22% is attributed to marketing activity, comprised of TV (12%), Detailing, or calls on doctors (6%), print (3%) and online (1%).

The model reveals that print advertising is almost twice as effective as TV in driving incremental sales for this allergy drug, while online advertising was more than three times more effective than TV at driving incremental sales. In examining the relative responsiveness of each media, TV makes up 85% of total impressions, yet drives 73% of media-driven prescriptions, whereas online advertising accounts for only 3% of total impressions, yet drives 7% of media-driven prescriptions.

Print and online advertising are also more cost effective than TV advertising for this allergy drug. Despite higher CPMs (cost per thousand impressions) than either TV or print, due to the targeted media purchased, online was more efficient at driving incremental prescriptions. The relative cost per incremental prescription generated from TV advertising is almost 30% higher than print and 50% higher than online. Print advertising is almost 20% higher than online on a relative cost per incremental prescription.

The study, which was commissioned by DoubleClick and conducted by the research division of Beyond Interactive, examined weekly marketing and sales data over 5 quarters for this major pharmaceutical brand. The model developed for this allergy drug brand explained 80% of the variance in prescription volume, which is highly accurate for marketing mix modeling. All variables in the model were statistically significant at the 95% level.

"Econometric modeling has been used for some time in the consumer packaged goods industry to determine causal relationships between marketing activity and sales. This is the first time that we are aware of modeling that includes online media for a non-dot-com and non-CPG product," said Michele Madansky of Beyond Interactive. "We are extremely happy to have developed this model which enables a major pharmaceutical to include online advertising in its reallocation scenarios. We expect many other companies to begin to adopt these tools to determine their optimum media mix."

Media mix modeling enables companies to simulate the impact of alternate marketing allocation scenarios. Using the model developed for this allergy drug, if the television budget was decreased by 3.1% and online was increased by 50%, with the same dollar total, prescriptions would have increased by 0.1% over the five quarters analyzed. This can translate to significant revenue for a large brand as the consumer continually refills their prescriptions.

"Media mix modeling is an invaluable tool for marketers seeking to determine the optimal media mix to increase their sales," said Court Cunningham, Senior Vice President of DoubleClick, speaking at the iMedia Summit. "DoubleClick is committed to increasing understanding of the usage and effectiveness of online advertising and is delighted with the results of this research which demonstrates the positive role of online advertising, within the marketing mix, in driving incremental sales."
 A copy of the case study is available at
 About DoubleClick Inc.

DoubleClick is the leading provider of tools for advertisers, direct marketers and web publishers to plan, execute and analyze their marketing programs. DoubleClick's online advertising, email marketing and database marketing solutions help clients yield the highest return on their marketing dollar. In addition, the company's marketing analytics tools help clients measure performance within and across channels. DoubleClick Inc. has global headquarters in New York City and maintains 24 offices around the world.
 Dave Frankland


Contact: Dave Frankland of DoubleClick Inc., +1-212-655-7692, or

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Geographic Code:1USA
Date:Sep 24, 2002
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