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Catalina report: Simple demographic targeting on national advertising misses the mark

BY Michael Johnsen

ST. PETERSBURG, Fla. — Simple demographic targeting does not weight advertising exposures toward households that have greater purchasing value, according to a study by Catalina Marketing released Monday. The study shows that, for a cross-section of major consumer brands, an average of just 15% of television ad exposures reach the households that account for 80% of sales. Meanwhile, brand advertisers deliver 64% of exposures to households that account for just 2% of sales.

"We undertook this study at the request of customers who wanted to better understand how demographic targeting improved delivery against their most valuable buyer segments," stated Todd Morris, EVP for Catalina. "Our findings show that demo-based targeting significantly under delivers against the most valuable buyer groups. Across $415 million in TV media spending by 10 mega-brands, ad exposures were delivered to every buyer audience in proportion to its size of population, not its value to the brand or the category."

Among important study highlights:

  • Demo-based TV media plans treat all buyer groups equally, no matter what their value to a brand. As a result, heavy category buyers, who spent almost five times more than the average household, received just 3% more exposures;

  • The average brand in the study delivered 30% of exposures to households that were inactive in their category, meaning they never bought the category or bought just one time throughout the 12-month study period; and

  • A majority of sales volume falls outside of common demographic targets. More than half (53%) of sales for the average brand fell outside of the demographic target (households headed by women between ages 25 years and 54 years).

According to the report, advertisers have relevant and actionable insights than demographics by which to target consumers on a mass scale. Among these new models is purchase-based audience buying, in which actual shopper data is used to determine the consumers and buyer audiences that receive advertising from brands.

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CVS Caremark research finds link between medication adherence, employee productivity

BY Antoinette Alexander

WOONSOCKET, R.I. — Employees with such chronic diseases as asthma, diabetes and high blood pressure spend fewer days out of the office when they are adherent to their medications, according to new research conducted by CVS Caremark and Truven Health Analytics (previously the healthcare business of Thomson Reuters).

Such chronic diseases as asthma, diabetes, high blood pressure and elevated cholesterol impact nearly 70% of working-age adults in the United States. While research has demonstrated the impact of medication adherence on reducing overall healthcare costs, there has been less evidence available to date on whether adherence improves employee productivity. However, the new research, published on Monday in the Journal of Occupational and Environmental Medicine, found that employees with chronic conditions who were adherent to their prescribed medications had up to seven fewer days away from work annually (including absenteeism and short-term disability days) than those who were not adherent. This translated into estimated annual savings of up to nearly $1,700 per adherent employee.

"These research findings clearly show that employees who receive appropriate medical care and follow their doctor’s directions about taking their medication are healthier and more productive," stated Troyen Brennan, EVP and chief medical officer of CVS Caremark. "These results are one more piece of the puzzle illustrating the impact of medication adherence in improving health outcomes while managing overall healthcare costs."

The researchers examined data on prescription drug usage, absenteeism and short-term disability for more than 100,000 employees at more than 16 medium- to large-sized employers.  Employees included in the study were diagnosed with diabetes, high blood pressure, congestive heart failure, high cholesterol or asthma/chronic obstructive pulmonary disease. The research found significant differences between adherent and nonadherent employees in the number of short-term disability days taken for all conditions studied, and between adherent and nonadherent employees in the number of absenteeism days for those with diabetes, high blood pressure, high cholesterol and asthma/COPD.

"This is one of the first studies to be able to quantify the impact of medication adherence on worker absenteeism," stated Ginger Carls, senior research leader of Truven Health Analytics and co-author of the study. "The results provide a clear message that employees with common chronic conditions who take their medications as directed miss fewer days at work, resulting in potential cost savings for employers."

This study is a product of ongoing CVS Caremark-sponsored research that is focused on understanding why many consumers do not take their prescriptions as directed, and developing solutions to assist patients in using their medications effectively.  Annual excess healthcare costs because of medication nonadherence in the United States are estimated to be as much as $300 billion annually.


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FDA accepts opioid drug application from Zogenix

BY Alaric DeArment

SAN DIEGO — The Food and Drug Administration has accepted a regulatory application for an opioid painkiller made by Zogenix, the company said Monday.

The drug maker announced the FDA’s acceptance of its application for Zohydro (hydrocodone bitartrate) extended-release capsules, designed for moderate to severe chronic pain. The company expects the FDA to decide whether or not to approve the drug by March 1, 2013.

"We are pleased with the decision by the FDA to accept our submission for filing and look forward to working with them throughout the regulatory process," Zogenix president and CEO Stephen Farr said.

Farr said that if the drug is approved, it will be classified by the Drug Enforcement Agency as a Schedule II controlled substance and will have a risk evaluation and mitigation strategy, or REMS, which he said would be consistent with the recently introduced FDA-approved REMS for extended-release and long-acting opioids.


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