Pharma Marketing News
News & Views for
Responsible Marketers

Messages from Our Sponsors

Pharma Glossary

Pharmaguy's Picks

Pharma Marketing Network Curated Content Forums
The Leading Online Source of Curated Content for Pharmaceutical Marketing Experts
Newsletter | Conferences | Podcasts | Glossary | Surveys | Blog | Advertising Information | Contact Us

"Must Read Blog for Insiders." -- Wall Street Journal
Pharma Marketing News
Current Issue of Pharma Marketing News Available!

Search the Entire Pharma Marketing Forums Site

Go Back   Pharma Marketing Network Curated Content > Pharmaceutical Marketing & Communications > Internet and Social Media Marketing

Internet and Social Media Marketing Topics & news related to pharma marketing via the Internet in general and social media in particular.

Thread Tools Rating: Thread Rating: 1 votes, 5.00 average. Display Modes
Old 24th April 2008, 07:04 AM
JohnMack's Avatar
JohnMack JohnMack is offline
Platinum Member
Join Date: Jan 2007
Location: Newtown, PA
Posts: 5,234
Default WebMD Dampens Financial Prognosis On Ad Slowdown

Source: Online Media Daily

by Mark Walsh

WebMD Health Corp. on Wednesday lowered its financial guidance for 2008, citing a softening ad marketplace.

In a statement announcing its revised outlook, WebMD pointed to "a recent shift toward shorter-term buying commitments in certain of its customers' consumer advertising purchases which the Company believes is driven by increased caution in the current business climate."

In short, that means the broader economic downturn will lead marketers to reduce ad spending on WebMD, which ranked as the top health site in March with 20.2 million unique visitors, according to comScore.

Specifically, the company lowered its 2008 revenue forecast from a range of $395 to $415 million to $380 to $395 million.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $107.5 million to $120.0 million for 2008 was dropped to $97.5 million to $107.5 million, and net income was reduced from 36.5 million to $46 million to $29.5 million to $37.5 million.

WebMD had already cut its previous revenue guidance in February from an original range of $415 million to $430 million. At that time, the company cited a more conservative outlook on its display ad agreement with Yahoo as well as "a more cautious business environment" in lowering its forecast.

WebMD said Wednesday that it would report first-quarter results at the high end of its projected range for revenue, EBITDA and net income. Solid quarterly results would be in line with the latest earnings from Google, Yahoo and Omnicom Group, suggesting that the ad market hadn't been hit by a slowdown to start the year.

Research firm eMarketer, however, has already trimmed its forecast for online advertising in 2008 to $25.8 million from $27.5 million as a result of the "foundering" U.S. economy.

At the same time, eMarketer released a report this week in which pharmaceutical marketers said they planned to spend more this year on Web sites, search and e-mail marketing and less on traditional media.

That trend would appear to benefit WebMD and other health sites that rely heavily on pharmaceutical and other health-related advertisers for revenue.

The eMarketer study cautioned, however, that while online spending by drug companies will grow to 2.2 billion by 2011, it will remain only about 5% of the pharmaceutical industry's total ad budget over the next three years.

WebMD ranked as the top health property in March with 20.2 million unique visitors, according to comScore. The WebMD Health Network includes WebMD Health, Medscape, MedicineNet, eMedicine, eMedicine Health, RxList and

Analysts on Wednesday expressed concern over whether WebMD's preliminary numbers signal trouble for other online health destinations.

"The biggest question is whether the slower trends are WebMD-specific or industry-wide," Goldman Sachs analyst Jennifer Watson wrote in a client note Wednesday.

"Specifically, we wonder if advertisers are testing lower-cost options, including emerging ad networks that deliver impressions across smaller consumer health and beauty sites," Watson added. --with Gavin O'Malley
John Mack, Editor & Publisher
Pharma Marketing News
Reply With Quote

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

All times are GMT -5. The time now is 01:46 PM.

Powered by vBulletin® Version 3.6.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
(c) 2014, Pharma Marketing Network. All rights reserved.