FUTUREDEX
Company of the Day

A Medical Alternative
by Adam Phipps
Friday, February 28, 2003

Founded in April 2002 in King of Prussia, PA, Supply Marketing is a marketing company that creates "brand awareness" advertising campaigns in physicians' examination rooms. The company says it currently has a relationship with over 400,000 physicians. Supply Marketing places advertisements on items such as tongue depressors, examination table paper and dental bibs. Brands advertised are usually involved in life sciences and medicine in some way. The programs can be targeted to specialized groups through a doctor's therapeutic specialty, geographic location or patient demographic.

Doctors receive free medical supplies in exchange for allowing advertisers to place ads on these supplies.

Supply Marketing CEO Robert Robinson says the company is building a "network of billboards" for the doctor's office. He says the campagin is a reaction to how firms are desperately looking for more effective advertising.

"Magazine ads are flipped over," says Robinson. "With billboards, people turn their heads. Here, there is an ad right in front of them - and it's pertinent."

Robinson notes that up to 70% of patients follow up a doctor visit by going to a grocery or drug store, where the advertised products are often available. "If there is a specific audience in examination room, and the ad is not fighting other ads for eyeballs- posibly as part of a media campaign - there will be a greater response," says Robinson.

Supply Marketing's client list includes drug discovery and consumer product firms such as Johnson & Johnson. Many ads consist of public service announcements such as ones that encourage pregnant women to stop smoking.

Robinson says doctors have given a positive response to the idea. In 2002, Supply Marketing asked 2000 doctors in New Jersey what they thought of the program, and he says the doctors were overwhelmingly in favor of receiving free supplies that were emblazoned with advertising.

"Doctors can save up to $20,000 a year by receiving these free supplies," says Robinson. "I consider ours a serice helping doctors, and advertisers win because they make money."

He also notes that in Pennsylvania doctors are feeling an economic crunch due to increasing malpractice insurance rates, and the doctors in that state are a major part of his client base.

Robinson says companies have been fighting to find alternative forms of advertising. Tactics such as low-key ads in fortune cookies and ads in restrooms have grown in frequency over theyears, but they are still not as effective as they could be; thes ads are fighintg with all the other ads in the room.

Supply Marketing is backed by private investors and was funded in April 2000. The company is now exploring a follow-up round of funding.

"The idea is delivering advertising to a captive audience," says Robinson.

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