I have had the opposite experience using water and moist paper towels... I guess everyone is different
I found that the ointment will soak in and keep the membrane moist and pliable for up to 12hrs, while using water can drip inside the membrane with the chick, sometimes onto the beak/nostrils... also the paper towel will dry out overnight, if the chick has a long time to wait... this is just what has worked for me
I do put it on hot already, so maybe that is why.. I warm it up on a heating pad in the bathroom where I work on the egg. I also put the ointment on the back of my hand where it liquifies/body temperature while I apply it with a q-tip. I sterilize my hands before of course