Spend Trends 2007: Hang 10 - Pharmaceutical Executive

ADVERTISEMENT

Spend Trends 2007: Hang 10
DTC Hits Its First Decade


Pharmaceutical Executive


Direct-to-consumer advertising officially becomes a "tweenager" this August—and, oh my, how it has grown. DTC was officially born in 1997 when FDA gave the green light to companies to advertise their drugs to consumers. In the first year, pharmaceutical marketers bounded onto the scene and spent more than $1 billion. Years passed. Debates ensued. Patients learned more about drugs. And, yes, spending grew. The latest available figures for 2006 show that the industry spent $4.8 billion on DTC advertising, a 13 percent increase over 2005 and the second year of double-digit growth.


Stephenen Gerard
Television is still the darling when it comes to DTC dollars, accounting for $2.7 billion of the total spend. But magazine advertising grew the most, rising 24 percent in 2006 over the previous year. As much as consumers still love watching the tube—or HDTV on flat screens—the numbers indicate the growing emphasis pharma is placing on the printed word to reach healthcare consumers.

"There is definitely an extra feeling of credibility conveyed by magazines," says Tim Kelly, practice leader of promotion management for IMS Health. "There's something tangible that resonates with people with print advertising. It's something they can hand to their doctor."

Dr. Dot-Com


Fine Print: Magazine DTC Spending Outpaces TV
Whereas 10 years ago a pharmaceutical company's "being on the Web" meant having a prescription insert (PI) posted online, life science marketers are now fully engaged in the medium and are having success. The Internet has become the first touch point at two crucial moments in the healthcare decision-making process: Consumers and patients very often go online after seeing a direct-to-consumer drug ad or after the doctor hands them a diagnosis.

Twenty-seven percent of today's online dollars for patients are spent on educational "sponsorships," according to the benchmarking consultancy TGaS Advisors. (Web sponsorships are primarily defined as an ongoing deal with a third-party site—like WebMD—involving some tool or editorial content.) Two-thirds of these deals achieved or exceeded their target goals in 2006, says Stephen Gerard, founder of TGaS Advisors, and investment is expected to increase in 2007 and 2008. Other areas of investment include banner ads and paid search, which when taken with sponsorships, make up 61 percent of the total online DTC budget.

Search-engine marketing is still in vogue, but the opportunity there is dwindling. Years past saw pharma companies buying up keywords on major search engines like Google and Yahoo! and focusing on search-engine optimization. Companies that weren't early movers were early losers.


Peter Nalen
"Search terms are like oceanfront property," Gerard says. "There's only so much of it—and most of it has been bought up. Where you once had pharmaceutical companies buying 20 or 30 search terms and misspellings associated with the name of their drug, you're now seeing them buy 300, 400, 500 'lifestyle' terms associated with the drug." These lifestyle terms can include any words that are closely related to or associated with a disease or drug.

As in previous years, paid online banner advertising has remained a staple in the marketing mix as biopharmaceutical manufacturers continue to find the Web a good place to reach their target audience. The more complex drugs become, the more likely consumers and patients will spend time searching the Web for health information. And as drugs on the whole become more specialized, particularly with targeted therapies in oncology, this online marketplace of healthcare information is expected to deliver even more value.


ADVERTISEMENT

blog comments powered by Disqus
UPCOMING CONFERENCES

Serialization Summit
San Diego, CA
Feb. 27-28, 2014



Advances in Aseptic Processing
San Diego, CA
Mar. 10-12, 2014



ClinTech 2014
Cambridge, MA
Mar. 11-13 2014


Investigator-Initiated and
Sponsored Research (IISR)

Philadelphia, PA
Mar. 19-20 2014

See All Conferences >>

Source: Pharmaceutical Executive,
Click here