Healthy Skepticism Library item: 10915

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Publication type: news

Direct-to-Consumer (DTC) Marketing for U.S. Prescription Drugs Moves Online, Cegedim Dendrite Survey Says
Business Wire 2007 Jul 13
http://pharmalive.com/news/index.cfm?articleID=458985&categoryid=43

Full text:

The U.S. pharmaceutical industry is embracing online media to build relationships with consumers and is cutting back on traditional broadcast and print media to promote drugs, according to Cegedim Dendrite’s latest DTC Industry Check-Up Survey.

“The U.S. pharmaceutical industry is using technology to build a better and more proactive dialogue with consumers,” says Carl Cohen, President of Marketing Solutions for Cegedim Dendrite, which provides technology products and services to the global pharmaceutical industry.

According to the annual survey, pharmaceutical companies in 2007 will increase their spending on online activities, such as web sites, search engine marketing, and e-mail. Also, to encourage patients to take their medicines – both initially and for the long term – companies are relying more on educational programs at pharmacies and physician offices, newsletters and refill reminders. Meanwhile, national TV, spot TV, radio and direct mail will top the list for decreased spending.

“The continuing growth of online media and technology to build and sustain consumer relationships, coupled with the decline in traditional mass marketing advertising,” Cohen says, “confirms that pharmaceutical companies can use alternative media to match the impact of general advertising more cost effectively and with quicker results. At the same time, the pharmaceutical industry is using new approaches to help patients comply with taking their prescriptions, which can have a major positive impact on public health.”

Another major trend identified by this year’s survey is cautious optimism about DTC spending growth for 2007. While DTC spending is not experiencing the growth it has had in previous years, nearly half of respondents expect DTC spending to increase this year. Only a quarter expect it to increase by more than 5 percent, however.

The biggest challenge in DTC marketing continues to be government regulations, which were cited by 61 percent of respondents, up from 50 percent last year. Meanwhile, adverse consumer reaction to DTC marketing was mentioned as a problem by only 31 percent of respondents, down from 44 percent last year.

The fifth annual Check-Up probes the concerns of industry participants, identifies areas of opportunity, and specifies trends in spending and marketing mix. The survey’s responses were from a cross-section of U.S. manufacturers, agencies and vendors.

The 2007 Cegedim Dendrite DTC Industry Check-Up is published in the form of a white paper that is available at www.dendrite.com.