Healthy Skepticism Library item: 13496

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

DMA Forecasts $10.6 Billion in 2008 Pharmaceutical Sales via Direct Marketing; New Report Focuses on Pharmaceutical Industry
PharmaLive 2008 Apr 10
http://www.pharmatimes.com/clinicalnews/article.aspx?id=13216&src=EWorldNews

Full text:

This year, pharmaceutical companies are forecast to generate $10.6 billion in sales through direct marketing, and that figure is expected to hit $15.2 billion in 2012. These are key findings in a new Direct Marketing Association (DMA) report entitled “Direct Marketing Facts and Figures in the Pharmaceutical Industry.”

DMA’s new 127-page report provides pharmaceutical direct marketers with a comprehensive overview of their sector. Each of its nine chapters – Pharmaceutical Overview; Catalogs; Commercial Email; Direct Mail; Insert Media; Internet Marketing; Print Media; Broadcast Media; and Telephone Marketing – is broken down into three subsets of data – direct marketing spending, sales, and employment – and then further examined by market and intent of offer.

The report also contains more than 70 charts that help readers benchmark their own direct marketing progress.

According to DMA Research Manager Michelle Tiletnick, “Initially, DMA was going to include the pharmaceutical industry as part of our healthcare report, which was published in February. However, upon review of the information, we realized that pharmaceutical and healthcare marketers were different enough that each merited its own report.”

“Readers of our pharmaceutical report will certainly find that the American pharmaceutical industry employs direct marketing extensively and successfully,” Tiletnick said. “This report will help pharmaceutical marketers benchmark their current direct marketing efforts against the entire industry as well as prepare themselves for the coming years.”

Other key findings from “Direct Marketing Facts and Figures in the Pharmaceutical Industry” include:

· In 2008, pharmaceutical direct marketers will spend more than $1 billion on direct marketing, reap revenues of $10.6 billion, and see an advertising ROI of $10.27 on each $1 spent.

· Between 2007 and 2012, direct marketing-driven sales are projected to compound 9.4 percent annually.

· The business-to-business category is responsible for nearly 65 percent of pharmaceutical direct mail advertising today.

· Commercial email spending is projected to increase 21.9 percent each year from 2007 to 2012.

· In 2012, Internet advertising expenditures will be nearly $173 million, up from an expected $93.6 million this year.

· Direct marketing-driven Web-driven sales this year will total nearly $1.9 billion and by 2012 they will double – reaching nearly $3.8 billion.

· Print marketing will generate more than $2 billion in sales this year.

· Between 2007 and 2012, direct mail spending is forecast to grow 7.1 percent each year.

· Insert media sales is expected to surpass $41 million in 2008.