Healthy Skepticism Library item: 18325

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: Electronic Source

Silverman E
DTC Spending Will Grow In 2010: Survey
Pharmalot 2010 Jun 30
http://www.pharmalot.com/2010/06/dtc-spending-will-grow-in-2010-survey/

Full text:

Where is direct-to-consumer advertising headed this year? Which activities will garner a bigger share of the budget than others? Celebrity endorsements? Product placements? Patient education? To get a grip, Cegedim Dendrite surveyed 199 folks from drugmakers, ad agencies and consultants, and learned that 51 percent say DTC will be more effective this year, while 45 percent say it will be less effective. They also learned that…
Overall, the DTC spending outlook is brighter – 41 percent believe spending will increase this year, which is up from 20 percent last year. However, 31 percent expect DTC spending will stay the same, while 54 percent of those who foresee lower spending say funds will be shifted to different programs. Such as? 19 percent say a shift to targeted direct-to-patient programs; 16 predict a shift to health care professional accounts; 10 percent say funds will go to more patient adherence accounts, and 9 percent think spending will be directed toward more integrated ‘non-personal’ promotion.
Most DTC tactics will remain the same or increase this year, with a decrease in the most expensive, less effective tactics, such as radio, direct mail and television, and a small decrease in patient education materials. Meanwhile, 73 percent say more should be spent on loyalty cards and persistence programs, 67 percent believe more should be spent on web sites, and 54 percent point to email. Like celebrities? Spending on celebrity endorsements will return to 2008 levels at 17 percent, but product placements will decline to about 14 percent, below spending levels for the past two years.
Branded communications will account for 72 percent of spending, up very slightly from 2009, but below the 75 percent spent in 2007, while unbranded spending will climb to 31 percent from 29 percent last year and 25 percent in 2007. As for product life cycles, 48 percent say spending will increase this year during the usage phase – you know, when the product is currently available – but 56 percent say spending will decrease during the clinical trial phase.
Finally, on a related note, the participants were asked how the industry’s image can be improved. And they 21 percent say spend on patient assistance programs, down from 24 percent a year ago, while 10 percent believe it’s worth spending more on company public relations, up from 9 percent. More faith and dollars are also worth investing in trade groups, namely PhRMA, with 12 percent voting for this tactic, up from 9 percent.