Healthy Skepticism Library item: 4516

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

Roner L.
DTC spending to slow, channels changing
Eye For Pharma 2006 Apr 11
http://www.eyeforpharma.com/index.asp?nli=o&g-p&nld=4/13/2006&news=50526

Notes:

Ralph Faggotter’s Comments:

“ In previous surveys, respondents identified the physician’s office as a key channel, so this year Optas asked participants about the kinds of in-office programs marketers employ. Support materials and disease management kits delivered through the physician’s office are used by more than half of this year’s respondents. “

Direct-to-Consumer Advertising (DTCA) looks set to become more targeted in the future.

Part of the strategy is clearly to exploit the naiivity of medical practitioners, who willingly surrender personal credibility and give over space in their offices, to permit drug companies to
advertise their wares.

Full text:

DTC spending to slow, channels changing
(4/11/2006)

Optas’ latest survey on direct to consumer marketing predicts spending will slow in future years and that companies will turn to new tactics to reach consumers and improve the industry’s image.

Optas, a division of Dendrite, has been conducting the survey since 2002 and says this year’s survey highlights some interesting trends.

This year’s survey, conducted online in December 2005, reveals that more than half of respondents (55%) believe DTC spending will decrease or stay flat in 2006. And the group says respondents from pharmaceutical manufacturers were even more pessimistic, with 68% predicting a decrease or hold in DTC spending.

According to survey participants, spending differs by stage in the patient relationship cycle – awareness, trial and usage. The most significant growth is predicted in support of long-term usage.

To respond to the current market and consumer attitudes, more than 65% of respondents say the industry should increase spending on Web sites. Pharmacy and doctor’s office programs targeting consumers took a close second, with 58% of marketers recommending these channels.

Television and radio have unmistakably fallen out of favor with marketers, ranking at the bottom of recommended channels.

According to Optas, previous years of the survey have reflected differences in what people think marketers should do and what they will do. Previously, although respondents suggested DTC marketers should spend less on TV, they admitted they did not intend to change the expenditure on the channel.

But the group says, in this year’s survey, they begin to see a convergence between spending recommendations and actual plans.

This year’s survey shows that DTC marketers are clearly concentrating on patient education and assistance in their marketing plans. Eighty-one percent (81%) of respondents say they will focus on patient education materials in 2006, while newsletters (54%), patient assistance (53%) and patient education events (50%) also figure prominently in their plans.

Those seeking to decrease spending on DTC programs were more likely to spend money on patient assistance programs and rebates or coupons than those increasing spending. Those increasing spending say they are more likely to spend on tactics related to relationship marketing, including newsletters, refill reminders and loyalty cards.

When asked what areas of DTC marketing expertise needs the most improvement, marketers chose marketing integration and relationship marketing.

In previous surveys, respondents identified the physician’s office as a key channel, so this year Optas asked participants about the kinds of in-office programs marketers employ. Support materials and disease management kits delivered through the physician’s office are used by more than half of this year’s respondents.

Survey respondents say the industry’s biggest DTC marketing challenge is government regulations. And those planning to increase television spending are the most concerned with the effects of regulation.

Not surprisingly, perhaps, in light of the industry’s struggling reputation with the public, the number of respondents citing concerns about consumer and physician backlash has more than doubled in the past four years. But marketers are beginning to address the backlash with direct consumer communication programs to improve public perceptions.

“DTC marketing has reached the end of an era,” Optas says. “Free flows of money to mass media outlets are giving way to direct patient communications that provide valuable information and support in a manner that can improve the perception of the industry as a whole.”

To learn more about the survey, visit www.optas.com .

Author: Lisa Roner, Editor, eyeforpharma Briefing