Direct-to-Consumer Advertising
Executive Summary
Drug company spending on direct-to-consumer advertising is soaring and could reach $10 billion, or as much as 30% of all promotional spending, by 2005, if current trends continue. But some powerful groups, most notably, doctors, pharmacists and managed care organizations, have begun to express their concern, worried that such advertising inappropriately influences patient prescribing.
You may also be interested in...
Big Pharma Continues to Rely on Marketing to Consumers
DTC advertising for prescription drugs is alive and well. Companies spent $2.16 billion through the end of October 2002--$216 million per month--a 4.4% increase over the monthly industry spend rate from 2001. In a year characterized by belt-tightening decisions, this step-up in spending reflects just how crucial it is for pharmaceuticals to steer consumers towards high-margin drugs.
For Devices, an Elusive Consumer Appeal
While pharmaceutical companies have begun to explore the blow-out potential of a direct to consumer appeal in quality of life issues, medical device firms have sat on the sidelines. They've targeted seriously ill patients on the outer fringes of conditions like obesity and erectile dysfunction, but as of yet, haven't really gone after the huge central market.
US Q1 Consumer Health Earnings Preview: Label This One Historic And Challenging But Promising
US OTC drug and supplement firms’ reports of results for the first three months of 2024 began on April 19 with P&G. JP Morgan analysts say while “some retailers in the US in particular” are reducing consumer health inventories, for the overall sector they expect “a healthier balance of positive volume and lower pricing contribution.”