DTC is going to tank
Richard Meyer over at World of DTC Marketing says that “DTC spending is going to tank” for a number of reasons that include more than just a recession:
- Senior [pharmaceutical] executives are going to want good hard ROI metrics that are reflected in the company’s balance sheet
- Cash is king. Pfizer needs money for Wyeth. Lilly for the Zyprexa settlement being two good examples
- Too many people view DTC marketing as an ‘expense” rather than a tried and true marketing tactic.
An 11% Drop in DTC Spending
Meyer is in good company. John Mack of The Pharma Marketing Blog is predicting an 11% drop:
- Lack of DTC-worthy blockbuster drugs on the horizon worthy of the spend
- Pharma’s voluntary 6-month DTC moratorium on DTC advertising for new drugs
- increasing pressure on pharmaceutical marketers to prove to payers that brand name drugs are effective.
A Shift to Online Marketing
Broadcast television and traditional glossy print have been disintermediated by online distribution models. What I have not yet seen is data on the correlation between the drop in “traditional” media audiences and the predicted declines in DTC advertising. In other words: doesn’t this all make sense? Why would pharma pay to be where no one is looking?
Resources and Next Steps
- Download John Mack’s “Future of DTC Advertising” summarizing results from an eight week long online survey of DTC experts. (US $6.95)
- Be on the look out for more information from R.J. Lewis, of e-Healthcare Solutions who thinks “Interactive is continuing to get a larger share of the DTC budget, and according to our own advertiser survey (n=75) will increase in 2009.” [I'm guessing that Lewis equates online with interactive]
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