Pharma DTC Spending Will Decline in 2009. Long Live ROI

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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