DTC spend lags as firms scrimp on launches, says TNS

Share this article:
Spending on direct-to-consumer launch campaigns fell significantly this year as companies waited longer to market fewer new drugs with more limited indications, said a TNS Media Intelligence report.

The market research firm found that spending on launch campaigns accounted for a tenth of overall DTC ad spend for the first eight months of 2008 – down from the 13%-15% typical in years past. That drop was a major driver in slowing DTC spend, down 6.3% for the first eight months over the same period in 2007 to $3.3 billion.

It's the second consecutive drop in DTC spending, which was down 3.1% for the same period last year.

TNS said prescription drug advertising, which accounts for over 90% of DTC spending, slipped 3.6% for the first eight months, reversing a 3.5% gain for the same period last year.

But the drop in launch spending, with aggregate spending down $155 million for the first eight months, may be more momentous, said TNS.

“Launch introductions are a bellwether indicator,” the report's authors wrote. “Marginal swings in introductory spending, up or down, can move the needle for the entire Rx category and represent the difference between category growth and decline.”

Companies are skimping on spending for launches, presumably as marketers take their share of across-the-board cost-cutting exercises. But companies are also waiting longer to market new drugs to consumers, in accordance with PhRMA guidelines on DTC and in response to pressure from regulators. And an increasing share of launches are for narrow new indications, not new drugs, making for more targeted campaigns.

TNS also found TV spend on the upswing as marketers grow more comfortable with product and risk information requirements in the medium. Spending on TV accounted for 63% of all DTC spend for the period – up from 59% for all of 2007. Meanwhile, magazine advertising was down 19.5% for the year to date as advertisers sharply cut down on inserts while continuing to favor multi-page units.
Share this article:
You must be a registered member of MMM to post a comment.
close

Next Article in Channel

Email Newsletters

MM&M EBOOK: PATIENT ACCESS

Patient access to pharmaceuticals is a tale of two worlds—affordability has improved for the majority, while the minority is hampered by cost, distribution and red tape. To provide marketers with a well-rounded perspective, MM&M presents this e-book chock full of key insights. Click here to access it.

More in Channel

Five things for pharma marketers to know: Monday, September 15

Five things for pharma marketers to know: ...

Pharma has sought 76 meetings with FDA over biosimilars; Gilead licenses Sovaldi to India generic drugmakers; Pfizer and Ranbaxy Lipitor lawsuit dismissed.

Liraglutide, aiming for new indication, gets new name

Liraglutide, aiming for new indication, gets new name

Why Novo Nordisk is choosing not to leverage Victoza's brand equity as it seeks a weight-loss indication for liraglutide.

Five things for pharma marketers to know: Friday, September 12

Five things for pharma marketers to know: Friday, ...

An FDA panel voted in favor of liraglutide for weight loss; Allergan investors backing an attempted takeover of the firm crossed a critical threshold; and 100 million health wearables are ...