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Posted by on Mar 5, 2010 in Marketing, Pharma

DTC Trends: Pregunte a su doctor

DTC Trends: Pregunte a su doctor

Pharma’s financial layout in 2009 for DTC ads remained, for all practical purposes, stable, when compared with 2008’s numbers. According to the latest Nielson data, by way of MM&M, a total of $4.5 billion was shelled out by drug companies for ads on TV (64%), in magazines (28%), in newspapers (4%), on the web (3%), and on the radio (1%).

Here’s Ye Microsofte Pie for the graphically impressed (dollar amounts are in millions).

2009_DTC_ad_spend_Nielson_2.pngThe identifiable trends for 2009 were increased spending on web ads (up 31%), cable TV ads (up 17%), newspaper ads (up 11%), and radio ads (more than doubled). Spending on Spanish-language media more than tripled.

For those who blame DTC advertising on the high cost of healthcare generally and that of drugs specifically, keep in mind that changes in DTC spending don’t parallel the ever-increasing costs for drugs, outpatient care, and inpatient care.

Also costs for prescription drugs account for only about 12% of the overall healthcare spend (and are arguably one of the most cost-effective aspects of healthcare). In 2006, the spend on outpatient care was $850 billion (~41% of overall costs), and that on inpatient care was $458 billion (~22%), according to the McKinsey Global Institute.

Last year, the Congressional Budget Office reminded us that pharma invests relatively heavily in sales-rep detailing: $12 billion in 2008. The CBO’s number for DTC ad spending in 2008 was $4.7 billion.

HT for lead: Pharmalot

bmartin (1082 Posts)

A native East Tennessean, Barbara Martin is a formerly practicing, board-certified neurologist who received her BS (psychology, summa cum laude) and MD from Duke University before completing her postgraduate training (internship, residency, fellowship) at the Hospital of the University of Pennsylvania in Philadelphia. She has worked in academia, private practice, medical publishing, drug market research, and continuing medical education (CME). For the last 3 years, she has worked in a freelance capacity as a medical writer, analyst, and consultant. Follow Dr. Barbara Martin on and Twitter.