Slight increase in DTC spending will likely go to emerging media
The 134 respondents in this year’s survey are a cross-section of industry professionals: manufacturers, ad agencies, consultants and vendors.
By on Aug 29, 2007The 134 respondents in this year's survey are a cross-section of industry professionals: manufacturers, ad agencies, consultants and vendors. The survey, conducted December 2006January 2007, looked at the industry's particular challenges, such as government regulations and public attitude, and how marketers plan to address those challenges in the year ahead.
Greatest challenges in pharma marketing
Just as in last year's survey, respondents felt that government regulation was their greatest challenge. That number was up in the most recent survey: 61% identified regulation as their number one concern, compared to 50% in 2006.
Effective measurement was the second-highest ranked concern, 37% of respondents identifying it as the biggest marketing challenge to the success of their brand. Physician backlash ranked third with 35%, while consumer backlash actually dropped from 44% to 31%.
Facing issues such as increasing government regulation, problematic public image and declining patient compliance, marketers are increasingly turning their focus toward tools that allow them to educate and build relationships with consumers.
Strategic spending
Marketers clearly felt that communication programs were the best way to reach consumers and enhance public image. In 2007, 25% of respondents chose Patient Assistance Programs (PAPs) as the best route for changing public perception, up 9% from last year.
As in the 2006 study, respondents believe focus will still be on the long-term Usage stage of the Awareness-Trial-Usage cycle. However, spending in Awareness is experiencing rapid growth: 49% will concentrate more resources on Awareness, compared to 38% in 2006.
Marketers were less pessimistic about DTC spending this year than last year. In the 2006 survey, only 45% believed spending would increase. That number is up to 49% this year. Last year, 26% expected a decline in spending; only 16% expect a decline in 2007.
Manufacturer respondents were among the most pessimistic last year only 30% expected a spending increase but in 2007, that number is up to 45%. Nearly all respondents agreed that increases in spending would be far less than in years past. Only just over a quarter expects an increase in spending of more than 5%.
Agency respondents, on the other hand, were more optimistic, with 61% predicting DTC spending increases in 2007.
Best practices for reaching consumers
The relatively modest increase in DTC spending is earmarked for emerging media. While marketers still intend to spend money on conventional TV and radio advertising, the trend now is toward Websites, Search Engine Marketing (SEM) and email.
The U.S. pharmaceutical industry is using technology to build a better and more proactive dialogue with consumers, says Carl Cohen, President of Marketing Solutions for Cegedim Dendrite.
Actual spending behavior has yet to catch up with marketers's sentiments, however. While 58% of respondents said they agree pharma companies should spend less on TV spots, only 44% actually plan to reduce their spending on national TV.
Such a switch from conventional advertising to emerging media is not without its growing pains: 14% of respondents identified multi-channel deployment as the marketing area needing improvement and greater expertise, up from only 6% in 2006.
Patient Education Materials, Patient Assistance and Newsletters were the three most popular marketing tactics planned for 2007, demonstrating a trend in the industry toward greater physician/patient interaction.
It is hoped that strategies such as emails and refill reminders will both improve public perception of the pharma industry and increase patient compliance. Said Cohen, . . . the pharmaceutical industry is using new approaches to help patients comply with taking their prescriptions, which can have a major positive impact on public health.
HCP programs and consumer assistance
In 2007, 88% of respondents say they will include Health Care Provider (HCP) programs in their DTC marketing, compared to 73% in 2006. Seventy-nine percent will utilize support materials distributed to HCPs through the salesforce; 55% will provide HCP-to-Patient disease management kits.
HCP Programs generally are increasingly popular, and marketers are employing a wider variety of programs: the average number in 2007 is 2.7 programs, up from 2.3 in 2006.
The consensus, according to Dendrite, is that the industry's media mix will favor new marketing strategies over old: Internet over TV, targeted advertising over blanket ads, with the highest concentration on patient education and assistance.
For more information about the survey, visit www.dendrite.com .