Direct-to-consumer (DTC) advertising, something that once seemed shocking,
has become such a part of the television landscape that it raises few eyebrows
any longer. Oh, there was an FDA study and finding last year that calming
voice-overs and images of puppies and beach houses did not distract consumers
from picking up on the health risks of the products being pitched. And a recent
study found that voluntary industry guidelines have been ignored to the point
that family-hour viewing often comes with a dose of erectile dysfunction drug
advertising. But all in all, it is a part of doing business embraced by
consumers and used by drugmakers of all ilk.
While DTC advertising spending has backed off from the $5-billion-a-year highs set during the
boom years of the last decade, significant sums are still spent, particularly
by the top 10 spenders. According to Nielsen, which tracks the numbers, those
10 last year spent $2.7 billion on ads for TV, magazines, newspapers, radio and
billboards. The numbers do not track online advertising, which research shows
is growing but still small comparatively. Two-thirds of the top 10's total went
to television, and another 30% to magazines, leaving other media to share in
about 4%, the Nielsen numbers indicate.
Most of the top 10 largest ad
budgets are fielded by the largest Pharma players, but Amgen ($AMGN) and Allergan ($AGN) are also among them. The world's largest drug company, Pfizer ($PFE), tops the list, spending 23% of that $2.7 billion on some of its
best-selling drugs. In fact, as the data show, it is generally a company's
best-selling drugs that get the greatest spends, suggesting that DTC
advertising remains very effective.
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