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More Internet Marketing Looms in Pharma’s Future

April 25th, 2008 @ 2:56 pm

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Tags: Direct Marketing, Pharmaceutical Company, Internet Marketing, DMA, Internet, Sales Channel, Advertising & Promotion, Marketing Research, Sales, Marketing

Old-time drug ads

By some reports, direct-to-consumer (DTC) drug advertising is beginning to stagnate — a trend suggested by Sepracor’s recent decision to cut back on TV spots involving its Lunesta moth. Stepping into the breach: More direct-marketing advertising, particularly involving the Internet.

According to a recent report from the Direct Marketing Association, which admittedly has a vested interest in the subject, spending on pharma direct marketing should rise 35 percent in the next four years. The DMA estimates that drug companies will spend $1.39 billion on direct marketing in 2012, up from $1.03 billion this year.

The DMA’s definition of “direct marketing” doesn’t seem to include DTC. Although there doesn’t seem to be a single authoritative figure on how much Big Pharma spends on DTC, a January report in the journal PLoS Medicine puts it at $4 billion in 2004.

Instead, those direct-marketing figures apparently include a great deal of doctor-directed mailings, magazine and journal inserts, Internet outreach, patient “starter kits” and “loyalty cards,” and assistance in designing conventions and continuing medical-education programs. (Although I have to admit it’s hard to know for sure how the DMA defines pharma direct marketing, since I don’t have access to the full report — it’s available online, but it costs $240, or $135 for DMA members.)

The fastest-growing part of drug-related direct marketing, unsurprisingly, involves the Internet. The DMA report predicts that Internet drug advertising will almost double in four years, rising to $173 million in 2012 from $93.6 million this year. According to a recent report by Cegedim Dendrite, a consultant and data provider to the pharmaceutical industry, two-thirds of pharma marketers want to see more spending on targeted Internet marketing, including email, Web sites and search keywords.

(Hat tip: Modern Healthcare)

Image courtesy of Flickr user jbcurio, CC 2.0

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David P. Hamilton

David P. Hamilton, a 14-year veteran of the Wall Street Journal, is a freelance business and medical writer in San Francisco. He most recently founded the LifeScience section of VentureBeat, a news site for innovation and venture business. Previously, David covered biotechnology, the Internet, and computing and served as a Tokyo foreign correspondent for the Journal. He is a two-time winner of the Overseas Press Club award and spent several years as a reporter at... more »

AboutPharma Industry

BNET Pharma provides daily industry news coverage and insights for managers and executives about the major manufacturers of pharmaceuticals and medicine. In addition to detailed company profiles, we bring you critical analysis on new alliances and partnerships, new patents and products, mergers and acquisitions, cost management, investments and deal flow, and a host of other important business issues.

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