BUSINESS INSIGHTS

The evolution of DTC marketing across key

pharmaceutical markets

What can be achieved with DTC marketing?

AWARENESS
initial exposure
REMINDER
repeat exposure

INTEREST
education and
provision of further LOYALTY
information repurchase/
maintain brand identity

DESIRE
persuasion of
need for product

ACTION
purchase

“Identifying the potential benefits of DTC marketing is

perhaps easier than the best methods of achieving them.
Before any investment is made in DTC marketing, the
suitability of a product to DTC promotion must be made.
Once a product has been identified as being suitable for
DTC marketing, an appropriate strategy must be
formulated.”
YOUR GUIDE TO THE REPORT

Pharmaceutical companies mainly market their products through contact between

Confronting the reality gap - marketers’
perceptions of patients their sales force and heathcare providers. However, due to the nature of its products,
the pharmaceutical industry has been subject to heavier marketing and advertising
restrictions than most other industries and have remained focused on the purchasers
Marketers' perceptions Patient reality
and providers of healthcare, rather than the consumers.
Homogeneous Heterogeneous
Reliant on physicians Peer group networks or self-reliant
Pliant Involved in decision making
Ill-informed Concerned and willing to learn
Hostile Frightened, welcoming of assistance In August 1997, the FDA relaxed the regulations governing the use and nature of DTC
promotion within ethical pharmaceutical marketing strategies in the US. Today, US
patients are targeted with product specific information and prompted take a more
active role in the prescribing process. Encouraged by the example of the FDA,
“Just as pharmaceutical companies attempt to
supporters of DTC advertising are exerting increasing pressure on European
differentiate themselves from their competitors,
so too are patient groups and thus should be authorities to relax their ban on DTC marketing in Europe.
discriminated from each other. For example,
they may represent a socio-economic cross-
section or may be focused on a particular ethnic The Business Insights report, “The evolution of DTC marketing across key
population. Pharmaceutical companies which do
pharmaceutical markets” gauges the global development of DTC marketing by
not invest in understanding such diversity will
generate no goodwill or loyalty.” analyzing the reality of DTC marketing in the US and assessing the likelihood of
cultural and formal acceptance of DTC marketing in other major markets.

KEY BENEFITS

• Understand the current environment for DTC marketing across the globe
Therapeutic split of DTC spend,
January - June 1997-9

• Direct your business in anticipation of changes DTC regulation ahead of your

Therapeutic split of DTC spend, January–June 1997–9

competition
Disease category DTC spend January–June ($000) (%) Growth
1997 1998 1999 January–June
1997–9

Allergies 144,994 169,366 240,197 65.7

Lifestyle
Endocrine
36,588
42,473
89,068
59,601
208,351
73,886
469.5
74.0 • Identify the commercial implications of the increasing use of DTC marketing
CNS 47,001 77,949 50,329 7.1
Cardiovascular 52,002 77,727 43,472 -16.4
Anti-infectives 47,290 46,861 39,577 -16.3
Gastrointestinal 16,614 28,294 35,286 112.4
Genito-urinary 954 0 27,195 2,750.6
Respiratory
Cancer
42,470
1,324
18,148
80
15,016
11,894
-64.6
798.3
• Predict future changes to DTC markets outside of the US
Musculoskeletal 27,117 26 9,675 -64.3
Dermatological 3,038 3,709 3,052 0.5

Others 1,553 912 17,960 1,056.5

Total 463,418 571,741 775,890 67.4 • Maximize the benefits brought about by the use of DTC marketing in all stages
n/a = not applicable
of the product cycle

• Assess DTC investment in the US, by therapeutic area, company and product
“Perhaps the most notable increase in DTC spend
has been that on lifestyle drugs, which increased by
469.5% between H1 1997 and H1 1999. In H1 1999,
DTC spend on lifestyle drugs reached $208,351,000,
• Analysis of the concerns of smaller pharmaceutical companies regarding the
and became close to overtaking allergies as the introduction of DTC marketing in Europe
therapeutic category with most investment.”
 TABLE OF CONTENTS (ABRIDGED)

EXECUTIVE SUMMARY Impact of stage of lifecycle on media mix

What is DTC marketing and where is it allowed? Disease versus brand awareness

DTC marketing in the US: segmentation of investment DTC marketing versus managed care

DTC marketing in the US: strategic decisions DTC in action: Claritin

New DTC markets?

CHAPTER 4 NEW DTC MARKETS?

CHAPTER 1 WHAT IS DTC MARKETING AND WHERE IS IT ALLOWED? Summary

Summary DTC in Europe: present extent

Introduction Disease awareness campaigns

DTC marketing: US regulations Selected pharmaceutical company activities to date

1938 - 1962 Partnering patient advocacy groups

1962 - August 1997 DTC in Europe: future possibilities

August 1997 - present day The winds of regulatory change

DTC marketing: European regulations Could patient co-payment drive changes in DTC regulations?

Regulations governing disease awareness advertising The healthcare demands of an ageing population

The evolution of DTC marketing across key pharmaceutical New DTC markets

markets: structure and scope A Europe with DTC marketing?

New Zealand

CHAPTER 2 DTC MARKETING IN THE US: SEGMENTATION Japan

OF INVESTMENT DTC marketing across the globe: conclusions and

Summary recommendations

Why market directly to the consumer?

LIST OF FIGURES
The suitability of a campaign

Investment per disease category LIST OF TABLES

DTC investment by company

Future DTC marketing investment analysis by therapy area

CHAPTER 3 DTC MARKETING IN THE US: STRATEGIC DECISIONS

Summary

Optimising strategy

Which media?

Television versus print

The Internet

Database compliance programmes: a method of DTC marketing?

DTC marketing and the product lifecycle

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