Drugmakers To Spend $1B On Direct Marketing
5 CommentsBy Ed Silverman // April 11th, 2008 // 7:32 am
What will that get them? With revenues forecast to hit $10.6 billion, the return on investment is forecast to reach $10.27 on each $1 spent, according to a new report by the Direct Marketing Association. And between 2007 and 2012, direct marketing-driven sales are projected to compound 9.4 percent annually.
Here are some other interesting findings - The business-to-business category is responsible for nearly 65 percent of pharmaceutical direct mail advertising today. Commercial e-mail spending is projected to increase 21.9 percent each year from 2007 to 2012. By 2012, Internet advertising expenditures will be nearly $173 million, up from an expected $93.6 million this year.
Direct marketing-driven Web-driven sales this year will total nearly $1.9 billion and by 2012 they will double - reaching nearly $3.8 billion. Print marketing will generate more than $2 billion in sales this year. Between 2007 and 2012, direct mail spending is forecast to grow 7.1 percent each year. And insert media sales is expected to surpass $41 million in 2008.
Lisa Van S
Id like to sign up for a do not mail list
BWP MD
Get prepared for the onslaught! DTC has been the albatros of practicing physicians everywhere as Big Pharma attempts to get patients to go to their doctors and ask for everything from sleeping pills to ED drugs. The pushing of lifestyle and CNS products has been particulalry awful. Big Pharma would be so much better off if they put their money into health education rather than advertising, In the EU, this is mandated. In Canada, DTC is not allowed.
Please, no more Viva Viagra!!!!!
harpy
Won’t somebody think of the trees!
Hypocrisy rules
BWP MD, good point. The BigPharma never has enough ammunition. After the invention of Multiple Sales Forces of Mass Promotion (MSFoMP) the DTC promotion/advertising was a logicalstep forward for them. While MSFoMP, business model pushes their drugs (same drug to same docs by at least 5-8 reps) by using anywhere from 5 to 10 sales forces/reps in every territory across USA, DTC is used to brainwash the population into asking for the new and more expensive drugs from their docs. DTC is also an ideal way to promote their drugs out-of-label, make false claims, create new diseases to match their drugs and so on. I can see that DTC promo is an whole industry in USA with everyone making a killing. The BP is very rich and generous so who ever gets their DTC ad business makes a lot of $$$.
BWP is right for now that there is no DTC in Canada. Not for long if it were to CanWest a giant media Co from Calgary that is suing the federal goverment of Canada for the right to do DTC as their “right for free expression”. Of course the BP cos are bahind it with financing and support. If they are successful guess who is going to get all the contracts for DTC advertising.
There are rumors that some industry insiders are on the feds side and have disclosed a lot of nasty stuff done by the BP with complete impunity in this Country. No huge fines here if you get cught as in US. For now the BP has it really nice in Canada and they want it even nicer. Our small but determined group of insiders will see to it that this does not happen. You experience in USA should be enough for any judge to say NO. We are sure they will say big NO to the BP and BigMedia. Enough is enough.
LILLI
If the doctors were forceed to monitor medications and report errors the pharamceuticls would not have the money to spend for direct mrketing. Medication adverse side effects are not reported by doctors and is causing serious dangerous illness and unexpected death. Elected and appointed officals are also to blame. All states have patient safety programs that are in name only and not for the patients, but for the drug companies, doctors, hesaltcare industries and hospitals.
I met yesterday with a state senator and he admitted that the pharmsceuticals are in controlin our government. Is that the answer! They know but let it happen. He promised to check the information I gave on the corruption of the patient safety program in his state.