More Than $631 Million is Spent on Direct-to-Consumer Advertising
PLYMOUTH MEETING, Pa., Nov. 11 /PRNewswire/ -- IMS HEALTH (NYSE: RX) today
reported that pharmaceutical company promotional spending directed toward
physicians and consumers in the U.S. continued to grow in the first half of
the year, reaching $2.5 billion and $631 million, respectively. This
represents a 19 percent increase in professional spend and a 16 percent
increase in direct-to-consumer spend. Promotion to physicians accounted for
the bulk of the investment, with a 79.5 percent share of the total promotional
spend. IMS HEALTH is the world's leading provider of information solutions to
the pharmaceutical and healthcare industries.
Spend for the Top Ten
According to Direct-to-Consumer (DTC) spend information provided to IMS
HEALTH through a strategic alliance with Competitive Media Reporting (CMR),
the top ten DTC-advertised products together invested $362 million on branded
and non-branded ads to reach consumers (See Chart 1). That DTC spend exceeded
the pharmaceutical manufacturers' collective $258 million investment for
promoting those brands to physicians.
Claritin is DTC Spend Leader
Claritin received the largest DTC support during the period, with a brand
franchise investment of more than $67 million to reach consumers. In
addition, Schering spent $37 million on promoting the Claritin family of
products to physicians. Together, the highest profile allergy products --
Claritin, Allegra, and Zyrtec -- accounted for $132 million in DTC spending
and $99 million in professional promotion during the first half of 1998
(See Chart 1).
Industry Promotional Investment
In terms of how the industry invested its promotional funds, $1.8 billion,
or nearly 65 percent, was invested in face-to-face selling with office-based
physicians during the January to June 1998 period. This represents a
25 percent increase over the same period a year ago. DTC advertising
accounted for $631 million, followed by a $362 million investment to sell to
hospital-based physicians -- an 18 percent increase over the first six months
of 1997. Journal advertising decreased 5 percent from the same period last
year, totaling $283 million.
Reaching the Consumer
In the consumer arena, TV received the lion's share of DTC budgets, with
$306 million invested during the first six months of the year, or 48.3 percent
of the total. Advertising in magazines followed with a $277 million spend, or
43.7 percent of the total. The bulk of the remaining $50.7 million investment
went to newspaper advertisements.
"Compared to 1997 full-year figures, this represents a major shift in
media use," said Kelly Peters, senior product manager, Direct-to-Consumer, at
IMS HEALTH. Total TV spending last year was $302 million (28.5 percent of the
industry's total investment of $1.06 billion), while magazine spending
exceeded $644 million, or 60.7 percent of the total. Newspaper spending was
$97 million, followed by radio and outdoor advertising. "The shift to
investment in TV signifies the impact of the August 1997 relaxation of FDA
guidelines for TV and radio advertising of prescription products, which
effectively allowed brand name and indication to be advertised together for
the first time," she said.
IMS HEALTH
IMS HEALTH is the world's leading provider of information solutions to the
pharmaceutical and healthcare industries. With more than $1 billion in 1997
revenue, IMS HEALTH operates in over 90 countries. IMS HEALTH is the largest
pharmaceutical manufacturer information partner, with over 40 years'
experience in the industry. Key products and services integral to customer
day-to-day operations include: market research for prescription and over-the-
counter pharmaceutical products; sales management information to optimize
sales force productivity; technology enabled selling solutions for sales and
marketing decision-making; technologies systems and information services that
support managed care organizations.
Additional information and previous press releases are available at IMS
HEALTH's web site: http://www.imshealth.com.
CHART 1
Top Ten DTC Brands (Jan. to June '98): Professional
and DTC Promotion Investment*
Rank Brand Jan to Jun Jan to Jun Jan to Jun
1998 1998 1998 Total
DTC Spend Prof. Spend Promo Spend
(000) (000) (000)
1 Claritin Franchise $66,706 $37,110 $103,816
2 Pravachol $55,883 $29,666 $85,549
3 Zyban/Glaxo-sponsored
"smoking cessation" ads $35,765 $13,599 $49,364
4 Zyrtec $34,191 $28,381 $62,572
5 Evista/Lilly-sponsored
"osteoporosis" ads $31,513 $30,719 $62,232
6 Allegra $30,872 $33,443 $64,315
7 Propecia/Merck-sponsored
"hair loss" ads $28,556 $12,058 $40,614
8 Prilosec $28,042 $24,600 $52,642
9 Premarin Franchise $25,472 $18,549 $44,021
10 Prozac/Lilly-sponsored
"depression" ads $25,328 $29,674 $55,002
TOTAL $362,328 $257,799 $620,127
* Consumer advertising spend information provided by Competitive Media
Reporting (CMR); Professional promotion information provided by
IMS HEALTH.
SOURCE IMS HEALTH
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Related links:
http://www.imshealth.com
Company News On-Call:
http://www.prnewswire.com/comp/115785.html or fax,
800-758-5804, ext. 115785
CONTACT:
Nancy Duckwitz for IMS Health, 610-834-5338
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