NEW YORK: A new study by TNS Media Intelligence shows direct-to-consumer adspend by US pharmaceuticals companies is down for the second year running and unlikely to hit the $5 billion mark by the end of 2008, thereby dashing the hopes of ad-famished media owners.
The deceleration is not solely due to credit and recessionary factors; Big Pharma has sailed sublimely through earlier financial crises. Tighter regulation and the lack of new blockbuster drugs have also contributed to the ad shortfall.
The TNS study, Advertising Investment Trend Report: Direct-to-Consumer Pharmaceutical Industry, reveals that in the first eight months of 2008, total measured DTC adspend declined year-on-year by 6.3% to $3.175 billion (€2.528bn; £2.114bn). That figure, projected through to the year end equates to $4.76bn in total, versus $5.26bn in 2007 – a fall of over 9%.
DTC spending trends over the past decade are ...
- 1998 $1.2 billion
1999 $1.6 billion
2000 $2.5 billion
2001 $2.7 billion
2002 $2.6 billion
2003 $3.1 billion
2004 $4.4 billion
2005 $4.6 billion
2006 $5.4 billion
2007 $5.2 billion
2008 $4.7 billion*
*Projected by year's end
Source:PharmaMarketing News and TNS Media Intelligence
Data sourced from AdAge.com; additional content by WARC staff