Direct to Consumer (DTC) Advertising in Pharmaceuticals - Shift from Traditional Mass-Media Platforms towards Personalization via Online and Social Media

GBI Research, the leading business intelligence provider, has released its latest research, “Direct to Consumer (DTC) Advertising in Pharmaceuticals - Shift from Traditional Mass-Media Platforms towards Personalization via Online and Social Media”, which provides insights into the up-and-coming trends of DTC advertising in the US and of awareness campaigns in Europe. The report provides an in-depth analysis of the types of marketing channels available to pharmaceutical marketers. In particular it focuses on how pharmaceutical marketers can make the most of digital media channels, including online advertising and social media.

The report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research’s team of industry experts.

In 2006, over $5 billion was spent on DTC advertising, most of it on the most expensive medium, television. Since then, DTC expenditure has decreased. This is due to a number of reasons, notably the emergence of new media for advertising. Since advertising moved onto the internet, there have been many developments which have revolutionized the way that products are promoted. Pharmaceutical companies were slow to move their advertising online but are now beginning to use it to their advantage. The internet has proven itself to be one of the most cost-effective forms of advertising; full campaigns can be run for the price of one television advertisement.

Social media is another risky yet rewarding method of promotion that pharmaceutical companies are beginning to explore. Through social media, consumers expect to be able to have a public conversation with the representatives of a brand; consumers will always expect their questions to be answered and will not hesitate to discuss adverse effects and any other problems that they consider to be the fault of a brand. However, through social media, pharmaceutical companies have an opportunity to improve their brand image through their responses to these enquires. Another huge advantage of social media is the sharing between friends and peer groups that it enables. A recommendation from a friend is trusted by 90% of people and 70% trust consumer opinions posted online (Google, 2011), so campaigns that are spread between friends by word of mouth can be more effective than traditional methods of widely broadcast DTC.

Report Highlights
#MedicationMarketing: How the Pharma Industry is Using Social Media to Sell.

A multi-billion dollar industry that’s banned in all but the US and New Zealand, Direct-to-Consumer (DTC) pharmaceutical marketing is beginning to embrace social media, explains the latest report by international business experts GBI Research.

According to the report*, the pharmaceutical marketing industry is adapting strategies to take advantage of sites such as Twitter and Facebook, including the tailoring of campaigns to specific medications and interacting directly with consumers.

Online advertising has many advantages over traditional means, by no means the least of which is the relatively low expense. In 2006, over $5 billion was spent on DTC advertising, mainly on the most costly medium – television. As pharmaceutical firms tighten their belts, cheaper online advertising has allowed pharmaceutical advertisers to maintain a campaign presence.

Although marketing via social media can be risky, its rewards are becoming increasingly well known. Though online discussions may raise adverse product testimonials, companies are given the opportunity to answer questions, ease concerns and respond quickly to shifts in public sentiment.

The open nature of the online community can also be tremendously beneficial for product promotion. A friend’s recommendation is trusted by 90% of people and 70% trust consumer opinions posted online (Google, 2011a). Accordingly, positive word of mouth can be more effective than typical methods of DTC advertising.

The success of online DTC marketing can also be measured much more easily. Advertisement clicks, Facebook ‘likes’ and Twitter mentions can all be monitored and without difficulty and aid in the creation of bespoke campaigns.

Marketing companies understand that different demographics access and utilize media in different ways, and the capability to learn how different groups respond to advertising is becoming a key tool in the formation of future marketing projects.

DTC pharmaceutical adverting is only legal in the US and New Zealand, although firms often employ unbranded awareness campaigns in other countries, but without specific drug information.

* Direct to Consumer (DTC) Advertising in Pharmaceuticals - Shift from Traditional Mass-Media Platforms towards Personalization via Online and Social Media

This report provides insights into the up-and-coming trends of DTC advertising in the US and of awareness campaigns in Europe. It also provides an in-depth analysis of the types of marketing channels available to pharmaceutical marketers.

This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GBI Research’s team of industry experts.