The latest from DTC Perspectives

Glory Days Over?

Jim Edwards, who used to blog about advertising at Brandweek, is back writing his own blog. His July 29 th blog was titled “DTC Pharma Marketing's Glory Days Are Behind Us.” His rationale is that the lack of new drugs is the chief cause. He cites flat spending recently after significant increases a year ago as the evidence.

I would agree DTC spending, like all big pharma spending, is under pressure. Detail forces have been cut, manufacturing centers have been consolidated and headquarters staffs are being reduced to protect profits. DTC is certainly not immune from cuts.

To say the days of big spending are over is a premature conclusion. The number of brands spending more than $50 million on DTC is actually up versus last year. Most new brands are using it still. Mr. Edwards said television will be the chief casualty of the cuts, with other media keeping their budgets. He says “the days when primetime was filled with drug ads is going to fade from memory.” Of course if massive cuts are going to be made in future DTC budgets, television will be the biggest loser since that is where 60% is being spent.

Pundits have been confidently predicting the end of mass media DTC for years. They will be right one day as on demand viewing takes over. To date, there is no evidence of a major shift. DTC spending may be down 3-5% this year. That reflects current economic conditions and I do not consider that conclusive or that the glory days are over. If we see consistent 10% declines over several years, then we can say there is a permanent decline.

DTC mass media will be used as long as it is legal and it delivers a good ROI. The online, point of care and direct media will grow nicely as brands strive to target their spending and get stronger ROI. The issue with spending 100% on targeted media is finding ways to get the same scale as mass media.

The glory days may be waning, but there will be plenty of years left in sub-glory mode. We will see if Jim is right as the actual numbers come in for 2008. My bet is on a modest decline, not an end to DTC as we know it.