Pharmaceutical direct-to-consumer to evolve holistically

Restrictions against using brand names have rendered pharmaceutical Direct-to-Consumer Advertising (DTCA) in Europe an informative rather than promotional exercise. DTCA is now broadening its scope, evolving from its narrow publicity orientation to a more comprehensive approach focused on improved patient outcomes and value addition.

DTCA is expected to enable government and healthcare insurance providers to optimise healthcare expenditure. Adoption levels will also rise due to the potential benefits it offers both patients and pharmaceutical companies.

For patients, DTCA promises increased empowerment, enhanced compliance and greater involvement in personal health management. Improved and early diagnosis, better awareness of the variety of therapeutic options available and the facility to select therapies suitable to their needs and preferences are further advantages of DTCA.

For pharmaceutical companies, DTCA will increase rates of market growth, market share and market penetration. At the same time, it will also boost credibility, improve corporate branding, encourage brand loyalty and advance brand sales.

Spurred by these factors, the European pharmaceutical DTCA expenditure, currently at a growth stage, will experience rapid growth. From current estimates of $85.0 million, total DTCA expenditure is poised to expand at a compound annual growth rate of 42 per cent from 2004 -2008, to reach $345.5 million.

Despite these encouraging indications, DTCA continues to raise concerns such as increasing cost of branded medications, information reliability and its impact on patient – physician relationships. In Europe, strict rules against DTCA of prescription pharmaceutical products exist. Such an environment compels vigilant self-regulation and efforts for achieving a balance with brand promotion campaigns.

The United Kingdom, Germany, France, Spain, Italy and the Netherlands are major regions for DTCA activities. Traditional advertising media are used extensively, with print media accounting for 60 per cent, broadcast media about 30 per cent and online media constituting the remainder. While print media is extremely popular in Germany and Scandinavia, TV is the most widespread medium in the United Kingdom. Trends now seem to indicate that across most regions a combination of media will be deployed for DTCA.

Most active pharmaceutical companies are examining the potential of DTCA. “DTC is extremely rewarding to the manufacturer in terms of greater revenues, better prices, increasing end-user numbers and brand awareness,” notes Himanshu Parmar, Healthcare Analyst with Frost & Sullivan. “Companies using DTC advertising need to rapidly learn how to target customers, complete effective product advertisement, and ingrain DTC advertising in product marketing campaigns.”

Better understanding of drug and consumer life cycle and a more sophisticated brand-oriented approach are likely to parallel greater experience with DTCA. The focus is likely to be on a more developed and integrated DTCA approach. This will augment reach and maximise returns on R&D investment.

With heightened emphasis on direct-to-patient (DTP)-focused approaches, DTCA expenditure will continue rising and be particularly high in customer retention and compliance areas. Many companies will integrate CRM in their DTC advertising campaigns.

For the most part, DTC expenditure is likely to be for newer drug candidates for under-diagnosed conditions. With treatments for cholesterol, diabetes and depression among the most advertised, DTC would be used to convert the current patients before they switch to generics.

“The marketing strategy is to create a point of difference that is meaningful to the patient,” says Mr. Parmar. “The advertising agency and manufacturer’s internal regulatory departments should be doing extensive editing to bring out the most appropriate messages, balancing commercial interests and social responsibilities.”