DTC spending up 40 percent in 1999 to $1.8 billion

Drug Store News, May 22, 2000 by Kim Roller, James Frederick

Pharmaceutical companies spent $1.8 billion on direct-to-consumer advertising in 1999, a 40 percent increase from the prior year, according to IMS Health. DTC accounted for 13 percent of the $13.9 billion total promotional spend the industry directed toward U.S. consumers and physicians last year, an 11 percent increase over 1998.

Within the promotional mix, DTC advertising on television showed the greatest increase. Pharmaceutical companies spent $1.1 billion on TV ads in 1999, a 70 percent rise over 1998 levels and accounting for 61 percent of the industry's 1999 DTC investment. The remainder, $712 million, was primarily invested in print advertising.

The top 10 products advertised accounted for more than 41 percent of the total DTC spend last year. Schering-Plough's Claritin remained the top DTC-advertised brand in 1999, with a $137.4 million spend. Pfizer spent $57.1 million in DTC promotion for Claritin-competitor Zyrtec, a 24 percent decline from 1998 spending levels. Merck's Propecia ranked second in DTC spend, with $99.7 million, followed by Pfizer's Viagra, which did not make the top 10 ranking in 1998, with a $93.5 million DTC budget. AstraZeneca's Prilosec increased its DTC spend position from seventh place to fourth, at $79.5 million.

Newcomers to the 1999 list include Roche's Xenical, with a $75.6 million spend, Warner-Lambert's Lipitor, $55.5 million, AstraZeneca's Nolvadex, $54.5 million, and Glaxo's Flonase, $53.5 million. Half of the products on the 1998 top 10 list, including Bristol-Myers Squibb's Pravachol and Merck's Zocor, were not on the 1999 list.