Drug Marketing Poised For Historic Decline

http://www.brandweek.com/bw/content_display/news-and-features/packaged-goods/e3i9154afd0680ec28adb58acca9a50a29a

Unlike most categories, the decline is unrelated to the economic woes of the rest of the country. Instead, it is caused by an unusual confluence of events washing over the industry in the next few years.

Analysts expect to see more money go online or into CRM programs, which are far cheaper than commercials. "They could make the largest Web buy ever instead of the smallest TV buy ever," said Jack Barrette, the former pharma ad sales chief at Yahoo! who is now CEO of Wego Health in Cambridge, Mass., a social media company.

"I think we're seeing a shift in dollars spent," said Jay Bigelow, president of MicroMass Communications in Cary, N.C., which runs relationship marketing programs for Novartis. "We're up 30% this year."

It's not just TV that is losing out. Some executives wonder how much more drug money can go into public relations, which has seen enormous growth in the category. However, Laurie Mobley, an associate director at WeissComm in Washington, which services Genentech and Actelion, still sees plenty of opportunity: "Our clients are pushing the need for segmentation and the need for specialty. The goal is not be on Good Morning America anymore."