Study: DTC catalyst in drug sales

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Direct-to-consumer advertising -- which includes TV, radio, print and
outdoor -- is a good buy for drug companies and an "important factor" in the
increase in the price of prescription drugs, although not the primary factor.

Those are some of the conclusions of a new Kaiser Family Foundation study by
Harvard University researchers.

The study found that of the money spent by drug companies on marketing, 86%
went to non-DTC promotions, including 55% for free drug samples and 29% for
sales-representative activities, including office visits.

DTC accounted for only 14% of promotional spending.

DTC appeared to be money well spent for advertisers, though, generating an
additional $4.20 in sales for every $1 spent, the study found.

John Eggerton
John Eggerton

Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.