Drugmakers Cut Back on Ad Spending in First Half of 2008, Reports Show
Pharmaceutical companies reduced spending on advertisements in the first six months of the year, according to reports released recently by TNS Media Intelligence and Nielsen Monitor-Plus, USA Today reports.
According to the TNS report, pharmaceutical companies reduced spending on ads by 3.9% to $2.4 billion in the first six months of the year.
In the second quarter, pharmaceutical companies reduced spending on magazine ads by 29% to $358 million and reduced spending on radio ads by 62% to $4 million, the TNS report found.
The report released by Nielsen found that in the first six months of the year, pharmaceutical companies reduced spending on ads by 4.8% to $2.7 billion.
Jon Swallen, senior vice president of research at TNS, said, "Throughout much of the early decade, it was growing at strong double-digit rates as pharmaceutical marketers become more comfortable and experienced with [direct-to-consumer] advertising."
Swallen attributed the reduction in spending on ads by pharmaceutical companies to a decrease in the number of new medications launched, reductions in spending on ads for certain treatments and concerns about government regulation of ads.
FDA last month launched a "Be Smart about Prescription Drug Advertising" area on the agency Web site to encourage consumers to identify and report false or misleading ads for medications (Petrecca, USA Today, 10/16).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.