Pharmaguy's Insights Into Drug Industry News
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Pharmaguy's Insights Into Drug Industry News
Pharmaguy curates and provides insights into selected drug industry news and issues.
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Big Pharma Spending Money on TV Ads Like a Even More Drunk Sailor!

Big Pharma Spending Money on TV Ads Like a Even More Drunk Sailor! | Pharmaguy's Insights Into Drug Industry News | Scoop.it

With one month still to go, 2017 is already a record-breaking year for pharma advertising. TV ad spending totaled $3.2 billion through the end of November, according to data from real-time TV ad tracker iSpot.tv. That’s well ahead of the full-year 2016 TV spend of $3.11 billion.

 

The record comes even after a fairly low spending month in November when the top 10 pharma brands spent just $159 million on TV ads, a big drop from $199 million spent in October.

 

For November, AbbVie’s Humira was in its usual top position, although its spending dropped by more than $10 million from October. Pfizer and Bristol-Myers Squibb's anticoagulant Eliquis rejoined the spending list at No. 2, followed by Novo Nordisk’s Victoza and Pfizer’s Xeljanz in the same positions as the previous month, but with lowered spending for both.

 

Joining the top 10 spenders for the month was Pfizer’s pneumococcal vaccine Prevnar 13, which debuted a new TV commercial in October and has been ramping up spending since then.

 

Further Reading:

Pharma Guy's insight:

According to Kantar Media, pharma spending on TV ads in 2016 was $4.1 Bn. iSpot.tv, however, says it was $3.11. I'm not which is closer to the truth, but it's the trend that matters here, I suppose.

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Pfizer-Allergan Merger Means Consolidation of Ad Agencies. And Less Advertising Spend?

Pfizer-Allergan Merger Means Consolidation of Ad Agencies. And Less Advertising Spend? | Pharmaguy's Insights Into Drug Industry News | Scoop.it

When Pfizer announced plans to acquire Allergan for $155 billion, the first questions to surface had to do with the feasibility of the deal. What are the tax implications? What would a combined Pfizer-Allergan look like? 


The deal not only creates the world's largest drugmaker but also one of the world's largest advertisers. Combined Pfizer and Allergan spent a total of $1.6 billion on advertising in 2014, according to Kantar Media.  

At stake are the fates of the drugmakers' massive brand budgets for drugs like Viagra, Celebrex, Botox and Juvederm, to name a few. There remains a lot of uncertainty about which agencies will be left outside looking in and which firms will be awarded potentially hundreds of millions of dollars in new billings when the dust clears, according to agency executives interviewed for this story.


An unnamed executive at an independent healthcare agency said the merger will likely lead to a consolidation of marketing agencies. “It's not a matter of if, but when,” he said. “They have to figure out how profound a disruption do they want?”


Pfizer is already the seventh largest advertiser in the US, according to Kantar Media data cited by The Wall Street Journal. Globally, in 2014 Pfizer spent $1.4 billion on advertising; Allergan spent $266 million; and Actavis, which acquired Allergan in November 2014 and took the drugmaker's name, spent $387 million, according to Kantar Media. In comparison, Procter & Gamble—the world's largest advertiser in 2014—spent $4.6 billion.


From January to June of this year, Pfizer spent $740 million while Allergan spent $144 million. Actavis spent $261 million in the same timeframe. 


The same agency executive noted, however, that it's unlikely any significant changes to the drugmakers' agency rosters prior to September 2016. The deal is expected to close by the end of next year. 

Pharma Guy's insight:

There is already talk that Brent Saunders -- Pfizer-Allergen CEO heir apparent -- is not keen on R&D spending (see here: http://sco.lt/5IFpfl). He may be even less keen on advertising spending.

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Big Media Companies Launch Health Mags to Capture #Pharma Ad Biz While WebMD et al Struggle

Big Media Companies Launch Health Mags to Capture #Pharma Ad Biz While WebMD et al Struggle | Pharmaguy's Insights Into Drug Industry News | Scoop.it

Condé Nast, Time Inc., and Vice Media have all recently launched health content businesses, in a bid to meet the growing demands of health-conscious consumers and also take a slice of the roughly $6 billion pharma advertising pie.

 

“It doesn't surprise me that media companies are getting into pharma advertising, given the total value at stake in pharma sales,” said Brian Fox, senior partner at McKinsey.

 

What exactly is at stake? Well, pharma spending on digital ads was flat, at $515 million in 2016, according to data compiled by Kantar Media. But total pharma spending on advertising in the U.S. market rose 4.6% in 2016, to $5.8 billion, driven by a 6.4% jump in spending on magazines, to $1.7 billion, and a 4% increase in TV spending, to roughly $4 billion.

 

This may be one reason Time Inc. in July launched a point-of-care magazine as part of the February kickoff of Time Health, a brand focused on video and digital editorial content, among other offerings.

 

These further investments by traditional media publishers into the healthcare and pharmaceutical space may mean several things. Publishers in general are facing a broad advertising slowdown and looking for new revenue options, while consumers are demanding more health news and content. And the move away from banner ads and toward data-driven strategies has created opportunities for highly trafficked consumer sites to market their reach.

 

Publicis Health worked with Condé Nast on a print media program for Xiidra, Shire's new treatment for dry-eye disease. The campaign was unique for Shire for several reasons: It featured one of the drugmaker's few consumer-facing products and actor Jennifer Aniston served as a spokesperson, a rare pharma appearance by an A-list celebrity. Unbranded and branded ads were featured in titles like Bon Appetit, Condé Nast Traveler, and Vogue.

 

Condé Nast's new health marketing division, which launched in April, is multifaceted. The group gives its advertisers with access to its predictive data optimization platform and also develops branded and sponsored content. In addition, Condé Nast has promised to increase its editorial coverage of health and wellness —- primarily through the now online-only Self magazine, which published its last print issue in February. On June 29, Self launched a section that aggregates stories about 30 different conditions and diseases affecting women.

 

Tonic, Vice's new editorial health site, takes a slightly different approach. The site, which bills itself as “real wellness advice for imperfect humans,” recently featured editorial news stories about counterfeit skin-whitening creams and virtual STD testing.

 

While the privately held Vice works directly with healthcare brands to create branded and sponsored content, it does so with the understanding that the Vice voice — described as “engaging and human” by John Duncan, Tonic's associate publisher — is present. Vice's perspective is that much online health content is presented or written in a way that is disconnected from the consumer. By contrast, Tonic features “trustworthy information that you can access, and it cuts through the industry-specific language,” Duncan said.

 

During the 10 months during which all three media properties launched, companies like WebMD and Everyday Health — traditional sources of online pharma advertising — have struggled.

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myarts's comment, August 23, 2017 3:39 AM
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