The Coming Patent Cliff and Recession in Pharma Digital Spending
Just because it is cheaper to launch a Website, Facebook page or Twitter Account, it doesn't mean that the pharmaceutical industry will shift more promotional dollars to the digital realm. In fact, recent data and news stories provide indications that the recession in pharma digital spending is already here and the cause is patent expirations of major drugs. Despite a recent slight increase in overall direct-to-consumer spending by pharma in the first three quarters of 2011 vs 2010, WebMD suffered weak earnings due to pharmaceutical companies Âholding back on spending as they deal with expiring drug patents. Search advertising is also suffering from the patent cliff syndrome: a representative of Google recently implied that pharma is not currently leveraging the Internet and the drug industry was not considered a "key client by Google because of it's low spend." This is counterintuitive. Digital tools can help pharma companies survive the patent cliff if they use these tools to focus more on patient education and support rather than on branded messaging.
Pharmaguy (@pharmaguy)- also known as John Mack - is the Publisher and Editor of Pharma Marketing News, an independent monthly electronic newsletter focused on issues of importance to pharmaceutical marketing executives. Pharmaguy is also an accomplished blogger. In January 2005, he created Pharma Marketing Blog (www.pharmamarketingblog.com), which focuses on commentary about topical pharmaceutical marketing issues. Pharma Marketing Blog was cited by the Wall Street Journal as a blog "insiders read to stay current"Â and by MedAdNews as "...often-entertaining, always informative..."
RecordedJan 31 201217 mins
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