Thursday, November 02, 2006

INTERNET ADVERTISING CAN HELP SMALL FIRMS COMPETE, EXPERTS SAY

Subject: FDAnews Marketing Bulletin

 
   
         Vol. 1, No. 2
        Thursday, Nov. 2, 2006 

INTERNET ADVERTISING CAN HELP SMALL FIRMS COMPETE, EXPERTS SAY
The growing use of internet advertising benefits smaller pharmaceutical companies that lack the resources to compete using more traditional methods to market their products, industry observers say.

Some industry analysts are reporting an increase in online DTC advertising. For example, eMarketer is reporting a 25 percent increase in internet spending this year for a total of $780 million.

Smaller companies need more cost-efficient ways of increasing their market share and the internet provides that, Rob Nauman of BioPharma Advisors Network said. The internet provides a way to "redefine their sales and marketing," leveling the playing field with larger firms. Not only is it cheaper to market products using the internet than on television or in print, but also it is easier to target likely customers based on the sites they have visited, he added.

But there are mitigating factors, which may limit the effectiveness of the internet, John Mack, publisher of Pharma Marketing News, said. He cites data recently released by TNS Media Intelligence showing that while total DTC spending is up by 6.6 percent compared with last year, online spending has dropped by almost 3 percent. However, TNS does not take into account the money drug companies spend on paid searches, while eMarketer does.

Companies need to see a return on their investment to continue using the internet, but there is no good data to measure that. Plus, the industry has the perception that the internet does not provide the kind of reach that mass media does, further limiting companies' willingness to use
that medium.
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1 comments:

earnest said...

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