Some Drug Makers Are Starting To Curtail TV Ad Spending
By SCOTT HENSLEY
Staff Reporter of THE WALL STREET JOURNAL
May 16, 2005; Page B1
After years of plowing a small fortune into television ads, some drug makers are concluding that they have overspent and are scaling back.
Pfizer Inc. says it is re-evaluating its TV-ad strategy for Viagra after prescriptions for its impotence drug fell off only slightly when the Food and Drug Administration ordered the company to stop running its principal TV campaign last fall. TAP Pharmaceutical Products Inc., which spent about $91 million advertising heartburn drug Prevacid on television in 2004, pulled the plug on TV commercials for the treatment late last year to focus on print media. The pullback represents "a strategic business decision," and is part of a plan to increase efficiency in marketing, the company said in a statement.
AstraZeneca PLC, one of the heaviest TV advertisers on such brands as heartburn medication Nexium and cholesterol drug Crestor, says it is committed to the medium but is rejiggering its spending.
(snip)
The pharmaceutical industry spent $4.45 billion on advertising to consumers in all media last year, a 27% increase over 2003, according to TNS Media Intelligence. It's too early to say whether a slowdown in TV ads is in full swing, and the launch of newly approved drugs, such as Sepracor Inc.'s. sleep aid Lunesta, and other medicines later this year could give TV spending a boost.
(snip)
Drug makers are also mindful of the intensifying heat that direct-to-consumer advertising is drawing from regulators and the broader public, especially in the wake of the safety controversy over highly advertised painkillers Vioxx from Merck & Co. and Celebrex from Pfizer. In February, the chairman of a panel of advisers to the FDA on the safety of these medicines said the group was trying to send a message that advertising them to consumers would be inappropriate. At the FDA's request, Pfizer halted all consumer ads for Celebrex late last year.
(snip)
Write to Scott Hensley at scott.hensley@wsj.com
URL for this article:
http://online.wsj.com/article/0,,SB111619670216334114,00.html