Strategic Analysis of Pharmaceutical Direct-to-Consumer Advertising in Europe

SUMMARY

Direct-to-Consumer Advertising on the Rise in Europe

Direct-to-consumer advertising (DTCA) in Europe started in 1996 when Sandoz developed the idea of targeting consumers through print media for its antifungal product Lamisil, in an attempt to circumvent the strict regulations prohibiting brand advertising to patients. DTCA in Europe thereafter evolved as an informative - rather than promotional - tool to aid pharmaceutical companies in their marketing efforts. Due to the prohibition of brand promotion, DTCA aims to create a consumer-friendly name for a particular product; for instance, "fungal infection" for an antifungal product. These targeted campaigns are meant to stimulate patient-physician interaction while simultaneously providing education. The European approach to DTCA is therefore a more organised and integrated approach than that in the United States, focusing on collaboration with physicians and pharmacies and the spread of better disease awareness.

This Frost & Sullivan research service provides a critical analysis of the pharmaceutical DTC advertising in Europe based on both region and segment. It provides a forecasting analysis for DTCA expenditure and studies the distribution of expenditure across different media types. The regional analysis can help participants identify the key European markets to enter.

Despite Concerns, Benefits of DTCA are Many

One of the main concerns surrounding DTCA is the issue of information reliability since DTC messages are believed to carry a certain bias. There are also worries that DTC may eventually lead to an increase in drug costs. As well, the changing interaction between physicians and patients initially caused physicians to have strong misgivings about this new concept.

Despite these concerns, there is no denying that DTCA can bring many benefits to patients, manufacturers, the government, health insurance providers and physicians. "With the adoption of DTCA in Europe - increased patient empowerment and compliance, enhanced personal health management support, improved corporate branding and brand loyalty leading to increased sales as well as market share are all becoming a reality," notes the analyst of this research service. The focus is now on a more sophisticated and integrated approach to widen the reach of DTCA even further.

Geographical Trends Reveal Key Areas Undertaking DTCA

"The United Kingdom, Germany, France, Spain, Italy, the Netherlands and Scandinavia are the major European regions in which pharmaceutical companies are actively conducting DTCA using various media," says the analyst. The United Kingdom tops the list with expenditure on DTCA accounting for 35 per cent of the total European DTCA spending. Germany ranks second, accounting for 30 per cent of total expenditure. France, in comparison, is a more conservative market with DTCA activity at significantly lower levels compared to the United Kingdom and Germany. This is the case in Spain, Italy, the Netherlands and Scandinavia as well; these countries together account for approximately 25 per cent of the total DTCA expenditure.

TABLE OF CONTENTS

• 1. Strategic Analysis of Pharmaceutical Direct-to-Consumer Advertising in Europe
  • 1. Introduction
    • 1. Introduction
    • 2. Overview
  • 2. Direct-to-Consumer Advertising in Europe
    • 1. Pharmaceutical Direct-to-Consumer Advertising in Europe
    • 2. Challenges faced by DTC in Europe
    • 3. Key Market Drivers
    • 4. Benefits of DTCA to Patients and Pharmaceutical Companies
    • 5. Key Restraints
    • 6. Communication Chart
    • 7. DTCA and DTPA in Europe
  • 3. Media
    • 1. DTC Advertising Media
    • 2. Media Expenditure
  • 4. Competitive Landscape
    • 1. Regional Analysis
    • 2. DTCA Companies
  • 5. Direct-to-Consumer Advertising Expenditure Forecasts and Analysis
    • 1. DTCA Expenditure Forecasts and Analysis
    • 2. Regional Analysis
    • 3. DTCA Expenditure Forecasts and Analysis for Europe
  • 6. Strategic Analysis and Recommendations
    • 1. Strategic Analysis and Recommendations
  • 7. Frost & Sullivan Awards
    • 1. Frost & Sullivan Awards
    • 2. Customer Service Leadership Award
    • 3. Brand Development Strategy Leadership Award
  • 8. Decision Support Databases
    • 1. Decision Support Databases
  • 9. Frost & Sullivan
    • 1. Our Team
    • 2. Consulting Capabilities