DEVICE AND PHARMA DTC ADS IN DIFFERENT LEAGUES, EXPERTS SAY

While devicemakers looking to expand their DTC advertising efforts can benefit from drugmakers' experiences, the promotional needs of each are worlds apart, experts say.

The successes of drug DTC ads have led to a "surge" in DTC marketing efforts within the device industry, according to consulting group Cutting Edge Information. Estimates have shown the device industry went from investing "almost nothing [in DTC ads] in 1996 to upwards of $50 million in 2005," the firm said. This is significant, given that the device industry has traditionally spent its approximately $1.5 billion annual marketing budget advertising in trade journal ads that target physicians and other specialized audiences, Cutting Edge added.

But device advertising remains "a very, very small market" when compared with drugs, Bill Trombetta, professor of pharmaceutical marketing at St. Joseph's University in Philadelphia and a former New Jersey deputy attorney general, said.

Cutting Edge confirmed this in a June report titled "Medical Device Product Management." The firm conducted a survey of 14 devicemakers, including Baxter Healthcare, ICU Medical, Medtronic and Novartis. Three of firms surveyed have engaged in DTC advertising with an annual expenditure between $100,000 and $2.5 million, the report said. However, the other 11 firms did not use DTC ads.

While the survey pool represents a small sample, the results point to a bigger industry picture, the firm suggested. Cutting Edge attributes this gap in DTC ad use to two factors: Most devices are used by healthcare professionals, so advertising to consumers does not apply; and Device firms generally have limited marketing budgets compared with drug firms.

There is no need to pay "a million dollars a minute during the Super Bowl" to reach a huge audience that will not be served by your product when websites, direct mail, conferences and advocacy groups provide firms with the ability to "zoom in" on their most responsive consumers, Trombetta said. (http://www.fdanews.com/ddl/33_39/)