DTC Advertising in the Era of High Drug Prices

TV and, to a lesser extent, print direct-to-consumer (DTC) drug ads have often been blamed for the high price of drugs. For example:

• Physician and pharmacist organizations say DTC ads are a waste of resources, which could be better used to lower drug prices or be plowed back into research (read, for example, "Pharmacists Say DTC Advertising Must Go: It's 'Not Working' & Wastes Resources"). 


• Some lawmakers claim that advertising inflates health care costs because consumers are prompted to seek newer, higher-priced medicines (read, for example, "DTC Advertising Moratorium Idea Resurrected in Congress").


• Others claim that pharma charges higher prices for drugs to cover the cost of advertising (read, for example, "DTC Ad Links to Higher Prices and Less Competition - Plausible or Dubious?").

Pharma marketers are no doubt concerned that the current political atmosphere, in which both Republicans and Democrats are calling for lower drug prices, is having a negative effect on the effectiveness of their ads as consumers tune out the message (read, for example, “Pharma is Spending More on DTC Advertising But Its Effectiveness is Decreasing, Says New Survey”).

Bob Ehrlich, Chairman of DTC Perspectives, in a recent email titled "Times of Turmoil Ahead" expressed concern that DTC marketers may not adequately understand consumer sentiment viz-a-viz high drug prices:

"Most of us practicing the art and science of DTC have no control over political decisions on drug pricing and drug approval. That being said, it is imperative DTC marketers understand the popular sentiment consumers are exhibiting towards drug companies."

How does high drug prices affect the work product of DTC marketers and what does Ehrlich propose that DTC marketers do to address consumer concern regarding high drug prices?

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