When it's time to tighten the belt, online is first to go

Jul/30/2007 06:16 Filed in: Current DTC
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Online media is a measly 4% of ad spending in the medicine-and-remedies category. While the category is the fourth-largest in terms of measured media, spending $9.2 billion in 2006, it ranks ninth in online ad spending, according to TNS Media Intelligence, at $380 million. Surprised ? You shouldn't be. This is a clear indication that DTC marketers both don't understand the Web or how to measure its impact on driving trial. No, it seems that they would rather waste their dollars on TV or print but when the budget cuts come it's often the Web that is cut first while TV ads are left for their ineffectiveness.



John Mack, my blogging friend over at pharma marketing, ran a poll that asked what media channel was overused. Surprisingly most people thought it was TV yet when it comes to allocating dollars the first to know are media buyers for TV and the first to go, when the budget cuts loom, is the Web. There are many reasons for this but the underlying reason maybe as simple as corporate politics. It's great for a brand team leader to walk into a meeting like a proud father to show the new TV spots instead of banners for the Web. Most ad agencies are also to blame because they don't have the expertise to leverage the online channel. But there is also another underlying problem; the problem that a lot of pharma marketing organizations see the Web as a budget devouring demon that has no "pizzazz". "It cost us $3-$4 million to set up a site and now you want another $2 million for online ads?" most will ask. Then the poor marketing person has to go back to square one an build a case and generate buy-in from the organization which can take months.


Marketing is an art it's not a science as most business schools would have you believe. If you have to test everything then you are not in touch with your customers. If you don't have psychographics of your market then you are marketing blind and if you don't invest dollars into the Web for online advertising then you are missing one hell of an opportunity. DTC Managers love to go to trade gatherings and show their Power Points to yawning audiences and then get awards that gives them a false sense of accomplishment. However with ads like Viva Viagra and Your Dreams Miss You me thinks that the talent pool in DTC Marketing is stagnant.
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