Direct-to-consumer drug advertising benefits companies, but patients even more

mercurynews | December 19, 2019

Analysts at the nonpartisan Congressional Budget Office recently scored Speaker Nancy Pelosi’s drug pricing bill, H.R. 3. The CBO estimates the bill would reduce revenue at America’s pharmaceutical companies between $0.5 trillion and $1 trillion over the next decade, dramatically reducing innovation and preventing the creation of important new medicines. Proponents of Pelosi’s plan appear unfazed. Many have used this news to contend that if drug companies simply scale back the amount of money they spend on television commercials and other direct-to-consumer (DTC) advertising, they would make up for losses imposed by Pelosi’s plan. Such suggestions disregard the math and trivialize the importance of drug advertisements. About two-thirds of drug industry marketing spend target health professionals, with $12 billion of that being free samples. The industry only spends about $6 billion annually on direct-to-consumer advertising to patients. That’s just 3.2 percent of the $187.5 billion in total U.S. revenue for the top 10 pharmaceutical manufacturers, and only a fraction of the up to $1 trillion in lost revenue over 10 years.

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The Value of Advertising is the first-ever EU-wide report to isolate the economic and social contribution of advertising highlights its ability to drive economic growth across the EU. It was carried out independent by Deloitte and commissioned by a broad EU advertising industry coalition led by the World Federation of Advertisers and with the participation of IAB Europe.

Spotlight

The Value of Advertising is the first-ever EU-wide report to isolate the economic and social contribution of advertising highlights its ability to drive economic growth across the EU. It was carried out independent by Deloitte and commissioned by a broad EU advertising industry coalition led by the World Federation of Advertisers and with the participation of IAB Europe.

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