RX For Prescription Drug Ads Lies in Formula Used by Over-the-Counter Marketers; CME Study Finds OTC Ads Deliver Awareness Levels 2.5 Times DTC Counterparts.

MINNEAPOLIS--(BUSINESS WIRE)--July 12, 1999--

A new national study reveals an overwhelming discrepancy between consumer awareness for over-the-counter drug advertising and its prescription drug counterparts. While over-the-counter drug makers have successfully used advertising to create indelible household brand names, marketers of prescription medications are struggling to create ads that consumers will swallow.

The study, completed last month by CME Health, the healthcare unit of marketing communications agency Campbell Mithun Esty (CME), polled more than 1,000 men and women to determine what is remembered and liked in over-the-counter (OTC) pharmaceutical advertising. The survey built on previous CME Health research into consumers' opinions of direct-to-consumer (DTC) drug ads fielded just six months earlier.

In comparing the two studies, market researchers found that advertising for over-the-counter products garnered much higher awareness levels than their direct-to-consumer counterparts. Across the 18 OTC brands studied, the average advertising recall performance was better than eight in 10. In contrast, the earlier study revealed just one-third of those polled recalled ads for DTC products.

Why are nearly three times as many consumers as likely to recall OTC ads, despite similar media spending levels between brands in the two categories? According to Beth Miller, director of CME Health, the heart of the DTC problem lies in advertising that often seems as sterile as a hospital OR.

"We found most DTC marketing dollars were spent on ads surprisingly few consumers could even recall - let alone relate to," Miller explains. "While there's no question that DTC ads spark discussions between patients and physicians, imagine the impact if ads for prescription drugs delivered awareness levels on par with their OTC counterparts."

In part, the disparity between OTC and DTC awareness levels can be explained by historical differences in ad spending levels. But with prescription brands like Claritin pumping $136 million into DTC ad investments in 1998 alone, the spending gap is quickly closing. Still it takes more than money to reach savvy consumers.

"Too many DTC ads fail a key test of good creative - forging an emotional link with the consumer target," Miller contends. "To reach today's health-conscious consumer, marketers must first demonstrate they empathize with both the psychological and physical effects of the medical problem. Only after you reach consumers' heads and hearts will they consider your solution."

Creating meaningful customer connections is difficult at best, Miller acknowledges. Add in the current Food and Drug Administration (FDA) restrictions faced by today's DTC marketers, and the idea of creating emotionally impactful prescription drug ads can seem like an insurmountable hurdle.

"Contrary to the intent of federal regulators to provide clear information, the counter-indication requirements mandated by the FDA may cause consumers to tune-out DTC ads," Miller says.

As evidence, she points to the rapid jump in advertising awareness levels conversion brands, products first marketed as DTC prescription-only brands, but later cleared for over-the-counter sales. In the CME Health study, many of the highest ad awareness levels came from these crossover brands where products such as Pepcid AC and Rogaine posted ad awareness levels of 90 percent or higher.

Yet despite restrictions on DTC ads and the wide disparity in the awareness levels between the OTC and DTC products, Miller maintains that direct-to-consumer marketers can close the gap.

"DTC marketers who create advertising that connects with consumers' conditions and links the brand to the benefits of the medication will reap financial rewards," Miller emphasizes. "They'll create the kind of advertising that encourages consumer receptivity, builds brand recognition and ultimately sparks physician discussions."

CME Health is the healthcare unit of Campbell Mithun Esty (CME), a national marketing communications agency with year-end 1998 billings of $904 million. Headquartered in Minneapolis, CME has offices in New York, Los Angeles, Detroit, Seattle and St. Paul, Minn.