• Ad Age, Monday, March 19, 2007 11 AM

Pharmaceutical giant Johnson & Johnson is in the middle of a huge shift away from traditional media -- the company slashed its total spend by more than $250 million in the U.S. last year to $1 billion, according to TNS Media Intelligence. The reduction is in line with the 20% of its marketing budget many expected J&J would shift to nontraditional media last year.

Cuts in direct-to-consumer advertising for J&J's prescription-drug and medical-device brands account for most of the reduction, but a closer look shows the marketer has moved quickly away from its heavy reliance on traditional media, particularly TV.

Overall, J&J's global ad spending dropped around 10% to $1.9 billion last year, even as sales rose 6% to $53.2 billion. But the bigger drop in the U.S. suggests a lot of its marketing budget went to unmeasured media, like search and other direct marketing. In addition, the move to sit out last year's upfront (it will do it again this year) gives it more flexibility, as it isn't locked into TV commitments.

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