• by Maryann Kuzel , July 15, 2008

There's no question that mass advertising produces a significant increase in sales for pharmaceutical brands. But the return on investment in DTC advertising has remained, on average, a paltry 2:1 and has not improved much in recent years.

Last year, pharmaceutical marketers spent more than $4 billion advertising prescription drugs. This level of spending is unlikely to decrease despite the recent voluntary moratorium in which several major pharmaceutical companies will refrain from DTC advertising for six months following a new product introduction, to allow doctors time to become educated.

How can pharmaceutical companies improve their ROI? Instead of further saturating the airways, pharma companies should reallocate more of their budgets to the channels where their patients are. They should build relationships with patients along their entire journey to better health, not just the first part of it.

Mass advertising is good at raising awareness of conditions and treatments, which motivates people who may not have gotten help otherwise to get diagnosed and treated.

But after treatment begins, patients must learn to take medication every day, to cope with their condition, maybe to change how they eat and how they live. It's hard, and it takes a long time.

Today's active patients turn to the Internet for their deep education needs more than any other source. Record numbers of adults are engaging with social media to compare and contrast experiences with patients like themselves as well as to seek emotional support during what can feel like an isolating experience. A consumer with a serious condition such as cancer may visit as many as 40 websites, clarifying and validating information along the way.

Yet there is still a big gap between what patients need and the experience they are having. The abundance of information available on the Internet can leave patients feeling overwhelmed, yet still under-informed.

As a result, patients are often unsuccessful at maintaining necessary modifications to their lifestyles, and stop taking their medication even if they've been prescribed to take it every day for a lifetime to achieve optimum long-term health benefits. In fact, about half of all prescriptions go unfilled.

This presents pharmaceutical companies with a huge opportunity. They could fill this gap and generate continued sales by engaging with patients through multiple media channels to build long-term relationships with them.

For example, testimonials that tell the real story of the entire patient experience - the ups and downs, setbacks and small successes - can provide patients with additional information to prepare them for their physician visits and increase conversion rates. Structured interactive learning programs tailored to meet patients' individual needs can educate patients in steps, teaching them tools and tips to overcome barriers, acknowledging their successes, and helping to get them back on course when they have a setback.

Strategies such as these will increase conversion and compliance rates. Companies can use predictive models and marketing mix models to optimize their budget allocations, which will move them beyond the point of diminishing returns and boost their ROI to record levels.