According to a report released today by PM360, media partner of ePharma West, the average marketing budget in the pharma space is up 4.7% to $14.7 million. Don’t let that uptick fool you. Despite the increase, most feel that they’re still being asked to do more with less. Of the respondents, 52% indicated that they are not given enough money to remain competitive—a 7% increase from last year. The survey, based on responses from over 220 product managers in the pharmaceutical (68%) and life sciences (17%) industries, showed that 29% were lucky enough to endure a budget hike this year.
How is that money being allocated? According to the survey, largely in the same way it was last year. Most categories remained steady as far as how much budget they were occupying. The most significant increase was in personal promotion which was up 4% for the year. Some of that may be due to the fact that physicians are becoming more difficult to reach and companies are working harder in order to do so.
The “personal promotion” category is the biggest piece of the pie, but what if you removed it from the equation? In terms of non-personal budget allocation, most areas saw a slight downward tick. Journal advertising, point of care and direct mail were among the group down a few points from last year’s survey. The biggest year-over-year gain in this category was eMarketing which experienced a 4% bump. Without factoring in personal promotion, eMarketing actually occupies the biggest part of the budget at 36%.
We’ll have more on the latest strategies in the areas you’re spending your money at ePharma West including direct to HCP, social media and direct-to-patient. Join us September 22-24 in San Francisco, CA. Download the agenda to see what else is on tap.
SAVE $100. Register here and use code XP1956BLOG.
This post was contributed by @MikeMadarasz
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