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An article posted on Mediapost details some potential problems in Pharmaceutical advertising tactics which could impact Digital OOH operators who collect ad revenue from the likes of Eli Lilly and Bayer, including;

  • Dental Networks
  • Doctor Office Networks
  • Hospital Networks
  • Gym Networks
  • Pharmacy Networks 

According to Ad Age, the main Pharma Trade Group is admitting that they are facing mounting pressures from consumers, media companies and even Congress.

In a number of states across the country, there is backlash building against [pharmaceutical] sales and marketing,” says Ken Johnson, senior vp for the Pharmaceutical Research and Manufacturers of America. As a result, Johnson says the industry trade group will examine how its members bring medications to market, but he stops short of calling PhRMA’s move a task force or committee. 

Many of the networks I mentioned above receive dollars for both sponsored content and pure play advertising content on their screens to help generate revenue in relevant enviornments. Given how focused, targeted and impactful these high dwell time environments are, they lend themselves well to both above the line and below the line (at Dr Office) messaging.

Don’t expect the ad numbers to dry up overnight but given the negative feelings that many consumers have about Big Pharma, if they don’t address what are seen as aggressive DTC (direct to consumer) advertising practices, Congress could very well impose ad legislation like the Tobacco industry has to deal with and a good current source of revenue could be impacted on Digital OOH as it is a great new DTC medium.  Especially, as the article contends, with new drugs, where large portions of budgets are allocated for new launches to make consumers aware of new products.

My guess is that the association and industry will try and self regulate before any type of government intervention happens but it may be worth factoring in to your “risk” strategies going forward if these companies are your clients and we may even be able to help them by working with them to suggest best practices that are seen as appropriate for the environments and are not seen as as a negative by the audiences.

I’ve written about another side of these issues that the Big Pharma cos have to deal with before in supporting Digital OOH on these networks.

The article can be found here

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Comments

5 Responses to “Possible Problems Ahead for “Health & Wellness” Digital Signage Networks”

  1. Matt Hanson on February 4th, 2008 3:00 pm

    I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Matt Hanson

  2. Dave Haynes on February 4th, 2008 4:32 pm

    Interesting, but not all that worrying.

    While consumers may be weary of endless ads for Restless Leg Syndrome and on and on, I don’t think the pressure to tone things down will be anything like that put on the tobacco industry. Drugs at least purportedly help people. Smokes kill them.

    If anything, this might just compel the pharma’s marketers to develop content that is not just a pure Ask Your Doctor push. It might lead to informative sponsored content that’s actually informative.

  3. Rob Gorrie on February 5th, 2008 9:36 am

    Fully true Dave. The small risk is purely in the delay they may add in to marketing budgets allocated to new drug promotion. If something like that were to be imposed, it could create a lag in ad spending on new products which won’t necessarily be taken up by old drugs on the market

    I agree with you on a potential trigger for new compelling content

  4. Lead Research » Clippings 7 Feb. Digital Signage: at the beginning of an exciting new curve…. on February 7th, 2008 3:14 am

    […] with OneLan at Screen Expo 08 - London    Fachkonferenz zum Thema Digital Signage auf der CeBIT Possible Problems Ahead for “Health & Wellness” Digital Signage Networks An article posted on Mediapost details some potential problems in Pharmaceutical advertising […]

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