On The Pulse

DTC Ads Miss Consumer Mark

Compared to last year, the impact of DTC advertising remains flat, according to a recent survey by CDB Research & Consulting. Despite all of the industry DTC hype, fewer than two in five adults have asked their doctors about prescription drugs they've seen advertised on TV or in print - a figure virtually unchanged from 1997.

The key to making DTC campaigns more profitable is identifying what consumers are more likely to pay attention, says Larry Chiagouris, managing director of the New York based research firm.

Other key finding of the survey:

  • Older adults and better educated consumers tend to respond best to DTC drug advertising.
  • Women are more likely than men to encourage others to ask doctors about advertised drugs (38% vs. 31%). (CDB Research & Consulting, Larry Chiagouris, 212/367-6858)

West Coast HMOs Are Big Value

Compared to health plans in the rest of the country, HMOs on the West Coast cost 14% less for employers and score higher in overall quality, according to a recent study by Hewitt Health Value Initiative, a market research firm in Lincolnshire, Ill.

Annually, employers in the West pay an average of $3,127 per HMO enrollee, far below the national average of $3.610.

According to the study, the most cost-effective health plans are in highly penetrated managed care markets, including:

  • San Diego with a cost per employee (CPE) of $2,789;
  • Los Angeles, CPE: $2,922;
  • Seattle, CPE: $2,987; and
  • Orlando, CPE: $3,051.

The most expensive HMO markets include Toledo, Ohio ($4,946) and Madison, Wis. ($4,590). (Hewitt Associates, Kelly Zitlow, 847/771-2687)