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Mature Marke Experts Stat of the Day: Why Advertisers Spend More On Drugs That Lack Competition

Written By: Tom Mann - Dec• 10•09

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Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – Why Advertisers Spend More On Drugs That Lack Competition. A new report by The Congressional Budget Office uncovers an apparently contradictory trend in the marketing of brand name drugs. Advertisers spend much more on the marketing of drugs that hold a monopoly than on those with competitors. A medication that is unique will benefit from approximately twice the advertising dollars than a drug that has only one challenger will. Catherine Rampell in The New York Times explains the reasoning behind this anti intuitive behavior as twofold. Advertising in a crowded field delivers less results on the dollar. Secondly, by creating greater demand for a monopoly the drug company can drive up the price. For more information on this report click here.

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