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A decline of more than 3% in worldwide audited pharmaceutical marketing investments for 2011

China and other emerging markets continue another year of advances.

Cegedim Strategic Data (CSD), leading provider of healthcare market research and worldwide promotional audits, has released worldwide audited channel spending figures for full year 2011.

According to CSD, worldwide investment on sales force and other marketing channels was down 3.4% to just over US $92 billion at constant local currency exchange rates compared to full year 2010. Growth in China, Latin America and other emerging markets was offset by cuts in sales and marketing in the USA, Japan, and major European markets.

Spending  on  sales  force  activity  alone  fell  by  nearly  5%  worldwide  to  US  $55.8  billion  mainly due to cuts in the USA and Japan. Detailing now represents just over 60% of global marketing investments.  Use  of  meetings  and  events  was  also  down  worldwide  (-4%)  with  use  of  this channel in Japan dropping by 11%. In China however spend on meetings and events jumped by over 40%.

Christopher  Wooden  Vice  President  for  CSD  Global  Promotion  Audits  commented:  “The increases we saw in Japan in 2010 reversed last year as that country along with the USA and major  European  markets  consolidated  marketing  expenditure  in  the  context  of  fewer  product launches  and  the  end  of  patent  protection  for  major  brands.  Meanwhile,  emerging  markets powered  ahead  in  2011  with  China  leading  the  way  followed  by  Brazil  and  India.  These countries saw significantly increased investments across the entire marketing mix.”

At  a  company  level,  despite  the  focus  on  emerging  markets,  there  was  general  consolidation among  the  leading  ten  companies  during  the  12  months  to  December  2011.  Only  two  among the  top  ten  companies  increased  worldwide  promotional  expenditure  in  2011.  Indicative  of  the pull  back  in  North  America,  only  three  American  multinationals  ranked  among  the  top  ten companies in terms of global promotional spending levels.

CSD  monitors  pharmaceuticals  marketing  investments  in  over  30  countries,  tracking  industry sales  force,  sampling,  meetings/events,  clinical  trials,  DTC,  e-promotion,  print  advertising  and other marketing channels. GPs, specialists and pharmacists are covered with a pool of 200,000 healthcare  professionals  reporting  their  exposure  to  industry  promotional  activity  on  a  daily basis.