Abstract
ABSTRACTDirect-to-consumer (DTC) advertising of prescription pharmaceuticals grew from $48.2 million in 1990 to $594.5 million in 1996 and reached $1.3 billion in 1998. Proponents of DTC advertising of prescription drugs claim that it raises public awareness of new treatment options, whereas critics contend that DTC ads lead to unnecessary demand for expensive new drugs. Both advocates and critics believe that, overall, DTC advertising of prescription drugs increases sales, but the evidence shows that expenditure on DTC advertising does not always correlate with market share within the drug category. To investigate the impact of DTC advertising on prescription pharmaceutical sales and market share, this paper examines DTC advertising expenditures and sales of 16 brands in 4 widely advertised prescription drug categories: antihistamines, nail fungus medications, cholesterol-lowering drugs, and antidepressants.
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