The podcast episode explores the impact and regulations of pharmaceutical advertising in Canada, featuring insights from Dr. Brian Goldman and advertising expert Terry O'Reilly. The discussion highlights how Canadian ads, constrained by regulations, often rely on "reminder ads" that mention drug names without detailing their uses, unlike U.S. ads that include extensive information and side effects. Barbara Mensis, a professor at the University of Sydney, critiques these ads for potentially misleading consumers and emphasizes the lack of social value. The episode questions the effectiveness of these ads and suggests potential reforms to Canadian drug advertising policies.
Advertising Regulations for Pharmaceutical Products
- Discussion on the advertising regulations for pharmaceuticals in Canada, particularly focusing on "reminder ads" and "help-seeking ads."
- Reminder ads can only mention the drug's name without stating its purpose, while help-seeking ads can mention a disease but not the drug's name.
"In Canada, pharmaceutical companies can only run what they call reminder ads. You know, there's this medication you can take, but we can't tell you what disease it's for."
- Explanation of how these regulations impact the effectiveness and creativity of pharmaceutical advertisements.
"You'll notice that when they went to say what Rebelsis does, there was a loud sound of a coffee grinder obscuring whatever they said because that ad is trying to exist within the Canadian pharmaceutical advertising regulations."
- The goal of reminder ads is to implant the brand name in the consumer's mind, hoping they will inquire further with their doctor.
"It's supposed to plant the brand name in your mind."
The Role of Jingles in Advertising
- Jingles are highlighted as a powerful tool for brand recall, although they have fallen out of favor in the advertising industry.
- Example of Ozempic's use of a jingle from a 1974 hit song to create brand recognition.
"They have co opted that jingle, changed the word. So instead of it's Magic, it's Ozempic."
- The effectiveness of jingles in making a brand memorable, despite their reduced use in modern advertising.
"A jingle is the best way to get somebody to remember something."
- Discussion on how media coverage and public discourse can influence the popularity and public perception of drugs like Ozempic.
- Ozempic benefits from extensive media coverage and discussions on talk shows, unlike its counterpart, Rebelsis.
"Everybody's talking about Ozempic because it's in the news, there's all kinds of earned media. It's talked about on talk shows."
- The advantage of being a first mover in the market and how it affects a drug's visibility and consumer interest.
"I think Ozempic had a first move."
Analysis of Specific Ads
- Detailed critique of the Rebelsis ad, focusing on its execution and adherence to Canadian advertising regulations.
- Observations on the casting choices and production quality of the ad.
"It's painful. Just I'll start with that. It's the acting is so stiff. It's clearly they're using non union actors."
- The strategic repetition of the brand name in ads to compensate for regulatory restrictions on content.
"So they're trying to get people to remember the brand name by saying it about a thousand times in that commercial."
Historical Context of Pharmaceutical Advertising
- Historical perspective on the evolution of pharmaceutical advertising, starting with the first TV prescription drug commercial in America in 1983.
- The initial resistance from the US government and the eventual integration of consumer-focused pharmaceutical marketing.
"In 1983, Boots aired the first TV prescription drug commercial in America, a TV spot for a pain reliever called Roofin. Just 48 hours later, the US government made the company take it down."
- The shift in focus from doctors to patients as the primary target for pharmaceutical marketing.
"The drug company's customers are the doctors who prescribe the pills. She told the president that the actual customer should be the patients who take the pills."
Constraints and Creativity in Pharmaceutical Advertising
- Constraints in advertising, such as regulations, budget, and time, can fuel creativity by forcing advertisers to explore unconventional routes.
- Historical examples, like Viagra ads, show how creativity can thrive even within the strict limitations of pharmaceutical advertising.
"I've always said that creativity loves constraint, meaning that when you're constrained in some fashion, whether it be by regulation or budget or time, not enough time to do it well, that it fuels creativity because it forces you to go down an unconventional route."
- Constraints can lead to innovative advertising solutions by challenging conventional thinking and encouraging creative problem-solving.
"So there's an advertising agency in Canada called Taxi Advertising. And when Viagra hit the market, it had the same stipulations and regulations. You couldn't say what it did. So they did what I think is some of maybe the best pharmaceutical advertising ever done."
- Creative ads like those for Viagra managed to convey their message effectively while adhering to regulatory boundaries, demonstrating the potential for creativity in regulated industries.
The Economics of Pharmaceutical Advertising
- Pharmaceutical companies invest heavily in advertising due to the significant potential return on investment.
- Large advertising budgets are justified by the expected financial returns, as illustrated by the spending patterns of companies like Ozempic.
"Because the upside is so huge. I was reading that ozempic spent in 2023. I think they spent $120 million on media time in the US alone."
- The substantial investment in advertising reflects the calculated expectation of a high return, highlighting the economic motivations behind pharmaceutical advertising.
Legal and Regulatory Frameworks in Canada
- Canada's laws restrict the advertising of prescription medicines to the public, allowing only name, price, and quantity to be mentioned.
- Reminder ads exploit a legal loophole in Canadian law, allowing pharmaceutical companies to indirectly promote their products.
"Well, we have reminder ads because actually it's against the law in Canada to advertise prescription medicines to the public. And these reminder ads have been allowed since actually late 2000, really through a loophole in the law."
- The loophole arose from a reinterpretation of the Food and Drugs Act, originally intended to allow pharmacists to post comparative prices.
"It was a reinterpretation of a clause in the Food and Drugs act that says that prescription drugs can be advertised to the public, but only name, price and quantity can be mentioned."
Industry Pressure and Regulatory Changes
- The Canadian government faced significant industry pressure to align its advertising regulations more closely with those of the United States.
- Health Canada introduced a policy allowing reminder ads as a compromise, avoiding legislative changes while partially addressing industry demands.
"Our government and every other government like ours that had a law against prescription drug advertising was under huge industry pressure to change our laws to make the situation much more like the United States."
- This policy reflects the balance between maintaining regulatory standards and accommodating industry interests without full legislative reform.
Social Value and Impact of Reminder Ads
- Reminder ads have been criticized for lacking social value, as they primarily serve commercial interests rather than public health education.
- The ads encourage consumers to inquire about specific drugs without providing comprehensive information, raising questions about their societal benefits.
"There is no redeeming social value. So interestingly, in the United States, these ads for Ozempic and Ribelsis would be completely illegal."
- The critique of reminder ads highlights the tension between commercial advertising practices and public health objectives, questioning their role in informed healthcare decisions.
Impact of Pharmaceutical Ads
- Pharmaceutical ads in the US are required to disclose the drug's purpose and list side effects due to FDA regulations.
- Research indicates that patients often request specific drugs after seeing advertisements, influencing doctors to prescribe them even if they wouldn't typically do so.
- There's concern that patients may request drugs without having the condition the drug treats, leading to unnecessary side effects and healthcare costs.
"There's now a whole body of research because this advertising prescription drugs to the public has been around for about a quarter of a century, a little bit more. So what we know is that when a person comes into their doctor's office to ask for an advertised drug after having seen an ad, they're very likely to leave with a prescription for that product."
- This quote highlights the strong influence of pharmaceutical advertising on patient behavior and prescribing practices, indicating a direct correlation between ads and prescription rates.
"The concerns would be that they may not even have the condition. The drug is actually approved and tested and found to be beneficial to treat."
- This quote points out the potential risks of patients requesting drugs without proper medical need, leading to unnecessary exposure to drug side effects.
Social Value and Regulation of Drug Ads
- The social value of drug ads is debated; they primarily benefit the companies by increasing sales rather than providing public health benefits.
- In Canada, there's a call to close loopholes that allow reminder ads, which are more controlled in the US, especially for drugs with serious risks.
"I would say that neither of them really have social value except for the company that's running them. Like that's if you're thinking of, okay, what is the value? The value is in increasing sales."
- This quote underscores the primary commercial intent behind pharmaceutical ads, questioning their societal benefit.
"I would like to see the loophole that Health Canada opened up through their administrative policy in the year 2000 closed again. There really is no rationale from any public health perspective to allow reminder advertising in Canada."
- This quote advocates for stricter regulations in Canada to prevent potentially misleading pharmaceutical advertising practices.
Consumer Awareness and Advice
- While some argue that drug ads raise awareness, the effectiveness and necessity of such awareness are questioned, especially for reminder ads.
- Consumers are advised to critically evaluate drug ads, recognizing that they may present an overly optimistic view of the drug's benefits.
"My advice would be a strong grain of salt. There was a quite well known British pharmacologist, Andrew Herxheimer, who had a quip about pharmaceutical advertising that it's the truth, the half truth and nothing like the truth."
- This quote advises skepticism towards pharmaceutical ads, suggesting they may not fully represent the reality of the drug's effectiveness or safety.
"I think it's hard to make that case, I have to say, for these Ribelsis and Ozempic ads. Now, that case was made a lot, for instance, for Viagra, that people were aware of it."
- This quote questions the value of awareness generated by certain drug ads, implying that they may not provide significant health benefits to consumers.
Pharmaceutical Advertising Strategies
- The discussion highlights the use of music and jingles in pharmaceutical advertisements to create a memorable and engaging experience for the audience.
- Humor is considered a powerful tool in advertising, as it can make ads more memorable and help them stand out in a crowded market.
- The challenges of pharmaceutical advertising include the complexity of drug names and the need for repetition to influence consumer behavior.
"Well, you heard the fair balance issue there where they had the side effects about the same length of time as they talked about the benefits. And interesting. They're singing the benefits of that drug."
- This quote emphasizes the balance required in pharmaceutical ads between promoting benefits and disclosing side effects, noting the creative use of music to highlight benefits.
"I'm a big fan of humor overall because I think it's the great shock absorber of life. And I think every advertisement is an intrusion."
- The speaker advocates for using humor in ads to make them more palatable and memorable, acknowledging that ads are inherently intrusive.
"The rule of thumb is you need people to see the ad 10 to 12 times before they'll actually consider taking action on it."
- Repetition is crucial in advertising, as it takes multiple exposures for consumers to act, highlighting the importance of engaging content to sustain interest.
Challenges in Naming Pharmaceutical Products
- Pharmaceutical companies face difficulties in creating simple and memorable drug names due to trademark requirements.
- The complexity of drug names can act as a barrier to effective marketing and consumer recall.
"The names of these drugs are impossible to remember, hence them trying to use a jingle."
- This quote points out the difficulty consumers face in remembering complex drug names and the industry's strategy of using jingles to aid recall.
"Pharmaceutical companies spend tens of millions of dollars trying to figure out names that they can use that are kind of in the ballpark of what they're trying to do."
- Significant resources are invested in developing drug names that are strategically aligned with their purpose, yet often result in complex names.
Opportunities for Creativity in Pharmaceutical Advertising
- There is potential for more creative approaches in pharmaceutical advertising, including storytelling and innovative content.
- Regulatory constraints should not limit creativity, as they can inspire innovative solutions.
"I think there's lots of room for creativity. I think you could do a lot of storytelling in pharmaceutical ads."
- The speaker sees storytelling as an underutilized strategy in pharmaceutical advertising, suggesting it could enhance engagement and impact.
"Stipulations, regulations are no excuse because creativity loves constraints."
- Despite regulatory challenges, the speaker believes constraints can drive creative solutions, advocating for higher standards in pharmaceutical advertising.
Perspectives on Pharmaceutical Ads in Different Regions
- The discussion touches on the differences in advertising regulations and practices between the US and Canada.
- There is debate about the appropriateness of certain types of ads, such as reminder ads, and their impact on consumer behavior.
"Some say we're at a fork in the road. We can permit tell all ads like they have in the US or we can ban reminder ads."
- This quote reflects the ongoing debate about the direction of pharmaceutical advertising regulation, weighing the benefits and drawbacks of different approaches.