Magazine Industry Hooked on Pharma?

Change is in the wind for the pharmaceutical industry and magazines, as a rash of potential curbs on pharma advertising spotlights one of the medium's most dependable categories. With healthcare issues on the front burner, lawmakers are taking aim at the tax deduction on ad expenses for prescription drugs, while TV ads for sex aids like Viagra are coming under scrutiny. Even before President Obama took office, buyers and publishers noticed a tempering in pharma spending, which some interpreted as an anticipation of a less-friendly attitude toward the industry. Some drug marketers—including Pfizer, Johnson & Johnson and Merck—last year said they had voluntarily put a moratorium on advertising for new drugs. Direct-to-consumer drug advertising has long been politically sensitive, but since the Food & Drug Administration relaxed its rules for drug ads on TV in 1997, spending to reach healthcare consumers directly has ballooned. Magazines have shared in the wealth. From 2003-'08, drugs & remedies in consumer magazines soared 58 percent to $2.2 billion, ranking it No. 2 behind toiletries & cosmetics, according to Publishers Information Bureau. And with mainstay print categories like financial, auto and travel tanking, pharma is one category that's been a bright spot.