Two studies led by Maxim Polonsky, assistant professor of marketing at KGI, have uncovered significant insights into how pharmaceutical companies communicate risk and pricing information in their video advertisements. The findings highlight concerning patterns in how drug companies present crucial information to consumers.
As an interdisciplinary researcher at the interface of marketing, decision science, and public health, Polonsky saw a natural alignment between his research interests and KGI's curriculum. This led him to launch an initiative evaluating marketing communication strategies in the pharmaceutical industry.
The first study analyzed risk information in 125 video advertisements for 100 prescription drugs aired between 2020 and 2024, offering a timely update to studies on advertisements aired a decade ago.
Conducted in collaboration with Vahe Akopyan, Andrew Jones, and Mayur Upparapalli — alumni of the Master of Business and Science in Biotechnology (MBS) program — the research revealed despite evidence supporting the effectiveness of larger text and dual-modality communication (combining audio and visual elements), pharmaceutical companies often present risk information in ways that diminish its impact.
"We found that even though there is plenty of evidence showing that large text improves comprehension, all risks are communicated in tiny text that's barely visible," Polonsky said. "You literally have to pause the screen to read it."
One of the most significant findings was that in general, serious side effects — such as coma and death — were either omitted from narration or downplayed.
"At the same time, some of the lighter side effects were prominently displayed throughout the ad," Upparapalli, '24 MBS, said.
Additionally, emotional appeals — especially themes of happiness — dominated the ads, often contradicting the gravity of the risk information. While this approach effectively connects with target audiences, it can overshadow critical safety details.
"If you're in the target demographic or have the condition being addressed, the emotional appeal makes you more likely to consider the drug," said Akopyan, '24 MBS.
This emotional resonance, while powerful for marketing, could be enhanced by clearer risk communication to build consumer trust.
Future research could involve randomized trials to gauge how consumers perceive different levels of risk disclosure.
"It would be interesting to have non-science participants watch these ads without prior instruction," said Jones, '24 MBS,. "If a serious side effect like death was mentioned, I’d imagine most people wouldn’t even notice. They’d be more focused on the visuals, music, and actors."
The second study, a pioneering collaboration with Andrew Parker, ’25 MBS, examined price transparency in pharmaceutical advertising. Researchers analyzed 127 video ads for 101 unique prescription drugs aired between 2020 and 2024.
The study found that most ads direct consumers elsewhere for pricing details rather than providing them upfront.
"The most common strategy is to redirect viewers to websites for more information," Polonsky said. "Ironically, the most critical pricing details — such as retail price and out-of-pocket costs — were the least mentioned and the briefest."
These findings are especially significant given that one of the original justifications for allowing direct-to-consumer pharmaceutical ads was to provide clear price information—a goal that remains largely unmet.
"Considering that many Americans live paycheck to paycheck, how many people are realistically going to pursue a drug when they have no idea what it costs?" Parker said.
Both studies could influence regulatory guidelines and reshape advertising practices, potentially leading to more transparent communication between pharmaceutical companies and consumers.
"These products save lives and prevent disease," Polonsky said. "Improving communication benefits both consumers and the companies themselves."
Additionally, the research offers students hands-on experience in research methods beyond traditional clinical trials, exposing them to the often-overlooked field of pharmaceutical marketing communications.
The findings will be presented at the American Marketing Association conference in Phoenix this month — a prestigious opportunity, especially given the competitive acceptance rates.
"For students, this is an invaluable opportunity," Polonsky said. "Now they understand how research is conducted, and they have a major conference presentation on their resumes."