Brandjacking Index Examines Online Pharmaceuticals Market

We released the Summer 2008 edition of our Brandjacking Index earlier this week. You can download a copy of the report here. We publish this report to shed light on the variety of brand abuses that target leading brands and to demonstrate how those abuses can harm the public as well as brands.

For the second year in a row, we analyzed the state of the online pharmaceuticals market and examined online pharmacies, online advertising and B2B exchanges. We used six popular prescription drugs as our filter and found almost 3,000 online pharmacies offering one or more of these drugs; only two of the pharmacies were VIPPS-certified.

Traffic to these sites had tripled from our study last year and we estimate that these pharmacies are driving approx. $12billion in revenue annually. These pharmacies are spending serious money, too, in driving business; we estimate almost $26million in search advertising spending for illicit pharmacies for just those six keywords. Listings on B2B exchanges for bulk purchases of patented prescription drugs as well as their APIs (Active Pharmaceutical Ingredients) have grown since 2007; 59% of the listings identified in 2007 were still active during our study period.

The full report has many examples and also discusses our methodology in detail. The report also discusses general brandjacking trends and phishing. Cybersquatting continues as the tool of choice for brandjackers and phishers sought out new organizations aggressively; 35% of the organizations phished in Q2 of 2008 were first-time targets.

Press coverage for the report is available on our site, too, so you can see what some members of the press have to say about the Summer 2008 Brandjacking Index.