Pharmaceutical Ad Spend During COVID-19
During the COVID-19 pandemic, the pharmaceutical industry rapidly accelerated its pre-existing shift from traditional TV advertising to digital platforms, embracing programmatic formats and digitized operations such as telehealth, remote patient support, tech-powered trials, and cloud-enabled collaboration, thereby moving toward a more patient-centric and agile healthcare model.
The pharmaceutical industry is traditionally considered recession-proof. However, during the COVID-19 pandemic, pharmaceutical companies have played a crucial role in addressing the crisis, leading to rapid changes within the industry, including its advertising strategies.
Changing Pharmaceutical Landscape Follows Pre‐COVID Predictions… But Faster
At the end of 2019, experts predicted a significant shift in pharmaceutical marketing from TV to digital channels. TV has long been a staple for generating mass reach and awareness of new products, but the industry is now turning to online platforms to target consumers more personally and efficiently, potentially reducing waste in mass media plans.
Digital advertising, while promising, was initially slow to catch on in the pharmaceutical sector due to strict regulations. Over time, the benefits of digital advertising began to outweigh the challenges, and during the pandemic, certain programmatic formats surged. Data confirms that this shift to digital is happening much faster than previously anticipated.
Longer‐Lasting Changes in the Pharmaceuticals World
The push toward digital advertising coincides with the rapid digitization of the industry’s operations. For example, a majority of physicians expect a long-lasting rise in telehealth appointments and the use of remote-sensing tools to measure patient vitals. Analysts believe the health industry is at a crossroads, moving toward a more patient-centric, digitized, and agile model.
Some changes likely to persist include:
- Remote patient support: Medicine is shifting to a self-service model with remote monitoring and instruction.
- Tech-powered trials: Remote measurement of trial participants, such as in cancer research.
- Cloud-enabled collaboration: The cloud facilitates easier communication with patients and collaboration in treatment development.
Digitization was already underway, but COVID-19 accelerated the process and highlighted the need for the pharmaceutical industry to be nimble.
MediaRadar Insights
Analysts predicted an increase in pharmaceutical ad spend across digital channels in 2020, but the pandemic amplified this trend. Digital ad spend across all markets is up 40%. However, when including print and television, overall ad spend is down just 12%.
Advertisers are reallocating budgets: as digital ad spend rises, print advertising in the sector has declined year-over-year. The number of brands advertising in print decreased by 17%, and print ad spend dropped by 30%.
Brands have maintained campaigns to preserve visibility but have reduced the size and frequency of their efforts.
The sector is not dominated by a single company. Top advertisers in 2020 include:
- GlaxoSmithKline
- Pfizer
- Eli Lilly
- BioGen
- Merck
- Gilead
GlaxoSmithKline, the largest spender, accounts for 14% of total ad spend in the category, indicating a saturated market with many brands making smaller placements.
Creative content has also been influenced by COVID-19, reflecting the industry's adaptation to the pandemic.
As the year progresses, ongoing updates and trends in B2B pharmaceutical advertising will continue to emerge.
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