A report from Publicis Media’s Zenith agency says that pharma companies are spending less on TV ads and more on digital advertising.
TV advertising dollars add up for the healthcare sector, which spends more on TV ads than other industry –– nearly 55%, compared with just over 30% in 2018, according to the latest report from Publicis Media’s Zenith agency. The rate of spending on TV advertising by pharma companies is, however, declining more rapidly than it is in other industries.
Those dollars are moving to digital advertising. In the United States, this move is due in part to the recent attempt by the Trump Administration to require drug prices in TV ads –– a regulation that was blocked in court. Pressure on TV ads is expected to continue, however. In addition, digital advertising offers pharma companies a means for personalizing and targeting their messages. Outside of the U.S., TV ads for prescription medicines are banned in many countries, so international pharma firms have been investing in digital ads for some time.
Smaller advertising budgets –– the result of slower growth in the industry –– are also driving the shift to digital advertising. The ability to provide personalized and targeted messages allows for more careful and effective advertising spending.
The report also suggests that, in addition to digital ads targeting personal devices, consumers can expect to see more digital poster screens. Billboard ads and ads in pharmacies are likely to increase as well.