Pharma and healthcare's digital ad spend to reach $10B next year: report

Digital marketing word cloud
Data, analytics and targeted TV are fueling the swell of digital advertising in pharma and healthcare, says programmatic firm PulsePoint. (Pixabay)

Digital advertising is booming in pharma and healthcare, and it's expected to rise to $10 billion in 2020. That’s according to a new report from PulsePoint, and it represents a 13% increase over current spending.

Healthcare advertising currently only accounts for about 2% of total digital advertising spending in the U.S. However, advertising is not only growing in spending from the marketer side, but also in interest from consumers. The report found that consumers engage with health content for longer periods of time than with content from other industries including news, finance and even travel.

RELATED: Practical magic: Google counsels pharma to create 'seamless' digital experiences

Survey

Veeva 2020 Unified Clinical Operations Survey

We believe you have the knowledge and expertise to make this year's Veeva 2020 Clinical Operations Report even more robust and insightful than the last. Please take a moment to share your opinion in this 10-minute survey. All qualified respondents will be entered to win a $500 Amazon gift card.

One of the keys to pharma and healthcare digital growth is programmatic advertising, which integrates data, automation, insights and technology in real time, Chris Neuner, chief revenue officer at PulsePoint, said.

In pharma and healthcare, for instance, PulsePoint found that three out of four people were most likely to engage with health advertising when it offered additional information. Another two out of three would respond to “relevant informative content.”

“As marketers are thinking about television, digital and social, they’re saying, 'if I can use data in a real-time capacity and target the user to increase my chances of having the right communication with that patient or physician, why don’t I do that?'” Neuner said.

And yes, he did include television in his vision for the future of programmatic pharma advertising. Connected TV, addressable TV and over-the-top viewing—services such as DirecTV, Netflix, Hulu and YouTube, which all use some kind of internet-connected TV viewing—allow marketers to reach individual consumers using data and analytics.

RELATED: Tipping point? Digital communications from pharma finally get their due with doctors

“TV advertising isn’t over, it’s advancing,” he said. “Being able to pull data from multiple sources—purchase behavior, website activity, browsing behavior, medical claims data, for instance—can build an audience, in a HIPAA-compliant way, and allow us to build propensity. We can then create a device into the television that can target people specifically who have a propensity to that product.”

The result is continued traditional pharma channel TV advertising, but combined with consumer data and applied analytics to reach interested consumers, which should result in more efficient and effective media spending.

Suggested Articles

Amid Amgen's pricing war with Sanofi and Regeneron's Praluent, PCSK9 cholesterol fighter Repatha has shown a clinical benefit for HIV patients.

A month after the FDA approved it, Esperion's Nexletol showed it can lower cholesterol regardless of statin and ezitimibe treatment.

AstraZeneca's Farxiga can help prevent worsening or death in heart failure patients regardless of other therapies received, according to new data.