Impact especially high among Men and Millennials
According to the global Pharma and Healthcare Market Forecast, the worldwide market is projected to reach $1.57 trillion by 2027, up from $1.12 trillion in 2020, and North America represents 50% of the market share. The COVID pandemic affected healthcare as much as any industry and created enormous shifts in consumer perceptions about their health and wellness.
The increased focus induced by the pandemic is reflected in the latest consumer research from OAAA and The Harris Poll’s examining consumer notice of, and actions generated by, OOH ads for pharmaceutical products. Over half (54%) of US adults recently noticed an OOH ad for pharmaceuticals, and notice rates increase significantly higher for urban residents in cities of one million plus (70%), and Gen Z and Millennials (66%).
The survey also revealed high levels of ad-driven engagement (78%) among those who recently noticed pharma OOH ads. The chart below shows the various types of actions taken by these consumers, with the highest rates occurring with Men and Millennials (85%). The most frequent actions were visiting the product/company’s website (38%), and searching for more information about the product or making a purchase (35%).
For additional insights on pharmaceutical OOH ad messages most likely to engage consumers and drive action, OAAA members can access the full Harris Poll study, along with the supporting Infographic here.
Vivvix ad spend analysis shows very strong OOH growth in the pharmaceuticals category in 2022 with OOH spend growing 179 percent over the previous record set in 2018. The data underscores the tremendous potential for OOH within the category, as last year’s OOH spend represented almost forty percent (38%) of all OOH pharma investment from 2018 – 2022.
Just five categories within Vivvix’s pharma industry classification made up almost 90 percent (89%) of all OOH pharma investment from 2018 – 2022, and the five are depicted in the chart below.
Examining OOH ad spend by individual advertisers, the next chart details how just five pharma houses generated almost two-thirds (65%) of the total category over the past five years, with Novo Nordisk the clear leader at about one-third share of all OOH category spend.
An analysis of Vivvix data detailing category media share reveals the enormous upside for OOH. Despite garnering a huge spending increase in 2022, OOH still only accounts for one percent of total pharma spend, while TV/cable and digital generate almost 90 percent.
To assist OAAA members in leveraging opportunities in the pharma category, here are several additional insights about the state of the sector.
From WARC:
The COVID-19 outbreak has created an opportunity for the industry, particularly the pharmaceutical sector, to create a more positive brand image: in June 2021, one in five consumers reported they trust the industry more than they did one year ago. Brands need to take advantage of this peculiar moment, for example by demonstrating purpose and creating distinctive brand assets.
From PharmExec.com:
Creativity will be a force for access
Navigating access to healthcare can be overwhelming and complicated. Finding a successful path forward to help patients get access to the healthcare they deserve requires a specialized communication approach that educates, informs, and breaks down the walls of a hard-to-navigate system. Access is one of the pieces of the healthcare puzzle that benefits significantly from creativity—from developing innovative solutions to problems that capture the hearts and minds of everyone involved to helping patients obtain the right healthcare while navigating availability and affordability.
Manufacturers must get creative to solve big-picture problems, such as tackling inequity in access to care. And we need creativity in how we talk, visualize, inform, educate, stimulate, and connect the dots with meaningful interactions that deliver this critical information. We must think about problems and issues affecting access in new ways. This starts by treating communication touchpoints as more than just straight facts but experiences that offer customized tools, interactive engagements, video, immersive data, and artificial intelligence that get stakeholders all on a path to making access more meaningful.
From Pharma Manufacturing:
A future powered not only for patients but by patients
Pharma companies are learning to speak the language of patients, who at the end of the day are consumers of health care products and services. Expect the purpose statements to shift from ‘improving patient lives’ to ‘health and wellbeing’ of consumers with more focus on prevention. This might seem like a simple change in company purpose statements, but it brings profound changes in the way these drugs and devices are developed, marketed, and delivered.
Transformation in preventative health care is inevitable as health data becomes more accessible. Consumers are thinking proactively about their health and well-being with wearables, but the next stage of transformation involves empowering them with insights, so they make the right decisions about their health.
Source: OAAA, Pharma Manufacturing, PharmaExec.com, The Harris Poll, Vivvix, WARC
Published: May 17, 2023