Healthcare Advertising Market

Global Healthcare Advertising Market Size (2024 to 2029)

The global healthcare advertising market size is expected to register a CAGR of 5.4% from 2024 to 2029 and be worth USD 54.99 billion by 2029 from USD 42.28 billion in 2024.

Establishing advertising and communication strategies to reach new patients and enhance patient care by creating an open contact line between doctors or healthcare organizations and their patients is referred to as healthcare advertising. Healthcare advertising is a service that creates, plans and executes advertising for its customers. Advertising services such as mobile-first websites, internet advertising, search engine optimization, social media advertising, newspapers, magazines, medical journals, television commercials, radio ads, and others are provided by various marketing companies. Healthcare advertising is used in different applications such as medical insurance, over-the-counter medicines, hygiene products, pharmaceutical manufacturers and brands, prescription medicines, fitness and diet products and services, medical equipment, and corrective lenses and glasses in the healthcare sector.

MARKET DRIVERS

The growing spending on the advertising of drugs is the key factor that boosts the growth rate of the global healthcare advertising market.

Direct-to-consumer pharmaceutical advertising (DTCPA) has exploded in popularity over the last few decades, and it is currently the most common kind of public health communication. However, only the United States and New Zealand allow DTCPA that contain product claims. As a result, many businesses spend a lot of money on online display ads, brand websites, and social media efforts. According to Statista, the pharmaceutical sector in the United States spent USD 6.58 billion on direct-to-consumer advertising in 2020. At the same time, in 2019, the pharmaceutical industry spent $6.56 billion. According to Kantar measured media, overall pharma advertising spending exceeded $6.58 billion in 2020. Pharma TV advertising remained the most expensive, accounting for $4.58 billion, or 75% of overall spending. At the same time, US healthcare and pharmaceutical advertisers increased their mobile expenditure by 14.0 % to $2.03 billion in 2019. Further, according to a report conducted by Dartmouth College academics, total marketing spending for disease awareness, health services, lab tests, and medications reached over $30 billion in 2016. As a result, the healthcare advertising market is expanding.

The rising competition among various organizations in the healthcare industry is expected to accelerate the growth rate of the global healthcare advertising market.

Patients in the medical field now have more alternatives than ever before. These patients no longer need to attend the nearest hospital, medical practice, or even healthcare practices with numerous sites in the neighborhoods because there is so much online information. Also, there are more than 300,000 over-the-counter medication products on the market. On the other hand, there are an estimated 2 million distinct types of medical devices globally, divided into over 7000 generic device categories. That's why it's critical to have a well-thought-out, funded healthcare advertising strategy to reach out to new and returning patients. With the increased use of social media, staying ahead of the competition is becoming increasingly important. As a result, sponsored social media advertising is growing in popularity. Patients may also readily buy drugs online due to the rise of internet pharmacies. In this situation, advertising may have an impact on the patients. As a result, many businesses are turning to advertising agencies to advertise their products.

MARKET RESTRAINTS

HIPAA regulations are limiting the growth rate of the global healthcare advertising market.

In 1996 America passed the Health Insurance Portability and Accountability Act.  Healthcare marketers can still use Pay-per-click advertising to bring their website or landing page to the top of Google search results. However, companies cannot retarget people who have previously visited their websites due to HIPAA issues. Retargeting is not an option for healthcare providers since it inevitably violates privacy regulations (usually targeting a health condition within future advertisements). Instead, hospitals must rely on one-of-a-kind impressions and recurrent ad views.

Impact Of COVID-19 On The Global Healthcare Advertising Market

As the COVID-19 epidemic progresses, hospitals and health institutions are changing their communications with patients and the public. Many companies' message focuses on worker safety and personal experiences. With COVID-19, advertising emphasis shifted even more toward COVID-19 prevention, testing, and treatment. Many companies utilize digital advertising to steer people in the right direction in COVID-19. Advertising has been ramped up across all media to raise awareness about the coronavirus, including television, mobile phones, and laptops. As a result, according to TAM AdEX data, commercials regarding coronavirus awareness aired for 40,992 minutes between March 22 and March 28, 2020. Similarly, state governments in India (via a total of 60 advertiser entities) have contributed to 58 % of coronavirus awareness through social advertising on television. On the other hand, the federal government accounted for the remaining 42% of coronavirus-related social advertisements on television, with five advertisers. In addition, in the COVID-19 pandemic, advertising in images, posters, and projects has expanded. Following the advent of the vaccine, advertisements for vaccinations were shown on television, YouTube, radio, and other forms of media to promote vaccine usage.

REPORT COVERAGE

KEY PLAYERS IN THE GLOBAL HEALTHCARE ADVERTISING MARKET

The major players operating in the global healthcare advertising market profiled in this report are Syneos Health, Havas Health & You. (A Subsidiary of Havas Group), MCCANN WORLDGROUP (A Subsidiary of IPG), Wunderman Thompson (A Subsidiary of WPP plc), RevLocal, HLM Digital, Dobies Health Marketing, The Communications Strategy Group Inc., Healthcare Success, LLC, PUBLICIS GROUPE, CDM New York, FCB Worldwide, Inc. (A Subsidiary of IPG), VMLY&R (A Subsidiary of WPP plc), AbelsonTaylor, Inc., Thrive Internet Marketing Agency, LEVO Healthcare Consulting, Sagefrog Marketing Group, LLC, Distill Health, Trajectory, and others.

These players adopt expansion, merger and acquisition, partnership, and collaboration strategies to gain market share.

RECENT HAPPENINGS IN THE MARKET

• In July 2021, Barokas Communications, a Seattle-based independent public relations business representing many of the region's tech companies for the past two decades, was bought by Finn Partners, a worldwide marketing and communications firm in New York. Finn's broader marketing and communications capabilities in branding, creative, digital marketing, and paid advertising will be used by Barokas, which has locations in Seattle and Denver.

DETAILED SEGMENTATION OF THE GLOBAL HEALTHCARE ADVERTISING MARKET INCLUDED IN THIS REPORT

This research report on the global healthcare advertising market has been segmented and sub-segmented based on type, technology, format, engagement, approach, application & region.

By Type

• Traditional
  • Television
  • Print
    • Magazines And Medical Journals
    • Newspaper
    • Others
  • Radio
  • Others
• Online
  • Online Advertising
  • Search Engine Optimization
  • Mobile-First Website
  • Social Media Advertising
  • Others
• Public Relation
  • Publicity
  • Sponsorships
  • Community Events
  • Others
• Unique Branding and Awareness
• Internal Marketing
  • Events
  • Text And Email
  • Phone Communication
  • Patient Experience
  • Others
• Employer Marketing
  • Meeting And Presentation
  • Business Targets
  • Others
• Physician Referrals
• Others

By Technology

• Telemedicine
• Artificial Intelligence
• Personal Data Tracking
• Others

By Format

• Display
• Search
• Video

By Form of Engagement

• Healthcare Facility
• Online
• In-Home / In Person
• Others

By Approach

• Detailing (Healthcare Professional)
  • Personal Data Tracking
  • Telemedicine
  • Artificial Intelligence
  • Others
• Direct To Consumer Advertising
  • Personal Data Tracking
  • Telemedicine
  • Artificial Intelligence
  • Others

By Application

• Fitness And Diet Product and Service
• Over The Counter
• Health Hygiene
• Medical Insurance
• Corrective Lenses and Glasses
• Medical Devices and Equipment
• Pharmaceutical
• Prescription Medicines
• Biotech Companies
• Biopharmaceuticals
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa