11 months ago| article
The report details the potency given to digital ad spends for OTC brands
Mar 07, 2022 07:05:00 AM | Article | Campaign India Team Share -
Zenith has launched its annual 'Business Intelligence - OTC Healthcare' report.
This report details the growth of digital ad spends on OTC brands from 2020 to 2023.
It suggests that over 13 markets in the OTC healthcare brands segment will grow by 7.6% in 2022 and 5.0% in 2023.
The 13 markets included in this report are Australia, Canada, China, France, Germany, India, Italy, Poland, Russia, Spain, Switzerland, UK and USA. All of these markets account for 74% of the total global ad spend.
The study stated that the growth of these markets will be driven by digital brand advertising and performance advertising.
Highlights of the report:
OTC on e-commerce: Now that more consumers are aware of and comfortable with the option of shopping for OTC products online, e-commerce might account for an increase in sales over the next few years.
Shift to digital: OTC brands will increase their digital ad spends at an average rate of 11% a year between 2021 and 2023 for 49% of OTC advertising in 2023, up from 46% in 2021.
Year-over-year growth in ad spends: 2020 accounted for a 6.8% growth in ad spends due to the rise of healthcare prominence at the peak of the Covid pandemic. In 2021, OTC advertising expenditure rose to 12.8%. OTC healthcare ad spend will grow from US$ 20.1 billion in 2021 to US$ 22.7 billion in 2023. The ROI agency has predicted a 36% increase in OTC ad expenditure which exceeds pre-pandemic revenues.
Benoit Cacheux, global chief digital officer, Zenith, said, "The continued shift to digital allows OTC brands to use smart segmentation and dynamic creativity to market the same products to different people with different needs, within the framework of regulations for digital advertising in this category. The gym-goer with muscle ache, the office worker with a headache, and the parent whose child has growing pains all need pain relief, but brands need to talk to them in different ways to persuade them most effectively. This ability to tailor the creative to the needs of the audience gives digital advertising an advantage that traditional media never had.”
Jonathan Barnard, head of forecasting, Zenith, said, "The pandemic has focused consumers’ attention on their health and disrupted their reliance on traditional OTC distribution channels. Brands will continue to step up their investment in digital advertising as the rise of e-commerce gives it a greater role in driving OTC sales and brand growth.”