Healthcare Advertising Market

Global Healthcare Advertising Market Size (2024 to 2032)

The global healthcare advertising market size is expected to register a CAGR of 5.4% from 2024 to 2032 and be worth USD 64.21 billion by 2032 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 rising involvement of social media is becoming the most significant tool for healthcare organizations which is creating effective customer interaction, this is enhancing the market growth opportunities. Most of the healthcare advertisers are focusing on reaching the specific patient groups which supports the health decision-making of the patients, propelling the opportunities for market growth. The medical advertisers are staying ahead in the industry for increasing competitive market which is making them to focus on innovations by engaging the consumers. This is estimated to drive the market revenue in the coming years. For Instance, the average online ad spend for healthcare in United States is approximately USD 17 billion and around 2.67 billion was spent on static display ads.

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

The presence of stringent regulations regarding the advertising, marketing and sales of healthcare products acts as major challenge for the market expansion. The rising concerns related to ethical standards of advertising, and budget limitations for most of the organizations especially in the developing and underdeveloped nations are various factors hampering the market growth opportunities. The concerns related to data security, and increasing cases of data breaches, as the complete company information is present with the advertising organizations which acts as another significant challenge for market growth.

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.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Healthcare Advertising Market – By Type

The online segment dominated the global healthcare advertising market revenue with significant market share and is expected to record substantial growth during the forecast period. The increasing number of online platforms as most of the patients are seeking for medical solutions through online channels which is augmenting the segment growth opportunities. The rising penetration of IoT and services in the healthcare industry is creating growth opportunities to the segment expansion. The online segment has created rapid and cost-effective reach to larger audience is impacting positively on the growth of segment revenue. For Instance, around 93% of the online experiences begin with a search engine, where 40% of the total business revenue comes from organic search.

The traditional and public relation segments are estimated to hold prominent growth rate in the coming years. The rising investments by the market players in the awareness and advertising campaigns, and the increasing sponsorships are escalating the public relation segment growth. The advertisement in television, along with magazines and medical journals are most common and widely preferred methods by the organizations which fuels the segment revenue growth.

Global Healthcare Advertising Market – By Technology

The telemedicine segment accounted with the most prominent share in the healthcare advertising market and is estimated to maintain the dominance in the coming years. The expanding telemedicine industry is creating opportunities for the healthcare advertising leading to segment growth. The increasing number of online channels for medical support especially in the remote areas is escalating the telemedicine field leading to substantial growth of the segment.

The artificial intelligence segment is projected to record prominent growth during the forecast period. The increased penetration of artificial intelligence in most of the healthcare sectors is enhancing the revenue of the technology owing to their high-end properties is augmenting the segment growth opportunities.

Global Healthcare Advertising Market – By Format

The display segment held the most significant share in the global market revenue and is expected to have notable growth during the forecast period. The display advertising is the most cost-effective way for creating brand awareness among the larger audience which is propelling the segment growth rate. The visual appeal, and the brand recognition are the major factors fueling the segment growth. The video segment is projected to have considerable growth during the forecast period. The increasing focus of market players in making vide as the essential element for successful healthcare marketing is driving the segment growth.

Global Healthcare Advertising Market – By Form of Engagement

The healthcare facility segment dominated the global healthcare advertising market revenue and is expected to maintain the dominance during the forecast period. The growing number of healthcare facilities worldwide and the increasing focus of organizations on advertising to reach larger audience is contributing to the segment growth. The growing government support initiatives and rising partnerships, and collaborations among the major market players is enhancing the requitement of healthcare advertising which is creating market growth opportunities. The online segment is estimated to record notable growth in the coming years owing to expanding digital healthcare industry.

Global Healthcare Advertising Market – By Application

The pharmaceutical segment witnesses greatest share in the global market and is predicted to held the dominant share in the coming years. The presence of high competition in the industry is enhancing the demand for strategic marketing for geographical reach is driving the segment growth. The continuous growth in the pharmaceutical industry and growing number of companies with innovations is propelling the segment expansion.

The over-the-counter drugs segment is expected to hold rapid growth rate in the coming years owing to their wide adoption rate among the people. The over-the-counter medicines are extensively popular among the people which is enhancing the segment to adopt healthcare advertising to expand the product portfolio.  

Global Healthcare Advertising Market – By Approach

The direct-to-consumer advertising segment held the largest share in the healthcare advertising market owing to the increased demand for audience reach. Most of the market players are focusing to reach audience directly which is fueling the segment growth. The detailing segment is predicted to have considerable growth during the forecast period due to rising adoption among the healthcare professionals.

Regional Analysis

The North American region dominated the global healthcare advertising market revenue and is projected to maintain the significant share during the forecast period. The presence of well-established healthcare infrastructure, robust internet penetration in the region, availability of vast advertising and digital marketing services is augmenting the regional market growth. The expanding healthcare industry in the region is enhancing the demand for digital advertising and marketing services leading to substantial market growth. North America is considered as home to most of the significant healthcare organizations and the growing investments in healthcare advertising by various public and private organizations is escalating the regional market share growth.

For Instance, around 73% of the Gen Z consumers and 68% of millennials explore health advice on Google before a medical consultation.

The Asia Pacific region is estimated to have fastest growth with prominent CAGR during the forecast period. The increasing healthcare expenditure, growing population is expanding the healthcare industry across the region, favorable regulatory framework in the region is augmenting the regional market growth opportunities. The rising use of technology in the healthcare industry, presence of major market players is fueling the regional market expansion.

The European region is projected to have notable growth during the forecast period owing to the presence of advanced healthcare infrastructure. The presence of significant pharmaceutical and biotechnology companies in the region, and the expanding healthcare industry along with rising government support initiatives is enhancing the regional market share growth.

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 February 2023, Publicis Groupe announced its entry into healthcare advertising industry. It made announcement with the introduction of Heartbeat, a specialized agency which works on development of innovative and engaged advertising campaigns for healthcare brands.

• In March 2023, Havas Health and You announced the acquisition of Influitive, which is significant digital healthcare marketing agency. The primary aim of the acquisition is to strengthen the position of Havas Health and You in digital healthcare marketing sector.

• In September 2023, Deeplntent, a US-based healthcare advertising platform announced the launch of Deeplntent Copilot. The major aim of the launch is to optimize the campaign strategies, to maximize media investments by enhancing the performance and efficiency in healthcare advertising.  

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