{"id":4886,"date":"2011-04-15T00:00:00","date_gmt":"2011-04-15T00:00:00","guid":{"rendered":"http:\/\/www.pharma-mkting.com\/index.php\/2011\/04\/15\/pmn107-article03\/"},"modified":"2019-02-18T19:35:14","modified_gmt":"2019-02-18T19:35:14","slug":"pmn107-article03","status":"publish","type":"post","link":"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/articles\/pmn107-article03\/","title":{"rendered":"Ad Dollars Follow Eyeballs to Web: Guesstimating Total Pharma Web Ad Spending"},"content":{"rendered":"<p>Ad Dollars Follow Eyeballs to Web        Guesstimating Total Pharma Web Ad Spending<\/p>\n<p>By John Mack<\/p>\n<p>Internet advertising revenue in the United States totaled $26.0 billion for the full year of 2010, whereas ad revenue earned by newspapers was $22.8 billion, according to a PwC\/IAB report (<a href=\"http:\/\/www.forums.pharma-mkting.com\/showthread.php?p=43941\">see here<\/a>). Here&#8217;s the distribution of ad revenue charted by category:<\/p>\n<p><a href=\"http:\/\/4.bp.blogspot.com\/-7zcIVh0q1oA\/TabriHteozI\/AAAAAAAADT0\/zr4xTRDr9Dk\/s1600\/AdSpending2010_Chart.jpg\" imageanchor=\"1\" style=\"margin-left: 1em; margin-right: 1em;\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" height=\"352\" src=\"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/wp-content\/uploads\/2011\/04\/AdSpending2010_Chart-1.jpg\" width=\"400\"\/><\/a><br \/>Here&#8217;s the trend in annual Web ad revenue from 2000 through 2010:<\/p>\n<p><a href=\"http:\/\/3.bp.blogspot.com\/-0vPWZQkueZY\/TabjbAQkBbI\/AAAAAAAADTo\/HZt6Fh8ZaSM\/s1600\/AdRevenue_Trend.jpg\" imageanchor=\"1\" style=\"margin-left: 1em; margin-right: 1em;\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" height=\"277\" src=\"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/wp-content\/uploads\/2011\/04\/AdRevenue_Trend-1.jpg\" width=\"400\"\/><\/a><br \/>Search continues to get the largest share of online revenue, although this share decreased to 46% in 2010 from 47% in 2009. Still, search revenue totaled $12.0 billion in 2010, up over 12% from $10.7 billion in 2009. Display-related advertising revenues &#8212; which includes revenue from display banners, rich media, digital video, and sponsorships &#8212; totaled $9.9 billion or 38% percent of 2010 revenues, up 24% from the $8.0 billion reported in 2009.\u00a0Digital video ad revenue accounts for 5% ($1.4 billion) of the total Web ad revenue.<\/p>\n<p><a href=\"http:\/\/1.bp.blogspot.com\/-XRz1Q5u9U5Q\/Tabj3b_kvUI\/AAAAAAAADTs\/OYvfKhWG5lI\/s1600\/AdRevenue_OnlineOptions_Share.jpg\" imageanchor=\"1\" style=\"margin-left: 1em; margin-right: 1em;\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" height=\"258\" src=\"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/wp-content\/uploads\/2011\/04\/AdRevenue_OnlineOptions_Share-1.jpg\" width=\"400\"\/><\/a><br \/>From these data, you might assume that the drug industry spends 25% of its ad dollars on Web advertising. That could be a false assumption. It&#8217;s generally believed that the drug industry Web advertising slice of total ad spend is much less than 25%.<\/p>\n<p>Finally, according to PwC\/IAB, here&#8217;s the percent of total Internet ad revenues from different industries:<\/p>\n<p><a href=\"http:\/\/4.bp.blogspot.com\/-lu1awLkP8es\/Taboi5tnZcI\/AAAAAAAADTw\/DaFqldVXouY\/s1600\/AdRevenue_by_Ind_2009v201.jpg\" imageanchor=\"1\" style=\"margin-left: 1em; margin-right: 1em;\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" height=\"422\" src=\"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/wp-content\/uploads\/2011\/04\/AdRevenue_by_Ind_2009v201-1.jpg\" width=\"540\"\/><\/a><br \/><b>GUESSTIMATING Total Pharma Web Ad Spending<\/b><br \/>Pharma &amp; Healthcare are near the bottom of this chart. 5% of $26.0 billion is $1.3 billion, which is what the Pharma\/Healthcare industry spends on Internet advertising (INCLUDING search) according to PwC\/IAB. Let&#8217;s say 80% (ie, $1 billion) of that is Pharma-related. Pharma spends about $4.5 billion in direct-to-consumer advertising. It may spend the same in advertising to physicians &#8212; not counting samples and sales rep expenses. If my guesstimate is correct, then $1 billion accounts for about 11% of the total pharma ad spend.<\/p>\n<p><i>This story was originally published in Pharma Marketing Blog on April 14, 2011.<\/i>    <\/p>\n<p> PMN107-03<br \/> Issue: Vol. 10, No. 7<br \/>Publication date: 15 April 2011<br \/>Word Count: n\/a<\/p>\n<p><b>Find other articles in related Topic Areas:<\/b>  <\/p>\n<ul>\n<li><a href=\"http:\/\/www.news.pharma-mkting.com\/PMNDTCReprints.htm\">Direct-to-Consumer (DTC) Advertising &amp; Marketing<\/a><\/li>\n<li><a href=\"http:\/\/www.news.pharma-mkting.com\/PMNphysMktingReprints.htm\">Physician Marketing &amp; Promotion<\/a><\/li>\n<li><a href=\"http:\/\/www.news.pharma-mkting.com\/PMNeMktingReprints.htm\">eMarketing &amp; ePromotion<\/a> <\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Guesstimating Total Pharma Web Ad Spending. Internet advertising revenue in the United States totaled $26.0 billion for the full year of 2010. How much of this was spent by pharma? Best guesstimate: $1 billion, which accounts for about 11% of the total pharma physician and consumer ad spend.<\/p>\n","protected":false},"author":2,"featured_media":4983,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60,6],"tags":[],"topic":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ad Dollars Follow Eyeballs to Web: Guesstimating Total Pharma Web Ad Spending - Pharma Marketing Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/articles\/pmn107-article03\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ad Dollars Follow Eyeballs to Web: Guesstimating Total Pharma Web Ad Spending - Pharma Marketing Network\" \/>\n<meta property=\"og:description\" content=\"Guesstimating Total Pharma Web Ad Spending. Internet advertising revenue in the United States totaled $26.0 billion for the full year of 2010. How much of this was spent by pharma? 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