{"id":5768,"date":"2016-04-27T16:39:00","date_gmt":"2016-04-27T16:39:00","guid":{"rendered":"http:\/\/www.pharma-mkting.com\/did-pharma-really-spend-3-billion-on\/"},"modified":"2019-02-21T01:15:04","modified_gmt":"2019-02-21T01:15:04","slug":"did-pharma-really-spend-3-billion-on","status":"publish","type":"post","link":"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/blog\/did-pharma-really-spend-3-billion-on\/","title":{"rendered":"Did Pharma Really Spend $3 Billion on Internet Advertising in 2015?"},"content":{"rendered":"<p>According to <i>FiercePharma Marketing<\/i>, &#8220;Digital ad spending last year was just shy of $60 billion, with pharma accounting for about $3 billion of that, according to the Interactive Advertising Bureau\u2019s annual ad revenue report prepared by PricewaterhouseCoopers&#8221; (read &#8220;<a href=\"http:\/\/sco.lt\/6FGKen\">Mobile Ad Spending Up, But Pharma&#8217;s Share Remains Small<\/a>&#8220;). Here&#8217;s the data from IAB\/PWC from which this conclusion was drawn:<\/p>\n<table align=\"center\" cellpadding=\"0\" cellspacing=\"0\" class=\"tr-caption-container\" style=\"margin-left: auto; margin-right: auto; text-align: center;\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\"><a href=\"https:\/\/3.bp.blogspot.com\/-uSYeXtDBjgY\/VyDl4OVrZoI\/AAAAAAAAIq8\/K7xW5Yl0SPAFJ3M0EVIBZpugU6eMYgaTACLcB\/s1600\/IAB-PWC-InternetAdRevenue-FY2015vFY2014.jpg\" imageanchor=\"1\" style=\"margin-left: auto; margin-right: auto;\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" height=\"315\" src=\"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/wp-content\/uploads\/2016\/04\/IAB-PWC-InternetAdRevenue-FY2015vFY2014.jpg\" width=\"400\" \/><\/a><\/td>\n<\/tr>\n<tr>\n<td class=\"tr-caption\" style=\"text-align: center;\">Click on image for an enlarged view.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\nWithout looking at the devil in the details, you might be impressed by that number considering that according to Kantar Media, pharma industry spending on direct-to-consumer (DTC) advertising (excluding Internet DTC spending) totaled $5.4 billion in 2015 (read &#8220;<a href=\"http:\/\/pharma-mkting.com\/blog\/2016\/03\/annual-spending-on-direct-to-consumer.html\">Annual Spending on Direct-to-Consumer Drug Advertising Ties an All-Time High<\/a>&#8220;). That would mean that pharma spent a total of $8.4 billion in 2015 and 36% of that was devoted to digital\/Internet.<\/p>\n<p>But the devil in the details puts the kibosh on that conclusion.<\/p>\n<p><a name='more'><\/a>Firstly, not all of the $3 billion cited is specifically spent by the Rx drug industry because the category includes &#8220;pharmaceutical products, facilities, services, researchers, and biological products. Also comprises establishments providing healthcare and social assistance for individuals as well as personal care, toiletries, and cosmetic products.&#8221; Considering that &#8220;personal care, toiletries, and cosmetic products&#8221; are in the mix, I estimate Rx ad spend was just 50% of $3 billion, or $1.5 billion.<\/p>\n<p>Secondly, about 50% of that is devoted to search on mobile and non-mobile platforms.<\/p>\n<p>Thirdly, not all of what remains was focused solely on consumers. Some ads were no doubt focused on HCPs; let&#8217;s say 25%, which leaves us with 0.75 X 0.5 X $1.5 billion = $0.56 billion spent on consumer-focused digital advertising (excluding search).<\/p>\n<p>Therefore, if you compare traditional media apples (measured DTC spending via traditional media, which is what Kantar measured) to Internet media apples (DTC display ads, etc., minus search), you get $5.4 billion vs. $0.56 billion; i.e., pharma digital DTC spending (excluding search) is only 10% of what it spends on traditional DTC ads.<\/p>\n<p>QED<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to FiercePharma Marketing, &#8220;Digital ad spending last year was just shy of $60 billion, with pharma accounting for about $3 billion of that, according to the Interactive Advertising Bureau\u2019s annual ad revenue report prepared by PricewaterhouseCoopers&#8221; (read &#8220;Mobile Ad Spending Up, But Pharma&#8217;s Share Remains Small&#8220;). Here&#8217;s the data from IAB\/PWC from which this [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":12169,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[12],"tags":[124,249,250,251],"topic":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Did Pharma Really Spend $3 Billion on Internet Advertising in 2015? - 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\/blog\/did-pharma-really-spend-3-billion-on\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Did Pharma Really Spend $3 Billion on Internet Advertising in 2015? - Pharma Marketing Network\" \/>\n<meta property=\"og:description\" content=\"According to FiercePharma Marketing, &#8220;Digital ad spending last year was just shy of $60 billion, with pharma accounting for about $3 billion of that, according to the Interactive Advertising Bureau\u2019s annual ad revenue report prepared by PricewaterhouseCoopers&#8221; (read &#8220;Mobile Ad Spending Up, But Pharma&#8217;s Share Remains Small&#8220;). Here&#8217;s the data from IAB\/PWC from which this [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/blog\/did-pharma-really-spend-3-billion-on\/\" \/>\n<meta property=\"og:site_name\" content=\"Pharma Marketing Network\" \/>\n<meta property=\"article:published_time\" content=\"2016-04-27T16:39:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-02-21T01:15:04+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/wp-content\/uploads\/2016\/04\/IAB-PWC-InternetAdRevenue-FY2015vFY2014.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"400\" \/>\n\t<meta property=\"og:image:height\" content=\"315\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Pharma Guy\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Pharma Guy\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/blog\/did-pharma-really-spend-3-billion-on\/\",\"url\":\"http:\/\/ec2-54-175-84-28.compute-1.amazonaws.com\/pharma-mkting.com\/blog\/did-pharma-really-spend-3-billion-on\/\",\"name\":\"Did Pharma Really Spend $3 Billion on Internet Advertising in 2015? 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