Total advertising spending by healthcare organizations around the world is expected to grow at a steady pace in 2019 and 2020, albeit at slower rates than advertising across all industries, according to a new Zenith report.
Here are three takeaways from the Healthcare Advertising Expenditure Forecasts, which surveyed the marketing efforts of 13 key markets around the world, including the U.S., U.K., China, Canada and Germany.
1. Healthcare companies' global advertising expenditure is projected to increase by 3.6 percent in both 2019 and 2020. This year, that will bring the total to an estimated $36 billion.
2. That rate is lower than that of global advertising as a whole, which is expected to grow by 4.8 percent in 2019 and another 4.3 percent in 2020. Per the report, this disparity is due to high research costs and a "persistent downward pressure on prices," which greatly hinder pharmaceutical companies in particular.
3. The U.S. and China will continue to be responsible for the vast majority of healthcare ad spending; together, they comprised 86 percent of healthcare marketing spending in 2018, with American spending alone totaling nearly $16 billion. In the U.S., spending increased by an average of 6 percent per year between 2013 and 2018, but is expected to slow to 5 percent in both 2020 and 2021.
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