US healthcare and pharmaceutical online advertising spending on direct-to-consumer (DTC) and over-the-counter remedies will reach $1 billion by the end of 2010. This represents an increase of 10.6% over last year according to eMarketer’s latest report, “DTC Pharmaceutical Marketing Online: A Slow Shift to Digital.” By 2014, the study predicts, online ad spending should reach $1.52 billion.
A closer look reveals some very interesting trends. Healthcare and pharmaceutical ads found on search engine sites like Google and Yahoo expanded by 15.7%, while spending on display banner ads increased by 8.2% since 2009.
What do these trends tell us? It appears that those who control advertising budgets have realized that the consumer will find a way to their content. And they have been allocating lots of dollars to search engines to reach them. It’s important, however, to understand the roles of search and display, and even more important to consider having an analytics program in place that can provide a full picture as to the performance of your online campaigns.
Studies such as “Search & Display: Reach Beyond the Keyword” by Eyeblaster Research suggest search and display are not mutually exclusive. The study states each channel works better on a prospective customer at a different stage in the marketing funnel, thus reaching consumers at various points, from initial awareness to purchase. While search harvests prospective customers that are already in the marketing funnel, it reaches a limited number of people overall. Display, on the other hand, increases reach by soliciting as many people as possible and moving them into the funnel.
To complement a search and display campaign, marketers should strongly consider setting up cross-channel reporting capabilities as a measurement tool to view all conversions and to provide insights into which advertising channels are driving those conversions. Typically, advertisers will have display and search terms working separately and, as a result, conversions tend to be double-counted. Plus, it’s difficult to see how each channel influences the other and, moreover, it’s critical to understand where to allocate the dollars in order to maximize the ROI.
My takeaway
It’s important to understand the power of utilizing both search and display channels within the same marketing mix. Couple this with a good measurement tool and advertisers will be well on their way.
RELATED TOPICS
Ken is a great deal more than just the president of a medical communications company. He is something of a hybrid. He’s part marketing manager, part creative director, and part copywriter. To the chagrin of his peers—but to the delight of his clients—Ken is a consummate perfectionist. As a former creative director for a high-end consumer agency, he challenged his creative teams to go beyond the mundane to produce work with real creative impact, something he’s just as fervent about today. From producing and directing TV commercials, to launching DTC and Rx-to-OTC switches, Ken brings his clients a world of experience in OTC pharmaceuticals as well as business, lifestyle, and high-end consumer products and services. Whether huddled with clients behind a mirror in a market research center in Houston, facilitating a strategic workshop in Madrid, or developing a global campaign either in the New Jersey or California office, Ken is always fully engaged, bringing “bestness” to all areas of his hectic but full life.
