COVID-19 is Driving Digital in Pharma Marketing

Pharmaceutical companies’ spend on digital marketing has been on the rise for several years, and in 2020 we have seen a big increase as a result of COVID-19. The results of an Elsevier survey of pharma marketing professionals reveal these and other key industry insights. 

 

In 2019, global spending on marketing and advertising was $58.5 billion, up from $56 billion in 2017, according to the 2019 IQVIA Channeldynamics Global Reference report.1 On average, individual pharma brand marketing budgets increased from $8.5 million to $10 million between 2018 and 2019, and then increasing again to $12.5 million in 2020, according to the 2020 MM&M/Elevate Healthcare Marketers Trend report.2

 

Download the Trends in Pharma Marketing Report infographic and presentation.

 

More specifically, digital marketing spend had also increased sharply from 2017 to 2018 – over 19% globally, with the EU5, Asia Pacific and Latin America also seeing double-digit growth. The MM&M report2 showed an increase in spending on social media (42%), on paid digital ads (40%), on SEO (36%), and on websites and microsites (35%), while conversely the spend on traditional channels, like Rep detailing and print advertising saw a significant decline (US-only print, -13% 2019 vs 2018).

With digital marketing spend already on the rise, has the COVID-19 pandemic also significantly impacted this trend? In November 2020, at the Re:Imagine Pharma Marketing 2020 virtual conference, this question was posed to two speakers – Mark Bard, Co-founder and Managing Partner of The DHC Group, and Wendy Blackburn, EVP, Marketing & Communications of Intouch Group.3 Each talked about the changing needs of healthcare professionals today, and the opportunities for marketing teams to “rethink their approach to stay ahead of the curve.”

They referenced a survey of 250 US physicians which revealed Sales Rep-led video details, email campaigns and online medical events/conferences as the most effective ways to reach healthcare professionals while other digital communications via social media, digital advertising and email proved to be the most effective ways to reach their patients.

 

Global Research on Pharma Marketing Trends

Across the industry, surveys like this have also revealed this trend, and a need for digital adoption to occur more quickly. The Maturometer snap report,4 which included responses from 121 health consultants in Europe and the USA, highlighted that more than 65% of respondents ‘completely agreed’ that there is a ‘Strong sense of urgency to change our traditional customer engagement model’ and a ‘High priority for digital transformation from [their] Board.’

Panel research conducted by Elsevier in the summer of 20205 revealed similar results. 134 pharma professionals (product/brand marketing and marketing specialists as well as medical affairs professionals) from Europe, the United States, and Asia Pacific responded to a survey that aimed to learn more about promotional and medical educational needs, taking into account both marketing and product development perspectives. The research assessed pharma customer interest and investments in various promotional marketing channels, educational tools and content strategies.

 

Tracking Trends in Spending

The research revealed an overall increase in digital activities - with a high overall likelihood of investing in digital promotional marketing channels and digital medical educational tactics in 2020/21.

 

Globally, a 60% share of marketing budgets goes towards digital channels vs. print ones.

 

When it comes to promotional activities, in 2020/21, organizations are most likely to invest in meeting and events (83%) and content-related sponsorship (80%). There is also likely to be a large increase in investment in digital advertising (77%) and email marketing campaigns (71%) in the next three to four years. Higher budgets are being dedicated to digital promotional channels globally, and lower budgets to traditional print formats, at an average of 40% print promotions versus 60% digital promotions.

Educational activities show a similar trend toward digital – globally in 2020/21, webcasts of scientific sessions and meetings (86%) and education platforms (81%) are most likely to be funded. These activities are also most likely to see budget increases over the next three to four years, with 65% of respondents agreeing that more funding will go to webcasts of scientific sessions, and 57% to education platforms.

 

The story looks little different at the regional and national levels – in India, CME is the biggest educational activity, with 94% of respondents likely to invest in this in 2020/21. While in Europe, round table videos and podcasts rank highest, with 78% of respondents indicating they plan to continue to invest in these tactics in 2020/21.

 

 

What Affects Spending Decisions on Marketing?

COVID-19 is expected to have a mixed impact on marketing budgets, according to the Elsevier Panel Research.5 The Maturometer snap report4 looked closely at the change in use of tactics as a result of the pandemic. Results showed that the tactics being used much more are remote detailing (71% of respondents use it much more), approved email (52%), webcasts and webinars (53%) and emedical education (35%). But what is contributing to decisions at this time?

 

The Elsevier panel research showed clearly that quality of content is a top influence when it comes to making decisions about promotional activities, with 94% of respondents saying it is the most important factor in tactical decision making. Secondarily, the ability to properly target physicians (91%) and cost (90%) are also critical factors.

 

For educational activities, the results were similar, with 93% of respondents saying quality of content is the most important factor, 87% choosing cost, and 86% the ability to properly target individual physicians.

 

 

Trends in Content and Channels

Key stakeholders when making promotional or educational tactical decisions – primarily marketing managers and members of the medical affairs team – are also typically responsible for managing websites or online platforms dedicated to providing HCPs with product-specific and/or disease related content. These respondents noted that the top content types currently used on these platforms include news and latest research (68%), webcasts or webinars of scientific sessions (57%) and CME courses (48%).

 

Furthermore, about half of respondents were interested in content licensing, with the content types for this purpose being news/latest research (94%), webcasts/webinars of scientific sessions (94%), conference/scientific session coverage (94%), treatment guidelines (85%), CME courses (85%), journal article reprints (79%), journal article summaries & commentaries (76%) and textbook content(58%).

 

In India, CME courses/activities also ranked very high, with 92% choosing this content as interesting for licensing.

 

There is also an indication of an overall trend in channel use moving toward personal channels.

 

According to FirstWord Pharma’s report Trends in Digital Pharma Marketing 2020,6 in the next five years, personal channels will overtake non-personal ones for achieving marketing goals.

 

[FirstWord classifies webinars, e-detailing and tele-detailing, virtual meetings and events, e-learning/eCME, and on-demand video as ‘personal digital channels,’ and websites, email marketing, mobile apps and social media as ‘non-personal digital channels.’]

 

About half of respondents were interested in content licensing, mostly news and latest research, webcasts and conference coverage.

 

 

Of the respondents – pharmaceutical company employees in the US and western Europe who have strategic, tactical or operational responsibilities for digital marketing – 84% predicted an increase in the marketing budget for personal digital channels targeting physicians, while 63% said budget for nonpersonal channels would increase.

 

Whatever content and channels are used, according to the MM&M report,2 flexibility is becoming more highly valued: 46% of respondents said “they shook up an existing marketing campaign last year, revising strategy and spending to make it more effective.” Given the unpredictability of the current climate, this is likely to be an important trend going forward.

 

In conclusion, it is no surprise with the continued push for social distancing and shift toward physician’s digital consumption of content, all reports and surveys indicate an increase in investment in digital marketing over the next five years. Digital marketing is a way to reach your target audience when it’s not possible to connect with them face-to-face, so now more than ever, it is a critical way to keep in touch and share your message.

 

Contact: Sharon Levi, Segment Marketing Manager, s.levi@elsevier.com

 

Interested to learn more about how your peers are making decisions: Download Elsevier Panel Research Infographic and presentation for more information.

 

Download article (PDF)

 

 

References

1. 2019 IQVIA Channeldynamics Global Reference report

2. MM&M/Elevate Healthcare Marketers Trend report, March 2020

3. 3 Insights From Re:Imagine Pharma Marketing 2020, pharma marketing, November 11, 2020

4. Maturometer Snapshot Covid-19 impact on omnichannel trends (11-17 March 2020)

5. Panel research conducted by Elsevier – Trends in Pharma Marketing Report, September 2020

6. FirstWord report - Trends in Digital Pharma Marketing, July 2020