Over-the-counter health care will pump another $3.52 billion into ads


And in the wake of COVID-19-related lockdowns and people turning to the internet to source goods of all types, OTC’s investment in e-commerce has surged in 2020, with Zenith expecting that online will become an increasingly important sales channel over the next few years. .

This will put further pressure on traditional distributors such as pharmacies and supermarkets, which will likely fuel the growth of brand advertising as direct-to-consumer companies and brick-and-mortar stores compete to secure customers after sales. health products.

Zenith expects digital advertising to grow from 46% of the over-the-counter healthcare brand’s total advertising budget to 49% in 2023.

“As we’ve seen in other categories, the growing digital share of total OTC ad spend is here to stay as it directly reflects increased consumer device usage, digital media consumption and buying behaviors. online,” said Zenith Australia’s national digital manager. & data Joshua Lee.

“COVID has pushed the OTC category to embrace new distribution channels as well as normalizing e-commerce as a popular shopping method.

“As more brands look to move away from physical shelf space and branch out through online pharmacies, marketplaces and direct-to-consumer sales, this will require sustained levels of investment in brand advertising. to build brand awareness and price premiums over cheaper own brands.”


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