BIA: Growth To Continue In The Healthcare Vertical.
The healthcare sector is expected to grow to nearly $9.6 billion this year, up 8.7%, or $766.6 million, from 2020. What’s more, healthcare local ad spend will grow to almost $12 billion in the next four years. These findings are discussed by BIA industry analyst Suzanne Ackley in the group’s latest podcast, “Ad Spend Estimates and Trends for the Healthcare Vertical.” Ackley also notes that much of the ad spend will be on traditional media, including radio.
While the estimate shows growth from last year, it is still down 3.1% from pre-pandemic levels of $10.2 billion in 2019.
The healthcare vertical includes a variety of businesses including doctor’s office, hospitals, nursing and residential care facilities, pharmaceuticals and health and personal care stores. Veterinary Services are included in BIA’s Pet Care Vertical Analysis.
“As with most of the businesses in our forecast, healthcare’s ad-spend took a big hit last year due to the pandemic and subsequent shutdowns,” Ackley says on the podcast. However, she says “not all sub verticals were detrimentally affected by the pandemic. One sub vertical actually increased its spending… pharmaceuticals and medicine manufacturers.”
The pharma sub vertical increased their ad-spend from 2019 to 2020 and will continue to spend in 2021. “Some of that spending is for vaccines, if the spending comes from pharma companies,” she says. Ad spending promoting vaccines by government agencies is included in a separate report, Ackley explains.
The three top spending sub verticals account for 80% of the entire healthcare vertical spending. They are hospitals, offices of physicians, dentists and chiropractors, and nursing and residential care facilities. According to BIA’s forecast the biggest growth sub verticals will come from pharmaceutical and medicine manufacturers, personal care services, and offices of physicians, dentists and chiropractors. In terms of actual dollars spent, the biggest growth this year will come from offices of physicians, dentists and chiropractors, hospitals, and pharmaceutical and medicine manufacturers, Ackley says.
“As it has for the past few years, the majority of ad dollars will go to direct mail, over the air TV and online,” Ackley says. “However, the biggest increases in local ad spending will be in broadcast TV, mobile and direct mail.”