By Bradley Keefer
When President Trump won the election and nominated Robert F. Kennedy Jr. (RFK) to run the Department of Health and Human Services, one of Kennedy’s first policy proposals was banning pharmaceutical ads on television. During the first eight months of 2024, pharmaceutical companies spent $3.14 billion, up 8% from the same period in 2023. These advertisements are highly effective for these brands, delivering 54.2 billion impressions, up 4.2% YoY.
Where will pharma advertisers turn to without their biggest impression generator? We’ll explore their options below.
New channels
The potential loss of these impressions will have a serious impact on the brand awareness of these drugs and leave a massive hole in their marketing budgets. However, it’s unlikely we’ll see drug manufacturers cut marketing budgets wholesale. Instead, the spend will likely flow into other channels, particularly digital, where advertisers can combine targeted outreach with measurable ROI. Advertisers have already started shifting dollars towards data-driven, precision digital channels for years, so this is nothing new. Its growth would only accelerate should the scope of any new potential bans or regulations increase.
It is also expected that advertisers will place more emphasis on education-based marketing, such as interactive patient resources or partnerships with health care providers. Pharma brands still need to reach consumers, so they’ll innovate around a TV ban. For example, a weight loss drug manufacturer can work with a local hospital to promote the benefits of that product as part of a healthy lifestyle.
Regardless of approach, these dollars will need to be reinvested in other marketing efforts to fill the void, so these marketers need to identify the channels that will work best for their business now.
Planning ahead
While RFK has proposed the elimination of pharmaceutical TV ads, nothing has been set in motion yet. Digital will be a key channel for many, but all options should be considered before going down one path. Scenario planning different channels and budgets can help determine the best path forward to deliver the same reach and frequency they received through television ads. For instance, marketers can see what putting their television budget into TikTok and trade promotion would deliver in terms of ROI. They can then tweak the numbers to optimize the spend and get as close to the same output as possible.
Scenario planning also makes it easier for marketers to enact a plan should the television ad ban go into effect. Modeling these scenarios in a marketing mix modeling tool allows for the seamless integration of this plan into existing budgets, giving advertisers a competitive advantage and positioning them as a leader in the space. In the highly competitive pharmaceutical industry, this forward-thinking approach could make a difference long term.
Although no single channel can replace the broad scale of traditional television, there are plenty of options available. Digital, trade and print media can all help deliver ROI, while partnerships with health care providers can generate brand value and establish trust. Leveraging scenario planning tools can help marketers identify the most effective channel mix that will help replicate the success of television. It also helps them get ahead of their competitors, setting them up to immediately pivot should the ban go in effect. While the current uncertainty can be scary, there are plenty of options for pharmacy brands to maintain their marketing pipeline and get the word out to consumers.
Bradley Keefer is chief revenue officer at Keen Decision Systems.
