2020 was a pivotal year for the health care and pharma advertising industry, where they saw a 14.2% growth with an estimate of $9.6 billion in digital spendings. As projections show, the momentum continues this year, surpassing $11 billion by the end of 2021.
For healthcare marketers to keep up with this massive growth in the CTV supply, they need to be fast, scalable and embrace automation. Adtech companies are now investing in building a legal and compliance team. Che Wijeseinghe, CEO of Cape Privacy, shared an article on forbes.com that legal and compliance teams manage the increasing complexity of data privacy regulations. Unfortunately, time spent managing this extensive process will create a huge bottleneck for businesses to access data.
Due to the heavy regulations in the industry, ad targeting becomes one of the challenges healthcare marketers face. As a result of the recent events, most health care professionals connect digitally either with their patients or with different pharma companies. As a result, marketers are shifting their traditional and personal marketing to digital advertising in many forms such as messaging, email, and, most significantly, CTV advertising.
YouTube is the portion of the CTV supply where progressive healthcare marketers have seen the most upside and, in some cases, the most hesitations.
Role of A.I. Marketing in Driving CTV Advertising Growth
CTV viewers are growing, according to the recent Leichtman Research Group study. Nearly 400 million CTV devices are in the U.S. 64% have three or more CTV devices in every household, while 80% own at least one CTV device.
With the boom in digital healthcare marketers, how do we ensure the efficient delivery of brand messages to the target audience? Adtech companies, like Strike Social, developed A.I. marketing tools for YouTube that provide brand safety, enhance the increase of ad reach, and create brand impact in every ad execution.
Topic and Keyword targeting are, of course, two options. So are HIPAA (Health Insurance Portability and Accountability Act of 1996) compliant In Market audiences and Custom Affinities based on competitive brands and blogs, newsletters, or YouTube content. A typical healthcare media targeting plan on YouTube should have hundreds of inputs.
A.I. marketing tools work beyond human decision-making and capabilities by utilizing the available data and aligning them with platform guidelines and protocols.
At Strike Social, we guarantee results. Our service can provide ultra-granular audience targeting that assures a high percentage of ad deliverability using our proprietary tools. Production, campaign ad set-up, and ad management consume time and workforce and, if overlooked, can cause underperformance of the campaign. Investing in gathering and analyzing data equates to higher investment that sometimes doesn’t translate to the desired result. A.I. marketing is more than just expediting the process. This technology aims to produce a high probability of ROAS.
Despite this powerful technology, advertisers’ are still hesitant to jump in because of these two known issues: brand safety and brand suitability. In response, Strike Social partnered with OpenSlate, which focuses on reducing risk on brand safety incidents. By producing relevant, engaging, and highly qualified audience segmentation, created by our advanced proprietary tool, combined with safety in ad placement, healthcare marketers can achieve their target result from their campaign less the safety concerns.
Scalable Opportunities in CTV Advertising
CTV advertising has skyrocketed because of the pandemic. Out of all the digital channels, CTV advertising is considered the fastest in its group. A study made by Insider Intelligence shows that CTV investment in the U.S. will double by the end of their forecast period by 2025.
Looking at Emarketer’s chart of combined U.S. Linear and CTV Ad spending, 2020 was a pivotal year in terms of Ad Spending. Linear ad spending dropped by 12.51% compared to the previous year. In contrast, CTV ad spending climbs to 40.65%. Based on the forecast, linear ad spending will have a plateau in growth from 2021 to 2025, while CTV advertising will continue to be bullish with an average growth rate of 25.58% during the same period.
During the pandemic outburst, the top ten pharmaceutical brands made a 17% increase in T.V. ad spending. Pharma brands have seen this as an opportunity to reach out and deliver their brand message to the people stuck in their homes. But, unfortunately, the increase in ad spent did not translate to a substantial result in web traffic.
For healthcare marketers, comparing the trends for Linear and CTV Ad spending and their growth patterns indicates a shift in their paid advertising strategy. Ad Tech Martech companies like Strike Social allow brands to focus on formulating CTV and YouTube marketing plans, amplifying the brand impact, and not worrying about managing paid ad campaigns.
The rise of CTV and YouTube advertising is still in the early stage of massive advancement and opportunities. However, the growth window is fast, and companies that have seen this are taking advantage of the situation.