Advertising of Pharmaceutical Brands in the Media: Results of the First Half of 2024

According to forecasts by the All-Ukrainian Advertising Coalition (VRK), the advertising and communications market is expected to grow by 28% in 2024 compared to 2023. Significant growth in direct advertising is anticipated: 60% on television, 20% on radio, and 15% on the internet. In this article, we review key trends in the advertising of pharmaceutical brands on television and the internet during the first half of 2024, using data from the market research system “PharmXplorer” by Proxima Research’s projects: PromoTest and RxTest.

Television

The television advertising market, which saw a significant decline in the first year of the full-scale war, has yet to recover fully. However, it’s worth noting that recovery rates in the second half of 2023 exceeded VRK’s previous forecasts, providing optimism for 2024.

Pharmaceutical brands remain one of the leading categories in advertising investments on television. According to data from the sales house “Ocean Media Plus,” in the first half of 2024, investments in television advertising for this category reached 1.9 billion UAH (excluding taxes), representing half of the total television advertising market. In dollar terms, this amount is approximately $48 million. While investments in the national currency have almost reached pre-war levels, they still lag significantly in dollar terms. Additionally, compared to the same period last year, the share of the pharmaceutical category has slightly decreased, possibly due to advertisers’ return from other segments.

Pharmaceutical brands continue to be a top category in television advertising. The EqGRP** (sample from cities with populations over 50,000) for pharmaceutical brands (medicines, medical devices, cosmetics, dietary supplements) grew by 18% compared to last year.

Although the number of advertised pharmaceutical brands and advertisers has decreased compared to pre-war levels, impacting EqGRP dynamics, domestic marketing companies have quickly adapted and started returning to the television market. At the end of last year, there was also an increase in the activity of foreign companies.

By the end of the first half of 2024, the leading pharmaceutical brands by EqGRP were Dolgit, Zest, and Magne B6. Among advertisers, the top spots were held by Farmak, Delta Medical, and Naturwaren.

The television channels leading in EqGRP purchases for pharmaceutical brands included STB, ICTV2 (a duplicate channel broadcasting entertainment content), NTN, Novyi Kanal, and “1+1” Ukraine (a duplicate channel also broadcasting entertainment content).

Television advertising provides broad audience reach, helping to increase brand recognition among potential consumers. Tracking daily dynamics allows for the evaluation of advertising campaigns’ impact on sales, giving companies the opportunity to respond quickly to market changes. For example, the case of brand “X” (an antihistamine) shows how television advertising affected sales dynamics.

Internet

The activity of pharmaceutical companies in online advertising was relatively high in the first half of the previous year. However, by the end of the first half of 2024, the number of ad impressions decreased by 61.3% compared to the same period last year.

Among pharmaceutical brands, the leaders in online impressions during the study period were Zest, No-shpa, and Menovazan. The main advertisers were Sanofi, Zhytomyr Pharmaceutical Factory, and Farmak.

Despite the decline in activity, internet advertising remains an important part of pharmaceutical brands’ marketing strategies. It is important to consider not only the number of impressions, as impressions do not always equate to views. For example, the case of brand “Y” (an antispasmodic used for functional gastrointestinal disorders) demonstrates how the number of impressions and visible ad contacts changed during the study period.

Conclusion

Television advertising remains one of the most effective and in-demand channels for advertisers targeting end consumers. Experience shows that constant presence on television allows mature brands to not only maintain but also grow sales volumes and retain leading positions in the over-the-counter drug market.

Ukraine’s advertising media market experienced a significant decline in 2022 due to the full-scale invasion and has not yet fully recovered. However, the pharmaceutical category demonstrated high resilience and adaptability, becoming a key driver of recovery in the television advertising market.

Internet advertising also remains important, though there was a decrease in the activity of pharmaceutical brands in this area during the first half of 2024.

Consumer attitudes toward advertising are constantly evolving. According to a new survey by Kantar Ukraine, published in July 2024, in the context of economic instability and recession, consumers have consciously limited their time spent online, likely due to a desire to avoid negativity, lack of time, and an oversaturation of advertising content. A third of respondents also reported buying fewer products overall. A decline in television viewership compared to last year has also been observed, which may partly be due to power outages that limit access to the internet and media.

In March 2024, the Ministry of Health of Ukraine approved a new list of over-the-counter medications banned from advertising, which includes 407 brand names.

*Data from sales house “Ocean Media Plus.” No data available for 2022.

**EqGRP is an indicator characterizing advertising campaign activity, calculated as the sum of commercial ratings (Gross Rating Points — GRP) in percentages, adjusted to the 30-second equivalent, taking into account the length of the commercial.

***Up to February 2022 — data from the Industrial Television Committee; after April 2022 — communications company RAZOM Group.

****Up to May 2022 — data from the Communications Alliance company, after May 2022 — AdReal and Gemius SA research.

The material was prepared by “Pharmacy Weekly” magazine.