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Pharmaceutical industry is cutting advertising spending

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In the first half of 2019, the net value of the advertising market in Poland amounted to PLN 4.73bn. The pharmaceuticals sector remained the second largest advertiser, after the trade sector, but recorded a 3.2% decrease in expenditure. The largest advertising expenditure, traditionally, has been incurred by Aflofarm.

Pharmacy reduces spending especially in the press

According to Starcom data, in the first half of 2019, advertising expenditure in the pharmaceutical industry (“Pharmaceutical products and medicines” segment) amounted to nearly PLN 540m net. Compared to the corresponding period of 2018, it was a decrease by 3.2%. The decline in advertising expenditure was the highest in dailies (36.5%), magazines (31.2%) and radio (11.4%).

The pharmaceutical sector was the only one of the five largest sectors to reduce advertising spending. The trade segment’s spending increased slightly (0.9%), while the third largest in the ranking food sector recorded an increase in spending of nearly 6%. Overall, the net advertising market grew by 1.2%. In the first half of 2018, for comparison, the dynamics exceeded 9%.

Signs of a decline in advertising activity of pharmaceutical producers were already visible in 2018. At that time, pharmaceutical advertising expenditure increased, but much slower than the total market (3.6% compared to 7.8%).

Aflofarm remains the biggest advertiser

For many years now, Aflofarm has been a leader in advertising expenditure not only in the pharmaceutical industry, but also in the entire advertising market. In the first half of 2019, the company maintained its leading position, although it reduced its spending by 15.3%, according to Kantar Media’s data. In terms of price, they amounted to PLN 812m (traditional media, excluding Internet media).

Among the 10 largest advertisers, in addition to Aflofarm only Natur Produkt Zdrovit reduced their spending. After the decrease by 6%, they amounted to PLN 298m. Among the largest advertisers was also USP Zdrowie. It increased advertising expenditure by 19%, to PLN 280m.

Starcom interprets companies’ advertising spending by taking into account discounts given to companies. Kanar Media gives the amount of advertising expenditure in terms of price list, and thus without taking into account individual discounts.

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