Don’t we all love the new kid on the block making it big? Be it Leicester City or Lando Norris or even healthcare marketing, which is enjoying its newfound growth spike. Abheek Singhi, Managing Director and Senior Partner, BCG pointed out that healthcare is one of the fastest growing categories in India, and he is on point. Experts are observing that ad spends in this space are swelling by about 25% year-on-year. Post COVID, people are actively becoming aware of their health, hence, new brands are entering this space, while old brands are tuning their approach, seeking more visibility. At the same time, brands are also finding new means to communicate their brand message effectively, in a space which was once named most-violative by the ASCI.
Increase in spends
Giving a rough picture of the ad spends in the domain, Dr Ashish Bajaj, Chief Marketing Officer, Narayana Health states, “The overall marketing spends for the category have increased by around 25%. Our spends are, however, growing at around 7% year-on-year as we have been utilising this time to channelise spends more effectively.” Similarly, other big names like Mankind Pharma are also attempting to optimise ad spends.
Dr Bajaj and other industry professionals, however, observe that this category is not limited to some consolidated brands spending at the top, but there are several long tail and hyperlocal brands that have switched gears post COVID.
Along similar lines, Vinayan Ramakrishnan, Executive Vice President Marketing, Nova IVF Fertility remarks, “Healthcare marketing spending has grown at a CAGR of around 20% in the last 2-3 years. In IVF, we have seen the spending going up by 30-40% per year, especially with the smaller players. The big players have been increasing ad spends to the tune of 15-20% per year.”
Violations and Restrictions
A Boston Consulting Group (BCG) and B Capital report mentions that the digital transformation of India’s healthcare industry has the potential to accelerate from $2.7 billion in 2022 to around $37 billion by 2030. This is why in addition to big players shooting up their AdEx, many new players have entered this lucrative area. With so many players trying to grab a piece of the big cake, more and more violations are being reported.
Healthcare emerged as the most problematic sector in advertisements, accounting for 21% of all ads reviewed by the Advertising Standards Council of India (ASCI), as stated in its semi-annual complaints report. ASCI looks into issues around dishonest or misleading ads, and those that are offensive, harmful and unfair in competition.
Anurita Chopra, Chief Marketing Officer, Haleon India Sub Continent elucidates, “In today’s market, authenticity is integral, and responsible marketing entails substantiating claims with due research. While advertising guidelines may seem like restrictions, they contribute to fostering a culture of responsible marketing, aligning with the evolving landscape of consumer options and content creation.”
In India, experts note that pharmaceutical advertisements are regulated by The Central Drugs Standard Control Organization (CDSCO) and require strict pre-approval due to the risks associated with prescription drugs. Companies have to provide detailed information about things like drug’s uses and side effects, in their marketing initiatives aimed at healthcare professionals.
On the other hand, Over the Counter (OTC) advertisements, overseen by ASCI, have more leniency in content but still need to avoid misleading claims. They target consumers directly and generally do not require pre-approval. Both types of ads must ensure accuracy and compliance with regulations. Furthermore, industry professionals find that while OTC relies a lot on commercials, the pharma space just comes up with awareness commercials, where they talk about diseases and not just products.
Taking the complexities of the field into consideration, the government recently introduced a new legal framework aimed at preventing the improper promotion of pharmaceuticals and prohibiting medical representatives from using any form of enticement to gain access to healthcare professionals.
Providing information about the functioning of pharma marketing, which is quite different from OTCs, Praful Akali, Founder and Managing Director, Medulla Communications shares, “Medical representatives remain at the core of pharma marketing. The space has, however, seen a pivotal shift from print-based detailing aids to interactive tablets, revolutionising the way medical reps engage with healthcare professionals. Moreover, digital transformation has propelled CME programmes and conferences into webinars, enhancing accessibility and content delivery for doctors.”
Experts like Praful Akali put forward that the lack of understanding of the category shown by some agencies is one of the major reasons for faulty claims, and hence the violations ensue. Recently, Baba Ramdev’s Patanjali Ayurved came under the radar after its commercials were temporarily banned for making misleading claims. The Supreme Court restrained Patanjali from discrediting allopathy in its campaigns, and from advertising products that claim to cure chronic conditions.
Then there was the curious case of Poonam Pandey’s fake demise. The stunt, aimed at throwing light on cervical cancer, received backlash from most corners. This awareness campaign by MSD, the Indian affiliate of US drug giant Merck, which stood on the back of ‘shock element’, led to cutting business ties with Schbang, the creative marketing solutions agency behind the publicity stunt.
Nearly five years ago, a commercial by Bajaj Nomarks Ayurvedic Anti Marks Cream featuring Taapsee Pannu, which made claims of No Nishaan, was deemed misleading and unsubstantiated by the ASCI. There are multiple more examples, as numerous big players have arguably faltered occasionally in this regard. Therefore, it’s being asserted by professionals that agencies need to possess more knowledge of the space, wherein they understand what can be claimed from a strategical as well as ethical perspective.
Speaking about restrictions in the space, Harshit Jain, MD, Founder and Global CEO, Doceree states, “The regulations governing healthcare advertisements prioritise patient safety and accuracy, ensuring transparency in drug efficacy and potential side effects. Transitioning from a physician to a healthcare marketer underscores the importance of integrity and ethics, shaping every campaign with respect for these stringent standards.”
Digital Boom
In marketing, it’s of utmost importance to place the customer at the centre. It’s being noted that COVID acted as an external factor accelerating changes in consumer behaviour, but the shift began earlier with the Jio Digital boom. Now, with consumers increasingly relying on digital platforms for information, brands are recalibrating their marketing efforts.
Talking about growing adoption of Digital, Joy Chatterjee, Associate Vice President, Sales and Marketing Head, Consumer Business Unit, Mankind Pharma notes, “Initially, 15 to 20% of our ad spends used to go to Digital, but this number has been gradually increasing each year. While the average industry spends on Digital stands at around 20-30%, we currently dedicate around 35-40% of our resources on Digital.”
Digital marketing can ostensibly help the healthcare industry improve patient care while reducing costs. According to experts, the avenue of Digital is helping brands target customers efficiently, in addition to improving penetration, that too at cheaper rates.
While talking about the benefits of Digital, Anil Solanki, Senior Director - Media Planning, dentsu X India shares, “Digital platforms have become more important due to their ability to reach a wider audience, especially as more people spend time online for information and social interaction. Social media, in particular, has seen a surge in usage for healthcare campaigns, as it allows for targeted advertising and engagement with users.”
We have reached a point where Digital holds great importance in the space and some of the brands are assigning most of their marketing spends on the medium. Talking about the brand’s Digital usage, Ramakrishnan reveals that 75-80% of Nova IVF marketing spends get spent on digital mediums, including Google, Facebook, Instagram and social media in general. Additionally, there are brands like Acko which dedicate around 40-60% of their ad spends on Digital plus OTT, as they cater to a digital-first audience.
Dozee is an Indian AI-based contactless Remote Patient Monitoring (RPM) & Early Warning System (EWS) for continuous patient monitoring. Talking about some tactics deployed, Pratha Bhagat, Manager, Marcom, Dozee remarks, “In line with the evolving needs of the health tech sector and consumers, companies adopt a structured and systematic approach to marketing endeavours. Emphasising account-based marketing tailored to specific requirements, organisations aim to identify unmet needs and present product demonstrations backed by real-world evidence and clinical papers. By highlighting solutions’ inherent value propositions, companies seek to instil trust and confidence among their target audience.”
Other Mediums
Experts are observing that the healthcare marketing industry is undergoing a profound shift as it moves away from traditional methods towards a more consumer-centric, technology-driven, and education-focused approach. The industry stands poised to revolutionise the way it connects with patients, caregivers, and the broader healthcare community.
“From healthcare apps to social media marketing to telehealth marketing to using AI in healthcare marketing - as consumers continue to embrace new technologies and gather information on multiple platforms, organisations must develop healthcare marketing strategies that promote trust and instil confidence,” says Amitesh Rao, CEO, Leo Burnett - South Asia.
Media professionals maintain that healthcare brands are progressively using media beyond just performance marketing. These brands want to engage in continuous communication across mediums, rather than being communicative on certain points.
Praful Akali, while speaking about performance marketing, voices, “When focusing solely on performance marketing, it’s easy to overlook the 99.9% who don’t convert immediately. Neglecting these potential customers can lead to a loss of brand respect. Now, post-COVID, there’s a shift towards not only performance-based media but also building lasting relationships through retargeting, audience groups, and content marketing.”
Dr Bajaj reveals that in a bid to transition from a hospital to complete healthcare brand, Narayana Health is aiming to sync the brand’s strategies. Instead of carpet bombing on one medium at one particular period, the brand wants to make its communications a continuous process, just like its services.
Haleon is one brand that has been seeing double digit growth in ad spends. Talking about the brand’s media mix, Anurita Chopra shares, “Be where your consumer is. Whether it’s on Smartphones, TV, Radio, or outdoor mediums, our strategy remains focused on seamlessly blending into their lives. COVID may have accelerated digital consumption, but for us, it didn’t change our multi-format approach. Every medium plays a role in our strategy, and Digital’s prominence only reinforces the importance of adapting to where the consumer is.”
Sharing his insights, Mukund Olety, Chief Creative Officer, VML India voices, “Healthcare communication in our country is multifaceted, encompassing awareness creation, education, empowerment, shaping social norms, and advocating for robust healthcare infrastructure. Beyond conventional touchpoints, we identify and utilise micro touchpoints to effectively engage with our audience.”
Experts voice that BTL and on-ground activations are becoming integral components of health marketing, especially when it comes to raising awareness and driving product trial and usage among consumers. Notably, these activities hold particular significance in introducing new categories to consumers who may not be familiar with them.
Talking about the changes seen in pharma marketing, Dorelle Kulkarni, Senior Vice President, Publicis Health notes, “In the evolving landscape of Pharma advertising, during COVID-times when doctor visits were limited, the focus shifted to OTC brands. Despite restrictions, the industry is slowly embracing digital interventions for HCPs, yet the med-rep remains paramount. Notably, there’s a resurgence in corporate branding among both Indian and MNC players, fueled by the generic vs branded prescription debate. Pharma invests heavily to ensure brand recognition becomes a choice for all.”
Change in communications
The space of healthcare has various branches like pharma, OTC, hospitals, and insurance companies, among others. Praful Akali puts forward that while OTC segment has been witnessing a constant growth over the years, hospitals and pharma have seen a huge jump in spends in recent years, with their ad spends shooting up by 3x and 5x, respectively. And with the growing spends, the marketers are also trying to alter their communications and find novel ways to engross consumers.
Ritu Mittal, Head of Marketing & Digital, Bayer India says, “To stay innovative, our brand continually explores strategic partnerships that address pressing health concerns. For instance, we recently collaborated with NDTV to launch ‘One Nation, 100% Nutrition,’ a campaign aimed at combating micronutrient deficiency. By encouraging individuals to take the #SupradynPledge, we are fostering a transformative journey towards 100% full living, emphasising the crucial role of good health in leading a fulfilling life.”
The tone of the communication is also slowly said to be changing. Brands are now retracting from the warning or gloomy communication. Narayana Health is taking the road of being a friend, while insurance brands like Future Generali and Acko are experimenting styles and are being quirky. Furthermore, the area is also seeing a lot of educational communications.
Acko, which is well-known for its entertaining Munna-Circuit commercials, envisages 30-50% of its marketing budgets within the General Insurance portfolio to go towards health insurance marketing. Speaking about it further, Nitin Khanna, Vice President, Marketing, Acko General Insurance shares, “Our strategy prioritises Digital and OTT channels, leveraging sports and non-fiction shows for success. While these dominate our budgets, we also recognise the value of offline mediums like TV and outdoor for brand recall, essential for our D2C presence. We avoid complexities and fear-mongering. We have realised that if you make the communication simple, entertaining and easy for the customer, it works better.”
On similar grounds, Ruchika Varma, Chief Marketing, Customer and Impact Officer, Future Generali India Insurance Company Ltd. says, “We believe in disrupting category codes of selling fear and using tear jerkers to promote the category. In contrast, our messaging and tonality has always been positive and insightful, while creating an emotional connection with our audience. We remained focused on leveraging cultural codes and insights and reaching out to emerging micro segments, which has helped us build a strong brand affinity with our customers.”
The space undoubtedly holds tremendous potential, and the sharp growth is expected to further raise ad spends. In addition to OTC players, hospitals and insurance brands taking up their ad game, pharma brands are also desiring more visibility and discerning necessary amends. With this surge in marketing initiatives, experts find that it’s integral to have a clear understanding of the product, or else the violations are likely to rise.
In the realm of healthcare, consumer loyalty to corporate brands is a fleeting concept. Unlike purchasing a tangible product like a phone or a car, healthcare expenditure often lacks the immediate gratification of tangible happiness. Experts highlight that healthcare needs are not impulsive; they arise unpredictably, challenging traditional consumer behaviour patterns. In this complex landscape, understanding the psychology of healthcare consumers requires a nuanced approach.
