• by Joe Mandese  @mp_joemandese, March 7, 2022

Like many endemic ad categories that benefited from the COVID-19 pandemic, over-the-counter (OTC) healthcare brand ad spending has surged in the face of increasing consumer demand for products and services to keep them healthy, according to a new report released today by business intelligence team at Publicis Media’s Zenith unit. 

The 42-page “OTC Healthcare” report references the word "pandemic" 13 times, and finds that while the category grew overall, some subsegments grew faster than others.

“OTC ad spend expanded by 6.8% in 2020, while the market as a whole shrank by 3.5%, as healthcare messages soared in relevance for consumers,” the report reads, noting that “demand for cold and flu remedies sank sharply as social distancing cut their transmission.

“Most other sub-categories continued to grow, and sales of sleep aids spiked,” Zenith’s analysts continue, noting that “when the pandemic hit, brands in many categories cut back or even ceased their communications, concerned that their messaging was no longer appropriate, or in some cases counterproductive in the new context. This gave OTC brands the opportunity to use plentiful cheap media to reinforce their contribution to consumers’ health and wellbeing.”

The report forecasts OTC ad spending in 13 key markets (including the U.S.) analyzed will expand 7.6% this year, and 5.0% in 2023. The category grew 12.8% in 2021.

Putting some round numbers around those growth rates, Zenith estimates the category will top $20 billion this year -- up from just $16.7 billion in 2019.

“The past two years have amplified consumers’ focus on health and wellness, especially for preventative measures and tech that monitors health,” Zenith U.S. CEO Lauren Hanrahan said in a statement released with the report, adding: “As brands move more of their ad spend to digital, they are better able to provide consumers with personalized content, real-time information on the latest products and services, and an ecommerce option – offering a more meaningful, seamless user experience.”