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Digital will account for 49% of OTC advertising in 2023: Zenith report
Mumbai: Advertising expenditure by over-the-counter (OTC) healthcare brands in 13 key markets, including India, will expand by 7.6 per cent in 2022 and five per cent in 2023, according to Zenith’s new Business Intelligence – OTC Healthcare report published on Monday. Digital will account for 49 per cent of OTC advertising in 2023, up from 46 per cent in 2021, said the report.
By 2023, OTC adspend is expected to be 36 per cent higher than it was in pre-pandemic 2019. This growth will be driven by tailored digital brand advertising, as well as performance advertising driving traffic to OTC e-commerce platforms. The report forecasts that OTC healthcare adspend will grow from $20.1 billion in 2021 to $22.7 billion in 2023, exceeding by far the spending level of $16.7 billion in 2019.
OTC brands are expected to increase their digital adspend at an average rate of 11 per cent a year between 2021 and 2023, while radio grows by five per cent, television by three per cent, and magazines shrink by three per cent, as per the Zenith forecast. The 13 markets included in the report, apart from India, are Australia, Canada, China, France, Germany, Italy, Poland, Russia, Spain, Switzerland, UK and USA, which between them account for 74 per cent of total global adspend. The report covers medicines and remedies sold over the counter, including cold and allergy remedies, contraception, digestion care, eye care, oral care, pain relief, skin care, sleep aids, stop-smoking aids and wound care.
“The pandemic has focused consumers’ attention on their health and disrupted their reliance on traditional OTC distribution channels,” said Zenith head of forecasting Jonathan Barnard. “Brands will continue to step up their investment in digital advertising as the rise of ecommerce gives it a greater role in driving OTC sales and brand growth.”
OTC advertising grew throughout the pandemic. OTC adspend expanded by 6.8 per cent in 2020 while the market as a whole shrank by 3.5 per cent, as healthcare messages soared in relevance for consumers. Demand for cold and flu remedies sank sharply as social distancing cut their transmission, but most other sub-categories continued to grow, and sales of sleep aids spiked. 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.
OTC advertising then rose a very healthy 12.8 per cent in 2021, though in this case its growth was slightly behind the overall market, which had lost ground to make up. Zenith forecasts growth in OTC advertising to remain healthy over the next two years, as brands defend their price premiums and ecommerce platforms compete to establish dominance.
OTC has lagged some way behind the market as a whole in embracing ecommerce, but the lockdowns and other restrictions led to a leap in OTC e-commerce in 2020. Now that more consumers are aware of and comfortable with the option of shopping for OTC products online, it will become an ever more important sales channel over the next few years. This means traditional distributors such as pharmacies and supermarkets are facing new competition from digital ecommerce platforms, and brands have new opportunities to launch new partnerships or even direct-to-consumer ventures. The increased competition for traffic and sales will fuel continued growth in brand and performance advertising.
Shift to digital helps brands tailor messaging to consumers’ specific needs
When consumers first buy an OTC product, they often spend time researching the purchase and discussing it with family, friends and trusted advisors like pharmacists. However, after the first purchase, buying OTC products quickly becomes routine, part of the regular shop. The fundamental role of OTC advertising is therefore to maintain brand awareness at the point of purchase, much like FMCG advertising. Similarly, OTC healthcare makes heavy use of television for its high-impact mass reach. OTC advertisers spent 38 per cent of their budgets on television advertising in 2021, compared to 21 per cent for the average advertiser across all categories. OTC brands also spend more on radio and magazines – radio for its mass reach and magazines for their high impact.
Until recently, it was difficult to use digital advertising to create emotional connections and lasting brand awareness. The rise of high-quality advertising environments, online video and retailer media – ads that appear on retail websites and e-commerce platforms – means brands can use digital to convey brand values effectively right through to the sale. Brands are also spending more on performance advertising as OTC ecommerce scales up.
“The continued shift to digital allows OTC brands to use smart segmentation and dynamic creative to market the same products to different people with different needs, within the framework of regulations for digital advertising in this category,” said Zenith global chief digital officer Benoit Cacheux. “The gym-goer with muscle ache, the office worker with a headache and the parent whose child has growing pains all need pain relief, but brands need to talk to them in different ways to persuade them most effectively. This ability to tailor the creative to the needs of the audience gives digital advertising an advantage that traditional media never had.”
When you plan to buy medical insurance for your family, the first question is often about savings. You may assume that buying online automatically means paying less, but that is only part of the picture. The real issue is not just whether the premium looks lower, but whether the policy gives you suitable family health insurance without adding avoidable costs later.
Buying online can sometimes appear more budget-friendly because you can compare plans, review features, and complete the process without depending entirely on offline assistance.
Still, a lower visible price does not always mean better value. To understand whether you can truly save more, you need to look at the full buying experience and the policy terms together.
Why Online Purchase Can Look More Economical
When you explore family health insurance online, you usually get access to plan details in a more direct and organised way. This can make the buying journey feel simpler and more transparent.
A few reasons online purchases may seem cost-effective include:
● Easier comparison of policy features
● Direct access to premium details
● The ability to review inclusions and exclusions at your own pace
● Fewer chances of making a rushed decision
● More control over the plan selection process
This does not mean every online option is automatically cheaper. It simply means the online route may help you assess choices more carefully, and that itself can influence how much value you get from the policy you choose.
Saving Money is Not Only About a Lower Premium
A lower premium often catches your attention first, but that should not be the only measure of savings. If you buy medical insurance based only on what looks affordable at the start, you may overlook conditions that matter later.
A family health insurance policy should be judged on overall value, including:
● The scope of cover
● Waiting period terms
● Exclusions
● Room eligibility conditions
● Sub-limits, if any
● Claim-related terms
● Renewal conditions
If the premium is lower but the policy has stricter internal conditions, the apparent saving may not feel meaningful when you actually need hospitalisation support.
So, the better question is not only whether online purchase costs less, but whether it helps you select a plan that remains financially sensible over time.
Comparing Plans Online Can Prevent Overspending
One clear advantage of the online route is that it allows you to compare different options without pressure. This can help you avoid paying for features you may not need or missing features that matter for your family.
Before you buy medical insurance online, look closely at:
● Who can be covered under the plan
● How the sum insured works for the family
● Whether day care procedures are included
● How pre-existing illness rules are explained
● Whether add-ons are optional or built in
● How clearly the policy wording is presented
This level of comparison can support better decision-making. In many cases, savings come not only from the premium itself but from choosing a policy with fewer surprises.
Online Discounts Should be Viewed Carefully
Online discounts can make a plan look attractive, but they should always be read alongside the policy details. A discount may reduce the upfront cost, yet the true worth of the policy depends on what it covers and how it responds during a claim.
When reviewing discounted online plans, check whether the policy has:
● Treatment-specific limits
● Room rent restrictions
● Co-payment clauses
● Disease-wise waiting periods
● Claim deductions linked to the hospital category
● Limited cover for selected benefits
These points are important because a policy that looks cheaper at purchase may involve more out-of-pocket spending later. That is why discount-led buying should be replaced with detail-led buying.
Final Thoughts
Yes, buying online can sometimes help you save more when choosing family health insurance, but only if you look beyond the headline price. The online route may give you better visibility, easier comparison, and more time to review the policy terms.
That can support smarter choices and may reduce the chances of paying for a plan that does not suit your family well.
If you want to buy medical insurance online, treat savings as more than a discount. The real advantage lies in choosing family health insurance that balances affordability, clarity, and meaningful coverage for your household.
