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Pharmaceuticals shifting from traditional to digital sales marketing: IQVIA
  • By Marian Chu
  • Published 2018.07.03 17:44
  • Updated 2018.07.03 17:44
  • comments 0

Pharmaceutical firms are increasingly turning to digital channels to carry out marketing and sales activities with data showing expenditure on digital channels growing an average of 20 percent in 35 countries annually, IQVIA said Tuesday.

According to the analysis of the sales and marketing expenditures by pharmaceutical firms, overall spending dropped an average of 4 percent annually from $88.4 billion in 2012 to $75.9 billion in 2016.

The sharp drop from 2013 to 2015 was attributable to the overall decrease in expenditures on traditional channels such as face-to-face detailing offline seminars, and sample giveaways, said IQVIA, a human data science company.

Among traditional channels, spending on face-to-face detailing dropped the most by $7.9 billion from 2012 to 2016, followed by offline seminars, by $5.7 billion, and sample distributions, by $3.4 billion.

On the other hand, spending on digital channels such as online detailing and online seminars increased an average of 20 percent annually. In 2016, these activities accounted for 3.4 percent of all marketing and sales spending, totaling $2.5 billion. Spending on online seminars, in particular, rose by $500 million followed by emailing by $300 million.

The data indicated a gradual shift from spending on traditional channels for marketing and sales to digital ones that include online advertisements, email newsletters, online seminars, and websites.

Looking at the top 10 countries regarding sales and marketing expenditures, Japan recorded an annual 27 percent growth regarding digital channel spending, rising from $800 million in 2013 to $1.6 billion in 2016. The average expenditure growth rate of the 35 countries was 23.85 percent. Following Japan’s lead were the U.S., Brazil, and Germany followed with more than 20 percent annual growth.

Korea recorded below the average growth rate of the 35 countries, with 11.26 percent.

In Korea the K-Sunshine Act, which mandates reporting of marketing and sales activities to the government, is accelerating the transition to digital channels, IQVIA noted.

Source: IQVIA

“The use of digital channels in domestic and foreign pharmaceutical markets is rising gradually. Korea, in particular, is expected to face many constraints in traditional sales and marketing activities due to the implementation of the necessary economic profit report in 2018,” said Lee Dong-il, director of IQVIA Korea’s channel dynamics team.

The ability of each pharmaceutical company’s sales and marketing staff to identify the possibility of digital channels in line with the changing market, and to develop and activate appropriate channels will become more critical, Lee added.

Pharmaceuticals carrying out sales activity in Korea have been actively using digital channels such as website advertisements and online seminars. Hanmi Pharmaceutical, in particular, has placed a heavy emphasis on online workshops. The top 10 domestic pharmaceutical firms relied mostly on online seminars and website advertisements, IQVIA said.

By product type, Hanmi’s Rosuzet, Amosartan, and RaboneD used digital channels the most.

Most domestic products concentrated on online seminars and website advertisements. The data showed Hanmi, Daiichi Sankyo and Dong-A ST used online detailing and website advertisements in increasing numbers.

IQVIA provides comprehensive sales and marketing solution that combines the industry-specific data and system tailored to domestic and international sales and marketing trends, the company said in a press release.

yjc@docdocdoc.co.kr

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