Report

Local Advertising Insights - Health Care Vertical
Mark Fratrik, 3/23/2015

EXECUTIVE SUMMARY:    

BIA/Kelsey has released its 2015 Insights into Local Advertising report for the Health Care Vertical. Clients can login in nowto download, Local Advertising Insights – Health Care Vertical.

The report provides our projection for health care ad spends, which we predict will increase by a 1.7 percent compound annual rate over the next five years. Additionally, there will be substantial churn among traditional and digital channels as the market continues to adopt online marketing. Overall, health care companies will spend $10.7 billion this year, growing to $11.4 billion in 2019.

The Health Care Vertical, as defined by the U.S. government, represents an estimated $10.9 billion of local advertising in 2015. BIA/Kelsey breaks down traditional and digital spending for these categories in detail:

  • Hospitals

  • Physicians

  • Dentists

  • Optometrists

  • Chiropractors

  • Residential Care Facilities 

One of the top categories for local advertisers, Health Care advertising and marketing is dominated by hospital spending, which accounts for an estimated $5.0 billion annually — 46 percent of total health care spending at an average of $750,000 per hospital in the United States this year. Physician practices, including individual (35 percent) and group offices (65 percent and growing), represents the second largest Health Care category. Physician offices generate an average of $2 million in revenue annually, followed by Dentists at $900,000 per site. 

We also examine the growth of Residential Care Facilities, which currently generate $121 billion in annual revenue and $7.7 million per facility, which are projected to become more important as the population ages. 

Key Takeaways:

  • The primary focus for media companies should be hospitals, as well as the networks of physicians who practice independently while maintaining a residency at a hospital. 

  • Research hospitals, which develop and disseminate medical innovations, are a key target for marketing engagement. They have long-term market penetration goals that provide large budgets to sell against.

  • Greater integration of digital marketing services remain strategically important to expanding health care revenue. 

  • For platform/solution companies, facilitating integration of existing medical systems and processes with call-routing, scheduling and privacy-aware specialty features that collect and report patient data to their doctors and selected hospital is a critical leverage point.

  • Medical companies are not likely to abandon existing transactional systems, but they are interested in a consolidated management view across those legacy medical systems and marketing services they may purchase from media and platform providers.

Who should read this report:

* Marketers and Sales Leaders in Media, Marketing and Health Care Services

* Marketing Platform Developers

* Media Leaders seeking a strategic approach to Health Care

* Media Sales Professionals

* Analysts, Investors and Journalists


Clients may login now to access full report.

Interested in purchasing this report? Contact sales@biakelsey.com.

Copyright © 2015 BIA/Kelsey. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under Federal law. BIA/Kelsey disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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