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Among pharma marketers, the shift to streaming ads is well underway.  Streaming holds a number of unique advantages that make it a crucial complement to linear TV. It allows brands to efficiently reach cord-cutting audiences who need their treatments. By leveling up their streaming campaigns, these advertisers can achieve big lifts in awareness and sales of their medications among all demographics. On the other hand, pharma brands who continue to rely heavily on traditional TV while bypassing the streaming audience risk missing out on huge audiences and engagement opportunities.

Overall streaming soared to a record high of 40.3% of total TV usage in June 2024, significantly higher than both cable and broadcast consumption, according to the Nielsen Gauge report. Yet over the past two years, traditional TV has accounted for 70% of marketers’ total ad investments for pharma brands. The gap between usage and ad spending is even more stark among the top 10 pharma brands, which spent over $2.8 billion on linear TV. That’s more than 87% of their total budgets.

New research demonstrates that underinvestment in streaming has put a dent in awareness for many pharma brands — and especially for launch brands that are new to market. Below we share some findings on the cost to healthcare brands of neglecting cord cutters in their campaign planning, and we offer guidance on how to drive results with streaming ads. It’s never too late for brands that are heavily focused on linear TV to right-size their investment in streaming.

Skipping streaming comes with a big cost for both mature and launch brands 

Condition-conscious cord-cutters are 32% less aware of the most advertised drugs than were linear TV viewers, according to a two-year study from Roku. And even among healthcare professionals, doctors who have cut the cord are 14% less aware of these drugs than doctors who watch linear TV. Furthermore, these streaming-only healthcare providers were twice as likely to be “no-see” doctors — meaning they restrict visits from pharmaceutical reps — further harming the visibility of their brands.

For new drugs, the gap in awareness is even more pronounced. Roku studied medications that were approved by the FDA between September 2022 and December 2023. We found that cord cutters were 35% less aware of these drugs than their linear viewing counterparts. An even larger share, 46%, were less aware of drugs that received a new indication — meaning an existing drug has new approved uses. And cord-cutters were 64% less aware of first-in-class drugs that came to market.

Change is hard, but within reach  

This all begs the question, why are pharma brands over-reliant on linear TV?

First, pharma can be more resistant to change than some other verticals, partly because campaigns are planned on longer time horizons. Second, there’s a prevailing misconception that only young people have cut the cord, and that the critical 50+ audience is primarily on linear — or that this audience overwhelmingly favors premium, ad-free streaming services.

The truth is, older people are both heavy adopters of streaming and more accepting of ads than other demographics. About 79% of people 50 and over stream content, according to a 2023 study from Roku and DeepIntent. And this “silver streamer” demographic expects advertising because it’s what they’re used to. Older viewers are more likely to opt for ad-supported content, such as The Roku Channel. About 69% of sixty-somethings said they preferred connected TV content with ads.

But there is hope for marketers who find themselves lagging behind in the culture-wide shift to streaming. Layering streaming into your media mix is easy, and doing so delivers clear and immediate benefits to healthcare and pharma marketers. Brands who cut linear spending and increased streaming budgets between 2022 and 2024 decreased their awareness gap by 26%, according to Roku Internal research.

Streaming best practices for pharma brands 

So what’s the most effective way for pharma brands to expand their streaming footprint? Our meta-analysis of pharmaceutical campaigns over a two-year period identified five strategies that are key to success.

1. Layer in precise pharma targeting: Streaming allows pharma brands to complement their broad-based demo buying with more efficient audience-based buys. Leverage segments from vendors such as Crossix, Swoop and Acxiom to reach qualified audiences. Marketers can also utilize Roku’s ACR data to avoid serving ads to streamers who were already exposed to their ads in linear.

2. Ensure adequate frequency: While pharma-specific targeting is essential to reach a qualified audience, it’s equally important to maintain enough frequency to drive conversions. Higher frequency drives increased conversion rates. A target frequency of around three to five ad exposures in a week was the most effective.

3. Prioritize longer ads: As social clips get shorter and shorter, Roku’s analysis found video ads that were 60 seconds had higher conversion rates than their 30-second or 45-second counterparts.

4. Run campaigns for six months or longer: Shorter campaigns deliver lower impact than ads that ran from six months to a year.

5. Ensure substantial impressions: Make sure your campaign has enough impressions to achieve audience scale. The higher the number of impressions, the higher the conversion to category.

By following these best practices, pharma advertisers can replace broadcast-level reach in streaming. Here at Roku, we believe we offer all the pieces needed for healthcare marketers to reach vetted audiences who are receptive to their treatments.