Report Overview
The healthcare digital marketing outsourcing market size was estimated at USD 9.33 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 9.29% by 2030. Businesses have increased their spending on digital marketing outsourcing for the fact that traditional marketing is becoming obsolete under uncertain conditions like COVID-19, and evolving perception in people about digital marketing that enables the provider to enhance their portfolio. Digital marketing has the potential to significantly improve the marketing and offering stages, if not completely replace traditional marketing. The fact that conventional marketing is often more expensive and time-consuming plays a significant role in the positive acceptance of digital marketing outsourcing.
For instance, the typical salesperson devotes 10% of their time to administration, 10% to customer service, 10% to customer onboarding, 30% of their time to sales conversations, and 40% of their period to calling potential leads. In comparison, acquiring high-quality leads from digital marketing channels frees up, on average, up to 40% of the representative's time and associated expenses. This considerable decrease in expenditure will ultimately cause various business types to depend on outsourcing for digital marketing, aiding in the market's expansion during the forecast period.
Furthermore, there is no straightforward way to estimate the cost of digital marketing. However, the table below includes the price range for healthcare SEO services, which is one of the service types in digital marketing.
Average price range of Healthcare SEO
Healthcare SEO | USD Price Range |
Monthly | 1500 - 5000 |
Hourly | 100 - 300 |
Project Based | 5000 - 30000 |
Fixed-price contract | 0.15 - 3000 |
Increased profitability, access to experienced labor, a focus on patient care, and a reduction in administrative costs are just a few of the market factors that have been identified as significant growth drivers for the digital marketing outsourcing sector. However, legal/regulatory/healthcare compliance difficulties remain the number one digital strategy challenge facing the healthcare industry, particularly pharmaceutical businesses.
For instance, two typical barriers are Google's stringent rules for advertising in the healthcare and pharmaceutical industries, particularly when it comes to selling prescription medications. Second, pharmaceutical manufacturers must be approved by the VIPPS program (Verified Internet Pharmacy Practice Sites), followed by medical marketing individuals not allowed to run remarketing ads.
Service Type Insights
On the basis of service type, the market is segmented into six types - SEO, Social media marketing, Pay-Per-Click (PPC) advertising, Content Marketing, Reputation management, and Other’s (Marketing Analytics, etc.).
Pay-Per-Click (PPC) advertising category contributed to the greatest revenue share over 25% of the market in 2022. Through PPC, companies could promote their offerings and pay to have its website appear at the top of search engine results. For instance, in order to enhance New Patient Leads, DoctorLogic offers a Pay-Per-Click service. In the PPC model, there is a monetary cost associated with each click on the advertisement. Furthermore, search traffic, location, competitiveness, and a number of other variables all affect the amount a click costs.
On the other hand, since content marketing is an essential part of any strategy for digital marketing, it is anticipated that content marketing category would expand at the fastest rate, with a CAGR of 9.7% from 2023 to 2030. In addition, modern SEO successfully encourages content marketing as a whole since Google expects and rewards businesses that create content that demonstrates its knowledge, trust, and integrity for the benefit of its customers.
Type Of Business Insights
On the basis of the type of business insights, the market is segmented into three types - healthcare companies, providers, and others (diagnostic lab, payer, etc.). In 2022, the healthcare companies’ category contributed to the greatest revenue share over 55% of the market.
Healthcare companies are utilizing digital marketing strategies to produce more successful campaigns that could assist companies in expanding its client base, increasing engagement, and optimizing their brand's performance in the worldwide market. For instance, Moderna, Inc., a pharmaceutical and biotech firm, increased its digital advertising spending from USD 13,000 in 2020 to USD 285,000 in 2021. This trend is expected to continue throughout the forecast period, as more healthcare organizations move from traditional marketing platforms to digital marketing platforms, which is expected to support the growth of healthcare digital marketing outsourcing market in the forecast period.
Regional Insights
North America dominated the market and accounted for the largest revenue share of over 40% in 2022. This growth can be attributed to the presence of a large number of digital marketing firms operating in the region, along with the increasing focus of healthcare providers on reaching out to the target audiences through digital marketing, which are few of the major factors driving the market growth in the region. For instance, in March 2022, UnitedHealth Group, a health insurance company in the US, launched a digital marketing campaign to educate consumers about the benefits of telemedicine and encourage them to use virtual visit options for healthcare. This campaign includes targeted online advertising and the use of social media platforms to reach consumers.
Asia-Pacific is expected to be the fastest growing region in the healthcare digital marketing outsourcing market during the forecast period. The growth can be attributed to an increasing adoption of digital marketing solutions by healthcare providers, along with the presence of a large number of digital marketing firms in the region. The increasing number of healthcare IT startups in major countries, such as India and China, is also expected to further fuel the market growth in the region to some extent.
Key Companies & Market Share Insights
The market is fragmented with the presence of private players operational at regional level. Industry growth is constantly being facilitated by the expanding benefits of digital marketing strategies and their affordability in comparison to traditional marketing. Additionally, in order to promote the products and increase revenue, healthcare businesses, particularly those in the fitness and pharmaceutical industries, are expected to collaborate with reputable companies, such as Thrive Internet Marketing Agency, Hootsuite Inc., Refersion Inc., CMI Media Group, and The SEO Works, for its digital marketing. Some of the prominent players in the global healthcare digital marketing outsourcing market include:
Cardinal Digital Marketing
Meditwitt
Thrive Internet Marketing Agency
Hootsuite Inc
Medibrandox
ClickDealer
Refersion Inc.
Practis, LLC
Semgeeks Digital Agency
SEOteric
The Brains
PatientPop, Inc
WebToMed, L.L.C.
CMI Media Group
The SEO Works