There is no doubt that e-commerce is a rapidly growing channel in the OTC market, but this channel still makes up a relatively small percentage of actual OTC sales—well below 10% of total sales for most OTC categories. However, digital marketing can have profound effects on brand performance even within traditional brick-and-mortar retail channels. Some estimate that digital presence and marketing for OTC brands will impact more than 75% of all sales. For many consumers, their path-to-purchase for OTC remedies often looks like many other categories where the need for the product is immediate. It may begin online with a search for price comparisons or product information but likely end with the actual purchase happening in-store.
For OTC and wellness manufacturers that generate predominant sales through traditional brick-and-mortar retail stores, social media and online media buys play a critical role in customer acquisition and driving consumers to a brand. According to one company to be featured in the upcoming Kline report, OTC Indies, driving potential consumers to its page online represents a key strategy to induce trial and has driven considerable growth for the brand. The company notes that even though more than 90% of its sales occur in brick-and-mortar stores, more than 90% of its ad budget targets bloggers and social media influencers in the health space because, according to consumer surveys conducted by the company, most first-time buyers of the brand do so based on a recommendation from a blogger or influencer.
For detailed information about more than 70 independent OTC players, view our brochure, OTC Indies: U.S. Analysis of Independent OTC Companies. This study includes extensive primary research with large and small OTC marketers and retailers with a focus on digital marketing strategies. The report will be published in Q2 2019. To learn more, contact us.
