Procurement in pharma isn’t just about getting a good deal. It’s about fuelling smarter, stronger partnerships that deliver real impact to healthcare professionals (HCPs) – without blowing the budget.
At Space & Time, we work with marketing and procurement teams across the health and pharma landscape. We see the internal tug-of-war every day: marketing wants creative, strategic media planning firepower, procurement needs commercial control. Both want value, but aligning those priorities is where the challenge really lies.
Walking the Procurement Tightrope
Let’s be honest: pharma procurement teams are in a tough spot.
You’re expected to find agencies that wow with strategic thinking, creativity and flawless delivery. But at the same time, tasked with driving cost-efficiencies, standardising fee structures, and showing measurable ROI. You’re the negotiator, the gatekeeper, and the peacemaker – all at once.
But when cost becomes the sole driver in agency selection, things can quickly unravel.
A stripped-down proposal might look good on paper, but undercutting fees just to win the pitch often leads to overstretched agencies and underwhelming campaigns.
Why Traditional Pricing Models Are Outdated
The legacy model—charging a percentage of media spend—is far from optimal.
- Digital media often costs less than traditional, shrinking agency revenue despite growing workloads
- Data, compliance, and omnichannel planning have driven up the cost of delivery
- And let’s not forget the extras: analytics platforms, innovation, retention initiatives that all come at a cost
The result? Agencies doing more for less, and procurement teams left managing escalating expectations on unrealistic budgets.
What’s the Fix? Smarter, Fairer Commercial Models
So, what does a future-ready procurement approach look like in health and pharma marketing?
Here’s our take:
- Performance-Based Partnerships
Tie remuneration to the metrics that matter: brand lift, HCP engagement, Rx uplift. If agencies are smashing your targets, reward them.
- Hybrid Fee Models
Combine fixed fees (for core strategic services) with outcome-based bonuses. It gives your agency financial stability and keeps both sides focused on delivering impact.
- Scope-Driven Pricing
Transparent, campaign-by-campaign costing based on actual deliverables—creative, digital, content, media, strategy. It aligns fees with the real complexity of the work and creates shared understanding from the outset.
Collaboration
The truth? Procurement and agencies aren’t on opposing teams. We’re all working toward the same goal: effective, compliant, and impactful healthcare communications.
That starts with open dialogue:
- Be honest about budget constraints
- Be clear on expectations and timelines
- And be willing to explore models that make sense for everyone
At Space & Time, we believe in long-term, sustainable partnerships—not transactional relationships. We flex to your procurement model, but we never compromise on quality, insight, or service.
The Bottom Line
When procurement drives smarter commercial conversations—not just cheaper ones—marketing performance improves, partnerships thrive, and HCPs receive the kind of communications that actually make a difference.
Ready to find the sweet spot between cost control and campaign brilliance?
