Spring 2013 - DTC Perspectives Magazine

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PRST STD U.S. Postage PAID Permit #108 Lebanon Junction KY 40150 DTC PERSPECTIVES, INC. 1120 Bloomfield Avenue, Suite 108 West Caldwell, NJ 07006 ELECTRONIC SERVICE REQUESTED MAGAZINE Spring 2013 PERSPECTIVES THE SOURCE FOR DIRECT TO CONSUMER THOUGHT LEADERS Fundamental changes occurring in DTC are revealing this to be the new pivotal metric for brand results PATIENT OUTCOMES MOVING UP THE CURVE: HOW TO NAVIGATE MARKETING IN AN ‘INSIGHTS-DRIVEN’ ERA A NEW RX FOR MEDIA: LEVERAGE LOCAL MEDIA TO CONNECT WITH CONSUMERS MEANINGFUL DIALOGUE: MIND THE DOCTOR-PATIENT COMMUNICATION GAP Multicultural Marketing to a Diverse America Health National Washington, DC October 17-18 Marriott Metro Center www.mchnational.com

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The Spring 2013 issue is available now!

Transcript of Spring 2013 - DTC Perspectives Magazine

Page 1: Spring 2013 - DTC Perspectives Magazine

PRST STDU.S. Postage

PAIDPermit #108

Lebanon JunctionKY 40150

DTC PERSPECTIVES, INC.1120 Bloomfield Avenue, Suite 108West Caldwell, NJ 07006

ELECTRoNIC SERVICEREQUESTED

MAGAZINESpring 2013

P E R S P E C T I V E S

T h e S o u r c e F o r D I r e c T T o c o N S u M e r T h o u G h T L e a D e r S

Fundamental changes occurring in DTC are revealing this to be the new pivotal metric for brand results

PATIENT OUTCOMES

MOVING UP THE CURVE:How to Navigate MarketiNgiN aN ‘iNsigHts-DriveN’ era

A NEW Rx FOR MEDIA:Leverage LocaL MeDia tocoNNect witH coNsuMers

MEANINGFUL DIALOGUE:MiND tHe Doctor-PatieNtcoMMuNicatioN gaP

Multicultural

M a r k e t i n g t o a D i v e r s e A m e r i c a

HealthNational

Washington, DCOctober 17-18

Marriott Metro Center

www.mchnational.com

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Effective Targeting

24 & 34

P E R S P E C T I V E S

Spring 2013

DTC Perspectives Spring 2013 | 33

About the MARS OTC/DTC Study

Since 2001, the annual syndicated MARS OTC/DTC Study of

20,000 adults has been used by agencies, advertisers and media to

make healthcare media and marketing decisions. The study links con-

sumers’ multimedia consumption with medical ailment, pharma brand,

attitudes and opinions about healthcare and many other data points.

Michele Deutschman has over 12 years of experience in pharma syn-

dicated research. She currently serves as the VP of Strategic Partner-

ships & Business Development at Kantar Media Healthcare Research

and is responsible for developing brand strategies, generating strategic

partnerships and advising healthcare agencies. She can be reached at

[email protected].

A 15-year industry veteran, Jayne Krahn is the VP of Product and

Research Operations at Kantar Media Healthcare Research, where she

manages research operations of the MARS Consumer and Professional

Health Studies. She can be reached at Jayne.Krahn@KantarMedia.

com.

1IMS Institute for Healthcare Informatics. “The Use of Medicines in

the United States: Review of 2011.” April 2012.

2EvaluatePharma. “News Brief: Over the Edge … Again – 2015 the

New Patent Challenge.” January 2013.

M A R K E T I N G T O D I S C O U N T U S E R S

Custom Reprints

Take advantage of your profile in DTC Perspectives Magazine by ordering custom reprintsof your article or mention.

For more information, please call Jennifer Haug at973-457-5718 or email

at [email protected]

“GET ME COPIES

OF THAT

ARTICLE”

Chart 3: Primary Source of Healthcare Advertising Seen or Heard by Drug Savings Users in Last 12 Months

4 Editor’s Desk

6,8 DTC in Brief

10 More Bang for Your Digital Buck: Innovations in Data-Driven Optimization

A series from Crossix RxMarketMetrics

14 Managing the Marketing Gap: Navigating in an ‘Insight-Driven’ Era BOB HARRELL OF APPATURE

19 Performance-Based Marketing 2.0: Pay for Outcomes, Not Output ROB REBAK OF QUALITYHEALTH

24 Marketing to Discount Users: Are Your Savings Offers Reaching the

Right Consumers?JAYNE KRAHN & MICHELE DEUTSCHMAN OF KANTAR MEDIA

HEALTHCARE RESEARCH

30 New Rx for Media Allocation: Local Media Connects DTC Marketers

with ConsumersMARY ELLEN HOLDEN & SONDRA GAGE OF NEWSPAPER NATIONAL

NETWORK LP

34 Consumer Insights from Big Data BRYAN GERNERT OF RESONATE

39 Pharma’s Cross-Cultural Health: An Ongoing Conundrum GIVI TOPCHISHVILI OF GLOBAL ADVERTISING STRATEGIES

42 Mind the Physician-Patient Communication Gap JAMIE LUTZKY OF EVOKE INTERACTION

46 In a New Era of Health Care, Hospitals Lead the Way BRAD GRANER & BURT KANN OF HEALTHGRADES

48 DTC Marketing and the Changing Face of Healthcare SCOTT EHRLICH OF DTC PERSPECTIVES, INC.

52 People on the Move An update on DTC personnel and company changes within the industry

53 Advertiser Index and Resource Center

54 Contributors’ Page

A closer look at the contributors to this issue of DTC Perspectives Magazine

56 Marketing on the Edge: Games. People. Play. Dan Chichester shares his astute views on the marketing industry

58 Eye on the Hill: Why Drug Marketers Should Care About Food and

Video Games Jim Davidson reports on the latest regulatory events & implications

60 Perspectives on Books: Catastrophic Care Reviewed by Robert Ehrlich of DTC Perspectives, Inc.

62 DTC Perspectives Editorial: Obamacare Revisited

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Hospital Marketing

46

DTC Perspectives • Spring 2013 | 3

39

Cross-Cultural Health

Page 3: Spring 2013 - DTC Perspectives Magazine

Dtc Perspectives is Published Quarterly By: Dtc Perspectives, inc.1120 Bloomfield avenue, suite 108west caldwell, NJ 07006Phone: 973-521-7475eLectroNic service reQuesteD

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©2013 Dtc Perspectives, inc. all rights reserved. No part of this publication may be reproduced in any form unless given permission by the publisher.

Keeping Up with it AllFor the Sake of the Patient

oftentimes, it feels like we live in a world where everything was due yesterday. adding to the

workload, there is always something new emerging that we strive keep up with – whether it be

new data or information, or the new way to connect with consumers, or a segment of the industry

gaining attention (more on that below). Forget challenging, it can be maddening to keep up with

it all. Yet usually, we do! How? well, aside from personal drive and an understanding of the serious-

ness surrounding the products this industry manufactures – the levels to which marketers can target,

measure, and optimize has greatly improved. there is a stronger inherent sense of accountability

across the board.

we are transitioning from a traditional Nrx marketing era into one where patient outcomes

can be measured more quantitatively. according to rob rebak, ceo at QualityHealth, with the

changes our industry has faced in the past year, “patient outcomes (both clinical differentiation and

financial advantage) are emerging as the new pivotal metric across the healthcare ecosystem.” in his

article (“Performance Based Marketing 2.0: Pay for outcomes, Not output,” starting on page 19),

he elaborated that as new models, higher sensitivities to pricing, and increasingly knowledgeable

consumers emerge, “Dtc marketing is going to be turned on its head.” walking through criti-

cal success factors, rebak explained that those who plan now will be better prepared as this trend

“strengthens its foothold across stakeholders in healthcare.”

the amount of data and information that comes with such planning research is significant in

both volume and value. Marketers must sift through all of the “Big Data” to glean those insights that

will move the needle. as resonate’s ceo Bryan gernert detailed in his article (“consumer insights

from Big Data,” starting on page 34), “the ability to combine proprietary internal data (previ-

ous purchase data, brand attributes, demographics), with information from consumer surveys about

beliefs, values, and attitudes and browsing behavior will enable marketers to develop a more com-

plete audience profile.” By understanding behavioral drivers, marketers can more accurately adjust

their campaigns and other endeavors to help patients attain more successful health outcomes. and

really, isn’t that why we enjoy keeping up with it all?

Growing Segments Gaining GroundMarketers are constantly tasked with the challenge of perfecting new ways to increase rev-

enue. one of the ways is by reaching previously untapped markets. two segments in our industry

in particular are continuing to gain more awareness: Multicultural audiences and Point of care.

Multicultural marketing represents a significant potential for Dtc as these audiences tend to fall

among those less likely to seek care, but the more likely to adhere when they do. and Point of care’s

emergence is due to its position as a critical junction in an individual’s health management. to help

marketers more effectively navigate these channels, Dtc Perspectives is hosting its 2nd annual

Multicultural Health National and will also be premiering its new Point of care Marketing con-

ference: the Multicultural Health National will be held oct. 17-18 at the Marriott Metro center in

washington, Dc; the new Point of care Marketing conference will take place on Nov. 6-7 at the

sofitel Hotel in Philadelphia. we hope to see you there as we continue to be a resource for you to

keep up with it all!

P E R S P E C T I V E S

Robert Ehrlich

chairman and ceo

Dtc Perspectives, inc.

Christine Franklin

vP, Marketing and sales

Jennifer Haug

Director of Publishing & content

Matt Yavorski

sales associate

Carolyn Bradford

sales associate

Molly Diemel

Marketing and Production

associate

Debra Sander

office coordinator

Scott Ehrlich

President

MDPa Division

Amanda Lawhorne

Director of Marketing

McH Division

Debra Rennert

creative Director

Jennifer Haug

sincerely,

P.S. – We’d love to hear from you! Send an email or Tweet to DTC Perspectives or myself:

[email protected] @[email protected] @jen_haug

beaconhc.com

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4 | DTC Perspectives • Spring 2013

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I N B R I E F

Patients Given Rx Scripts at ERFill Less Often than They Claim

a study published in late March in the annals of emergency Medicine revealed that “when patients said that they filled their prescription, there was frequently no pharmacy claims record to support this,” according to lead study author Melissa Mccarthy, scD., of george washington university. research ana-lyzed records for more than 1,000 Medicaid patients who were prescribed at least one medication – either prescription only or an otc medicine – when they were discharged from the emergency room of a hospital. results found that despite 90% of patients claiming to fill their prescribed medicine, only 74% actually did.

while it is difficult to identify those, the likely reason for not filling is due to the use of over-the-counter (otc) medications as a substitute. Dr. Mccarthy also noted that there was a “smaller gap between self-report and pharmacy claims for prescription medications (13%) than for over-the-counter medications (24%).” the report, entitled “the validity of self-reported Primary adherence among Medicaid Patients Discharged from the emergency Department with a Prescription Medication,” gave another possible reason for those failing to fill a script: patients with at least one recent er visit may be more likely to confuse which prescriptions they had filled if they received multiple scripts from different providers.

AZ Raises Atherosclerosis Awareness During American Heart Month

astraZeneca conducted a study of more than 2,000 american adults which found than only 21% of respondents could correctly identify all 6 surveyed atherosclerosis risk factors (high cholesterol, high blood pressure, diabetes, family history of early heart disease, smoking and obesity). with February being american Heart Month, the pharmaceutical manufacturer raised awareness to educate about this condition and encourage consumers to be proactive about their health to find out if they may be at risk.

“Heart Month is an ideal time for patients to reflect upon their health and talk with their doctor to learn about the risk factors for plaque buildup in arteries and whether they may be at increased risk for atherosclerosis,” said Dr. Philip de vane, executive Director of Medical affairs and strategic Development, astraZeneca via press release. “this education can be extremely valuable for adults, particularly those who are unaware of their increased risk, and may help mitigate the progression of this disease.” astraZeneca manufactures the cholesterol treatment, crestor. among crestor’s branded and educational materials for consumers are crestor.com, the cholesterol roadmap, and a customizable doctor-patient discussion questionnaire.

GSK: Americans are Not as Healthy As They Believe Themselves to Be

when surveyed, 9 in 10 americans considered themselves to be in good personal health, according to a recent study by the atlantic in collaboration with glaxosmithkline. the research, conducted by Penn, schoen & Berland in mid-January, also discovered that 81% of respondents rated the health of their community as good. as noted in a news release by glaxosmithkline, these findings are “in stark contrast to recent research on the health status of america, including one-third of u.s. adults who are obese and 26 million adults and children who have diabetes. additionally, while the majority of americans believe their health status has not changed recently, 26% say their health has declined and cited worsening economic circumstances as a critical factor.”

this was a phone study of more than 1,000 lower-income americans – individuals who often have a lesser access to community health resources despite being more likely to want them. this group heavily values regular access to doctors and dentists (82%) as well as nearby hospitals and urgent care facilities (74%), but, unfortunately, the poll found their needs to be significantly unmet. thus, some groups – including young people and Hispanics – are “eager to use web applications to help improve their health,” added the news release.

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www.appature.com

Game changingtechnology.Actionable insights.We are excited to announce that Appature is now a part of IMS Health. The combination of Appature’s innovative cloud-based marketing platform and IMS Health’s market-leading capabilities and services will be a game changer for life sciences customers, providing entirely new ways to manage customer relationships and campaign ROI.

8 | DTC Perspectives • Spring 2013

I N B R I E F

FDA’s OPDP Restructures By Therapeutic Category

in recognizing the shift in the prescription product marketing industry from a siloed approach to a more wholly-integrated tactic crossing both consumer and professional sectors, FDa announced recently that the office of Prescription Drug Promotion (oPDP) has been restructured. rather than being grouped by “con-sumer Drug Promotion” and “Professional Drug Promotion” marketing, the divisions will now be by therapeutic category. according to Janet woodcock, M.D., Director of the center for Drug evaluation and research (cDer), this move will allow for more effective reviewing by oPDP staff members.

according to the new organizational chart posted online, tom abrams will remain as Director of oPDP, with the divisions now standing as:

• Division i, which is headed by Director andrew Haffer• team 1: Neurology, Psychiatry• team 2: Hematology/oncology (blood cancers)• team 3: oncology (solid tumors)• team 4: analgesics, anesthetics, antivirals

• Division ii, which is led by Director robert Dean• team 5: osteoporosis, reproductive, urology• team 6: Dental, Dermatology, Metabolic & endocrine• team 7: allergy, gastroenterology, Pulmonary, rheumatology• team 8: anti-infective, cardiovascular, Medical imaging, ophthalmology, renal, transplant

IMS Health Acquires Appature Expanding its Commercial Services

iMs Health, a leading information, technology and services provider for the healthcare industry, will be able to deepen its commercial services capabilities through its recent acquisition of appature, a top software-as-a-service (saas) company. the procurement combines iMs Health’s resources with appature Nexus – a patented cloud-based marketing software platform providing clients with an integrated marketing database, campaign management and analytics suite. appature’s saas model will further the capabilities of iMs one, a cloud-based platform which seamlessly integrates customer commercial activities with key iMs assets. Now, healthcare and life sciences clients will be better equipped to optimize marketing strategies and promotional spend in a flexible and scalable manner, resulting in more efficient campaigns and effective engagements.

“we’re very excited about the opportunity to join iMs at such a crucial time, when the commercial model for life sciences is fundamentally transforming to meet new marketplace demands,” said kabir shahani, co-founder and ceo, appature. “the combination of appature and iMs is powerful and will enable clients to more easily achieve strategic and financial goals through a data-driven, customer-centric marketing platform. we look forward to bringing truly game-changing offerings to the marketplace.”

seyed Mortazavi, President, of iMs’s u.s. business unit, echoed the sentiment of such transformational industry prac-tices, stressing the importance of innovation to better serve customer needs. He noted, “today, life sciences companies are shifting their sales and marketing approaches to focus on an expanding set of decision makers and the explosion of new media, digital device and channel choices. they are looking for partners that can pull together the right market and tech-nology expertise, information assets and analysis to help them implement effective commercial strategies and yield better roi. through this acquisition, we’ll drive the development of next-generation, insight-driven marketing effectiveness solutions, transforming the way clients plan and execute their programs. appature also brings a strong culture of innovation to iMs, reinforcing our commitment to agility and the development of breakthrough solutions.”

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C R O S S I X R X M A R K E T M E T R I C S S E R I E S C R O S S I X R X M A R K E T M E T R I C S : D I G I TA L

More Bang for Your Digital BuckInnovations in

Data-Driven Optimization

Recently, as regulatory concerns begin to bow to the pressure to innovate, and brand teams search for cheaper, more targeted media, pharma is beginning to command

a sizable portion of digital ad spend. industry-wide confidence in the channel continues to build as pharmaceutical marketing pioneers break down barriers to digital investment, setting precedence for additional growth. From 2011 through mid-2012, pharmaceutical and healthcare companies saw their share of internet advertising revenues grow by 50%, up to 6%, while all but one other industry witnessed a decrease in its piece of the pie.¹ However, investment in some digital tactics has grown at a slower pace than others, such as investment in social media. the notion of “patient as consumer” has gained broad acceptance in the 16 years since Dtc marketing was first given the official green light. and it is at this ever-expanding frontier of marketing innovation where breakthroughs in measurement have empowered pharma marketers to demonstrate the greatest potential for growth.

Complex digital allocation decisionsas pharmaceutical marketers begin to allocate more media

dollars toward online initiatives, there has arisen a strong desire and often a mandate for reliable, rx-based measurement. with countless publishers clamoring for a piece of the big pharma pie, marketers are faced with challenging allocation decisions, needing to balance tradeoffs between quality, engagement and cost.

when searching for the most cost-effective digital investments, marketer s often focus on targeting and

engagement as key indicators of success. Placements that offer increased targeting and engagement, however, are almost invariably coupled with higher price tags. as a result, marketers recognize the need for reconciliation between more expensive, engaged audiences and a measured increase in benefit. online videos, for example, provide a unique and growing forum for engaging with patients. the share of internet users viewing online videos each month rose from 60.5% in 2009 to an estimated 70.8% in 2012, and is projected to reach 76.0% by 2015.² videos drive 2-3x higher pricing compared to display, however, and their premium price point underscores a need

As pharmaceutical marketers begin to embrace digital media through increasingly substantial investments, there is a greater need for consistent, objective measurement. Innovations in the industry now allow for individuals to be safely linked to transactional data across online behaviors. Timely Rx-based analytics empower brand teams with the tools necessary for in-flight optimization and maximization of campaign ROI.

for more substantive measurement that goes beyond clicks and video views.

the effectiveness of digital media is a constantly evolving debate, and a vocal contingent of skeptics keeps marketers insistent upon pursuing data-driven strategies that can be directly measured back to roi. timely transaction-based measurement also empowers marketers to improve roi mid-campaign by improving the quality and scale of their digital portfolio, adjusting spend to more efficiently purchase qualified audiences.

A commitment to Rx-based analytics can lead to meaningful improvements in ROI by enabling in-flight optimization, as well as

informing smarter scaling of digital initiatives.

Consistent, objective measurement necessaryNo matter how a brand decides to allocate its digital

spend, reliable measurement is becoming an imperative in the dialogue between brands and publishers. Performance-based pricing models have increased their share of internet advertising revenues from 41% in 2005 to 67% in mid-2012.³ the traditional metrics used to evaluate digital performance – such as impressions, click rates and costs per click – are being supplanted by more meaningful, more actionable roi measures. Marketers are demanding the ability to evaluate the roi of their digital investments with greater confidence, and are steering clear of initiatives devoid of a solid measurement methodology.

But the mere existence of a measurement approach is not enough. Marketers must consider questions of ownership, objectivity, timing and methodology when explor ing measurement of their digital campaigns. Besides the obvious conflicts of interest inherent in self-measurement by publishers, this type of measurement lacks any consistency across

investments, and marketers can often find themselves trying to compare apples to oranges.

Previously infeasible, recent innovations in the measurement of online tactics are now allowing for audiences exposed to digital media in virtually any environment to be linked back to transactional data in a privacy-safe, HiPaa-compliant manner. whether linking patients to rx, otc, cPg or consumer data, implementing a standard comprehensive methodology across an entire range of digital investments provides consistent comparators with which to evaluate performance. Further, patients can be linked to these datasets almost instantly, providing a fresh alternative to ex post facto campaign measurement in the form of more actionable metrics, which serve as proxies for eventually realized campaign impact. understanding the transaction-based differences between audiences enables more timely, more confident comparisons, without reliance on self-reported data, empowering marketers to optimize their campaigns in “real-time.”

Chart 2: Treatment Rates for Brand A for Each Publisher

About Crossix

As the only company founded and focused on a consumer-centric healthcare analytics approach, Crossix is the industry standard

by which Top 10 Pharma companies plan, measure and optimize consumer marketing initiatives. Crossix offers the most com-

plete cross-channel solution, helping marketers by correlating campaign exposure to increased sales. Crossix quickly analyzes

data, offers forward-looking strategic guidance, and follows through with recommendations to optimize. Leveraging trends in

“Big Data,” and by partnering with some of the most respected names in the industry, Crossix helps marketers get marketing

messages to the desired audience. Crossix’s patented methodology incorporates best-in-class privacy safeguards far exceeding

HIPAA regulations. Founded in 2004, Crossix is headquartered in New York City. To learn more visit www.crossix.com.

Chart 1: Campaign for Brand A Delivered Among 4 Publishers

73%  

6%  

8%  

13%  

Crossix  Case  Study  

General  Publisher   Health  Publisher  1   Health  Publisher  2   Health  Publisher  3  

Share  of  Total  Impressions  

0.7%  

1.4%  

2.0%  

1.7%  

Share  of  Exposed  Audience  Trea4ng  with  Brand  A  

Crossix  Case  Study  

General  Publisher   Health  Publisher  1  

Health  Publisher  2   Health  Publisher  3  

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12 | DTC Perspectives • Spring 2013

C R O S S I X R X M A R K E T M E T R I C S : D I G I TA L

Case study: Rx-based optimization opportunities

the following case study demonstrates how a brand can leverage transactional data during campaign flight in order to optimize spend allocation across a portfolio of digital investments, ultimately driving meaningful improvements in roi.

Brand a launched a year-long, 75 million impression banner campaign aimed at driving conversion for the brand. as seen in chart 1, the planned delivery included four publishers, one of which was a general content publisher site, which accounted for 73% of the planned impressions. the remaining impressions were distributed among three health-specific publishers.

Marketers must consider questions of ownership, objectivity, timing and methodology when exploring measurement of their digital

campaigns.

shortly following campaign launch, the brand team noticed distinct differences in the treatment profiles of audiences being delivered by the four publishers. chart 2 shows the treatment rates for Brand a for each publisher, based on matching a representative, statistically significant sample of the audience exposed to the banner campaign to actual rx data. treatment rates for the audiences delivered by the three health publishers ranged from 1.4%-2.0%, compared to 0.7% for the audience delivered by the general content publisher. Deeper analysis then revealed that this treatment rate was the metric most predictive of conversion to Brand a.

Further along into the campaign, the brand observed the predictive power of this metric validated. chart 3 shows that analysis of conversion to Brand a revealed a positive conversion rate (net of control) for the three health publishers, and no statistically significant lift in conversion for the general publisher. the bottom line: despite what was likely a lower cost provided by the general content publisher, no incremental conversion impact was observed, an outcome predicted by the audience’s treatment profile evaluated just weeks after the campaign launched. Final roi analysis revealed that the inclusion of the general content publisher reduced eventual program roi by 28%. upon this realization, the brand recommended a shift of funds toward publishers with higher treatment rates of brand a – specifically toward Health Publisher 2 – and away from the general content publisher. in the future, if any new publishers were introduced to the campaign, the brand vowed to monitor these publishers more closely with respect to relative treatment rates. while this specific case showed endemic publishers to be more effective relative to a general content publisher, in many cases, general

content publishers can also prove effective, especially when driving scale is a primary campaign objective.

Transactional data empowers smart scaling a commitment to rx-based analytics can lead to

meaningful improvements in roi by enabling in-flight optimization, as well as informing smarter scaling of digital initiatives. as programs are scaled, the quickest proxy for a decline in campaign effectiveness is a drop in the quality of the audience reached by a given publisher, relative to other publishers. Further, by utilizing a consistent measurement methodology across publishers, brands can answer questions of attribution, as individuals can be linked to multiple exposures and sites over time.

as the pharmaceutical industry moves toward a more data-centric approach to cross-channel marketing, the digital arena is easily and effectively managed through the use of consistent measurement methodologies across investments, empowering brand marketers to shift and scale with confidence. DTC

This is a part of an ongoing series on Rx market metrics of various consumer marketing activities. For more information, see the Crossix RxMarketMetrics™ website (www.rxmarketmetrics.com), from Crossix Solutions Inc., an Rx-based consumer analytics company (www.crossix.com).

References ¹Pricewaterhousecoopers and interactive advertising Bureau. IAB internet advertis-

ing revenue report. interactive advertising Bureau, october 2012. ²eMarketer. The Video Viewing Audience: Trends for Marketers. eMarketer, March 2011. ³Bain & company and interactive advertising Bureau. Bain/IAB Digital Pricing

Research. Bain & company, august 2008.

0.1%  

0.3%  

0.1%  0.1%  

General  Publisher   Health  Publishers  

Conversion  Rate  to  Brand  A  

Crossix  Case  Study  

Treatment   Control  

Chart 3: Positive Conversion Rate Revealed for Health-Specific Publishers for Brand A

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14 | DTC Perspectives • Spring 2013 DTC Perspectives • Spring 2013 | 15

M A R K E T I N G M AT U R I T Y C U R V E

The pressure on Life sciences marketers has never been greater. customers have hundreds of sources they can turn to for information, corporate financial pressures are

tougher, and the regulatory and political environments increas-ingly uncertain.

at the same time, Life sciences marketers have a phenomenal opportunity. More behavioral data than ever before have become available to identify needs, design relevant customer interactions, and sequence activities for maximum effect. Flexible technology tools, not available even a few years ago, can radically improve visibility for marketing efforts, enable marketers to optimize tactics, and communicate real value to management. Plus the opportunity for professional growth and learning today is unparalleled.

other industries have long been on the journey to develop new levels of marketing capabilities. authors of a landmark Harvard Business Review article, “rethinking the 4Ps,” proposes replacing the customary Product, Place, Price, and Promotion with save – solution, access, value, and education, as a result of what technology now makes available.¹ their groundbreaking work with a division of Motorola involves a solutions mindset, a focus on the customer, and that ever-elusive partnership between marketing and sales.

another Harvard Business Review case study, “optimal Marketing,”² describes samsung’s transformation to an insight-driven, fact-based approach to marketing as far back as 2003.

it was a game-changer, transforming samsung into a market-dominating company whose stock price has increased 7x over the last ten years while it’s primary competitor, sony, has dropped in half.

What does change look like?Marketing is evolving to be customer-centric, integrated

across channels, and insight-driven to deliver measurable performance. what was once a macro-focused, creatively oriented discipline is now becoming both macro- and micro-focused, data-reliant, and quantitative. Life sciences marketers who embrace this journey have a tremendous opportunity to increase their impact, grow their skills, and outperform their competitors.

This is the new “holy grail,” and marketers who understand and can implement this transformation will be ahead of the curve

for their brand, their company and their own careers.

the extent of this change is illustrated by what appature calls the Marketing Maturity curve. (see Figure 1.) as pressures on margins and roi increase (y-axis), together with the complexity of channels and customer types (x-axis), so

must the organization’s sophistication in marketing capabilities. the process required to make substantive change involves bringing together all relevant customer data, integrating channels to shape the customer experience, and leveraging insights to achieve an optimal and demonstrable state of performance.

Three-step process to changeappature has developed a three-step process to help

marketers assess where they are on the curve, evaluate the fit with the market situation, and develop an action plan.

a) STEP 1: Take stock of your current approach to marketing.

the Marketing Maturity Diagnostic helps marketers see quickly where they are in terms of needs, capabilities, and gaps, and bolsters the case for taking action. the diagnostic helps marketers analyze each brand across four categories: customer Data & segmentation, customer experience, Marketing analytics, and Marketing technology. Customer Data & Segmentation • Levels of granularity for customer definition• Frequency of data use to refine/reassess segments • Degree of integration of customer data sources Customer Experience• How the brand team plans and executes campaignsMarketing Analytics• access to data/reports and timing• timeframe for analysis and optimization decisions• Basis for future marketing investment decisionsMarketing Technology• use of marketing tools and systems – e.g., 360° customer

database, campaign management and execution, centralized reporting

• integration with other company systems – e.g., sales force automation, call center, finance, market research

• Location of marketing tools/systemsb) STEP 2: Evaluate the fit to the market situation.the self-assessment gives marketers a general idea where they locate along the Marketing Maturity curve’s multi-dimensional approach. is the brand suited to traditional tactic-driven marketing? Does it represent a foundation for a new approach in development? Has true customer-centric marketing been achieved? Have marketers advanced to the stage of insight-driven informed marketing?keep in mind that the most advanced stage is not nec-essarily the best choice. strategic marketers carefully calibrate the approach to each brand, fine-tuning it using real-world and real-time information wherever possible. the following four stages form the basis of the Marketing Maturity rating: Stage 1: Tactic-Driven Marketing.

this traditional approach involves creating and deploying tactics to a broad target audience, with limited coordination of tactics or use of technology and little or no access to information about what’s working and what isn’t. it is well suited to brands with low roi pressure, a less complicated customer base, less need for customer engagement, and already established.Stage 2: Foundation Development. Brands in this category use tactic-driven marketing while doing initial groundwork for advancing up the Marketing Maturity curve, putting in place operational investments to enable a future state of more insight-driven marketing. this stage fits with brands under roi pressure or serving a more complex customer in a more complex media landscape. this is a necessary stage, providing the “plumbing” for future changes, but no intrinsic business value. Many companies get stuck here, caught in a vortex of data collection and system building, often taking on large “on-premise” (not cloud-based) infrastructure that move slowly. Brands at this stage are in peril unless marketers develop clear, time-bound plans for moving to stage 3. Stage 3: Customer-Centric Marketing. Brands in this stage are beginning to truly organize campaigns around the customer. Marketing campaigns for these brands are executed across channels and provide at least some effectiveness information for more informed decision-making. Brand marketers have developed close partnerships with it and/or external providers, and are beginning to leverage technology to deliver on their goals. Multiple channels are used to create a coherent “customer journey.”at this stage marketers still may lack 24/7 access to campaign data and continuity in the customer journey, and encounter gaps during the loyalty phase.

Marketing is under-going a wide-scale transformation to enable individual customer-driven interactions, automated cross-channel campaign management, and rapid feedback loops. The enablers of this new marketing will be technology, big data, and new skills and processes. Given the profound changes impacting the Life Sciences commercial model, marketers are facing a major challenge to evolve their approach and demonstrate value for their marketing spend.

By BoB Harrell

Managing the Marketing Gap:Navigating in an

‘Insight-Driven’ Era

Figure 1: Moving Up on the Marketing Maturity Curve

Page 9: Spring 2013 - DTC Perspectives Magazine

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M A R K E T I N G M AT U R I T Y C U R V E

this sounds pretty advanced, but there is still significant opportunity to move further up the curve. if the brand has a competitive market, complex customer base, so-phisticated multi-channel campaign or faces financial pressure to deliver efficiently, keep reading. the brand belongs in stage 4.Stage 4: Insight-Driven, Informed Marketing. Marketers whose brands reach this level on the Marketing Maturity curve have achieved real transformation. their capabilities to use real-time information to drive marketing campaigns enable them to deliver high-value, personalized experiences for their customers, be more informed in their optimization decisions, make changes while campaigns are still ongoing, and exhibit more agility. this is the new “holy grail,” and marketers who understand and can implement this transformation will be ahead of the curve for their brand, their company and their own careers. if marketers fit this description, they are truly leveraging information to personalize the customer experience, partner with sales, create multiple unique experiences for the customer, optimize campaigns mid-stream, and use cloud-based tools to develop insights in real time.

c) STEP 3: Create a plan to move up the curve.three interconnected components are essential to implement meaningful insight-driven marketing – skills, processes, and technology. (see Figure 2.)Skills: Working with Data. technology alone isn’t enough to achieve Marketing Maturity. in today’s in-creasingly data-rich world, marketing departments will need the talent to work with the information – data scientists, mathematicians, it professionals and financial analysts. this will require building of new internal skills and strategic partnerships with external experts.

structures will also have to change. goodbye chan-nel-specific and functional silos, hello intra- and in-ter-departmental collaboration. this means ensuring the skills to build coalitions across functions and put in place governance processes.Operational Processes: Getting to “Fast.” Both marketing departments and management across functions will need to re-orient around widespread use of analytics and rapid, insight-driven decision-making in order to drive higher revenue and business success. New technology is only part of the equation. Marketing leaders are also being challenged to:• Develop policies and procedures for deploying

multi-channel campaigns• train Medical/regulatory/Legal teams in how to

deal with the new business-rule driven, automated campaigns

• estimate and make the case for the additional resources that may be needed

• encourage and enable a/B testing for campaignsMarketing Technology: A Key to Insight-Driven. technology is the hub from which teams manage customer information, customer communications, and campaign outcomes. it contributes to Marketing Maturity in three ways:• integration of customer data helps marketers

deeply understand their customers across virtually limitless variables

• automation of marketing campaigns enables personalization, greater responsiveness, continuity, and coordination

• advanced analytics engines provide real-time performance insights by campaign, channel, or even individual customer

Marketers who know they need to ramp up their capabilities often hit a brick wall when it comes to figuring out how to compare specific product features and functionality of various solutions. this is a difficult, and critical, decision that can significantly impact costs and effectiveness. one of the key decisions will be what kind of technology solution works best for specific market situations – whether to build an “on-premise” it solution or go with cloud-based software-as-a-service (saas) solutions. cloud-based solutions are designed for fast implementation, are flexible to scale, and provide broad access to users through the web. there is no hardware to procure, and software upgrades happen centrally and frequently. another factor in selecting technology is the extent to which

Skills Workingwith Data

OperationalProcesses

MarketingTechnology

Figure 2: Implement Meaningful Insight-Driven Marketing

(Continued on page 44)

Page 10: Spring 2013 - DTC Perspectives Magazine

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DTC Perspectives • Spring 2013 | 19

Last year, i wrote an article published in this magazine’s spring issue called “Marketers, Pay for Performance, not Promises.” My premise was as follows: in a zero-waste

world, where brand managers are held accountable for delivering results, marketers should only pay for marketing services based on the results they deliver. Much of Dtc marketing however had not, at that time, been performance-based. Marketers expected results and planned to have results, but paid whether or not that happened. a lot has changed in a year. in my experience, marketers are now holding their marketing to far more rigorous financial terms than before, and benefiting from this disciplined approach through better predictability, smarter spending and higher rois.

But before we have even had the chance to settle into this new way of doing marketing, the market has begun to up the ante on marketing services even further, expanding Dtc accountability beyond financial performance to clinical outcomes. the change facing pharma is fairly fundamental. where you now succeed by (efficiently and accountably) getting consumers to request – and doctors to prescribe – your medication more often, tomorrow you are likely to be better off if you are able to have fewer but better aligned and better faring patients taking your medication. in this paradigm, a marketer’s job changes to include finding the right patients, successfully starting them on the right products for

their specific clinical / behavioral profile, enrolling them in the

right drug and lifestyle programs, and substantiating compelling

outcomes claims.

Here’s what has happened over the past twelve months:

• Healthcare costs have continued to rise faster than

inflation

• with the election, the affordable care act has been

given a more certain future

The fundamental changes facing pharma are pushing marketers to seek more efficient campaign results than ever before, with patient outcomes emerging as the new pivotal metric. Pharma should continue to serve as a driving force in healthcare management by evolving current marketing methods, shifting focus more on advancing health results.

By roB reBak

Performance-Based

Marketing 2.0:Pay for

Outcomes, Not Output

Figure 1: How Outcomes-Based Trends Will Fundamentally Change the Economics of Pharma

Page 11: Spring 2013 - DTC Perspectives Magazine

20 | DTC Perspectives • Spring 2013

• Health reformists are committed to creating sustainable cost control impact by making systemic changes to the health system that are aimed at improving the overall health of the population

• in other words, Better outcomes = Better cost control

with these changes, patient outcomes (both clinical differentiation and financial advantage) are emerging as the new pivotal metric across the healthcare ecosystem. as government and private payors are incentivized to promote better outcomes, it only follows that the rest of the healthcare supply chain will soon be called on to align around this metric. this has already started to translate into outcomes-based pricing and contracting for pharmaceutical products. 16% of payors currently have outcomes-based contracting arrangements with pharmaceutical companies and one-third expect to support them within three years.¹

the concept of patient outcomes has been around since the 1990s. what’s different now? according to a May 2012 Pricewaterhousecoopers report, “unleashing value: the changing payment landscape for the us pharmaceutical industry,” the five new forces fueling this shift to outcomes-based pricing are:

1. shift in payor preference for outcomes-based payment to change prescribing patterns

2. Higher need to justify price increases (mostly driven by growth in high-priced biologics)

3. Higher availability of real-world drug effectiveness data 4. greater awareness of the correlation between properly

prescribed drug use and contained medical costs5. a more informed and self-directed consumer base, able

to make better drug decisions

Evolution of structure & incentivesBetter outcomes, or in other words, making a difference

in people’s health, has always been our mission. But under these newer reimbursement models, where pharmaceutical companies are compensated based on patient outcomes, Dtc marketing is going to be turned on its head. Marketers are going to have to move their focus from generating high volumes of new patients based on indication to generating positive clinical results for individual patients. the only way for marketers to take on this accountability without losing their shirt (or sanity) is by transferring some of that risk to their marketing suppliers. imagine contracting with your creative agencies, digital ad buys, or social media programs based on the patient outcomes they will drive. this is nothing short of a paradigm shift.

under the outcomes-based scenar io, marketers will need to engage in long-term relationships with marketing partners who can help cultivate an ongoing dialogue with their consumers over time, helping the brand discern which

combinations of products, communications, incentives, and support prove most effective in influencing holistic consumer behavior changes. No longer can the marketing partner get an anonymous pile of patients new-on-script and declare victory. they need to both find and continue to re-engage a consistent population to manage the context in which their products are being used in order to maximize the value they can claim to have delivered into the healthcare system.

Outcomes-based marketing: How it is different from what we do today?

outcomes-based marketing is a form of performance-based marketing, where clinical outcomes are the key indicator of performance. this approach will be fundamentally different from what we see practiced as traditional Dtc. see table 1 for the key differences.

under outcomes-based scenarios, marketers will be able to parlay their knowledge about specific disease states and patient behaviors to create a win-win-win situation:

• Patients receive more appropriate care• Payors and providers better manage treatment costs• Pharmaceutical products gain formulary placementso, for example, a diabetes brand marketer’s job will change

as follows: rather than focusing on getting more of diabetes patients to use their brand, their new job will be about getting the right patients on their brand and using it more appropriately, in conjunction with the right lifestyle changes to deliver positive outcomes. so they target only those patients who meet the right clinical and behavioral profile. they identify those diabetes patients who are, say, at risk for diabetic nephropathy due to certain risk factors and lifestyle choices. they understand the different local / regional trends. they work with regional diabetes teaching centers and employer groups to create targeted education and lifestyle change programs specifically targeted to these populations. they cooperate with local healthcare organizations and geo-targeted media partners to distribute these programs. the patients show clinical improvement; the payors see reduced costs, and the pharma company sees an increase in prescribed volume. Diabetes brands are doing versions of this today – but the change is that proving they have driven results will determine whether or not they get paid.

Four critical success factorsin contrast to traditional Dtc, outcomes-based marketers

will have to (see Figure 2):1. start with a far narrower aperture, to target and convert

only the right (i.e., better qualified) consumers 2. Deliver effective, all-rounded, end-to-end patient

programs to ensure that patients fill their prescriptions, take them as directed, and stay on medications as long as medically needed

3. Measure, adhere to and be governed by this new

DTC Perspectives • Spring 2013 | 21

performance metric in marketing: real-world clinical benefit data

4. embrace a new business model, with marketing supplier contracts executed on the basis of how well consumers do on drug

What marketers can do todaytransformation is – and especially so in healthcare –

an evolutionary process. so no doubt, mass adoption of outcomes-based marketing is a few years away. But as more pharmaceutical product contracts get written based on

outcomes, the pressure on marketers will increase to efficiently, and with as little risk as possible, deliver on outcomes.

so what can you do now? three things: Partner, Pilot, and Prepare.

1. Partner – while there aren’t any marketing suppliers or vendors that i know of who are currently delivering against outcomes as the primary metric, there are several who are beginning to develop competencies to be able to do so in the future. revisit your partner network to make sure they are investing in developing the right skill sets to help you gain early experience and set you up for the future. (see table 2.)

2. Pilot – Begin to experiment with your targeting and programming to establish baselines and gain learning.

a) Learn about your targets:• who is most likely to do well on your

brand? • who is most likely to take your brand as

prescribed?• How do d i f f e ren t s egment s behave

differently?• what drives, motivates, or hinders behavior?

B) Learn about how to best and most efficiently drive positive outcomes:

PAT I E n T O u T C O M E S

Table 1: Key Differences among Marketing Practices

Traditional DTCPerformance-Based Marketing

Outcomes-Based Marketing

What it is Drive brand awareness and

engagement

Drive specific brand actions Drive brand adherence

Payment metric Scale Performance Outcomes

Value created Revenue ROI Clinical benefit

Consumer characteristics Broad audience narrow audience, targeted to

therapeutic category

narrow audience, targeted to thera-

peutic, geo-demographic, and other

categories, with high likelihood of

staying on drug

“Top of the funnel” success

depends on

Better reach Better targeting ability Better risk stratification

Communications objective Point-in-time effectiveness Closed-loop pull-through Longitudinal relationship

Examples of marketing programs Advertising Cost per Conversation programs Cost per Compliance programs

Internal partners n/A Finance Health Economics

External stakeholders •Media partners

•Marketing partners

Performance-based partners (Media +

Marketing)

Outcomes-based partners (Media +

Marketing + Behavior Modification)

Secondary customers n/A Healthcare Providers Health Insurers

Risks to plan for Media waste Insufficient scale Formulary decisions

Macro industry-journey Pharma 1.0 Pharma 2.0 Pharma 3.0

24 | DTC Perspectives Spring 2013

4. Embrace a new business model, with marketing supplier contracts executed on the basis of how well consumers do on drug

What marketers can do todayTransformation is – and especially so in healthcare – an

evolutionary process. So no doubt, mass adoption of out-comes-based marketing is a few years away. But as more phar-maceutical product contracts get written based on outcomes,

the pressure on marketers will increase to efficiently, and with as little risk as possible, deliver on outcomes.

So what can you do now? Three things: Partner, Pilot, and Prepare.

1. Partner – While there aren’t any marketing suppliers or vendors that I know of who are currently delivering against outcomes as the primary metric, there are several who are beginning to develop competencies to be able to do so in the future. Revisit your partner network to make sure they are investing in developing the right skill sets to help you gain early experience and set you up for the future. (See Table 2.)

2. Pilot – Begin to experiment with your targeting and programming to establish baselines and gain learning.

A) Learn about your targets:Who is most likely to do well on your brand? Who is most likely to take your brand as prescribed?How do d i f f e ren t s egment s behave differently?What drives, motivates, or hinders behavior?

B) Learn about how to best and most efficiently drive positive outcomes:

M A R K E T I N G 2 . 0

Table 1: Key Differences among Marketing Practices

Traditional DTCPerformance-Based Marketing

Outcomes-Based Marketing

What it is Drive brand awareness and

engagement

Drive specific brand actions Drive brand adherence

Payment metric Scale Performance Outcomes

Value created Revenue ROI Clinical benefit

Consumer characteristics Broad audience Narrow audience, targeted to thera-

peutic category

Narrow audience, targeted to thera-

peutic, geo-demographic, and other

categories, with high likelihood of stay-

ing on drug“Top of the funnel” success depends

on

Better reach Better targeting ability Better risk stratification

Communications objective Point-in-time effectiveness Closed-loop pull-through Longitudinal relationship

Examples of marketing programs Advertising Cost per Conversation programs Cost per Compliance programs

Internal partners N/A Finance Health Economics

External stakeholders media partners

marketing partners

Performance-based partners (Media +

Marketing)

Outcomes-based partners (Media +

Marketing + Behavior Modification)Secondary customers N/A Healthcare Providers Health Insurers

Risks to plan for Media waste Insufficient scale Formulary decisions

Maco industry-journey Pharma 1.0 Pharma 2.0 Pharma 3.0

Figure 2: Outcomes-Based Marketing Critical Success Factors

PAT I E n T O u T C O M E S

Page 12: Spring 2013 - DTC Perspectives Magazine

We Make House CallsParade offers our unduplicated audience of 102 million adults the highest quality editorial on subjects that matter to them most including health & wellness features.

With our print and digital combined audience, Parade is the prescription for healthcare advertisers:

• 129 million prescriptions filled in the past month

• $2 billion out-of-pocket average spend on prescriptions each month

It’s what we do.Source: 2012 comScore/GfK MrI Media Fusion 12-12/S12 (Parade Carrier Newspapers and Parade Partners)22 | DTC Perspectives • Spring 2013

• what clinical outcomes are you achieving today?

• How well are your current compliance and adherence programs working?

• which messages, assets, tools, and incentives work with the different segments?

• which channels work best within your financial requirements?

• How do social, mobile, gaming, and other new media impact results?

c) Learn about the right way to measure outcomes• what’s the r ight metr ic to measure

outcomes for your brand?• what da t a source s do you need to

understand to get a holistic picture?• when should you measure?• How often should you measure?

3. Prepare – start laying the groundwork for your suppor t s t r ucture. s t rengthen your s t ra teg ic relationships with your medical and consumer insights team. Become familiar with your brand’s clinical data, and start to understand your bulls-eye patient profile. Begin building the right relationships with health economics, payor relationships, pricing, and market access groups. understand what they do and how they work. and revisit your marketing plan with the payor perspective in mind: what, if anything, should you change in order to better set up your brand for the future?

the trend towards an outcomes-based philosophy is here, and will continue to strengthen its foothold across stakeholders in healthcare. our goal as marketers should be to continue to drive initiatives forward until the industry reaches a tipping point. will you be ready? DTC

References¹Pwc report: “unleashing value: the changing payment landscape for the us

pharmaceutical industry,” May 2012

Rob Rebak is currently CEO of QualityHealth, a leading targeted customer acquisition solution for healthcare marketers. Rob is a 20-year healthcare and interactive marketing industry veteran, bringing a broad range of strategic and operational experiences from Fortune 500 companies to early stage ventures. He can be contacted by email at [email protected].

P A T I E N T O U T C O M E S

Table 2: What to Look For in Marketing Partners

Checklist

A) Narrower Targets

(See Figure 3)

□ Ability to pre-profile and selectively target only appropriate patients

□ Sophisticated consumer-insight mining depth to determine consumers’ preferences, health status, health behaviors, and care

utilization patterns

□ Platform to refine consumer targets with real-time data

B) Patient Programs □ Demonstrable experience creating, delivering and optimizing consumer education, compliance and decision-support programs

□ Platform to deliver is multi-factorial, trigger-based, and targeted and tailored to patient strata

Programs are:

□ Developed with patient, provider, and payor input (compelling enough to make it through the health clutter to the patient)

□ Cover every stage in a patient’s journey, from diagnosis all the way to recovery or maintenance

□ Include a prominent role for digital media and telehealth

C) Clinical Data □ Experience in the gathering, analysis and validation of patient clinical data

□ Precedent collaborating with payors, providers, pharmacy, and third party sources (e.g., e-health and mobile health firms,

medical technology firms, data aggregators) for clinical data

□ use data internally in order to refine service offerings

D) Contracting

Complexity□ Experience with incentive-based or performance-based variable contracts

□ Has a proven conflict resolution process

DTC Perspectives Spring 2013 | 25

What clinical outcomes are you achieving today?How well are your current compliance and adherence programs working?Which messages, assets, tools, and incentives work with the different segments?Which channels work best within your financial requirements?How do social, mobile, gaming, and other new media impact results?

C) Learn about the right way to measure outcomesWhat ’s the r ight metr ic to measure outcomes for your brand?What da t a source s do you need to understand to get a holistic picture?When should you measure?How often should you measure?

3. Prepare – Start laying the groundwork for your support structure. Strengthen your strategic relationships with your medical and consumer insights team. Become familiar with your brand’s clinical data, and start to understand your bulls-eye patient profile. Begin building the r ight relationships with health economics, payor relationships, pricing, and market access groups. Understand what they do and how they work. And revisit your marketing plan with the payor perspective in mind: What, if anything, should you change in order to better set up your brand for the future?

The trend towards an outcomes-based philosophy is here, and will continue to strengthen its foothold across stakeholders in healthcare. Our goal as marketers should be to continue to drive initiatives forward until the industry reaches a tipping point. Will you be ready? DTC

References

¹PWC Report: “Unleashing value: The changing payment landscape for the US pharmaceutical industry,” May 2012

Rob Rebak is currently CEO of QualityHealth, a leading targeted customer acquisition solution for healthcare marketers. Rob is a 20-year healthcare and interactive marketing industry veteran, bringing a broad range of strategic and operational experiences from Fortune 500 companies to early stage ventures. He can be contacted by email at [email protected].

M A R K E T I N G 2 . 0

Awareness: Pay for eyeballs

Engagement: Pay for engagement

with brand content

Performance: Pay for brand conversations

or scripts

Outcomes: Pay for clinical impact

of brand

Figure 3: Narrower Targets

Table 2: What to Look For in Marketing Partners

Checklist

A) Narrower Targets

(See Figure 3) Ability to pre-profile and selectively target only appropriate patients

Sophisticated consumer-insight mining depth to determine consumers’ preferences, health status, health behaviors, and care

utilization patterns

Platform to refine consumer targets with real-time dataB) Patient Programs Demonstrable experience creating, delivering and optimizing consumer education, compliance and decision-support programs

Platform to deliver is multi-factorial, trigger-based, and targeted and tailored to patient strata

Programs are:

Developed with patient, provider, and payor input (compelling enough to make it through the health clutter to the patient)

Cover every stage in a patient’s journey, from diagnosis all the way to recovery or maintenance

Include a prominent role for digital media and telehealthC) Clinical Data Experience in the gathering, analysis and validation of patient clinical data

Precedent collaborating with payors, providers, pharmacy, and third party sources (e.g., e-health and mobile health firms, medical

technology firms, data aggregators) for clinical data

Use data internally in order to refine service offeringsD) Contracting

ComplexityExperience with incentive-based or performance-based variable contracts

Has a proven conflict resolution process

Page 13: Spring 2013 - DTC Perspectives Magazine

24 | DTC Perspectives • Spring 2013 DTC Perspectives • Spring 2013 | 25

M A R K E T I N G T O D I S C O U N T U S E R S

and is what we primarily share in this article, eventually hyper-targeting requires the marketer to dig deeper into the mindset of discount users with the health condition their drugs treat.

the 2012 otc/Dtc study found that the top three conditions treated with an rx that have the greatest number of adults using savings offers are:

1. Hypertension/High Blood Pressure – 8.9 million adults2. High cholesterol – 8.5 million adults3. Depression – 6.9 million adultsrx savings is not a practice used only by those who suffer

from ailments where the treatment options are primarily prescription drugs. Diagnosed condition sufferers who could easily treat their ailment with over-the-counter remedies also take advantage of rx savings offers. the study found that 70% of adults with constipation/irregularity who treat their condition with rx medications have used drug savings offers in the past 12 months. other high percentage ailments include cold sores/canker sores (47%), psoriasis (45%) and body aches (45%).

Differences among savings users, ailmentsthe study showed that, when bucketed by ailment, there

were clear contrasts among groups, including the types of discounts they use, where they fill their rx and other health-related behaviors. consider the 8.5 million adults who take an rx for high cholesterol and use drug savings to see how this group differs from those that take an rx for acid reflux/gerD and also use savings:

• those with high cholesterol are much more likely to value product packaging/labels on medications as a source of healthcare information.

• while flipping through tv channels, they are more likely to watch financial news and home shopping and less likely to watch reality shows.

• they’re more likely to purchase their rx via mail order.

• when it comes to different types of savings offers, these adults are more likely to use an rx prescription assistance program from a drug brand as opposed to a coupon offer downloaded from a drug company’s website.

this case study offers a clearer picture of these individuals and helps inform the pharma team marketing a cholesterol drug. the team must next decide how, when and where to promote discount offers to best reach these patients.

Advertising worksat a high level, the otc/Dtc study found that

drug-savings users are very attuned to healthcare advertising and are more likely to have seen any type of healthcare ad in the last year. they place a higher value on these ads as information sources compared to all

adults who have taken an rx in last year for any ailment. good news, indeed. But that simply scratches the surface.

Pr int advertising greatly affects drug-savings users, according to the study. they are 40% more likely to value newspaper ads and 20% more likely to value magazine ads compared to all adults who have taken an rx in the last year for any ailment. when we dig deeper still, drug-savings users with high cholesterol are actually more likely to value mail solicitations. these insights can help the Dtc marketer evaluate advertising allocation.

About 41% of adults who used a drug saving offer and were exposed to healthcare ads in a doctor’s office have discussed the ad with their doctor, requested a product sample or asked that

a specific drug be prescribed.

another major differentiator between drug-savings users and adults who have taken an rx in last year for any ailment is that they are more likely to value point-of-care media – and more likely to take action due to those ads. about 41% of adults who used a drug saving offer and were exposed to healthcare ads in a doctor’s office have discussed the ad with their doctor, requested a product sample or asked that a specific drug be prescribed. they’re also much more apt to take their medication, make an appointment to see a doctor and call for an rx refill.

the study suggests that point-of-care and print are the top two methods for reaching all drug-savings users and motivating them to take action, though the rate differs by condition. it’s critical to look at specific ailments to determine how much of the budget should be allocated to campaigns for each medium.

In the past five years, more adults have chosen to treat health conditions with generics. in fact, of all adults who treat health conditions with a prescription drug, almost three

out of five use generics. cost is a key factor, but it isn’t the only reason adults opt out of branded medications. only 33% of consumers believe that rx drugs are more effective than non-prescription drugs and a mere 16% say that it’s worth paying more for branded rx drugs versus generics, according to kantar Media’s 2012 Mars otc/Dtc study. suffice it to say, Dtc brand marketers are facing an uphill battle, but that doesn’t mean they’re not fighting.

to combat the generic explosion as well as tackle issues of patient compliance, adherence and retention, pharma companies promote rx drug savings offers, including rebates and coupons. in the last year, almost 60 million adults used some form of drug savings when filling or receiving an rx drug, according to the otc/Dtc study. and use of co-payment cards, coupons and other discounts more than tripled since mid-2006, according to a 2011 report from iMs Health.¹

Brand loyalty cards and magazine coupons are just a few of the items now explored within the otc/Dtc study. results showed differences in actions and attitudes of patients who use savings compared to the general u.s. population. they value different sources of healthcare information and have varying attitudes about pharma companies. Most critical for

Dtc marketers to understand is that these adults take different actions based on the ads they see. these insights can help them effectively target and reach the prospects most likely to use savings offers.

Hyper-targeting with researcha wise fisherman will say that to catch a fish, figure out

what will make it bite before casting a line. the same holds true with drug savings offers. Dtc marketers should use a data-driven promotional strategy because even though coupon offers are generous and easy, blindly tendering them to an entire market isn’t entirely useful or cheap.

one of the biggest reasons to craft cost-effective plans around discount users is the “patent cliff.” Pharma researcher evaluatePharma estimates there are $290 billion at risk from patent expirations between 2012 and 2018, meaning more generics will enter an already-crowded market.²

it’s time to dedicate resources to find out who these prospects are before implementing savings marketing plans. on the front-end, hyper-targeting these consumers may seem laborious, but may ultimately prove more effective.

unsurprisingly, the otc/Dtc study found that drug-savings users run the gamut demographically. they can’t be segmented by gender, race or age, so on the surface this group is a tough nut to crack. But there is a silver lining. while data on all savings users helps at the beginning of the research stage

Marketing to Discount Users:

Are Your Savings Offers Reaching

the Right Consumers?

DTC marketers face a major challenge as consumers and their physicians are increasingly treating health conditions with generics over branded drugs. To combat this, pharma companies offer coupons and rebates, but blanketing the market with savings offers may not necessarily change prescribing behavior. Drawing from Kantar Media’s 2012 MARS OTC/DTC Study, this article examines why marketers must re-evaluate their coupon promotion plans and how research and hyper-targeting can help them cost-effectively reach the optimal audience.

By Jayne kraHn and MicHele deutscHMan

Chart 1: What Discount Savings Are Adults Using for Rx Drugs?

Page 14: Spring 2013 - DTC Perspectives Magazine

DTC Perspectives • Spring 2013 | 27

will probably rise as more generics enter the market. recently,

many blockbuster drugs lost their u.s. market protection,

including Plavix, Lipitor, actos and singulair. other big sellers

scheduled to soon lose patent protection include symbicort,

cymbalta and Nexium.Dtc pharma marketers can use data from the Mars

otc/Dtc study, along with their own hyper-targeted research on consumers that use discounts, in order to optimize their advertising and marketing efforts. at the end of the day, when executed well, discount offers may help expand the pharma company’s user base, increase compliance and

ultimately reduce long-term healthcare costs. DTC

About the MARS OTC/DTC Study Since 2001, the annual syndicated MARS OTC/DTC Study of 20,000 adults has been used by agencies, advertisers and media to make healthcare media and marketing decisions. The study links con-sumers’ multimedia consumption with medical ailment, pharma brand, attitudes and opinions about healthcare and many other data points.

Michele Deutschman has over 12 years of experience in pharma syndicated research. She currently serves as the VP of Strategic Partner-ships & Business Development at Kantar Media Healthcare Research and is responsible for developing brand strategies, generating strategic partnerships and advising healthcare agencies. She can be reached at [email protected].

A 15-year industry veteran, Jayne Krahn is the VP of Product and Research Operations at Kantar Media Healthcare Research, where she manages research operations of the MARS Consumer and Professional Health Studies. She can be reached at [email protected].

References ¹iMs institute for Healthcare informatics. “the use of Medicines in the united

states: review of 2011.” april 2012.

²evaluatePharma. “News Brief: over the edge … again – 2015 the New Patent

challenge.” January 2013.

26 | DTC Perspectives • Spring 2013

Creative, messaging & calls to actionthe next step to understanding the effectiveness of various

channels is to analyze the creative and message of campaigns targeted to drug-savings users. what resonates and will be most effective with this group begins with their beliefs and attitudes. For example, our study found that half of drug-savings users find healthcare information available at the pharmacy to be credible and useful. while more research is needed, at the most basic level, the data might suggest to portray a pharmacy scene in the ad. these patients are also more likely to say that friends come to them for advice about healthcare and medications, which could potentially be incorporated into the ad messaging.

Diagnosed condition sufferers who could easily treat their ailment with over-the-counter remedies also take advantage of Rx savings

offers.

to demonstrate how, depending on the ailment, messaging to users of savings offers would differ, let’s return to the case study comparing those treating high cholesterol compared to those treating acid reflux/gerD. the former are more likely to take medication at the first sign of pain or discomfort. they’re also more likely to say that they find the treatments their doctor prescribes to work nearly all of the time. Perhaps, more importantly, they are more likely to research treatment options on their own and then ask their doctor about them. all of these statements can help a marketing team and their agencies develop the brand’s ad creative and messaging strategies.

these data can also help inform calls to action. what steps does the Dtc marketing team want the consumer to take after viewing the ad? the action taken by the majority (53%) of drug-savings users due to healthcare advertising exposure is to make an appointment with their doctor, but for those with high cholesterol, that percentage increases to 65%. those sufferers are also more likely than other adults to consult a pharmacist and ask their doctor for a product sample of an rx drug. other ailments tell different stories.

another important point to mention is that actions taken due to ad exposure will vary depending on the type of savings offer used:

• adults using a coupon offer downloaded from the drug company website are more likely to refer to a book, journal or magazine to get additional information. they’re also more likely to switch to a different brand.

• those using an rx assistance program from a drug brand are the most likely to consult a pharmacist and call for a prescription refill. they are also the most likely to discuss an ad with their doctor.

• those who used a rebate offer or coupon from a drug brand are most likely to visit a pharma company’s website.

No matter how small or large the campaign, calls to action should be tailored to a specific audience and the more targeted the better. in the case of discount users, Dtc marketers should use research to choose the most effective call to action, ensure that it is visible and that the results can be tracked so that if needed, they can make adjustments.

Putting it togetherthere are a variety of reasons why drug savings’ promotions

and usage have increased in the past few years. More important is acknowledging that this trend shows no signs of slowing and

M A R K E T I N G T O D I S C O U N T U S E R S

32 | Spring 2013

cations, which could potentially be incorporated into the ad messaging.

To demonstrate how, depending on the ailment, messag-ing to users of savings offers would differ, let’s return to the case study comparing those treating high cholesterol compared to those treating acid reflux/GERD. The former are more likely to take medication at the first sign of pain or discomfort. They’re also more likely to say that they find the treatments their doctor prescribes to work nearly all of the time. Perhaps, more importantly, they are more likely to research treatment options on their own and then ask their doctor about them. All of these statements can help a marketing team and their agen-cies develop the brand’s ad creative and messaging strategies.

Diagnosed condition sufferers who could easily treat their ailment with over-the-counter remedies also take advantage of Rx savings

offers.

These data can also help inform calls to action. What steps does the DTC marketing team want the consumer to take after viewing the ad? The action taken by the majority (53%) of drug-savings users due to healthcare advertising exposure is to make an appointment with their doctor, but for those with high cholesterol, that percentage increases to 65%. Those sufferers are also more likely than other adults to consult a pharmacist and ask their doctor for a product sample of an Rx drug. Other ailments tell different stories.

Another important point to mention is that actions taken due to ad exposure will vary depending on the type of savings offer used:

Adults using a coupon offer downloaded from the drug company website are more likely to refer to a book, journal or magazine to get additional information. They’re also more likely to switch to a different brand.Those using an Rx assistance program from a drug brand are the most likely to consult a pharmacist and call for a prescription refill. They are also the most likely to discuss an ad with their doctor.Those who used a rebate offer or coupon from a drug brand are most likely to visit a pharma company’s website.

No matter how small or large the campaign, calls to action should be tailored to a specific audience and the more targeted the better. In the case of discount users, DTC marketers should use research to choose the most effective call to action, ensure that it is visible and that the results can be tracked so that if needed, they can make adjustments.

Putting it togetherThere are a variety of reasons why drug savings’ promotions

and usage have increased in the past few years. More important is acknowledging that this trend shows no signs of slowing and will probably rise as more generics enter the market. Recently, many blockbuster drugs lost their U.S. market protection, including Plavix, Lipitor, Actos and Singulair. Other big sellers scheduled to soon lose patent protection include Symbicort, Cymbalta and Nexium.

DTC pharma marketers can use data from the MARS OTC/DTC Study, along with their own hyper-targeted research on consumers that use discounts, in order to opti-mize their advertising and marketing efforts. At the end of the day, when executed well, discount offers may help expand the pharma company’s user base, increase compliance and ulti-mately reduce long-term healthcare costs.

M A R K E T I N G T O D I S C O U N T U S E R S

Chart 2: Actions Taken Due to Healthcare Ads Among Rx Users

DTC Perspectives Spring 2013 | 33

About the MARS OTC/DTC Study

Since 2001, the annual syndicated MARS OTC/DTC Study of

20,000 adults has been used by agencies, advertisers and media to

make healthcare media and marketing decisions. The study links con-

sumers’ multimedia consumption with medical ailment, pharma brand,

attitudes and opinions about healthcare and many other data points.

Michele Deutschman has over 12 years of experience in pharma syn-

dicated research. She currently serves as the VP of Strategic Partner-

ships & Business Development at Kantar Media Healthcare Research

and is responsible for developing brand strategies, generating strategic

partnerships and advising healthcare agencies. She can be reached at

[email protected].

A 15-year industry veteran, Jayne Krahn is the VP of Product and

Research Operations at Kantar Media Healthcare Research, where she

manages research operations of the MARS Consumer and Professional

Health Studies. She can be reached at Jayne.Krahn@KantarMedia.

com.

1IMS Institute for Healthcare Informatics. “The Use of Medicines in

the United States: Review of 2011.” April 2012.

2EvaluatePharma. “News Brief: Over the Edge … Again – 2015 the

New Patent Challenge.” January 2013.

M A R K E T I N G T O D I S C O U N T U S E R S

Custom Reprints

Take advantage of your profile in DTC Perspectives Magazine by ordering custom reprintsof your article or mention.

For more information, please call Jennifer Haug at973-457-5718 or email

at [email protected]

“GET ME COPIES

OF THAT

ARTICLE”

Chart 3: Primary Source of Healthcare Advertising Seen or Heard by Drug Savings Users in Last 12 Months

M A R K E T I N G T O D I S C O U N T U S E R S

Custom Reprints

Take advantage of your profile in DTC Perspectives Magazine by ordering custom reprintsof your article or mention.

For more information, please call Jennifer Haug at973-457-5718 or email

at [email protected]

“GET ME COPIES

OF THAT

ARTICLE”

Page 15: Spring 2013 - DTC Perspectives Magazine

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30 | DTC Perspectives • Spring 2013 DTC Perspectives • Spring 2013 | 31

A New Rx for Media AllocationLocal Media Connects

DTC Marketers with Consumers

The old adage “think global. Buy Local.” has never been truer than it is today. the healthcare revolution, and emphasis on prevention, makes it even more incumbent

on pharmaceutical marketers to connect with target consumers early and often. accordingly, it is essential that pharmaceutical brands rethink their “go-to-market” strategies to reflect the reality that many disease states and treatment options are local or regional in scope. For example, type 2 Diabetes is concentrated in the rust belt states, allergies and the flu arise and proliferate in regional patterns, osteoporosis skews to major markets and is most prevalent in sunbird communities. when you consider other marketing influencers like product distribution and insurance company coverage, it is easy to see how pharmaceutical brands can benefit from a local market heavy-up media strategy.

our recommended approach to the successful marketing of Dtc brands uses big data that is universally accepted but not generally applied by marketers or agencies. syndicated research that is readily available to marketers easily demonstrates the importance of locally-focused media strategies, thus validating our four step approach to media allocation. one need not go further than looking at gfk Mri, Mars and iMs Health to map out effective regional solutions to connect with the involved sufferer.

this article addresses the importance of local strategies to Dtc brand marketers, but it goes a step further to show how local newspapers can be the solution not only for reaching target users but also for maximizing the call to action that

today’s consumer requires to prompt brand trial, loyalty and repeat product purchases.

Local Media Strategy:Osteoporosis Example (Brand X)Step 1. Establish the Geographic Skew.

utilizing iMs Health data can detail the geographic distribution of sufferers of various disease states. the research presented in Figure 1 validates that Brand X has a dramatic geographical skew. in fact, we learned from iMs Health that 62% of Brand X scripts filled were in 28% of the country, yet the media used to reach potential customers was almost 100% national in scope. (see Figure 1.)

Syndicated research that is readily available to marketers easily demonstrates the importance of

locally-focused media strategies.

Step 2. Identify Opportunity Markets. the top 20 markets drive 62% of the national scripts filled.

these markets by virtue of their development are extremely important to Brand X. accordingly, they warrant incremental local support to fortify and build market share (particularly in markets with indices of 100 – 156) and protect against competitive threats.

we next identified six markets within the top 20 that had high BDis for both Brand X and its nearest competitor, Brand Y. these markets deserve special attention in order to protect

Utilizing a new Geo-Targeting model, DTC marketers can improve media decisions and ignite consumer connections based on a unique mix of prescription, geographic and demographic information, all analyzed by disease state. Coupling these locally-focused strategies with loyalty and rebate programs can further build long-lasting relationships with a brand’s users.

S T R AT E G I Z I N G L O C A L LY

Brand X market share and to potentially drive switching from Brand Y to Brand X. (see Figure 2.)

Step 3. Access Target’s Media Habits and Psychographics.

the next step is to review the media habits of the target to optimize the media selection process. Figure 3 employs gfk Mri Doublebase and highlights that newspapers outrank Pr imetime tv in deliver ing women 50+ osteoporosis sufferers. we all recognize the importance of television in reaching this target; however, the new insight from this research is that an ideal supplement to a national television schedule is local newspapers. importantly, ask yourself, in which media

By Mary Ellen Holden and Sondra Gage

Figure 2: Brand X Opportunity Markets vs. Brand Y

72  

164  

172  

Heavy  Magazine  

Heavy  Prime4me  TV    

Heavy  Newspapers  

Women  50+/Osteoporosis  Sufferers  Index  

Source:  2012  GfK  MRI  Doublebase;  Base:  Women,  Age  50+  Osteoporosis  Sufferers;  Heavy  Usage  (Quin4le  #1)  of  Media  

Figure 3: Brand X Media Usage

DMA Pop  %  of  Total %  of  Total  Rx Index

Miami-­‐Ft.  Lauderdale,  FL 1.4% 5.3% 379Los  Angeles,  CA 5.7% 20.2% 354New  York,  NY 6.8% 18.7% 275Harlingen  et  al,  TX 0.4% 0.9% 229W.  Palm  Beach  et  al,  FL 0.6% 1.3% 208Dallas-­‐Ft.  Worth,  TX 2.3% 3.7% 156Roanoke-­‐Lynchburg,  VA 0.4% 0.5% 145Cincinnati,  OH 0.8% 1.0% 135Omaha,  NE 0.3% 0.4% 125Austin,  TX 0.6% 0.7% 120Houston,  TX 2.0% 2.4% 120Lexington,  KY 0.4% 0.5% 120Fresno-­‐Visalia,  CA 0.6% 0.7% 113Wilkes  Barre  et  al,  PA 0.5% 0.5% 110Columbia,  SC 0.3% 0.4% 107Philadelphia,  PA 2.6% 2.7% 104Orlando  et  al,  FL 1.2% 1.2% 103Hartford  &  New  Haven,  CT 0.9% 0.9% 99Dayton,  OH 0.4% 0.4% 97Richmond-­‐Petersburg,  VA 0.5% 0.4% 93

TOP  20  Brand  X  MARKETS 27.8% 62.0% 223

Source:  IMS  Health;  Brand  X  Top  20  Markets

62%  of  Brand  X  Scripts  Filled  are  in  28%  of  the  Country

Figure 1: Strong Geographical Skew Revealed for Brand X

would your healthcare message engage most fully with the Brand X target? which media delivers consumers who are most likely to act on healthcare advertising?

as you see in Figure 4, Mars research details that local newspaper readers who are sufferers of osteoporosis are more responsive to healthcare advertising than the general osteoporosis population. this is critical information in terms of where advertising resonates most fully with the target and actually prompts action – which is the central goal of most healthcare advertising campaigns.

adopting this four step approach shows advertisers that being open to the inclusion of local market support will lead to smart choices and improved media allocation decisions.

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CULT_005_Believers_Wanted_Ad_PF.indd 1 3/14/13 11:25 AM

32 | DTC Perspectives • Spring 2013

they will also ignite consumer connections with rx brands. as previously evidenced, a geo-targeting model blends a thoughtful mix of prescription, geographic and demographic information from top syndicated sources to provide advertisers with informed media recommendations by disease state. this is a strategy that works for a multitude of conditions including rheumatoid arthritis, Psoriasis, type 2 Diabetes, atrial Fibrillation, allergies, coPD and more.

Improve brand trial & loyaltythe recession of 2009 has increased consumer anxiety as

people struggle to find new ways to save money, whether it is in the grocery store or at the pharmacy counter. across the board, reliance on discount coupons, rebates and loyalty cards has increased exponentially and this trend shows no signs of abating. the need for financial relief is compounded in the Dtc arena. the rising cost of branded medication has fueled the need for new product trial and retention strategies by pharmaceutical advertisers in all Dtc categories.

those drug companies that have caught on and followed consumer trends prevalent in the broader marketplace are seeing results by offering free one month trials, rebates and consumer loyalty discount programs. this is an attention grabber for sufferers and a compelling impetus to use new products as well as an incentive to switch from generics to brands.

using the newspaper medium to deliver these value added programs has been hugely successful for a number of companies as seen in the advertising example (see Figure 5). with the combination of newspaper media 4.0 (print, digital, mobile and tablets) advertisers can not only increase local market penetration but also enhance the effectiveness of coupons, rebates and frequent buyer programs.

Behind the national curtain, many disease states are concentrated locally. there is a real need to implement a local component to your national media plan. Newspapers can efficiently and effectively target sufferers of a multitude of conditions and provide broad reach to a targeted audience locally.

Newspaper readers are actively engaged with this medium and exhibit high engagement with healthcare advertising. the medium is most trusted and carries a halo effect on the healthcare advertising within. as a result, newspaper media is well suited to prompt consumer action, from consulting with a doctor for a specific medication to converting sufferers from generic to branded treatments. DTC

Mary Ellen Holden is a media champion and catalyst for the transformation of television and newspaper media industries to successfully compete for audience, revenue and relevance in the digital space. She is currently SVP, Marketing and Research for

the Newspaper National Network LP (NNN) where she has spearheaded timely industry research on topic issues including “Sports Media Consumption, ” “The Localist” and “The Website Influencer.”Contact Mary Ellen by phone at 212-856-6335 or email at [email protected].

Sondra Gage is a media expert with vast experience across the CPG and Pharmaceutical industries. She is currently Vice President of Sales for the Newspaper National Network LP (NNN) where she has built the CPG business, most notably from Procter & Gamble and has catapulted business from women’s pharmaceutical brands including P&G’s Actonel and Allergan’s Restasis. Gage is currently charged with sales development for the pharmaceutical category in all forms of newspaper media including digital and social. Contact Sondra by phone at 212-856-6321 or email at [email protected].

S T R AT E G I Z I n G L O C A L LY

Actions  Taken  As  a  Result  of  Healthcare  Advertising

HaveOsteoporosis

INDEX

Have  Osteoporosis,  Newspaper  ReadersINDEX

Took  Medication 139 167Called  for  Prescription  Refill 161 183Made  Appointment  to  See  a  Doctor 134 162Conducted  an  Online  Search 106 161

Source:    2012  MARS  Consumer  Health  Study,  Base  =  Adults

Figure 4: Osteoporosis Sufferers Who are Newspaper Readers Take Action

Orencia  Full  Co-­‐pay  

Reimbursement  Program  

Restasis  $20  Rebate  Offer  

Viagra  $30  Savings  Coupon  

Figure 5: Rebate and Loyalty Programs Distributed via Newspaper Medium

Page 18: Spring 2013 - DTC Perspectives Magazine

DTC Perspectives • Spring 2013 | 3534 | DTC Perspectives • Spring 2013

critical missing element to create a clear picture of who the target consumer really is. For example, let’s look at a target audience of self-sufferers of Diabetes, type 1 or type 2 who are treating with insulin. the following are some insights about this specific audience. (see Figure 1.)

understanding these insights is the key to taking advantage of Big Data. knowing that these consumers spend between 20-40 hours per week online indicates that online marketing campaigns are important to reach them. these consumers are comfortable not only discussing their health concerns, but also asking for specific brand name medications. this suggests that they will be receptive to strongly branded campaigns that drive them to discuss the brand with their physician. understanding that they buy health products that are dependable can inform the messaging in the campaign creative, as highlighting the product’s dependability will resonate with this audience. Finally, knowing that these consumers are more likely than the average consumer to not refill a prescription due to cost means that a co-pay mitigation program would be a strong tactic to use.

answering the question, “why do consumers act they way the do?” provides marketers with valuable information to drive the success of their campaign with their very specific target audience. understanding why a person acts cannot be achieved with demographics and behavioral data alone. values motivate consumer behavior and choice. But until now, marketers didn’t have any qualified research to adequately answer that question. with the development of powerful analytic tools for Big Data, Dtc marketers can delve even deeper to gain a better understanding to values-based insights and learn what motives consumers and drives them to act.

it’s a high level of detail, but some software companies are designing sophisticated solutions to reveal this information hidden away in Big Data. the ability to combine proprietary internal data (previous purchase data, brand attr ibutes, demographics), with information from consumer surveys about

beliefs, values, and attitudes and browsing behavior will enable marketers to develop a more complete audience profile.

Having this complete audience profile will enable Dtc marketers to learn the personal underpinnings of what makes consumers tick. values-based insights answer the questions:

• what values motivate my customer’s decisions?• what product preferences impact my consumer’s

decisions?• what are my customer’s healthcare management

behaviors? it’s important to note that these insights are useless unless

you have a plan to act. used correctly, these consumer insights can optimize conversions. For instance, let’s look at another audience and some insights into what motivates self-sufferers of insomnia to make health decisions. (see Figure 2.) How do side effects affect their persistence, and what are their personal-ity traits?

there are many data points marketers can collect in terms of demographics and consumer behavior on people suffering with insomnia. But sharpening the picture of the target audi-ence with values based insights, we can answer the first ques-tion, “what motivates my customer’s decisions?” we learn that they are comfortable asking about different treatment options, they use social media to discuss health conditions, and treat with prescriptions. we also learn that they are likely to stop treatment if they suffer side effects, and they are anxious, easily upset and apprehensive. the outcome is a rich audience profile mapped directly to the appropriate target consumer.

Putting insight into actionarmed with these insights, Dtc marketers can optimize

campaigns to better align with the desired target’s inherent values. the values, attitudes, and beliefs uncovered through insights can be used to inform the media buying process to find that same audience online. Not only do we know where the consumer can be found online, but we also know

VA L U E - B A S E D I N S I G H T S

With thousands of data points being combined with hundreds of millions of pixel fires translated by hundreds of trillions of machine-learning

algorithms, how do marketers make sense of Big Data? Big Data has become a buzzword, and it’s a buzzword for a reason. Marketers, brands, and companies know that the extensive consumer data now generated on an hourly basis reveals consumer insights that have a bottom-line impact on sales.

Big Data has been tagged as many things: unruly and overwhelming, but promising and very profitable for those who can manage it. it’s both a problem and solution. Despite the valuable information within Big Data, businesses are just beginning to unlock the potential that it promises to deliver.

the solution to the conundrum of Big Data is the utilization of tools that mine the data using “intelligent” technologies to sift through mountains of information for nuggets of gold. Pharmaceutical marketers can take advantage of Big Data to understand the values, attitudes, beliefs and healthcare management behaviors of consumers who suffer from the indicated condition and who are taking action on their campaigns.

understanding who the target consumer actually is, greatly affects a marketer’s ability to not only create the right messaging for their specific consumers but also their ability to reach the consumers who will drive successful campaigns. Big Data makes it possible for savvy pharmaceutical marketers to create Dtc campaigns that significantly increase roi, and optimize messaging and communication with patients.

Sharpening the snapshotthe first step in creating a target audience is looking

at demographics, characteristics such as age, gender, and condition. while this is a good starting point, the picture is pretty fuzzy when identifying who that consumer actually is. the next place a marketer can look to sharpen their picture is behaviors and characteristics such as shopping preferences and content consumption. this provides some clarity of the target consumer, but there is still something missing.

what has been missing is why consumers behave the way they do. what values, attitudes, beliefs and health management behaviors, such as their relationship with their physician, are driving them to take action on a campaign? web data integrated with primary consumer research provides this

Big Data is important to pharma marketers, but how do you leverage this data to gain real insights into who your consumers are and what motivates their actions? Understanding why consumers act is often a missing element when targeting – but such analytics uncover consumer values, increasing campaign effectiveness.

By Bryan Gernert

Consumer Insights from Big Data

Feels comfortable discussingconcerns with doctor

Health Management Opinions

18

VALUE BEHAVIOR DEMOGRAPHIC

#DFEAD0 #EDE6D6 #DAEAE7

more likely%

Did no refill prescrip�on due to cost

Health Management Behavior

40 more likely%

Asked about different treatment op�ons

Health Management Behavior

32 more likely%

Asked for specific brand namesof medica�on

Health Management Opinions

59 more likely%

Are dependable

Buy health & beauty products that

42 more likely%

20 to 40 hours

Spends �me onlineeach week

31 more likely%

Asked about different treatmentop�ons

Health ManagementBehavior

62 more likely%

Manages health with drugs

Health ManagementOpinions

40 more likely%

Use social media to talk abouthealth condi�ons

Health Management Opinions

26 more likely%

Did not refill prescrip�on due to side effects

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71 more likely%

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Figure 1: Diabetes Sufferers Treating with Insulin Insights

Feels comfortable discussingconcerns with doctor

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VALUE BEHAVIOR DEMOGRAPHIC

#DFEAD0 #EDE6D6 #DAEAE7

more likely%

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Health Management Behavior

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31 more likely%

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Health ManagementBehavior

89 more likely%

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71 more likely%

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75 more likely%

Figure 2: Insomnia Sufferer Insights

Page 19: Spring 2013 - DTC Perspectives Magazine

ACCENTHEALTHMEDIA.COM For more information, contact Kerry Ann Clawson, EVP Sales & Marketing at [email protected] or 212.763.5118

Experience the leading point-of-care media platform: 30,000+ waiting rooms with multiple

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Leverage AccentHealth’s platform to deliver powerful ROI, NRx lift and brand awareness.

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Television HealTH Panels liTeraTure

36 | DTC Perspectives • Spring 2013

the industry has already begun to embrace the power of Big Data and while pharmaceutical companies face some unique challenges in Dtc marketing, brands need to embrace what consumer insights can provide for their campaign strategy. the faster that Big Data is put to practical use, the faster that messaging, consumer trust and campaign results will improve and positive purchasing behavior will follow. DTC

Bryan Gernert is Chief Executive Officer at Resonate, a top advertising technology company providing marketers with the ability to target audiences based on people’s values. A proven business leader, Bryan has applied his management expertise to businesses in several industries, with emphasis on information technology and services. He has led businesses through periods of significant transformation and growth, including such companies as Cybertrust, Digex, Inc., Evergreen Information Technologies and RCI. He can be followed on Twitter @BryanGernert.

VA L U E - B A S E D I N S I G H T S

what appeals to them. Messaging can be adjusted to reach these customers at a deeper level. when marketers better communicate with patients, the result is a high quality of interaction between the brand and the consumer. this produces stronger campaign results, higher roi, and increases a sense of trust that can increase conversion, compliance and persistency. consumers are more receptive when messaging is customized to appeal to their sense of values and beliefs. Leveraging these valuable insights can be the advantage that gives brands the edge needed in a highly competitive market.

The faster that Big Data is put to practical use, the faster that messaging, consumer trust

and campaign results will improve and positive purchasing behavior will follow.

Perhaps the most important benefit to marketers is that this breakthrough in Big Data analytics gives consumers a voice in building the brand. when consumers feel understood and heard, brand value increases. Patients have high expectations of their brands, especially for brands that help them manage their healthcare and well-being. the deeper understanding gained by marketers allows them to better manage the connections between customer, brand and the commerce that flows as a result of meeting the customer’s needs. this consumer-centric approach yields higher consumer satisfaction and successful campaigns. Patients respond positively to a customized, tailor made message that addresses their base values, concerns and motivations.

The bottom line on value-based insights

Harvesting consumer value insights from Big Data is a yet another step forward in understanding customers at the most specific level possible, allowing marketers to construct the most effective campaigns to a truly qualified audience. Managing multiple data points and deeper insights of the consumer might seem overwhelming, but finding partners that utilize robust technologies to make sense of the data, make the task less daunting and the process more dynamic than ever.

Figure 3: Campaign Insight for OptimizationWhat motivates my customer’s healthcare decisions?

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Page 20: Spring 2013 - DTC Perspectives Magazine

Give Bob a call at 561-455-2394 or email him at [email protected]

Ehrlich Consulting ServicesExperience Count$.

If your drug or device brand is currently doing or considering DTC advertising ask Bob Ehrlich to help improve it.

Bob Ehrlich has been involved in DTC for 17 years as a consultant, writer, and speaker. As CEO of DTC Perspectives, Bob has been a leader in the drug and device Industry. Prior to starting DTC Perspectives in 2000, Bob was responsible for the consumer launch of Lipitor in 1997.

Bob will help make your new or existing DTC program more effective. He can help with pre-launch, at launch, or at any point in the DTC cycle. Services

include agency selection, strategy development, copy development, market research planning, ROI targets, media selection, and digital and social media.

Bob will personally work on all projects. No delegation to junior partners.

You have only one chance to launch a DTC effort. Make sure you have the best advice.

multiculturalmag1bobad.indd 31 12/10/12 9:32 PM

DTC Perspectives • Spring 2013 | 39

As patient engagement becomes critical to pharma’s financial success, drug marketers are slowly embracing strategies and tactics for creating a dialogue

with cross-cultural audiences, and ensuring maximum understanding of the benefits of medicines, how to take them and the importance of adherence to therapy.

the standard approach of adapting marketing materials – translating them into spanish or Mandarin, or including an image of an african american – that has been the norm for nearly a decade, is finally on the decline. the shift from adaptation to strategic integration has already occurred, and pharma, rich with compliance and data analytics tools, is slowly allowing those tools to include cross-cultural attributes. at the same time, the cross-cultural market in the u.s. has evolved into a more affluent, digitally-savvy, educated, and insured audience, forcing brand marketers to rethink strategic approaches to reaching as many health care consumers as possible in the most effective way.

For the sake of the argument, let’s leave the bit on social commitment and health care disparities aside – although those alone produce enough evidence that pharma’s cross-cultural strategy is still driven by individual brands, rather than a commitment on a corporate, company-wide level. structurally, all brand managers have access to a set of tools and processes to help them execute launches or maintain sales. access to cross-cultural insights and strategic expertise is not yet part of that structure, so when a brand manager wants to engage his product with the u.s. Hispanic market, that decision becomes his own, as so does the risk of failing at it.

to paint a better picture of pharma’s cross-cultural health today, let’s look at four (possibly high level) approaches to exploring the “new” general market in the united states.

1. Testing the Waters: the census numbers are hard to ignore – nearly 40% of

the u.s. population identify with a culturally-defined group such as Hispanic, african american, asian, and other. even the risk-averse pharma industry has to engage in cross-cultural outreach. with the new data now integrating cultural nuances, brand managers are faced with the challenge of engaging these “new” audiences with minimal company-wide support. Most frequently, i see it as a stand-alone effort that leverages knowledge and research in a distinct therapeutic category – hypertension, diabetes – in hopes of growing it into a dedicated business unit (a center for cross-cultural excellence, so to speak).

Perhaps, such a scenario would finally move the cross-cultural category forward within health care, closing the gaps in patient

education, engagement, and compliance that we see among those audiences.

An approach like that may result in a few winning strategies, but too much is dependent on a single initiative. I have seen too many companies – in pharma and other industries – get burned by a test campaign gone wrong.

Marketing to a cross-cultural audience requires more than just language translation or replacing actors with those of a different ethnicity. Effective cross-cultural marketing requires a good understanding of the target audience to get corporate buy-in. There is a great opportunity to leverage this segment and close the gaps in patient education and compliance.

By Givi topcHisHvili

Pharma’s Cross-Cultural Health: An Ongoing Conundrum

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S:8”S:10.375”

T:8.5”T:10.875”

B:8.75”B:11.125”

PA-M-11324_PA Print Ad DTC Multicultural_V1b.indd 1 3/14/13 5:49 PM

40 | DTC Perspectives • Spring 2013

2. Neighborhood Watch: while some pharma companies are testing the waters,

others are monitor ing, determined that a thought-out cultural strategy is still a novelty, and has not demonstrated an increase in the overall revenue numbers, new rxs, or improved adherence outcomes. that difference is especially evident as we look at Big Pharma (most of the top 10 companies have activated cross-cultural campaigns in the past five years), Mid Pharma continues watch. to them, there is still time to activate any multicultural efforts, if needed, without losing market share, and avoiding an unjustified, potentially risky, market investment.

I want to believe that such an approach is too conservative even for the pharma industry. However, as a CEO, I know that diving into a new strategic approach or technology or business model is a risk not everyone is willing to take. Many credit President Obama’s re-election to two key strategic approaches – a social strategy and a multicultural strategy – his ability to activate the power of Hispanic American, African American, Asian American, and LGBT voters.

the two opposite client-agency trends that have been emerging are budget consolidation under large holding groups – a move that unifies a strategy, but virtually eliminates customization – or outsourcing procurement to an entity that is then tasked with curating a multi-agency roster. time will tell which approach carries more risk, but it’s frightening how little faith is put in the talent and skill of a strong brand manager. what happened to great people making great companies?

3. Cultural Mosaic:Not unlike the “center for cross-cultural excellence”

mentioned above, setting up an integrated cultural strategy “brain trust” that supports all main business units of a pharmaceutical company sounds like a dream come true to a health care marketer whose mission is to advance the lives of individuals of all cultures. with the new research findings that dissect socioeconomically, behaviorally, and ethnically the entire patient population, and with eMr/eHr technologies implemented, every team, from research and development, to product marketing, and sales force, would be armed with the latest cultural data and insights that could be incorporated early on, finally proving their effectiveness.

Perhaps, such a scenario would finally move the cross-cultural category forward within health care, closing the gaps in patient education, engagement, and compliance that we see among those audiences. A big supporter of the “new” general market strategic approach (as opposed to the outdated us vs. them in cross-cultural marketing), I am not convinced that pharma is ready for a full-on integration.

4. Weighed Investment: what if we scale back the fully integrated approach, and

opt for an “integrated commitment to cultural strategy”?

the detachment between pharma industry and health care consumer audience is getting more evident, especially with the affordable care act implementation in front of us. continuous access to strategic guidance – rooted in technology and cross-cultural insights – enables every pharma marketer to implement those appropriately.

The flexibility of such an approach makes it simple to integrate “cross-cultural” into individual branded campaigns and broader educational efforts. Most importantly, “integrated commitment to cultural strategy” implies a C-level buy-in, simplifying tactical execution at the end.

Whether you define your audiences culturally or cross-culturally, these numbers are too large to ignore and too unique to be homogenized

into pre-existing marketing strategies.

the united states has always been a land of great diversity, and today that picture is more vibrant than ever. whether you define your audiences culturally – with 52 million Hispanic, 42 million african americans, and 18 million asian americans, among others, – or cross-culturally – LgBt persons, minority business owners, women care givers – these numbers are too large to ignore and too unique to be homogenized into pre-existing marketing strategies.

Having been a proponent of the need to move away from mass marketing to targeted engagement and cultural strategy for nearly two decades, i am happy to see a growing number of efforts from the pharmaceutical companies – evident even in the increasing number of finalists in the Multicultural category of the Dtc National advertising awards. educational and branded initiatives, social communities, and grassroots efforts are becoming more frequent and multifaceted as our nation evolves and grows more diverse. i am excited that pharma is recognizing the fiscal potential as well as the social importance of engaging in a cross-cultural outreach, and i hope to see those synergies implemented in high level strategic planning as well. Let’s commit to being healthier! DTC

Givi Topchishvili is the Founder and President of the 9.8. Group, a holding comprised of companies with a recognized expertise in market-ing, media, technology, health care, and research. The 9.8 Group is a consolidated management operation, serving as the parent company to Prime Access, the largest multicultural health care marketing agency, Global Advertising Strategies, the leading market entry consulting firm, WeMultiply, an mHealth and eLearning start-up accelerator, as well as Global Art Group, a project that supports emerging artists and art platforms from all over the world. Givi can be contacted via email at [email protected], or follow Global Advertising Strategies on Twitter @GlobalAdInsight.

C R O S S - C U L T U R A L H E A L T H

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DTC Perspectives • Spring 2013 | 4342 | DTC Perspectives • Spring 2013

D O C T O R - P A T I E N T C O M M U N I C A T I O N G A P

pharmacy. are we assisting in this process, or hindering it? Do we present a cohesive narrative, or a mixed bag of brand messages that fail to connect patients and their doctors? at the industry’s own expense, the result is often a dialogue breakdown at its most valuable moment of truth: the brand choice.

what if we had an integrated strategy? Hmm.

Don’t assume doctors are preparedHow do we help doctors field questions and respond

sympathetically but appropriately to consumer questions and requests? a recent verilogue study revealed that patients are frequently put off by their doctors’ inconclusive responses. as a result, patients forget up to 80% of what is told to them in the exam room, and up to half of what they do remember is incorrect.¹

Patients also report – especially when suffering from a rare disease – that they’re more informed about their condition than their doctors. gordon strachan, PhD, explains that this “isn’t a surprising insight considering these patients are living, breathing, and possibly suffering from symptoms everyday.” when a patient is knowledgeable and a doc is stumped, you’ve got trouble.

we have to make sure those communication problems are identified and addressed from both ends. what consumers know (or believe they know) should be part of the physician’s armamentarium. that way, the wheat can be differentiated from the chaff.

What does each party want?another contributing factor is a misinterpretation of

audience goals. Patients care about how a product may affect quality of life, while physicians generally focus on the efficacy and safety of a product. these aren’t incompatible, but there are nuances of difference. and what we care about, obviously, is turning “brand talk” into script lift.

the last thing you want is a debate between physician and patient. the worst result could be a written script for an alternate product. when similar product benefits are communicated to both parties in audience you turn debate into discussion.

Let’s take just one practical aspect of messaging: financial assistance. absent other product distinctions, patients might identify themselves as potential product candidates based on that message alone. But if the doctor doesn’t know about this message – along with the benefits and risks – what happens?

the important clinical data we offer to physicians has to be married to the practical data to which patients are exposed. when robust patient support programs, or other lifestyle-oriented offers, are transparent to the doctors, they’re better prepared to respond favorably when a patient requests a specific brand.

You may well ask why a doctor would even be interested in this information. and that’s why it’s important to provide the information within the context of patient success. if patient adherence can be attributed to your financial support program, well now you have the doctor’s attention.

Don’t repeat the obviousPhysicians consistently report that they seek clinical

data from non-brand sources. a 2009 survey² showed that physicians look to medical journals, peer-reviewed journals and key opinion leaders almost 100% more often than pharmaceutical promotional materials and sales representatives. a 2012 comscore study³ showed physicians engaging far more with HcP content websites, like Medscape.com, than with pharmaceutical brand-sponsored websites (81% v. 44%; 5.1 tos vs. 3.6 tos).

where does this lead us? to providing the information doctors won’t find elsewhere. we don’t have to duplicate what they already know. we can supplement that, and optimize the sales call, by providing them with data like patient support initiatives. that goes for brand websites also. companies often misuse this highly targetable brand destination as another data-dump. Your brand site should be leveraged in part as a vehicle for physicians to differentiate a product through a patient’s eyes.

If patient adherence can be attributed to your financial support program, well now you have

the doctor’s attention.

Back to that homo sapiens thingwe talk to consumers as if they’re people. But we often tend

to talk to physicians as though they’re computer programs. their time and patience is limited, too, even if their training allows them to understand mountains of data. a brand that speaks to physicians in a relatable voice is one that will break through the clutter and more effectively drive decisions involving the product.

Manhattan research4 found that physicians are 35% more likely to ask for drug samples if the rep comes bearing an iPad. 29% of physicians say they’re more likely to prescribe the drug if the iPad played a part in the sales call.

campaign results show similar patterns. in 2012, an HcP-targeted display ad campaign showcased a celebrity as a brand’s ambassador. the campaign had two main creative concepts. one immediately showed an efficacy statement; the other first featured an enticing animation. guess which concept out-performed the other? the animated ad generated a click-through-rate that was greater than double that of the efficacy ad. additionally, it far exceeded the performance of any other banner ad in market for that brand within that timeframe.

Lesson learned: Physicians are consumers, too.

Doctors are officially homo sapiens. keep that thought in mind. we’ll get back to it.Back in 1985 the FDa finally lifted its moratorium

on Direct to consumer advertising and the industry breathed a sigh of relief. unfortunately, it didn’t breathe life into its Dtc advertising. early marketing featured lots of scientific imagery, confusing metaphors, and a complete lack of understanding of what motivates consumers. we are still catching up.

Meanwhile, although Direct to Physician advertising has been more effective, in the sense that physicians understand disease states and scientific data, we are also catching up on the paradigm of educating doctors in how to discuss medications effectively with their patients.

complicating the picture is the fact that the blessing/curse of the internet provides access to a cornucopia of information without the requisite filters that might help people separate the wheat from the chaff. result: patients often dump a lot of chaff on their doctors. we need to be cognizant of what’s going on in this sphere, and, to the extent that we can, influence the content available.

it’s time to evolve. the same people who craft the messaging for patients could be very useful in connecting

docs with the mindset of those patients. there needs to be a synergistic approach across Dtc and DtP messaging. this can streamline communication… and boost brand fortunes.

What do they eat for breakfast?there’s an expression in advertising that “Doctors (or any

specialized audience) eat cheerios, too.” they’re people. this doesn’t mean that communication to this demographic should be dumbed down, but that physicians can understand the dynamics of consumer appeal as well as anyone.

we have to consider the relationship between a brand and its diverse audiences. when a patient enters the exam room, a number of things can happen beyond the exam itself. today, a lot of patients come armed with information they think makes them sound informed. Maybe they are and maybe they aren’t. But it’s up to the physician to handle this interaction properly. and it’s up to the industry to help in that interaction.

Many brands create a host of materials to help prepare both patients and physicians for those critical decision making moments, conscious of the potential opportunity to drive business. But the magic happens when those exam room “branded discussions” turn into actual transactions in the

Mind the Physician-Patient Communication Gap

Improvements have been made in direct to consumer and direct to physician communications over the years. While more can be done independently, there is a gap between the two parties which needs to be closed to bring both the patient and doctor together to ensure a meaningful dialogue.

By JaMie lutzky

(Continued on page 44)

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M A R K E T I N G M AT U R I T Y C U R V E(Continued from page 16)

D O C T O R - P A T I E N T C O M M U N I C A T I O N G A P (Continued from page 43) You’rehavinganaffair...

…and we’retellingevery

woman we know Spirit Health Group is the only disease awareness and

educational channel in the United States reaching women by

partnering with hospitals, physicians and nurses. Spirit pro-

duces health and wellness events, physician office programs,

clinical training, and multi-media communications to effect

change in consumer behavior and drive physician interaction.

Contact Joshua Max Davis, President of Spirit Health Group,

for a complimentary evaluation of how hospital-to-consumer

relationships can activate dialogue and build your brand.

[email protected] | 561.544.2010

Meet Joshua in person at the DTC conference

after his expert panel presentation

Expanding Consumer Contact Through

Managed Care and Hospital Co-Marketing on

Thursday, April 4, at 11:30 AM.

spirithealth.com

DTC.Affair.Ad_Layout 1 3/13/13 11:43 AM Page 1

44 | DTC Perspectives • Spring 2013

Putting it all togetherearlier we mentioned the need for our industry to catch

up to the sophistication of modern advertising, to appeal as effectively as car, toothpaste and fiesta-flavored corn chip manufacturers do. this is not just in the messaging, but in using the media appropriately – and cost-effectively.

Digital media, for instance, makes true promotional and campaign integration possible. Broadcast and print provide obvious advantages by casting a wide net and elevating aware-ness, but what happens next? tv ads may or may not convert. Journal ads won’t follow a physician post-adoption. Digital initiatives allow brands to capture qualified patients and doctors at key decision points to help usher them through the process.

QualityHealth introduced the Physician involvement program in 2012. this initiative uses explicit profiling to identify and market to brand-appropriate patients and then connect with those individuals’ prescribing physicians (in a HiPaa-compliant way) prior to an exam. the program is designed to prep doctors to positively respond to the requests of their patients who have been exposed to branded messaging. “Leveraging data along with digital tactics make the Physician involvement program a powerful addition to marketing effectiveness,” says rob rebak, ceo of QualityHealth. “we use self-reported data to identify key milestones, like the timing of a patient’s next appointment. we then message to their physician directly, in the right window of time, to improve the physician’s receptivity to the brand conversation during the appointment.” since its launch, the program has seen increases of 10-20% in physician willingness to grant a patient’s brand request.

Brands can leverage digital to not only reach an audience, but to create connectivity among that audience. the impact: improved relationships between doctors and their patients and more actionable branded conversations in result. in the pharmaceutical world, those conversations will drive bottom lines and – more importantly – may transform lives. DTC

References:¹ verilogue, Four Patient Education Gaps You Shouldn’t Ignore, on-Demand webinar²sue Pelletier, 2009 Annual Physicians’ CME Preference Survey, MeetiNgsNet.com,

January 1, 2009³comscore/symphony HcP Measurement solutions, Percent Reach of Health Categories Among Physicians, Q1 20124Manhattan research, ePharma Physician study, 2012

Jamie Lutzky, an advertising and marketing enthusiast, is a Senior Manager of Strategy at evoke interaction. Having spent the last decade gaining experience in both pharmaceutical and non-pharmaceutical account management and strategy development, Jamie is responsible for helping clients to actualize their brand goals – identifying objectives, extracting insights and opportunities, and developing strategies that yield a high business impact. She can be contacted via email at [email protected].

each platform is integrated. Does it deliver customer database,

campaign management, campaign analytics, and delivery

channels as one seamless platform, or do discrete solutions have

to be connected? the assessment form outlines a number of

parameters that have implications for speed, cost, and usability.

Goodbye channel-specific and functional silos, hello intra- and inter-departmental

collaboration.

Meeting the challengechanges in skills, processes, and technology are all required

to meet the new, more sophisticated insight-driven demands

of today’s Life sciences marketplace. By understanding the

Marketing Maturity curve and any accompanying diagnostic

tools, assessments, and planning support, marketers can make

sense of the new environment and understand the decisions

necessary to move up the curve.

these are major challenges not only for marketers but for

the pharmaceutical industry as a whole. Marketers and their

operational support teams have an opportunity to lead this

transformation, one that can radically change how they meet

the needs of their customers, ensure strong performance, and

demonstrate stewardship of marketing dollars. DTC

Download Appature’s White Paper, Managing the Marketing Gap (http://

www.appature.com/whitepaper), for a more detailed explanation, diagnostic,

evaluation scorecard, assessment tools and guide to action plans – including a

“non-tech-speak” scoring assessment form for technology platforms to help mar-

keters and other departments involved in the decision to ask thoughtful ques-

tions and compare responses on a uniform scale.

References ¹richard ettenson, eduardo conrado, and Jonathan knowles, idea watch, January-

February 2013.

²Marcel corstjens and Jeffrey Merrihue, oct. 1, 2003.

Bob Harrell is currently the Vice President of Marketing, Healthcare at Appature, leading marketing efforts in the pharmaceutical, biotech and medical device industries, including online and non-personal pro-motion, sales enablement, and thought leadership. During his 20+ years in the pharmaceutical industry, he has held top positions in digi-tal, database and relationship marketing on both the manufacturer and agency sides, including Merck, Astra Merck, AstraZeneca and Rosetta Marketing. Prior to joining Appature, Bob was Director of Integrated Marketing for Shire. Follow Appature on Twitter @Appature.

Page 24: Spring 2013 - DTC Perspectives Magazine

46 | DTC Perspectives • Spring 2013 DTC Perspectives • Spring 2013 | 47

organizations, each member of a sales team is measured by roi; those receiving a salary without bringing in specific, measurable revenue don’t last long. to this end, business intelligence has become hospitals’ virtual sales force.

Pharmaceutical marketers can also transform brand marketing strategies to fit a new era of health care, and hospitals may be able to show

the way.

the most successful hospital campaigns use data analytics to develop a profile of the most appropriate candidates, the most receptive audience and the most effective messaging. campaign success is measured by tying each dollar invested to specific patients, who are tracked from exposure to appointment to admittance. this technique allows direct measurement of contribution margin and outcomes for each patient – hospitals know the quantifiable per-patient roi of every campaign. the most successful campaigns become star players on the core “sales team,” while less successful ones are revised until they contribute to the bottom line. in the same way, pharmaceutical marketers can now measure the direct effects of a campaign on target consumers rather than relying on proxies such as banner clicks.

Align patient and physician effortsincreasingly, hospitals are leveraging patient influence to

achieve patient and physician alignment. this approach entails a fundamental convergence of physician and patient engagement strategies. it means hospitals must change how to best segment markets, tailor offerings and measure results. a model for this is to: 1) focus on health care consumer priorities of quality, safety, efficacy and satisfaction; 2) connect patients with the right physicians for them based on these and other factors; and 3) participate in the delivery of value-added pre- and post-appointment services. Pharmaceutical marketers can likewise play a role in all of these activities.

real estate has also experienced this type of information and service revolution. consumers were once completely dependent on realtors for insight, but they now have access to the same information. all parties can now find and value homes, evaluate neighborhood and school quality, schedule showings, compare loans and complete transactions. instead of driving consumers away from realtors, equal access to information has actually enabled realty services to offer a “one-stop shop” with more productive buy or sell campaigns, resulting in increased collaboration between realtors and more informed consumers.

similarly, physicians and their patients are now on the same page thanks to a universe of credible third-party analysis on both providers and treatments. they are engaging in informed,

productive discussions based on mutually available information and mutual goals for safe, effective treatment. Physician-patient alignment is converging; so must marketing models.

as they wrestle with market changes, hospitals are at the forefront of the next generation of internet and business intelligence services. Pharmaceutical marketers can also transform brand marketing strategies to fit a new era of health care, and hospitals may be able to show the way. DTC

Brad Graner is President and Co-Founder of inHealth, a division of Healthgrades. In this role, Brad leads Healthgrades inHealth in trans-forming how patients dialogue with their physicians and in providing innovative solutions for leading publisher partners and advertisers. From 1999 to 2007, he was Senior Vice President, Strategic Develop-ment at WebMD, playing an integral role in turning around the com-pany, defining its business model, taking it public, and establishing it as a leading provider of health information for consumers and physicians. Brad can be reached by telephone at 678-279-1900.

Burt Kann is Senior Vice President, Marketing and Strategy and Co-Founder of inHealth, a division of HealthGrades that syndicates best-in-class health information and decision support tools in order to drive more effective patient-physician dialogues. From 2005-2009, Burt was Vice President of Strategic Development at WebMD, where he worked with dozens of pharmaceutical and CPG clients to maximize the value of their marketing spend. Burt can be reached by telephone at 678-279-1900.

H O S P I T A L M A R K E T I N G

With the implementation of the most radical changes to the health care system since the creation of Medicare in 1965, 2013 is shaping up to be one

of the most chaotic times for it. this disruption will require a sea change in the way pharmaceutical marketers deliver and measure value. it may be surprising to learn that one group is innovating ahead of the health care curve: the country’s hospital systems.

Hospitals and pharmaceutical marketers share a common goal: to motivate the right patient to talk to the right doctor, resulting in an optimal health outcome. However, hospitals survive on razor-thin margins that may pass for rounding errors in the pharmaceutical industry; so, they must innovate in the face of uncertainty while driving measurable roi. in response to recent health care market changes, hospitals have focused on the value of the patient-physician relationship and the convergence of marketing and business intelligence. Pharmaceutical marketers can benefit from these approaches.

Support the relationship,Not the transaction

consumers rank the importance of their relationship with their physician as second only to their relationship with their spouse and family. By focusing on this relationship, hospitals make smart decisions that lead to improved patient care. For example, hospitals can identify female patients who have certain risk factors for breast cancer. the hospitals can then create a customized message on behalf of each woman’s physician encouraging the woman to participate in a cancer screening. these campaigns result in significant increases in preventative care that increase hospital utilization and save patient lives due to early detection and intervention. similarly,

pharmaceutical marketers who recognize the importance of the patient-physician relationship are developing strategies that allow their brands to become a key part of this relationship.

In response to recent health care market changes, hospitals have focused on the value

of the patient-physician relationship and the convergence of marketing and business

intelligence.

Focus on the moment of impactHospitals also recognize that not all patients provide equal

value to their health system and vice versa. Hospitals are leveraging sophisticated new communications programs to reach patients immediately before a doctor’s appointment – a critical moment that can build loyalty and trust. through these new platforms, hospitals can measure the specific impact of promotional investments.

we are all familiar with the phenomena of roadside billboards on road trips. on interstate highways, billboards are clustered just prior to exit ramps. Motels, service stations and restaurants reach you when they are most valuable to you and you are most valuable to them – at the moment of impact. with innovative platforms, pharmaceutical marketers can focus more on supporting patients both online and offline at the specific moment of impact.

Adopt intelligence-based business developmentHospitals cannot justify campaigns without quantifiable

return on investment. every dollar counts. in most

Hospitals and pharmaceutical marketers share a common goal of motivating patients to seek treatment that lead to optimal health results. Hospitals must innovate in a way other industry segments aren’t forced to to adapt to the new way consumers “shop” for health care – tactics pharmaceutical marketers can learn from as they advance their patient communications.

By Brad Graner and Burt kann

In a New Era of Health Care,

Hospitals Lead the Way

Page 25: Spring 2013 - DTC Perspectives Magazine

DTC Perspectives • Spring 2013 | 4948 | DTC Perspectives • Spring 2013

Fifteen years ago, when Dtc was in its infancy, the marketing model was fairly simple. when creating a campaign, the most important thing was to drive

script writing through mass marketing in print and television. a campaign could be seen as a success based on how many eyeballs saw it, how many people retained the name and condition of the advertised product, and how that product awareness and retention was used to drive a doctor to write a script for the product.

But times have changed. a diversified media market has made it much harder to find publications and channels with the same mass reach to drive product awareness with a simple media strategy. a saturation of prescription drug ads, many looking similar in appearance and for similar conditions, has made each stand out less and has caused more confusion and less awareness of any given product. and the focus on cost control and the rise of generics has made the simple number of scripts written less important as fewer and fewer are getting filled by branded drugs.

Yet as america moves forward, there are many opportunities for direct-to-consumer marketing to play an important role in this post-affordable care act america. companies must be willing to evolve from the old paradigms and adjust to this new model, where each consumer is looking to spend less and less on drugs yet with many more ill and insured potential consumers out there. there are three major ways companies can work within this new healthcare landscape to engage with consumers and remain successful in their healthcare marketing.

Emphasis on preventionthe first area of Dtc that needs to be improved is an

increased emphasis on prevention. while this may seem counter-intuitive at first, since if there is no condition, there is no need for drugs, but pharmaceuticals have a huge place to play in the world of prevention. after all, as expensive as a

lifetime on a diabetes treatment regimen may be, it pales in comparison to the costs of hospitalizations, home care, surgical treatment, and lost productivity of someone suffering from the complications of diabetes. Diabetes is not alone as many of the cost drives in health care are related to chronic, preventable diseases, diseases whose effects (and major costs) can be mitigated by better pharmaceutical compliance.

while much of the public health world recommends diet and exercise treatments, the fact is that those often aren’t enough for those who suffer from these chronic diseases and a comprehensive lifestyle plan that includes eventual pharmacological intervention and compliance can often extend lives, reduce costs, and vastly increase health. there is a great opportunity for pharmaceutical companies to work with public health in this area and present themselves as part of a necessary health prevention regime, not the faceless, evil, money-hungry monsters much of this space sees them as.

There is a great opportunity for pharmaceutical companies to work with public health and present themselves as part of a necessary

health prevention regime.

spending money effectively on disease awareness advertising, partnering with early testing and screening programs, and focusing on medication as part of a necessary way to reduce cost and improve quality of life can likely increase profitability, as well as improve the corporate image, while creating customers that will need to be long-term users of your products to maintain their quality of life.

Managed care partnershipsthis dovetails nicely with the second way that pharma can

adapt for tomorrow’s healthcare world and that is to partner

DTC Marketing and the Changing Face of HealthcareDTC as we knew it is quickly transforming – with three key strategies emerging as the frontrunners to help shape this new DTC landscape. Pharmaceutical companies that don’t keep up will stagnate, but those who innovate and adapt to this new DTC paradigm will thrive.

By scott eHrlicH

better with managed care companies. again, while pharma seems an odd partner for companies that have strived to reduce cost by reducing pharma spend, there are still many opportunities in this space. as previously discussed, while drugs are often very expensive, many times those drug costs pale in comparison to a lack of treatment that may lead to extensive and expensive complications, ones that are now required to be covered by insurance companies, with no lifetime maximum.

there are opportunities for pharma to add some brand value in this space, to show some better ability to track and encourage drug compliance over what generic drugs offer. that way they can show some extra value in their products that insurance companies may decide are worth the extra $10-$15 a month in drug cost if it means their patients are much more likely to maintain their recommended course of treatment and reduce those costly long-term complications. Pharma can use Dtc to stave off generics in this way by shifting their marketing dollars not just to encourage writing of prescriptions but of maintaining treatment, showing how staying the course on a developed line of treatment can both save consumers money and lead to long-term health benefits. they can also stress the quality and support of their products, attempt to create some brand loyalty with consumers, and show more consumer engagement with existing customers, to also stave off generic competition.

with many of the new people being added to the insurance roles, those already at the highest risk for many of these costly chronic diseases, it’s a great opportunity for pharma to try and create a relationship with populations already skeptical of medications, especially ones sold by companies they don’t know, and stress the benefits, expertise, and additional trust consumers can have by maintaining a course of treatment with an established brand.

Multicultural marketingthat also segues to the third way drug companies have an

opportunity in this new marketplace. Many of the new 30 million people that are added to these insurance roles will be from the vastly increasing population of multicultural america: african-american, Hispanic, Native american. these groups are all vastly overly represented among incidences for very treatable chronic disease.

these groups are also very distrusting of drugs so this is a chance for pharma to reach out to these sectors and begin to establish confidence through marketing, outreach, and partnerships. since many of these patients already have conditions that can and need to be treated such as high blood pressure, high cholesterol, and diabetes, and would likely further distrust the unknown makers of generic drugs – it’s a real chance for pharma companies to become the trusted make to certain segments of the population for various conditions. Becoming the company that makes the drug that is trusted

among the newly insured Hispanic communities for treating diabetes or african americans for high blood pressure can lead to a competitive advantage for decades in this field where the population requiring treatment is increasing and the brand loyalty is high.

Pharma companies need to make their ads resonate, make them culturally competent, and use spokespeople and conversations that make these consumers feel as though the company actually understands their needs rather than just stuck a similar looking face in a commercial or translated a regular commercial into their native language. additional understanding of the issues, concerns, and opportunities in these markets, and treating them as a real source of marketing focus, rather than a “check-the-box” portion of a mass marketing strategy can lead to huge and long-term returns.

Becoming the company that makes the drug trusted among [multicultural markets] can lead to a competitive advantage for decades in this field where the population requiring treatment is increasing and the brand loyalty is high.

american healthcare is changing in 2014, likely some of the biggest changes that have happened in half a century. the pharma companies that choose to innovate and stay ahead of the curve will thrive in this new landscape. they will show their added value to encourage insurers to keep paying for their products, be trusted among their new largely multicultural consumer base, and be touted by the public health community as ways to fight off debilitating chronic diseases.

the ones that choose to do marketing as they have since late in the 20th century will continue to see dwindling returns, increased regulatory challenges, and watch insurance companies pass them over for generics. it’s a changing Dtc landscape and that will cause some of the old ways to lead to stagnation. But in this creative destruction of new laws, increased chronic disease, and a changing population, the growth opportunity for forward thinkers is huge and it is imperative that pharma companies make sure their Dtc marketing plan is at the forefront of this new paradigm.

Scott Ehrlich is currently VP, Business Development for DTC Perspectives where he conceptualizes and implements new events and product lines. Within the DTC space, Ehrlich has a special focus on disease prevention, multicultural marketing, health services and health insurance consumer marketing. He can be emailed at [email protected] or telephoned at (770) 559-0702.

A N E W D T C PA R A D I G M

Page 26: Spring 2013 - DTC Perspectives Magazine

50 | DTC Perspectives • Spring 2013

P E R S P E C T I V E Sand

And the Top Marketersare…

aRE PRoUD To CoNgRaTUlaTE ThE

ToP 25 DTC MaRkETERS oF ThE YEaR

Read about the 2013 Top 25 DTC Marketers when they are profiled in the Summer issue of DTC Perspectives magazine.

For more information on congratulating these marketers,

please contact Matt Yavorski at 973-521-7475 x226 or [email protected].

Gina BattisteAssociate Director urology Marketing,VESIcare & MyrbetriqAstellas Pharma uS, Inc.

Paul M. BermanVP Global Knee MarketingStryker Orthopaedics

Lisa BlizzardDirector, Patient Adherencenovartis Pharmaceuticals Corporation

Kiersten CombsMarketing Director, CRESTORAstraZeneca

Chemelle EvansAssociate Product Director, Epilepsy Marketing--VIMPATuCB, Inc.

Debra HaganSenior Manager, Diabetes Marketingnovo nordisk

Jennifer HavensDeputy Director, Consumer Marketing uSSanofi Pasteur

Paul W. HermanProduct Director, XARELTOJanssen Pharmaceuticals Inc.

Stephanie JenSenior Product ManagerGlaxoSmithKline

Dina KlugmanMarketing Director, CelebrexPfizer Inc

Dawn KofflerProduct Director, Dry Eye Franchise, RESTASIS® Allergan

Lauren LjubicichDirector, Marketing, VIAGRA Marketing TeamPfizer Inc

Sharon MacDermottLYRICA Sr. Manager MarketingPfizer Inc

Aimee MarxAssociate Director, HuMIRAAbbVie

Jennifer OgorzalekSr. Product Manager, VyvanseShire

Whit RawlinsonAssociate Director Marketing, TradjentaBoehringer Ingelheim

Eileen ReganAssociate Brand Manager, TradjentaLilly

Jerry RiscoExecutive Director, MarketingPurdue Pharma L.P.

Steven J. RommeneyHumalog Consumer Brand ManagerEli Lilly & Company

Shin SawadaSenior Product Manager, ATRIPLABristol-Myers Squibb Company

Christine Seung-LeePromotion Manager, Global Marketing Communications, GARDASILMerck & Co., Inc.

Bradford C. SippyVice President, CnS Marketing, LunESTA®Sunovion Pharmaceuticals Inc.

Michael SzumeraDirector, Public Relations, Communications uSSanofi Pasteur

Priscilla TavenerProduct Director, Dermatology, StelaraJanssen Biotech Inc

Marshall ungarGroup Product Manager, TamifluGenentech

And the Top 25 DTC Marketers of the Year are...

Page 27: Spring 2013 - DTC Perspectives Magazine

ADVERTISING INDEX & RESOURCE CENTERCompany Page Website Phone Contact Email

accent Health 37 accenthealthmedia.com 212-763-5118 kerry ann clawson [email protected]

appature 9 appature.com 206-493-5428 collin chlarson [email protected]

Beacon Healthcare communications 5 beaconhc.com 908-781-2600 adrienne Lee [email protected]

catalina 2 www.catalinamarketing.com/health 877-210-1917 Daniel DeBenedetto contactcatalinahealth@

catalinamarketing.com

cBs 7 cbs.com 212-975-1771 tom Delaney [email protected]

cult Health 33 culthealth.com 646-736-0771 Jeff rothstein [email protected]

eHealthcare solutions

13 eHealthcaresolutions.com 609-882-8887 chris gallagher [email protected]

Healthgrades 63 healthgrades.com 973-746-7121 Darrin o’Neill [email protected]

Health Monitor Network

17 healthmonitornetwork.com 201-391-1911 [email protected]

Parade 23 parade.com 212-450-0942 Liz ritzcovan [email protected]

Prime access 41 prime-access.com andy Bagnall [email protected]

remedy Health 64 remedyhealthmedia.com 212-695-5581 Jim curtis [email protected]

spirit Health group 45 spirithealthpartnerships.com 561-554-2010 Joshua Davis [email protected]

univision 61 univision.net 310-348-3689 Jorge Daboub [email protected]

DTC Perspectives • Spring 2013 | 53

as well as user interface designs. she will also be working on marketing and branding materials, as well as on cross-media platforms, including computers, touch screens and mobile applications.

Everyday Health promoted Paul Slavin from senior vice President and general Manager to the newly created position of chief operating officer. He will be responsible for strategy and operations across the company’s business units including its news offering for consumers on everydayHealth.com and for healthcare professionals on Medpagetoday.com. additionally, he is tasked with overseeing premium services (which offers personalized, subscription-based health and wellness programs) and local business units (which connects patients with local doctors for various health related services). slavin will also continue to deliver and execute on innovative digital video and broadcast channels for the company’s consumer and professional audiences.

SoloHealth has named Kevin Davis as Director of advertising sales, responsible for west coast health & wellness advertisers. Univision Communications, Inc. has promoted Lisa Nolan to senior vice President of Network sales

from vice President of Network sales. Claudia Granados,

currently vice President of Business Development, will take

over Nolan’s former position. in addition, John Kelly has

joined the media company as executive vice President, Digital

sales after vacating his position as executive vice President of

Media sales and Marketing for NBc News at NBCUniversal.

Mike Rosen has joined Telemundo Media as executive

vice President for advertising sales and integrated Marketing.

He succeeds Dan Lovinger, who was recently promoted

to executive vice President for advertising sales at the

NBCUniversal cable unit. NBCUniversal hired four

executives for its advertising sales operation: Lou Koskovolis

was named senior vice President for sales and sales Marketing

at the NBc sports group’s golf Media properties; Katie

Larkin is now senior vice President for advertising sales

strategy; Peter Lazarus became senior vice President for

cable advertising sales; and Laura Molen, was appointed as

executive vice President for cable advertising sales..

52 | DTC Perspectives • Spring 2013

Novo Nordisk has promoted Camille Lee to senior vice President, us Diabetes Marketing. she currently oversees marketing for all in-line and future brands, as well as the organization’s Diabetes educator Program. Sanofi Pasteur promoted Christopher Meneely to vice President, Market strategy and Development. His was most recently senior Director, strategic and Business Planning; prior to that, he held the title of Director, Marketing at the pharmaceutical company.

Martin Laiks joined Arnold Worldwide as executive vice President and group account Director, leading the Sanofi account. He was previously executive vice President and Managing Director for Digital at Draftfcb. Carol Price has also joined arnold worldwide to work on the sanofi business, signing on as senior vice President, Marketing Director. Price was most recently with G2, the digital division of The Grey Group, where she served as senior vice President, group account Director on the Eli Lilly Cialis brand.

Digitas Health has appointed Tim Pantello as Managing Director of its Philadelphia office. He will be responsible for the Philadelphia headquarters office’s diverse client relationships as well as expanding the agency’s aor work across health and wellness brands. He joined Digitas Health from Tribal DDB where he was the managing partner and oversaw their Healthcare center of excellence. Saatchi & Saatchi Wellness hired Kathy Delaney as chief creative officer. Delaney, former chief creative officer with Deutsch and Nitro, will also assume the role of global chief creative officer of the Saatchi & Saatchi Health Network. she replaces Helene Spivak, who left saatchi & saatchi wellness in august 2012 to become the director of the VCU Brandcenter at virginia commonwealth university.

Jeff Berg has been promoted to the role of senior vice President, Director of client services with AbelsonTaylor. He will be responsible for agency performance and client relationships on all of the company’s accounts. the agency has also promoted Carrie Hixson to senior account supervisor; William Shea to senior account executive; and Bill Morley and Alexa Stuart to account executives. Hixson, previously account supervisor, will head up one of the agency’s leading hypertension accounts, working in support of a portfolio of four products in the category. shea, formerly account executive, will continue to manage key print and digital initiatives in the dermatology area, while leading the development of prelaunch and launch activities for a facial aesthetics product. Morley, most recently account coordinator, will work on a diabetes treatment. stuart, also previously account coordinator, will work on an acne product treatment.

Rosetta hired Kim Corrigan as Partner in its Healthcare vertical, where she will lead a number of key accounts and help drive business development. corrigan was most recently executive vice President, group Management Director with Draftfcb New York. Brian Locotch was hired by QualityHealth as executive vice President and chief operations officer. He was most recently chief technology officer at Rosetta. He brings more than 20 years of cross-competency experience in several disciplines, including technology, analytics, health marketing, process management, and outcomes optimization.

Cadient Group has hired Tara Parente as senior Media Designer and Anjarli Lebron as Media Designer. Parente will be responsible for managing the agency’s entire range of digital programs across all media platforms and therapeutic categories. she was previously a freelance art Director for the online division of comcast. Lebron will be working on two cardiology products, creating style guides for websites

Jeff Berg

O N T H E M O V E

Carrie Hixson William SheaTim Pantello Kathy Delaney

Page 28: Spring 2013 - DTC Perspectives Magazine

C O N T R I B U T O R S

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54 | DTC Perspectives • Spring 2013

Michele Deutschman has over 12 years of experience in pharma syndicated research. she currently serves as the vP of strategic Partnerships & Business Development at kantar Media Healthcare research and is responsible for developing brand strategies, generating strategic partner-ships and advising healthcare agencies. she can be reached

at [email protected]. turn to page 24 to read the article she co-authored with colleague Jayne krahn.

Sondra Gage is a media expert with vast experi-ence across the cPg and Pharmaceutical industries. she is currently vice President of sales for the Newspaper National Network LP (NNN) where she has built the cPg business, most notably from Procter & gamble and has catapulted business from women’s pharmaceuti-

cal brands including P&g’s actonel and allergan’s restasis. gage is currently charged with sales development for the pharmaceutical category in all forms of newspaper media including social. contact sondra by phone at 212-856-6321 or email at [email protected]. turn to page 30 to read the article she co-authored with colleague Mary ellen Holden.

Bryan Gernert is chief executive officer at resonate, a top advertising technology company providing market-ers with the ability to target audiences based on people’s values. a proven business leader, Bryan has applied his management expertise to businesses in several industries, with emphasis on information technology and services.

He has led businesses through periods of significant transformation and growth, including such companies as cybertrust, Digex, inc., evergreen information technologies and rci. He can be followed on twitter @Bryangernert. to read Bryan’s feature, turn to page 34.

Brad Graner is President and co-Founder of inHealth, a division of Healthgrades. in this role, Brad leads Healthgrades inHealth in transforming how patients dialogue with their physicians and in provid-ing innovative solutions for leading publisher partners and advertisers. From 1999 to 2007, he was senior

vice President, strategic Development at webMD, playing an integral role in turning around the company, defining its business model, taking it public, and establishing it as a leading provider of health information for consumers and physicians. Brad can be reached by telephone at 678-279-1900. turn to page 46 to read the article he co-authored with colleague Burt kann.

Bob Harrell is currently the vice President of Market-ing, Healthcare at appature, leading marketing efforts in the pharmaceutical, biotech and medical device indus-tries, including online and non-personal promotion, sales enablement, and thought leadership. During his 20+ years in the pharmaceutical industry, he has held top positions

in digital, database and relationship marketing on both the manufac-turer and agency side, including Merck, astra Merck, astraZeneca and rosetta Marketing. Prior to joining appature, Bob was Director of integrated Marketing for shire. Follow appature on twitter @appa-ture. to read Bob’s article, turn to page 14.

Mary Ellen Holden is a media industry veteran and a catalyst for the transformation of television and newspaper media industries to successfully compete for audience, revenue and relevance in the digital space. she is cur-rently the svP, Marketing and research for the Newspa-

per National Network LP (NNN) where she has spearheaded timely industry research on topic issues including “the Localist”, “the coupon seeker” and “the website influencer”. contact Mary ellen by phone at 212-856-6335 or email at [email protected]. turn to page 30 to read the article she co-authored with colleague sondra gage.

Burt Kann is senior vice President, Marketing and strategy and co-Founder of inHealth, a division of Healthgrades that syndicates best-in-class health information and decision support tools in order to drive more effective patient-physician dialogues. From 2005-2009, Burt was vice President of strategic Development

at webMD, where he worked with dozens of pharmaceutical and cPg clients to maximize the value of their marketing spend. Burt can be reached by telephone at 678-279-1900. to read the article Burt co-authored with his colleague Brad graner, turn to page 46.

Jayne Krahn, a 15-year industry veteran, is the vP of Product and research operations at kantar Media Healthcare research, where she manages research operations of the Mars consumer and Professional Health studies. she can be reached via email at [email protected]. turn to page 24 to read the

article she co-authored with colleague Michele Deutschman.

Jamie Lutzky, an advertising and marketing enthusiast, is a senior Manager of strategy at evoke interaction. Having spent the last decade gaining experience in both pharmaceutical and non-pharmaceutical account man-agement and strategy development, Jamie is respon-sible for helping clients to actualize their brand goals

– identifying objectives, extracting insights and opportunities, and developing strategies that yield a high business impact. she can be contacted via email at [email protected]. turn to page 42 to read her feature.

Rob Rebak is currently ceo of QualityHealth, a leading targeted customer acquisition solution for healthcare marketers. rob is a 20-year healthcare and interactive marketing industry veteran, bringing a broad range of strategic and operational experiences from Fortune 500 companies to early stage ventures. He

can be contacted by email at [email protected]. to read his article, turn to page 19.

Givi Topchishvili is the Founder and President of the 9.8. group, a holding comprised of companies with a recognized expertise in marketing, media, tech-nology, health care, and research. the 9.8 group is a consolidated management operation, serving as the parent company to Prime access, the largest multicul-

tural health care marketing agency, global advertising strategies, the leading market entry consulting firm, weMultiply, an mHealth and eLearning start-up accelerator, as well as global art group, a proj-ect that supports emerging artists and art platforms from all over the world. givi can be contacted via email at [email protected], or follow global advertising strategies on twitter @globaladinsight. turn to page 39 to read his article.

Page 29: Spring 2013 - DTC Perspectives Magazine

From: Bob Ehrlich, DTC Perspectives

Re: Save the Date – New POC Conference

Dear Industry Member,

Please block Nov. 6 – 7 and make

arrangements to join us at The Sofi tel in

Philadelphia.

DTC advertising, higher co-pays, higher

deductibles, less time with doctors, and

the availability of health information have

made patients into proactive consumers.

‘Point of Care Marketing’ will explore

how drug, device, and other health care

companies are marketing through point

of care outlets, factoring in the increase

in digital processes used by providers, as

well as how Obamacare will expand these

opportunities.

Hope to see you in Philly this Nov.

Bob

The New Point of Care Marketing Conference • Nov 6 – 7 • Philadelphiawww.dtcperspectives.com

POC Conference 2013.indd 1 3/20/13 11:05 AM

56 | DTC Perspectives • Spring 2013

By dan cHicHesterGames. People. Play.An innovative DTC initiative should be engaging and interactive, something that keeps the patientcoming back for more. People want to play games, people want to better their health. When the twosuccessfully coincide, you have a DTC gamification platform on your hands.

Are we having fun yet?it’s a legit question. especially with the advent of the word “gamif icat ion.” Heap on vague

“gaming elements” to more mundane activities and – voila! – engagement is yours. the dark side of this is the gamification Drinking game. the rules? every time you hear the word misused, you take a shot. then, three sheets to the wind most days, you’re easy prey for a certain breed of traveling “gamification expert” and its brand of snake oil. “gamification will help your brand tune into the social mechanisms that underlie web and mobile product reputation systems!” shudder.

extreme biz-speak aside – aren’t we talking a variant on a digital loyalty scheme? compare tumors in a medically themed version of the classic shape-matching game concentration; rack up a high score while being “edutained”; collect a colorful award. rinse, repeat, ready Player one? or game over?

avoid the temptation to take a process and turn it into a game. Patients, caregivers or your brand do not need “angry Birds for Diabetes.” the base approach attempts to replicate game interface to manipulate the consumer – versus applying game design to motivate a player. Points and trophies do not, of themselves, make a game FuN. Fun is not frivolous. seriously considering its nature and role does not lessen our commitment to real business and real results. Dr. stuart Brown, founder of the National institute of Play, famously said, “the opposite of play is not work: it’s depression.” i’m :( about much of the conversation around games and marketing. But i’m playfully optimistic about its potential.

avatars – the in-game representation of the player – can change out-of-game behavior. social games foster powerful relationship skills and accountability. even that great bugaboo, the violent game, improves real-life cooperation. Playing games is a low-distraction, high-engagement activity – 3x as engaging as other media. People play games to calm and focus themselves, and to feel challenged. it doesn’t even matter if you’re “good.” in “game mode,” a player can enter a flow state of clarity, confidence and motivation. key components of

play – novelty, discovery, trial and error – are the same tenets as learning. game obstacles teach us to manage and transform negative experiences, to tackle tough situations with more determination – and to persevere.

in a game called “Foldit,” science is front and center as players are encouraged to figure out the shape of proteins so actual scientists can bolster their research in the development of new drugs. “i Heart Jellyfish” sends the player’s heart rate into the game world, where it steers the play and teaches the player skills needed to overcome anxiety.

as compelling as these examples might be, looking beyond our industry is always good for inspiration. the most captivating game i recently played is “the walking Dead,” based on the zombie tv show and comic book. a reawakening of the adventure game genre, the game’s focus is on survivors and their personal and decision-making conflicts. “Hard-core action” takes a backseat to character conversation, trust-building, problem-solving and emotional understanding. Now, swap “zombie” for depression, asthma, cancer – and imagine. all very familiar needs of consumers managing their health and considering their options.

this is headier stuff than, “Here’s your smart Breather Badge for taking our asthma quiz!” But as leading game theorist and advocate Jane Mcgonigal says, “games are unnecessary obstacles we volunteer to tackle.” tackling more than the easy promise of shallow gamification is our way of “leveling up”: player-speak for improving one’s position within a game. the player wants to get better – just as consumers want to better their health. there’s a sweet spot there that’s worth mining for more meaningful condition education, brand awareness, and treatment adherence.

Let’s have fun finding it.

Dan Chichester is Chief Digital Officer of Ogilvy Healthworld in NY, part of Ogilvy CommonHealth Worldwide. Drawing from his diverse and creative background, he identifies the latest marketing and innovative DTC trends, and shares his astute views. He can be reached by e-mail at [email protected] or telephone at (212) 237-7008.

O N T H E E D G EMarketing

Page 30: Spring 2013 - DTC Perspectives Magazine

O N T H E H I L L

By JiM davidson

It’s no wonder why tax reform is one of the most agonizingly difficult legislative feats to pull

off in washington. understanding tax policy requires looking beyond the calculated political tug-of-war to define terms like “fair” and “just.” it even necessitates focusing past the huge sums of money that are in play. indeed, the critical element in comprehending what’s fully at stake is recognizing that changes in tax policy influence human and business behavior. acting either as an incentive or a disincentive, tax policy is one of the most powerful tools that lawmakers have to shape the personal and business behavior of americans.

its strength comes from the fact that regulators can rely on it to quash or redirect actions they oppose when other mechanisms won’t gain approval. in the case of Dtc marketing, an outright ban on pharmaceutical advertising wouldn’t pass the First amendment sniff test. But courts have granted broader constitutional leeway to the power of congress to tax activities – with the caveat that any tax that has the effect of suppressing speech may be suspect. if it overcomes this impediment, it can be far more direct and effective for legislators to tax an activity that they don’t like instead of passing a law and waiting for an agency to write regulations to slow or stop the specific behavior.

Pharmaceutical advertising admittedly deserves a category of its own due to the scope of revenue that a tax on the industry would generate. During consideration of the affordable care act in 2009, the House committee on ways and Means briefly voted to disallow the ordinary and necessary business expense deduction for the cost of pharmaceutical advertising in order to help pay for the healthcare overhaul. the congressional Budget office estimated that such a provision would bring the federal government $37 billion. revenues aside, a tax would have undeniably achieved much of what congress had previously tried to do during the 2007 PDuFa fight – throw up roadblocks to restrict the flow of Dtc messages over the airwaves.

Dtc l ong h a s b e en h e l d accountable for the accuracy with which it paints a complete portrait of risks and benefits. similar content-based scrutiny is hitting food and video game adver t i ser s . Dtc marketers would be advised to pay

close attention to activity in these industries. children’s food advertising in particular is an excellent example. opponents of marketing to children fiercely believe that minor-focused advertising is unfair and deceptive, and like-minded officials in congress have proposed or passed initiatives to reduce or effectively remove food advertisements directed to children under age 18 from the media. these range from strict guidelines defining the nutritional content of foods that should be advertised to even – you guessed it – tax proposals to disallow the deductibility of food advertising to children.

the debate over video games offers another parallel. this battle still is in relative infancy, but the supreme court’s ruling in Brown v. entertainment Merchants association (2011) is significant because it may have opened the door to a taxation option. the court upheld the First amendment and ruled against banning the sale of video games to minors on the basis of content. But with regulation off the table for now, one of the few remaining options that lawmakers may have could lie in the tax code.

Fierce anti-marketing advocates will not cede these causes any time soon and given the current budget climate, advertisers of all stripes should strap in and pay attention. this is one arena where marketers could have a lot to learn from each other.

Jim Davidson is an attorney and founder of the public policy firm Davidson & Company. He currently chairs the Public Policy Group at the Washington law firm of Polsinelli Shughart PC, and he has been actively engaged in supporting the advertising industry on Capitol Hill for more than 20 years. He can be reached by e-mail at [email protected].

Why Drug Marketers Should Care About Food and Video Games

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David goldhill is the unlikely author of a book on health care in america. goldhill is not a doctor, policy maker, academic, or consumer advocate. He is the

ceo of a cable network, gsN, which is on most cable systems.goldhill decided to write a book on our health care

system after his father died of a hospital acquired infection. that unfortunate death motivated goldhill to study and dissect the issues with american style care. the title leaves little room for doubt where the author stands. our care is an economic catastrophe. what is also surprising from a self-professed proud liberal is that he says obamacare will add to the catastrophe.

the real problem in america is that we are caught in a self-perpetuating system of rising costs. goldhill has thoroughly research the facts and concludes that fee for service does not lead to better treatment, just more treatment. Before Medicare, one would think that seniors spent a greater portion their income on health care. in fact, seniors spend a greater percentage now than they did pre-Medicare. the incentives of our fee for service are to treat much more than when grandpa paid his own way.

this is true for all of the insured. the insurance companies do not mind paying more for healthcare as long as they can make it up in premiums. when someone else pays, says goldhill, no one is watching the cash register very carefully. Does Medicare do a good job regulating costs? absolutely not concludes goldhill. they develop these complex pay out formulas for thousands of procedures and despite lower reimbursement to doctors and hospitals, costs have risen rapidly. any cuts in payouts are made up by providers doing more procedures.

goldhill is an engaging writer and it is refreshing to have health care critiqued by a business person who understands markets. goldhill says there is no market force lowering health care costs and there could be. government wrongly concludes that increasing insurance coverage will get everyone the care they need. in fact, having insurance means getting excess care. the data support that the insured get many more tests, surgeries, and drugs than the uninsured.

sometimes that is good, but mostly providers game the sy s tem a s long as their revenue is based on doing things. No one, says goldhill, gets paid for talking to patients.

Goldhill has thoroughly research the facts and concludes that fee for service does not lead to

better treatment, just more treatment.

goldhill recommends more free market principles be adopted. Having consumers more responsible for paying for their care will lead to competition, better information, and more judicious use of health care. one concept he likes is concierge medicine with a patient doctor spending lots of time with patients. concierge doctors get paid an annual fee by patients and have less incentive to recommend costly tests, unless they are really needed. this reviewer has had one for years and the number of tests i have had have dropped dramatically.

goldhill has written a brilliant analysis in an engaging style. He uses no wonk talk, and his examples tie real word business to the health world. if i could ask President obama and his supporters of the affordable care act (aca) to read one book, it would be this one. when a liberal says the aca is doomed to be a cost nightmare, i expect the Democrats may pay attention. our system needs fresh thinking and goldhill offers it.

Robert Ehrlich, chairman and chief executive of DTC Perspec-tives Inc., regularly reviews books about the pharmaceutical industry, marketing and advertising for DTC Perspectives Magazine. He also writes a weekly e-newsletter providing insights on pharmaceutical marketing trends. To subscribe to this FREE weekly analysis, sign up at the website, www.DTCPerspectives.com. Ehrlich can be reached by email at [email protected].

Catastrophic CareBy David Goldhill

Published by Knopf / 2013 / 369 pages

reviewed By roBert eHrlicH

O N B O O K S

Follow the GrowthIn 2012, Hispanics accounted for $20 billion of the total U.S. pharmaceutical market. But there’s still more than $11 billion up for grabs. We can help you get your fair share.

Source: IMS VONA MAT December 2012. TRx Retail Dollars Based on Adults 18+. Calculations based on U.S. Census Bureau 2012 Projections.

For more:Jorge Daboub, [email protected]@hispanic411

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We absolutely support caring for the poor and believe america needs to be a place where

health care is easily received. Forcing the uncaring and evil insurance companies to cover everyone is a nice political concept. it gets cheers from the crowds. insurance companies that deny care are plump targets and anecdotes abound about care denied. the reality is all of the profits from insurance companies would fund but a few days of health care spending. if we seized all of their money it would be squandered in less than one week. then who would we blame?

the fact is by mandating more we all pay in higher premiums. Most americans have seen higher premiums already to cover the added mandates of obamacare, such as covering pre-existing conditions and no caps on lifetime benefits. obamacare will have many unintended consequences that we are starting to see already. employees are being asked to pay more as employers see premiums skyrocket. companies are going to more part time workers to fall under the mandate. companies will pay employees less to fund mandated benefits. those free extras are just not free. we pay in terms of less income, higher taxes, longer wait times, less service, and perhaps worse care.

obamacare creates thousands of new rules which are an administrative burden to both government and business. the goal of obamacare was fine. the idea, however, that merely forcing coverage on uninsured americans would somehow reduce cost while making people healthy has no basis in fact. one issue is who is going to care for these newly insured? experts predict doctor shortages. the low Medicaid reimbursement means more demand for fewer doctors willing to take low payments.

a better system would have been to have government offer more public health clinics directly to the poor. government could have trained and employed thousands of

the educated unemployed and created a new class of health care worker to treat common ailments. they also could have hired thousands of public health officers to educate underserved populations on diet, exercise, and other good health practices.

the aca has few incentives to lower cost. there are studies and panels to make recommendations. the fact is that no one really has incentives to reduce cost. Providers make money doing things that get reimbursed. we can expect all of these new patients to receive lots of tests and procedures. Medicaid patients will suddenly need lots of high margin tests as providers recoup low reimbursement per office visit by making it up in volume.

President obama will be gone before the big bill hits all of us. ultimately, we will all be forced to deal with the cost problem. New villains will be identified by politicians, but as the crisis grows they will run out of people to blame. the reality is we all are the problem. we love the system that can pay hundreds of thousands to treat our families. we like it less when we have to pay for someone else’s grandfather in his last week of life. eventually we will deal with it when it becomes a true crisis. Politicians will blame everyone but themselves and their constituents, and yet that is where the problem lies.

the President loves to surround his speeches with people helped by his legislation. good anecdotes make for nice speeches. we ask that President obama show true political courage by dealing with the inevitable health care cost bubble now. He can be a true hero if he rallies his Democrats to find ways to cap spending at some manageable percent of gDP. He did not deserve his Nobel Peace Prize, but may deserve one for economics if he solves the runaway cost problem.

E D I T O R I A L

Obamacare RevistedThe Affordable Care Act might be the biggest oxymoron in modern times. It is certainly not affordable and may provide less care than by not having it. Obamacare is really just a bunch of insurance mandates. In the land of unlimited money where no one pays more, Obamacare makes sense. That land unfortunately does not exist.

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