the Social Media Challenge for Pharma and Health Care...“conversations” –“e-detailing” ......

From Buzz to Biz:the Social Media Challenge for Pharma and Health Care

Matthew FraserEphMRA ConferenceBerlin, 23 June 2010

BUSINESS AS USUAL?

Social Media?

“Society is in the early phases of what appears to be a media revolution on the scale of that launched by Gutenberg in 1448.”

– The Economist

Web 1.0 = “read only”, one-way

Web 2.0 = networked, interactivesocial

(created 2004) - 500 million

(2005) - 2 billion views a day

(2003) - 50 million

(2006) – 105 million users

Velocity : 150 million as benchmark

Facebook = 5 years

iPod = 7 years

cell phone = 14 years

television = 38 years

telephone = 89 years

Power diffusion:shift towards users

“prosumer” – we are not only consumers, but also producers content/information production no

longer top-down, one-way “push” now networked and participatory

Generational Factor: Millennials

“Facebook generation”

born between 1980-1995 now graduating and moving up ranks new “values” and assumptions about how people

interact in organisations & companies empowerment, participation, sharing decisions as consumers based on knowledge

Fear Factor!

Vertical vs HorizontalOrganizations/corporations/govts top-down, command-and-control

hierarchies recognition/status based on title/rank communication in “push” broadcast

model

Web 2.0 Networks open, networked, collaborative recognition based on expertise &

performance communication is networked and

participatory with feedback

Health Care & Social Media

Web 2.0 impacts:

Consumer/patient empowerment Pharma-doctor-patient relationship Research & Development Knowledge management Decentralized health-care

Consumer/patientempowerment

Knowledge is power:

USA: 60% adults search health info online Web forums: share info on disease/treatment Blogs: expert info/opinion publicly available Medical websites – AskDrWiki, WebMD Podcasts for medical information via iTunes Facebook groups sharing health information Mobile apps like Medscape and ReachMD

Pharma/doctor/patientrelationship

patients now empowered – doctor ratings DTC in the United States doctors networking on sites like Sermo –

“information arbitrage” business model Big Pharma pays fees to monitor online doctor

“conversations” – “e-detailing” knock-on effects for doctor detailing and market

research?

Pharma R&D

networked R&D – outside walls of company P&G outsources more than 50% of new

product development InnoCentive – crowdsourcing brain trust spun

off by Eli Lilly harnessing “collective smarts” or “wisdom of

crowds”

Knowledge Management

diffusion of power from centralised systems towards consumers/patients

user/patient - owner of his/her records helps government reduce costsMicrosoft “HealthVault, Google Health raises issues like privacy

Decentralised health care

primary care moving to grass roots distant care, tele-medicine predictive modelling “virtual hospital” professionals/patients can get treatment

info on mobile iPhone apps like Medscape

Big Pharmaindustry

revenues falling, patents expiring R&D budgets slashed hyper sensitive to government regulations marketing still focused on medical profession negative reputation - doctor-focused marketing

involves unethical conduct advertising spending as % of Web ad spending:

projected 5% in 2011 – or $2.2 billion

Pharma’s “slow adoption” of Web 2.0

“The pharmaceutical industry is still failing to embrace the Web 2.0 strategies that could help it better engage consumers looking for health care assistance.”

-- eMarketer report

Pharmaceutical Marketing Online: Stuck in Web 1.5

Health Care: vertical

- large corporate institutions- regulation by govt bureaucracy

Web 2.0: horizontal- “social” dynamic- open, networked, participatory

Values Clash?Health Care/Parma: “scientific” culture regulated – marketing restrictions “big iron” mainframe computing – data centrally controlled intellectual property protected control-oriented and risk adverse – fear of criticism

Web 2.0 “social” culture – no status hierarchies of “experts” open and risk-oriented – entrepreneurial, fast-paced information transparent and horizontally “shared” privacy values open – data moves freely

USA–Europe differences?YES Europe heavier regulations DTC advertising restrictions

NO Web 2.0 represents a major

“rupture” for govts too Gov 2.0 – govts looking for new

ways of connecting with citizens individual empowerment via

information, participation is a global phenomenon

Market Research?

Market Research 1.0 “prompted” or “constructed” methodology surveys, focus groups, market experiments can provide accurate insights but not always responsive and timely

Market Research 2.0

tools don’t “construct” situations by asking “prompted” questions

monitor and “listen in” to “unprompted” social interactions

qualitative data -- “spontaneous” and “authentic”

already written so can be easily collated

Brand Monitoring social sentiment “mining” real-time data on “what people

are saying” about brands blogs, forums, Twitter, Friend

Feed free search tools like Google

Alerts, Omgili and Social Mention

more sophisticated software tools on market

Trend Analysis monitoring blogs and social networks “influencers” on Twitter and in

blogosphere Sermo doctor website gives Big Pharma

trend data Google Trends, Trendrr, Trendpedia

Customer Data keyword search -

gather data on current and potential customers

bloggers and people who post comments identify themselves as customers

Google Blog Search, BlogPulse, BackType

CRM: Customer Relations Management

monitor sites to discover customer needs –including “unmet”

learn how how to “talk” to customers – social engagement

Talk Digger, Whos Talking, Twitter

Competitive Datamonitor competitors social sentiment mining

about their brand/products

BI on companies LinkedIn, Jigsaw,

Crunchbase, ChubbyBrain, Glassdoor

Challenges? resistance from Legal

Depts ethical guidelines about

reporting conservative corporate

cultures resist social media

new approaches threaten old ways of doing things

What next? Web explosion of “social”

data about health/pharma patient empowerment –

culture of “sharing” info consumer/patient “ratings”

as the norm (Vitals.com) mobile health apps formidable opportunity for

market research – despite obstacles

social media as additional tool

Social Media as research tool?

shift from doctor-focused to patient-focused research results (customer feedback)

monitor “authentic” conversations – results are not biased by constructed settings

find the right search and software tools to meet specific research needs

Takeaways Health care/pharma at turning point governments seeking to lower health costs Web 2.0 represents a “game changer” consumer/patient empowerment Big Pharma remains slow-moving and resistant pressure on revenues will lead to new research

and marketing models market research can seize on social media as

tool to aggregate new forms of data

Thank youfraser.matthew@orange.fr

Twitter: @frasermatthew