Download pdf - PATIENT OUTCOMES - DTC Perspectives...GIVI TOPCHISHVILI OF GLOBAL ADVERTISING STRATEGIES 42 Mind the Physician-Patient Communication Gap JAMIE LUTZKY OF EVOKE INTERACTION 46 In a New

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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

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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

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

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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 Consumers

MARY 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

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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!


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

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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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.


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.”

10 | DTC Perspectives • Spring 2013 DTC Perspectives • Spring 2013 | 11

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


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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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

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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)

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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


• 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


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

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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 strataPrograms 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 offeringsD) Contracting

Complexity□ Experience with incentive-based or performance-based variable contracts□ Has a proven conflict resolution process


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



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?


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.


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


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.


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


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.


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


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