by Traver Hutchins- Reprinted from Media Post/Healthcare/Marketing Oct 6, 2015
Pharma has long been characterized as lagging behind the rest of
the marketing industry in terms of branding effectiveness and
overall media impact. Regulatory guidelines in the industry are the
largest contributor to this delta.
While regulatory restraints continue to give an unfair advantage to
traditional consumer categories, the gap in media and marketing
effectiveness is rapidly shrinking. Much of this is due to consumer
acceptance of Rx communications. At the same time, Rx marketers
are using all the latest communication channels to reach their
customers at multiple points along their health journey.
So what accounts for the overall surge in Rx effectiveness in the
last few years?
The recent Point of Care Conference (POC3) held in New York City a
few weeks ago identified significant trends.
According to presenters, advertising spending in POC is growing at
a 10% CAGR and is approaching 10% of the overall DTC spend
(about $500mm of a $5bb market). The key driver behind this
growth is “accountability.” Most POC programs can show pre/post
ROI through actual Rx lift. That’s not something you will find in the
food advertising category. Replacing CPMs with ROI accountability
has flooded the POC market with pharma brands because the risk
has largely been taken out.
But the story continues to evolve from there.
Point of Care as a definition is also evolving. Once the domain of
pharmacies, waiting rooms and exam rooms, POC is following the
mega trend of “Consumerism in Healthcare.” The rise of urgent
care centers in every community and mini-clinics in pharmacies
illustrates that the way the patient (consumer) uses healthcare has
moved beyond the old primary care model.
According to the National Association of Urgent Care, there are
over 10,000 urgent care clinics with an average of over 15,000 visits
each year per clinic. You know this retail trend is here to stay when
you now see even slow-to-adapt hospitals putting out community
urgent care centers.
It was also pointed out at the POC conference that smartphone
usage and wearable tech arguably identify a point of care as
“anywhere the consumer is interacting with healthcare messaging.”
This is an area of explosive growth opportunity and yet one that
has had innumerable starts and stops. One only has to look at the
thousands of health apps used once and then discarded. Media
and marketing companies are rapidly working to increase
utilization and engagement in this area.
While innovations like tele-health, retail clinics and wearable tech
are all relatively new and powerful evolutions, what everything has
in common is a technology backbone that ultimately links back to
an HCP’s electronic health record (EHR). Toward the end of the
POC3 conference, Joe Meadows from “Think Patients” said it best
to the audience: “If your strategy does not heavily integrate with
EHRs within two years, your brand will be left in the dust.”
There are numerous EHR offerings and they all have one goal in
common: They streamline the HCP visit to its core essentials in
effort to deliver the best standard of care with the maximum
amount of efficiency. While we can argue that something has been
lost as the care provider glares at their screen instead of us, we
cannot underestimate the power and influence that system
imparts on the imprinting of the HCP’s prescribing behavior.
One of the biggest deficiencies in many EHRs happens to be the
dearth of consumer-friendly education. Closely following that
deficiency is the lack of ease with which patients can get
information on their health portals. Significant opportunity
remains for marketers that can provide “educational marketing” in
the visit flow and make it easily accessible to the patient following
the visit. Additional opportunities to appropriately influence Rx
activity exist in the e-prescribe moment and at the pharmacy
counter with triggered financial services (starter and compliance
As medicine continues to get more personalized, the push to focus
on vertical patient groups with highly targeted media will only
increase. This final trend is the one that will continue to propel POC
marketing to an accelerating share of the Rx marketing spend.