News - DTC Perspectives

The Trump administration wants to allow Canadian drugs to be imported to give consumers lower prices. This is also supported by almost every Congressional Democrat and many Republicans. It sounds great to allow American consumers to buy cheaper drugs from Canada and is already happening somewhat through online Canadian pharmacies. Consumers can generally save 30-50% and in some cases by a lot more.

So why is this tactic going to fail? First, drug makers do not want to sell to Canadian distributors just to have those lower priced drugs come back to the United States. They happily will sell what Canadian consumers need but will not allow much more than that to be sold into Canada. Drug companies know some Americans buy Canadian drugs but that is a relatively small amount. Once that reimportation gets to be a big business drug companies will restrict what Canadians can buy.

“The American people will demand a price solution…”
-Bob Ehrlich

Second, the Canadian government has already said they have experienced drug shortages and will not allow Canada to become an exporter of drugs if their own citizens face problems filling prescriptions. Drug makers will not allow their golden goose US market to be destroyed by a Canadian end run. Drug makers always have the option of not selling a drug in Canada if the approved price is too low. That could deprive Canadians of getting access which is not a good scenario.

Unfortunately for drug makers it looks like there will be some system of price indexing or outright price controls in the future. There is no strong support from either party for drug makers charging US consumers more than other developed countries. While Republicans are more friendly to drug makers, they cannot convince their constituents that it is fair to pay significantly more than the French, Canadians or Germans. While they know innovation is funded by US profits, that is a hard sell for voters having trouble affording rising health care costs.

What is the solution? Drug companies must self regulate their desire to raise prices beyond inflation. Any increase beyond that is difficult to defend. American consumers need to get a tangible benefit paying a premium price. That could be faster access to new drugs, and more price support during the introductory period to prove the value of the premium drug. While the industry’s ad campaign explaining the wonders of drug research is good, I am afraid it is insufficient to assuage concerns that Americans pay too much.

The best solution is to have one developed market price for a drug with Canadians and Europeans paying more and Americans paying less. Why would other governments agree to that? There would have to be some benefit in allowing drug companies higher prices in price-controlled markets. That could be through trade concessions in other categories. Any fair price system would take a massive negotiating effort between the drug industry and multi government regulators. Perhaps over time an index system could work as long as the drug industry could make substantially the same returns.

Another solution is to extend patent expirations in exchange for lower prices. Also, any system that speeds approval can be leveraged against high drug prices. What needs to be done is a pragmatic approach that balances need for innovation with lower prices. Saying that drug companies are greedy will not get to a workable long-term drug strategy. American consumers will not benefit if mandating lower prices leads to a cut in vital research.

What I do predict is the drug price issue cannot be successfully fought much longer by lobbyists. That can no longer be the main strategy of drug makers. The American people will demand a price solution as this ire is being stoked in every political debate. Unfortunately, the proposed solutions will not be favorable to drug maker profits. One of the ways to mitigate profit impact is to increase demand. DTC could be a beneficiary of that demand-based strategy. If drug prices are forced down, I would expect drug companies to increase marketing budgets to grow their user base and retain those users.

After so many years of drug prices debates, 2020 looks like the time action will be a reality. Of course, the extent of price action depends on who gets elected. The Sanders/Harris/Warren plan is highly punitive for drug makers while Biden and other moderates will go softer. Trump is not far from moderate Dems on his plans so drug makers will get hurt whoever wins in 2020.

Bob Ehrlich

The US Department of Health and Human Services (HHS) has awarded nearly $42 million in funding to 49 Health Center Controlled Networks (HCCNs). HCCNs work together to improve access to and quality of care, as well as leverage health information technology to cut costs and improve care coordination. The funding came through the Health Resources and Services Administration (HRSA) as the HCCNs expand their usage of health information technology to empower patients and promote data sharing.

“Health centers play a crucial role in providing their communities with access to high quality, affordable healthcare,” said HHS Secretary Alex Azar in the news announcement. “Investing in more advanced health IT will help put patients at the center and unleash the power of data, helping us get better value from the care delivered by health centers and delivering on President Trump’s vision for healthcare.”

“Improvements in information technology will enhance the patient and provider experience as health centers continue to deliver high quality primary care in underserved communities across the nation,” said HRSA Administrator Dr. George Sigounas. “President Trump is determined to support and improve the ability of health centers to work together and deliver value-based care.”

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I sat down with Charlie Greenberg, a respected healthcare industry veteran and an expert in point-of-care (POC) marketing, to discuss current trends in healthcare marketing. It’s a topic Charlie knows well, having worked for more than 30 years in the industry with giants like Saatchi & Saatchi, Wyeth, and Merck. Charlie currently serves as a media and marketing consultant, so he spends a great deal of time thinking about the ways brands can improve their reach and maximize their return on investment.

Q: How has healthcare marketing changed during your time in the industry?

A: Market research on patient population profiles and their attitudes toward treatment options has become increasingly more sophisticated. We no longer focus only on demographics and affinity interests, but now incorporate attitudes toward treatment options, healthcare status, and relevant multicultural distinctions within an overall target universe.

Paid media in the marketing mix has embraced this more sophisticated market research by employing greater targeted media tactics. This is not only a function of the evolution of digital media but greater opportunities within the point-of-care arena and the availability to refine how mass media can reach a target audience.

Q: What's the biggest thing healthcare marketers aren't doing that they should, or that they should be doing more of?

A: Good marketers set themselves apart from the pack when they are willing to make bold decisions and address the marketplace by shaping customer thinking. Adopting a mindset of “test and learn” around how marketing dollars are spent needs to be better embraced. Short-term thinking often leads to stagnation and missed opportunities.

Secondly, marketers should also be investing more in communication which has the goal of building health literacy. This will not only support the ability to shape consumer thinking, but health literacy campaigns have been shown to lift the efforts of branded commercial campaigns when the two messages are running together.

Q: What effect can point of care (POC) have on the overall media plan? What benefits can brand managers and media planners realize from adding this channel to their mix?

A: Adding POC to a plan will increase the ability to laser target reaching prospects and patients. This complements the efforts of other tactics within the plan. Secondly, POC offers a guaranteed ROI, which also enriches the promotional effectiveness of the overall marketing plan.

Q: Why is healthcare personal to you?

A: It is rewarding to be able to feel a sense of achievement from launching that new snack food item on shelf, introducing a new car model or driving purchases of yet another shade of red lipstick. However, healthcare marketing offers a benefit of knowing that you are helping people understand health conditions and offering treatment to increase their quality of life.

Q: What’s your favorite thing about being a New Yorker?

A: New York City offers real mobility since it is one of few places in America where you have the option to walk to get to your destination rather than being tied to your car.

Linda Ruschau

In early June, PhRMA released its first-ever television ad as part of its Let's Talk About Cost campaign, which has previously released print, digital, and radio ads. The ad aims to “reaffirm our commitment and generate more conversation about solutions to the challenges patients face affording their medicines.”

With heightened discussion in recent times surrounding drug prices – including the US District Court's ruling on price disclosure in DTC ads and pricing trends data from Rx Savings Solutions – PhRMA's Let Talk About Cost campaign helps create transparency and encourages open “dialogue on how we can make medicines more affordable for patients,” stated their news release. According to the trade association, the campaign helps “put a spotlight on the role insurers and middlemen like pharmacy benefit managers play in determining what a patient pays out of pocket for their medicine.

“Research shows that on average, 40% of the list price of medicines is given as rebates or discounts to insurance companies, the government, pharmacy benefit managers and other entities in the supply chain. These rebates and discounts exceeded $166 billion in 2018 alone and are growing every year.”

The article's author, Priscilla VanderVeer, Vice President, Public Affairs with PhRMA, stressed the importance of focusing on “changes, like reforming the rebate system in Medicare Part D, that can lower patients’ out-of-pocket costs, improve access to cutting-edge treatments and cures, and drive competition to help bring down costs.”

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Earlier this month, US District Judge Amit Mehta ruled that the US Department of Health and Human Services (HHS) “lacked authority from the US Congress to compel drug manufacturers to disclose list prices,” as per reports. In mid-June, Merck & Co., Eli Lilly & Co, and Amgen, along with the Association of National Advertisers, filed a lawsuit on the grounds that requiring pricing information in ads would confuse consumers as that pricing would not accurately reflect actual out-of-pocket costs for consumers due to different insurance plans and coverage, as well as further discounts and rebates. Mehta's 27-page ruling, which sided with this group, came out one day before the disclosure rule was to go into effect.

Mehta wrote in his decision: “The court finds that HHS lacks the statutory authority under the Social Security Act to adopt the WAC [wholesale acquisition cost] Disclosure Rule. Neither the Act’s text, structure, nor context evince an intent by Congress to empower HHS to issue a rule that compels drug manufacturers to disclose list prices. The Rule is therefore invalid. In view of this holding, the court does not reach Plaintiffs’ First Amendment challenge.

“To be clear, the court does not question HHS’s motives in adopting the WAC Disclosure Rule. Nor does it take any view on the wisdom of requiring drug companies to disclose prices. That policy very well could be an effective tool in halting the rising cost of prescription drugs. But no matter how vexing the problem of spiraling drug costs may be, HHS cannot do more than what Congress has authorized. The responsibility rests with Congress to act in the first instance. ”

Several outlets – including HHS, the White House, and AARP – released statements expressing their disappointment with the court's ruling.

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Sponsored Content

The last decade has witnessed the astounding growth and scale of Facebook and Google. Together these two power players command the majority of digital ad spend, and Amazon is increasingly making gains. While compelling targeting and efficiency benefits have led to a collective surge in brand spend with these major digital and social players, publishers repeatedly demonstrate that they can’t fully control where brand campaigns appear across their platforms.

Brands are routinely finding themselves appearing adjacent to content violating taste and tone guidelines or worse, on blacklisted sites. And despite publishers putting thousands of employees and AI support safeguards in place to weed out so-called “problem adjacencies,” this keeps happening.

The latest example of this unsafe brand environment was just weeks ago, when an active shooter in New Zealand took to Facebook Live to broadcast his 17-minute shooting spree. Footage remained on Facebook for an hour, with Facebook citing a failure of their AI capabilities leading to the accidental airing of the gruesome footage.

It’s no mystery that these publishers are playing catch-up and can’t guarantee brand-safe environments, and the same issue has been on the table for years.

And it’s becoming increasingly clear that brands have had enough.

Earlier this month, P&G Chief Brand Officer Marc Pritchard blasted the digital media industry for lack of transparency, fraud, privacy breaches, and a proliferation of violent and harmful content placed next to ads.

“We’ve been tolerant for too long,” Pritchard said in remarks to the Association of National Advertisers’ annual media conference. “It’s not acceptable to have brands showing up where opioids are being offered, where illegal drugs are promoted, where abhorrent behavior is present, or where violence is seen. The apologies are heartfelt and appreciated, but that’s not good enough.”

Prichard’s comments beg the question: With brand equity and corporate reputation at risk, are these platforms worthy of the major investments they enjoy?

How valuable is a media buy that promises hyper targeting, yet carries a tremendous risk of deviations from brand advertiser content guidelines and subsequent public relations efforts to correct and repair a maligned reputation?

At the end of the day, every dollar spent in the digital and social sector represents a dollar that isn’t going to “traditional” media. And yet traditional media channels such as TV, print, and point of care (POC) guarantee brand-safe ad placement and have a solid track record of delivering on agreed-to adjacencies.

POC media in particular allows brands to enjoy the halo effect of an implied endorsement of a healthcare professional. Offering custom, curated content alongside prestigious medical and patient advocacy organizations and award-winning education also presents an important opportunity.

Simply put, POC media plans can be targeted without the risk.

Time is running out for digital and social publishers to make amends, and advertisers are beginning to put their money where their mouth is. In 2017, P&G ceased all YouTube ad spending until the publisher could guarantee safe adjacency for P&G brands. Perhaps this time marketers will join to pull back their marketing spends to demand safe adjacencies.

In the meantime, “traditional” media such as POC will continue to deliver the right adjacency at the right time with definable results. Shifting the media channel allocation mix to include POC for health brand marketing spend is an easy case to make.

See the value that POC can bring to your channel mix in our new whitepaper.

Traver Hutchins

Every year, events like South By Southwest and Mobile World Congress bring us new technology innovations that have the potential to fundamentally reshape a marketers’ playbook. This year was no different, as pharma marketers in attendance in Austin and Barcelona saw a range of technologies from brands like AT&T and Google.

But what technologies from these conferences are likely to have the most impact on pharma marketing in 2019 and beyond? There are four, in particular, that stood out to me.

Every telco is promoting the arrival of 5G, which promises to give consumers speedier data connections up to 100 times faster than 4G. (Even the President seems excited about the potential here.) This was on display at MWC and SXSW, with companies like Samsung and Huawei making 5G the centerpiece of their presentations and exhibits.

For pharma marketers, 5G has incredible potential. Digital video marketing is a nascent and growing channel for pharma advertisers. As the smartphone has now become the first screen for consumers, 5G data speeds can deliver higher definition video content more effortlessly, enabling a more consistent and better quality experience. Faster speeds also means marketers will be able to leverage more creative video formats, like AR and VR, without worrying about buffering or load times affecting the end-user. In fact, a study by Verizon Media found that one-third of advertisers believe 5G’s top benefits will be “better consumer experiences” and the opportunity to “use new or additional creative formats.”

Robots

At this year’s MWC and SXSW, robots was one of the most-discussed topics. This is unsurprising, since — over the past couple of years — they’ve become a focal point across so many industries. There are countless ways they can make a wide range of daily tasks more seamless. And pharma is no exception.

Most important for pharma marketers is how robots can help them interpret relevant consumer data, allowing them to develop stronger and more effective marketing campaigns. A study by Econsultancy and IBM found that 33% of top marketers believe that having the right data collection technologies is the best way to help understand customers. So once marketers have the data they need, they can create the right messaging and figure out the best ways to reach their target audience.

Another way robots can be beneficial for pharma marketers is by boosting inventory. And as demand grows for pharmaceuticals, robots will take on a more prominent role in the space. According to Grand View Research, global pharma robot market growth will reach $430 million by 2025. So if robots can produce pharmaceuticals more quickly, there will ultimately be less downtime in factories. This means lower lead times, happier customers and — most importantly — more marketing opportunity.

Health-tracking technology

We’ve seen an evolution in the number of health-tracking devices over the past decade or so. This has positioned them as something worth paying close attention to. And if this year’s SXSW and MWC conferences are any indication, they’ve already made the jump to the next level. BCC Research found that health self-monitoring technologies — such as Fitbit and Apple Watch — will reach almost $72 billion by 2022. This growth is huge. But for pharma marketers, why does it matter?

This boom actually opens up a whole world of marketing potential. Most health-tracking devices are connected to apps on personal mobile devices. And as you likely know, where there’s mobile, there’s data. So marketers can actually use any of this data to target consumers on a personal level. From there, they can share articles and offers based on their health and habits. It’s important to make sure marketers aren’t violating any privacy laws — like last year’s newly-implemented GDPR restrictions. In addition, marketers have the opportunity to advertise directly on health-tracking devices. If people are using them all the time, consumers are likely to see any ads that show up on their device. And if they’re relevant to them, there’s a good chance they will interact with them, as well.

AI and marketing structure

AI is here to stay. And it’s having much more far-reaching consequences than creating driverless cars or worker-free convenience stores. AI is disrupting the way we view creativity, solve problems, and fabricate and test marketing strategies and materials.

The adoption of AI will have a major impact on the organizational structure of marketers, as well as how they go about getting their jobs done. And while AI has been on the radar for a while now, MWC and SXSW really illuminated the need for marketers to become more savvy on the AI front. This includes training teams, adopting solutions, and becoming more comfortable with what an AI-powered marketing industry will look like. When it comes to pharma marketing specifically, the possibilities are endless. AI will continue to influence medical and pharma research — including diagnoses and treatments. Moving forward, it’ll play an increasing, unique role in the way pharma marketers conduct their business.

There are plenty of trends that pharma marketers can take away from these two events. Among the many topics at them, I found 5G, robotics, health-tracking technology, and AI to be most important for pharma. It’ll be fascinating to see how these four areas grow and become embedded into pharma marketing campaigns moving forward.

Renee Martin

Health and wellness, pharmaceutical, and medical-device providers must navigate an ever-evolving and consistently complicated healthcare landscape. Agencies (and corporate marketers) serve a key role in helping their clients problem solve, understand their challenges, and identify critical success factors.

How is this best accomplished? Through the power of thorough, intuitive and intentional listening, and strong engagement – with both the client and consumer.

It’s critical to tap into that certain something that bridges the gap between what agencies (and corporate marketers) think they know and what a client (or brand manager) needs to understand. The reverse is equally true. What does the client (or brand manager) and consumer know and what do we as agencies need to understand? It can only be arrived at through intentional, deep listening. And from that, valuable insights result. Answers rise to the top. Incredible ideas and campaigns are born. If you're an in-house marketer, this means listening to your team and to your end consumers.

I’d argue that much of the best creative work and constituent engagement is accomplished by listening to, understanding, addressing, and integrating human emotion. You need to know what consumers feel to know how to reach them. It’s critical in today’s competitive marketing landscape, a chilly land of technology and data.

Listening Builds Communication

Communication builds patient, caregiver, and healthcare professional engagement. Engagement is the new currency for building sustainable brands.

Good communication, brought by attuned engagement, is a giant step away from frequently asked questions and data-driven answers. It is not time-consuming, but rather a deal closer. It is what sets you apart from the competition and, ultimately, what builds the bottom line.

Listening Builds Trust

Trust is as important as price for today’s patients. When we understand that today’s patient is motivated by trust and that it is just as important as price, we see a level playing field. We understand that, when all things are equal, the deal breaker could be due to a lack of trust resulting from our own inability to effectively tune in.

“The Art and Value of Good Listening” – an article published in Psychology Today – declares that listening is an art, but that good listening also depends on gauging the mood (and mindset) of your audience. Is the patient / caregiver upset? Are they fearful? If tapping into human emotion requires listening, it also requires compassion and understanding.

Beyond Listening: Emotional Branding

Effectively listening to our audiences on an emotional level involves knowing what to listen to. We need to identify the aspect of the consumer's life that requires a solution. Then we need to understand the emotion behind this and link the product or service in a way that is emotionally relatable.

Emotional branding insists on forging an emotional connection between products or services and the consumer. Those connections can create brand loyalty among consumers. The emotional connection has to be positive and it always has to be relevant. It is either identifiable to consumers or represents something they believe in.

“This medication helps migraines,” for example, is not as emotionally connected as, “This medication will help your migraine, so you will be able to spend more time doing the things you love.”
UPS does not simply deliver packages. They deliver happiness and dependability.
Nike insists that we aspire to greatness – that we just do it. We may not always see greatness in ourselves, but it is something most of us would like to aspire to. Therefore, we identify. With health and wellness, pharmaceuticals, and medical devices, we are inviting people to regain health, to take back their livelihood, and to feel better.

A medical device may keep a patient out of the hospital, which falls in line with the new, value-based care initiatives and the merit-based incentive payment system. And a physician or medical office manager may have an emotional response to this type of marketing – better patient care and adhering to government regulations in a single move.

Branding: What Science Says About Engaging People

According to research and information gathered by The New York Times and Content Marketing Institute, 92% of consumers respond to advertising that feels like a story. Additionally, the human brain can process images or graphics 60 times faster than words. Taken together, this information suggests that a story with disruptive images is our best bet when marketing to potential customers. If we can tap into human emotion using these two mechanisms, we have an excellent starting point.

We gain trust by listening and good communication. We learn where consumers are on their respective journeys, and we deliver what they have asked for or what they need to go forward.

We learn to bring consumers in by allowing our brand to tap into human emotion.

Businesses that effectively engage also do so through value creation, rather than revenue extraction. They provide their audience with something meaningful beyond a sales pitch – an emotional appeal, a smart end-to-end experience, great content that is relatable on an emotional or real-time support level.

Six Strategies to Help Build Trust & Engagement

Relating to your audience begins with understanding them and how they differ from each other. Take the time to see the differences in your audiences, segment them, consider what drives each of them to “raise their hand,” customize your message, and take action. Then engage with them. Our marketing must be organic and customizable to reflect a personalized approach.

Remember, we no longer live in a business-to-consumer world. Given today’s digital landscape, it is a consumers’ market, and they hold all the power through engagement.

Here are six basic strategies to help you improve engagement:

Understand your audience through segmentation and persona development to gauge where they are in their journey. Customization is key. We cannot merely market a package. We have to market customized solutions. Further, we need to make it obvious to the patient, caregiver, or healthcare provider that we are tuned in to their specific requests. We understand that their goals or needs are unique and deserving of our laser-focused attention. Remember, no broad strokes! Segmentation is probably as broad as we can go. In other words, optimal marketing strategies must categorize patients, influencers, or clinicians by demographics and behaviors.
Create educational value as defined by each audience; there is no such thing as a successful “one-size-fits-all” approach. Education means it is our turn to speak. We have heard what the patient, caregiver, or healthcare provider has to say. We understand the need. We are not merely providing a customized solution. We are educating on how this solution will work and how it will propel them forward and closer to their goal(s). Clients and product managers – AND CONSUMERS – want solutions. They also want to understand how things work. They demand one-on-one connection, and each connection will be customized to run parallel with their need.
Become trusted advisers by looking out for our audience’s needs. When we accurately and consistently address our audience’s needs, not just the product or service's attributes, we do a better job of reaching consumers. Take the time to draw strong connections between a patient's or healthcare provider's needs and desires and your product's or service's offerings. Act in their best interests by providing quality information. Your communications will resonate better and be more appreciated.
Develop content that anticipates questions and be in many places. Develop branded and unbranded communication, including non-personal promotions through an omnichannel approach. This affords audiences multiple opportunities to connect and communicate with your brand and the people behind it. We are easy to find. We are everywhere. Try to make sure your solutions fall before the consumer's eyes. Analyzing your segmentation demographics is an excellent way to anticipate potential inquiries and put forth the information before it is asked for.
Identify, engage, and connect with consumers via social media. Do not be afraid to reach out. Do not be afraid to study a patient’s or healthcare provider’s journey from the beginning and meet them where they are (both in their lifecycle and online) with real solutions. At the same time, we must make our presence known and our solutions easy to find. Stand out by standing everywhere – including on social.
Keep asking what consumers need, including how you can improve. We should be on a continual journey to better understand what consumers want and how to improve the solutions we offer. We can never improve if we do not engage and ask our respective audience how we're doing.

Through surveys and tuning in, we may discover that a service or product is confusing or that our campaign's messaging is lost. When we are very close to an idea – from the drawing board on – we may think that our understanding is translating well to the audience when it is not. By asking, learning, and adjusting our communications, we also improve our consumer relationships.

The Bottom Line

Everything comes back to listening, understanding, and effective communications. To discover what consumers need most, you must fire up your listening skills and pay attention to their requests and concerns. Understand where they are on their journey and what is preventing them from reaching the next level.

Through attuned engagement and understanding, we can address consumers’ needs in more effective ways and bring our brands greater success. By carefully listening, we can tap into human emotion and imbue our marketing solutions with a greater chance of penetrating.

It is incumbent on us as marketers to help each healthcare practitioner, patient, or caregiver feel like we are speaking directly to them. Through smart segmentation and marketing customization, we can improve our ability to establish emotional connections and drive engagement.

Kim Carpenter