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30-Year WPP Veteran, Stacey Singer, Launches Consultancy

April 9, 2019 0

Stacey Singer, an agency growth specialist of 30 years, recently announced the launch of her own independent agency consultancy. Having left her post with WPP, where she most recently built and managed their global Client Satisfaction Center of Excellence, Singer told DTC Perspectives that she identified a growing need to help better serve agency accounts and thus led to her new venture. Her eponymous consultancy will help agency clients develop the skills and behaviors required to retain and grow their businesses, as well as provide advisement on areas of vulnerability and how integrating proven techniques will lead to immediate improvements and long-term gains.

According to the press release, Singer said, “Agencies dedicate tremendous resources to winning new business. They have pitch teams, consultants, dashboards and best practices, but few agencies commit the same resources or rigor to retain and grow that business. This practice is particularly unfortunate, as nothing hurts an agency’s morale and bottom line more than the constant cycle of pitching, winning, losing and re-pitching business.”

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DTC in FocusDTC NewsGuest ColumnistUncategorized

The Best Marketing Strategies for the Pharmaceutical Industry

April 9, 2019 0

The pharmaceutical industry is one of the most powerful sectors in the United States. The United States government has long realized how much of an influence the industry has had since its origin over a century ago and has regulated the industry as such.

Pharmaceutical companies' largest expenses are research and development costs, which typically range from tens of millions of dollars to several hundred million dollars. With such substantial costs, companies have dedicated more time and energy into developing creative marketing strategies to attract additional consumers.

Here are some of the best marketing strategies that the pharmaceutical industry has seen thus far.

Lobbying and TV Advertisements

Did you know that the United States and New Zealand are the only two countries to allow pharmaceutical companies to advertise their drugs directly to consumers? In the United States alone, pharmaceutical companies have spent countless billions of dollars in order to maintain the ability to advertise directly to consumers over the years. Although lobbying costs are not technically considered marketing expenses, they have a significant effect on direct-to-consumer advertising and, therefore, correspond with advertising expenses.

Although direct-to-consumer advertising in the pharmaceutical industry has several benefits for consumers, it is important that these ads instruct consumers to see physicians prior to deciding on their own that they need to take drugs that are advertised directly to the public. In order to prevent any complications with the medication and to build reliability between consumers and the company, direct-to-consumer advertisements should always encourage consumers to check with their doctor before taking a new medication as well as accurately describe the drug and its purpose.

In 2017 alone, the pharmaceutical industry spent over $6 billion on advertising in direct-to-consumer fashion in the United States. Without lobbying, the government would likely have shut down this form of advertising in the pharmaceutical industry. The industry’s unique ability to keep the direct-to-consumer channel open, along with persistent and coordinated lobbying efforts, make DTC advertising one of the most powerful marketing strategies in the industry.

Drug Discount Cards

Few places outside of the pharmaceutical industry offer coupons that reduce the cost of goods purchased by up to ninety percent. One of the most popular marketing strategies in the industry is the use of drug discount cards. Drug manufacturers work with pharmacies to provide consumers substantial discounts. In return, manufacturers give pharmacies a portion of the original purchase price in exchange for accepting less money directly from consumers.

Pharmacies support discount cards because they encourage people to spend more money on non-drug items inside their stores. In addition, pharmacies that do not accept discount cards have been known to consistently miss out on business in their local markets because the cards have been so widely adopted. Discount cards are both useful and convenient and have therefore been a largely successful marketing tool for the pharmaceutical industry.

Content Marketing

Content marketing is a relatively new form of marketing that has taken the world of business, not just the pharmaceutical industry, by storm over the past few years.

Rather than paying for advertisements that blatantly push messages such as “Buy me now,” content marketing involves authoring helpful guides and blog posts that help consumers learn new information or otherwise offer them something that is completely free of charge.

Content marketing is especially important in pharmaceuticals because it helps build customer loyalty. Most people look up information related to pharmaceuticals when they are concerned about themselves or loved ones due to an illness or medical condition. Accurate and informative guides help build a sense of trustworthiness between the consumer and the company. Connecting with consumers at such significant and emotional times is a solid way of building loyalty to the pharmaceutical company.

Caryl Anne Crowne

DTC-In-Perspective by Bob Ehrlich

DTC in Perspective: Chantix Goes Slow Turkey

February 22, 2019 0

I have been in the DTC business a long time. After seeing the excellent Ray Liotta ad I might have predicted the next version would use Joe Pesci or Robert De Niro. Chantix instead cast a wild turkey as its star. Who says DTC can’t be creative?

Bob Ehrlich
“Chantix breaks out with the creative…”
-Bob Ehrlich

In what will be a very memorable spot Chantix takes the “cold turkey” expression literally by casting a turkey to represent a person who quits smoking with Chantix. The story line is that Chantix allows you to gradually quit smoking by decreasing the urge and thus you don’t need to go cold turkey but go slow turkey as the spot is named. In a world where much of the DTC Ads have become boilerplate style, Chantix breaks out with the creative device here. Sometimes using a character to represent a brand is risky. It works well when we get an Aflac Duck. The question a brand and agency must wrestle with is will using a character diminish the serious nature of an Rx drug.

For DTC we have had a number of such character representations. Digger for Lamisil, the walking bladder for Myrbetriq, a dancing stomach for Prevacid are some DTC examples. The risk is that patients who suffer from disease may not like seeing their problem in character terms. Some diseases are clearly inappropriate for creating such treatments. I doubt cancer ads would contain a singing Lung.

For Chantix I love the use of the turkey. After seeing so many testimonial ads in DTC, it was certainly attention getting to see a turkey sitting by the pool dumping its ashtray. The ad was so different from Ray Liotta that I had to go back and make sure I was seeing correctly. Yes, that was Chantix.

Sometimes an attention getting character might have stopping power but dwarf the message. In this case the Chantix story still came through well and the creative just replaced a human with the turkey in situations like lounging by the pool or mowing the lawn. I give Pfizer a lot of credit for approving a story board so different from the traditional user testimonial. Ray Liotta was very effective but so is the turkey. The agency should be applauded for recommending it as it is not always easy to bring something so different like this to the client.

My concern is that Ray may want to whack the turkey for taking over as spokesperson. A Goodfella hates rivals. I do not know how long this turkey creative can last. After all there is no saying like cold squirrel or cold cow. I am afraid the pool out potential may be limited but that depends on the acting range of the turkey. That said if the turkey is meant to get potential Chantix users to get engaged this ad will do that very effectively.

Bob Ehrlich

Conference NewsDTC AwardsDTC National

DTC Perspectives Announces 2019 Top 25 Marketers of the Year

February 12, 2019 0

DTC Perspectives, the leading forum for direct-to-consumer (DTC) advertising thought leaders names its 18th Annual list of the “Top 25 DTC Marketers of the Year.”

This year’s class will be honored during a joint ceremony dinner recognizing the 2019 Top 25 DTC Marketers and Hall of Fame class on the evening of April 16 sponsored by PatientPoint, at the 2019 DTC National taking place in Boston. It includes representatives from more than 15 different manufacturing companies, with each marketer championing both the interests of the patient and brand.

“PatientPoint and I congratulate the 2019 Top 25 DTC Marketers of the Year. These industry leaders have positioned their brand as true partners to patients throughout the care journey with innovative solutions that enrich the entire healthcare experience. We look forward to honoring their impressive achievements at the DTC National Conference and partnering with them on continued success,” says Linda Ruschau, Chief Client Officer of PatientPoint.

The Top 25 DTC Marketers of the Year for 2019 are…

  • Janice Adewuyi, Director of Product Management, Aptensio XR®, Rhodes Pharmaceuticals L.P.
  • Christa Albeck, Patient Marketing Director, XELJANZ®, Pfizer, Inc.
  • Matthew Arm, Associate Director, Multi-Channel Promotions, Merck & Co.
  • Anthony Atanasio, Senior Marketing Manager, Lytics Marketing, Genentech
  • Gail Boyden, Associate Director, IO Consumer Marketing, AstraZeneca
  • Becky Chow, Director, Consumer Marketing, NUPLAZID® (pimavanserin), ACADIA Pharmaceuticals Inc.
  • Tara D'Andrea, Senior Director, HCV DTC/P Marketing, Gilead Sciences, Inc.
  • Sarah Dooley Durant, Associate Director, Vivitrol Consumer Marketing, Alkermes, Inc.
  • Raymond Foust, III, PhD, MBA, Director, Diabetes Marketing, Boehringer Ingelheim
  • Antoine Grand-Clément, Consumer Marketing Manager, GSK
  • Gisell Guzman, XELJANZ Patient Marketing Team, Pfizer, Inc.
  • Debra Hagan, Director, Psychiatry Marketing, Allergan
  • Tejal Jhonsa, Product Manager, Opdivo Patient Marketing, Bristol-Myers Squibb
  • Jenna Kelly, Director, I&I Consumer/Patient Marketing, Celgene Corporation
  • Fleur Lee, Director, Banzel, Eisai Pharmaceuticals
  • Christy Lopé, CHANTIX Consumer Marketing Lead, Pfizer, Inc.
  • Eric Nelson, Marketing Director, Women’s Health, AbbVie
  • Tom Nowlin, Director, U.S. Oncology Consumer Marketing, Eli Lilly & Company
  • Rhonda Peebles, Executive Director, Head of Marketing, COSENTYX Dermatology, Novartis Pharmaceuticals Corporation
  • Dan Pinto, Product Director, Consumer Marketing, Cardiovascular & Metabolism, Janssen Pharmaceuticals, Inc.
  • Betty Rhiew, Senior Director, Marketing, Biogen
  • Elizabeth Rosato, Consumer Marketing – Repatha, Amgen, Inc.
  • Delta Schonhoft, Rexulti Consumer Marketing Lead, Lundbeck
  • James Smith, Associate Director, Marketing, AstraZeneca
  • Betty Webb, Manager, Patient Marketing & Digital Health Innovation, Novo Nordisk Inc.

“These elite pharmaceutical marketing professionals are this year’s top contributors to the advancement of patient outcomes via direct-to-consumer pharmaceutical education and marketing,” adds DTC Perspectives Chairman and CEO Robert Ehrlich. “We would like to recognize the faces behind prominent DTC campaigns, because their hard work and dedication to fostering the industry is often not recognized. The awardees were selected from many worthy candidates.”

Click here to register for the DTC National Conference or contact the DTC Perspectives office at 770-302-6273.

Celebrate with the Industry's Best

Congratulate the Top 25 DTC Marketers in-person and in our publications! DTC Perspectives offers reserved tables with seating for 10 at the Top 25/Hall of Fame and Advertising Awards ceremonies as well as congrats ads opportunities in our DTC Perspectives Magazine/DTC National Conference Guide, on our website, and in Email announcements. Click here to view awards packages and congratulate a Top Marketer/DTC Hall of Fame inductee today.

Print congrats ad deadline: Friday, March 8, 2018

Purchase Tables & Congrats Ads

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DTC-In-Perspective by Bob Ehrlich

DTC in Perspective: The Assault on Drug Makers Widens

January 18, 2019 0
Drug companies are under renewed attack. There is yet another new bill in the Senate to end the tax deductibility of DTC ads. The latest is from Elizabeth Warren, who will use drug companies as a campaign talking point about corporate greed. The bill would end all forms of tax benefits for any media type.
We also see the House scheduling hearings on how drug companies price their drugs. We can expect harsh treatment of drug CEOs who will be called to Washington to be attacked by Congress in public televised hearings. Another idea floating in Congress and HHS is to peg US drug prices to Europe. Congress will say that this is a fair way to set US prices as Americans should pay no more than the Germans.
Bob Ehrlich
“DTC could be a sacrificial offering to the critics…”
-Bob Ehrlich
According to a study by Deloitte, all this vitriol is happening as R&D return on investment is down to a paltry 1.9% last year. So critics want drug companies to develop drugs to fight disease with price controls and crappy returns on their R&D investments. Drug companies are in a no-win situation. The critics say drug makers make too much money and are raising prices too fast based on inflation. Yet the data shows they are having trouble recovering R&D investment. Critics want drug companies to improve health outcomes but want to prevent drug companies from free market pricing.
Drug makers are an appealing political target for both parties. Some of the criticism is valid. Drug makers have taken prices up too far too fast. A little prudence is called for if drug makers want to prevent the political hammer from dropping. On the other hand, their dilemma is how to fund that R&D while still providing decent returns to investors. Europe and Canada are getting a free ride off of American consumers. No one expects the average Parisian to volunteer to pay more. Riots in Paris over fuel costs show no chance Europe will help out on drug price support.
So here we are. What is the solution to this mismatch in drug prices? Clearly drug companies are risking draconian measures from Congress. As Dems turn left you can bet they will attack drug companies more vigorously and might even get Republicans and Trump to agree. Nothing will happen quickly but this time may be different. I am afraid it is entirely possible that DTC could be a sacrificial offering to the critics who vastly overestimate the power of DTC ads to create demand. DTC works but is not the driving force in building brands. That advertising, however, is the public face of the drug companies and critics blame DTC for raising demand for premium priced drugs. They think that keeping the information from consumers will keep prices down.
Congress and HHS will try to cajole drug makers to slow down increases. They have already decided to mandate list price be part of consumer ads. Next may be ending the tax deduction for advertising. After that price controls are a real possibility. The Democratic candidates for the 2020 Presidential election will all have a plan to nationalize health care and they will all include price controls in that platform. With Trump as anti-industry as they are we can expect violent agreement that drug makers will be targeted.
So to my colleagues in DTC advertising, buckle up and expect new regulations geared at making DTC harder to execute. I do not expect a ban, but FDA and Congress will be looking for ways to make all our professional lives more difficult.

Bob Ehrlich

DTC in FocusDTC NewsGuest Columnist

How Do Physicians Really Feel About Technology? Survey Says…

October 31, 2018 0

Sponsored Content

Pharma’s presence in patient engagement solutions at the physician’s office has often been a hot topic for debate. Are physicians turned off to these products when they see pharma ads? Is there ever a case where pharma ads are acceptable? How do patients feel? You might be surprised…

Obviously, physicians’ opinions play a critical role in how PatientPoint® in-office solutions are developed, as we have to ensure they are actively using our platforms and find them helpful once in market. To find out more, we partnered with the Digital Health Coalition to conduct proprietary research into physicians’ attitudes and behaviors toward patient engagement technology.

The results demonstrate that patient engagement solutions at the point-of-care can provide pharma with an opportunity to drive better physician-patient discussions, insert their brand into those discussions and ultimately help educate on better treatment decisions. This is an unprecedented and unique ability to impact both audiences at that magic moment when treatment decisions are being made.

Physicians are actually excited

So how do physicians feel about having technology in their offices? To borrow from Tim McGraw, “they like it, they love it, they want some more of it.”

  • In fact, 44% of physicians surveyed said they find new technology that engages patients exciting – and that they use it as much as they can. More than a third feel they need it to remain up-to-date.

Physicians want to be on the cutting edge of healthcare. They value new technology’s role in enhancing the patient experience and providing better information to their patients. The key is not technology just for technology’s sake – it has to help providers be more efficient or provide better care.

But that still leaves the question, “Are physicians comfortable with pharma being present at the point of care?” According to our recent research, the answer is: YES!

  • When asked if they would be interested in receiving free digital engagement solutions that include highly contextual, tailored content along with pharma-branded advertising, three-quarters of surveyed physicians said they’d welcome it.

Note the emphasis on tailored content. Physicians are consumers as well as healthcare providers. Sticking ads in their office with no real benefit to them won’t sit well. However, when you leverage highly targeted, specialty-specific education, pharma brand messages are not seen as intrusive, but rather part of a personalized information package that helps providers and patients make better treatment decisions.

This is just a snippet of a broader study – and we are happy to share the learnings. 

You’re welcome to dive deeper into the study results by visiting http://patientpoint.com/resources/patient-engagement-technology/

 

 

Linda Ruschau

DTC in FocusDTC NewsUncategorized

Let’s Have an Honest Conversation About DTC Pharma Advertising

October 31, 2018 0

The other night I tucked my nine-year-old son Caleb into bed and closed the door. I walked by his room shortly thereafter expecting him to be out cold. Instead, I heard him belting out “Tresiba rea-dy” in tune with the TV commercial we had seen that day. A few days later I took him for a check-up with the pediatrician and was floored when he requested a prescription for, you guessed it, Tresiba.

Okay, it’s possible I made that last part up, but I’m thinking that the song stuck in Caleb’s head wasn’t the brand recall Novo Nordisk had in mind when they contracted for that jingle.

Whether it’s catchy ditties, adorable characters like Xifaxan’s gut guy, or celebrity endorsements, pharma marketers have been pulling out all the stops to make their brands stand out. While these efforts are unquestionably splashy and often memorable, they don’t necessarily resonate with the right audience. Of course, TV commercials like these have drawn scrutiny from the wrong audience, serving as a magnet for criticism of DTC advertising from the American Medical Association, patient advocacy groups, and Congress.

Pharma TV spend crossed the $4 billion mark for the first time in 2016 and rose even higher in 2017 per Kantar Media. It’s clearly not going anywhere any time soon, but with TV spend still dwarfing digital and other media spend, there is a real opportunity for pharma to get it right on DTC by taking advantage of far more targeted platforms.

TV drug commercials are inevitably going to be irrelevant to a large majority of the audience. Even a commercial involving a highly prevalent disease such as diabetes will be applicable to a limited portion of viewers. And most advertised drugs are for conditions with far smaller patient populations than diabetes. Broadcasting these ads to a large, general audience leads to the exact issues critics point to, namely, higher drug prices to offset huge marketing costs and the mass hypochondria caused by self-diagnosis. Yes, there are some who will gain awareness of a condition they or a loved one may in fact be suffering from or a treatment option they should consider, but most who see these commercials will not.

DTC ads do play an important role in fostering an important doctor-patient conversation around treatment options. Utilizing these ads in the right context is the best way to counter anti-DTC sentiment.

  • Digital media –Splashing billions of impressions all over the Internet would be no better than the mass marketing of TV. However, both endemically-aligned contextual campaigns and wider data-driven targeting offer far less wasteful DTC options.
  • Search – Search engine marketing will continue to be a tried and true method. It cuts out the fat by gauging the user’s interest off the bat.
  • Social Media – Various social platforms offer excellent targeting options to reach those following an organization or individual tied to a given condition. Pharma is certainly still learning how to play within the limitations of social, but with a growing number of people getting health information from social, there’s no doubt it’s a place pharma will want to be.
  • Point of Care – There are numerous in-office opportunities that allow for targeted, relevant consumer advertising. Such efforts are particularly valuable in specialty offices.

A side benefit of all of the above is that they are immediately actionable – for digital tactics, users can interact with ads or click-through to learn more about a given treatment. For point of care, of course, they can have a conversation with their healthcare provider on the spot.

Each of these avenues avoids the chief criticism of DTC advertising mentioned above. Promotion through proper channels to an audience primed for relevant messaging will cut back on excess doctor’s appointments and will help reduce the burden on the healthcare system. Reallocating budgets and shifting to more focused options will mean efficient marketing budgets and would ultimately help reduce healthcare costs.

Despite mounting pressure to eliminate DTC advertising, pharma can still provide real value for patients in the right environments to help them make important health decisions. There is too much at stake for the pharma industry and other key interests for an all or nothing outcome. In the end, it may come down to more appropriately-targeted, below the radar approaches that serve as a compromise. While Caleb may still get that Tresiba jingle stuck in his head, at least it will be while researching the merits of basal insulin instead of in the middle of watching a Bulls game.

Aryeh Lebeau

DTC in FocusDTC NewsGuest Columnist

SWOT Analysis: Virtual Reality Destined to Become Successful Marketing Platform

October 31, 2018 0

Zen Chu, MD, of Accelerated Medical Ventures and senior lecturer at MIT Sloan School of Management, said “We’ve got so many new technologies and redesigned experiences impacting both the value we deliver and also the value patients are getting from healthcare.” A SWOT analysis shows that virtual reality (VR) is a novelty that will be become another successful communication marketing platform in the pharmaceutical mass media mix. From the assessment below, the benefits of the strengths and opportunities of VR marketing techniques substantially outweigh the challenges of the weaknesses and threats, which inevitably will decrease over time.

Strengths

Marketing approaches are enhanced with VR by providing more innovative information with immersive storytelling. Patients are exposed to the impacts of their medications by viewing colorful three-dimensional (3D) videos instead of reading dull, long-winded, monotonous drug information in black and white printed materials. The immersive Mechanism of Action (MOA) animation of VR is a full circle video experience with 3D images that provides narrative while stimulating the senses. Spatial audio allows patients to hear information emanating from all directions that result in a blended experience. In-depth sensory perception with VR creates empathy with an inspirational message that takes patients on a journey, captures their full attention, draws them into an encounter with pharmaceuticals, and coerces them into exploring their options while ensuring a memorable experience. Patients are motivated to become engaged with drugs in a resourceful way immediately after a VR pharmaceutical experience, which strengthens the value of VR as a marketing tool.

Weaknesses

Pharmaceutical marketers encounter challenges with the promotion of 3D imaginary visuals, the possible high cost of required equipment, an increase in manpower budgets and the subsequent lower marketing budgets and the lack of technology acceptance. Often times, VR marketers are confronted with the seemingly futile struggle to overcome the fantasy versus reality theme. 3D visuals bring the patient into a conceptual, fantasy world of a fictional environment as opposed to augmented realty (AR) which delivers a physical, real-world environment including sound, video, and graphics generated by computer technology. The cost of the necessary head gear can be expensive which could hinder marketing strategies that would promote it as an easily attainable communication vehicle. The patients’ perception is that it is not worth their investment of time and money considering the high probability of the insignificant value of 3D visuals that are not operational on such devices as iPads. VR campaigns necessitate more staff, such as artists, animators, and copywriters, which escalate the cost of manpower while decreasing the available funding for marketing efforts. Modern technology lacks human interaction in a manner that patients believe is detached and aloof. Simple, high-tech tools such as glasses lack warmth and are devoid of personal touch. Combining medicine with technology is regarded by some patients as standoffish and distant.

Opportunities

The promotion of products with branding, growth of empathy awareness through an imaginative experience, education, and training are all marketing opportunities that engage patients and doctors while increasing sales, drug compliance, and the number of new drug users. VR produces branding by supporting products that stimulate creativity and evoke senses which results in a unique, complete experience rather than merely a visual presentation. Empathy is built when doctors reaffirm to themselves that they chose their medical careers so they could positively influence humanity. VR serves as training and education for doctors with the optimistic outlook that any mistakes would occur during these simulated patient encounters and not in the real world. By presenting in videos the negative impacts on the quality of life with drug non-compliance, doctors are encouraged to prescribe certain therapeutic medications to keep patients on drug therapy for a longer period of time. This not only equates to improved health, but also an increase in sales and market penetration during growth and maturity drug cycles.

Threats

VR marketing strategies are susceptible to exposing the missing value or content, glossing over the specific benefits and risks of the drug, depicting non-compliance with the FDA, and focusing on a flashy fad. The VR experience is an entertaining simulation, but does not always include the requisite information. Striking graphics can overshadow the content. The patient remembers the glitzy presentation while recalling the data as lackluster. As one pharma marketing executive at Ferring Pharmaceuticals said, “Content is king and experience is queen.” Patients may lose interest in the health topic and be unable to identify the positive and negative impacts of the drug after viewing the video for only a few seconds if there is not an angle to keep them focused on the content. Messages are sometimes camouflaged by a great deal of pizzazz; however, they need to be a true representation of the drug that shows compliance with FDA approval and specific industry regulations. Many patients are under the impression that glasses can be easily replaced with the next innovation which may be less associated with a passing, showy toy, and more connected with a modest health apparatus that has longevity in the industry.

In summary, a SWOT analysis outlines the positives of VR pharmaceutical marketing which surpass the negatives. In the near future, challenges will be overcome in at least three ways:

  1. The cost of equipment is decreasing as demand increases and less expensive, more sleekly designed head gear bursts onto the market;
  2. Technology acceptance is growing immeasurably;
  3. More value and content is being added.

Undoubtedly, VR is destined to become the newest, avant-garde media tool in pharma that will increase patient engagement and ROI exponentially while improving patient well-being.

 

References

Bell, J. (2018). Pharma wades into the world of virtual reality marketing. BioPharma Dive.

Best ways to use virtual and augmented reality for pharma. (2017). Viseven.

Champagne, D., Hung, A. and Leclerc, O. (2018). The road to digital success in pharma. Pharmaceuticals and Medical Products.

How is the pharma industry marketing today in 2018? (2018). #TrendTalks.

Senson, A. (2015). “Virtual reality in healthcare: where’s the innovation?” TechCrunch.

 

 

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DTC in FocusDTC News

ICYMI: Frank Chipman’s Groundbreaking Tips on DTC Digital Advertising

October 31, 2018 0

A revolution in pharma marketing

Did you know?

  • 72% of patients go online to learn about their condition.
  • And 1 in 4 turn to the internet before speaking to a doctor.
  • Yet only 3% of healthcare advertising budget is spent on digital. And most digital DTC advertising is ineffective.

Are you making the most of DTC digital advertising? This summer, DTC Perspectives and MetrixLab partnered up to bring you a webinar led by Frank Chipman, MetrixLab's SVP and Healthcare Practice Leader. Click here to watch the recording of the 40-minute webinar to find out how pharmaceutical brands can benefit from this huge opportunity, including coverage on:

  1. The benefits of and growing focus on DTC digital advertising for pharma brands;
  2. Clear guidelines on how to significantly improve the impact and ROI of your DTC digital ads;
  3. A short Q&A session following the presentation.

For more on this topic, you can also read MetrixLab's whitepaper about digital advertising for pharma companies. Plus, discover some best practices for effective pharma and OTC Facebook mobile ads, as revealed in their recent study for Facebook.

 

Click here to view the original posting of this content.

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DTC-In-Perspective by Bob Ehrlich

DTC in Perspective: Consumer Price Information in DTC Ads

October 22, 2018 0
We all know the final price patients pay for prescription drugs is as complex as determining whether life exists on other planets. In no other consumer category do users have no idea what the product will cost. We all can estimate the price of a Mercedes, a four bedroom house in our neighborhood, a new suit, a jug of Tide, or a gallon of gas. We may not be exact but we would get reasonably close. Prescription drugs are unique in that an advertised product can cost $50 a month or $50000.
We would have no idea from watching the DTC ad whether that drug is the $50 or $50000 product. Even our doctor would not know because 72% say in a study by Deloitte they have inadequate price information. Congress wants to remedy that by requiring DTC advertisers to put price information in DTC ads. Consumers widely support this idea and it is from Democrats, Republicans, and Independents, at 83%, 72%, and 73% respectively. HHS Secretary Alex Azar is going ahead with the new policy of requiring price disclosure in drug ads.
Bob Ehrlich
“DTC advertisers will face a new FDA guidance on price disclosure.”
-Bob Ehrlich
Of course, that idea is fraught with problems. It is a well-meaning solution but would cause a raft of other problems. We all know the out of pocket cost of our drugs is dependent on our insurance coverage, our deductible/co-pay, formulary status, treatment protocol, and availability of similar drugs. That means you could pay nothing for a $100000 cancer drug, and more for your $100 a month depression drug. Consumers would benefit from knowing what they would actually pay, but that is not possible to do in a voice over or super on screen.
What insurers and government payers really want to do is discourage DTC advertising of expensive drugs. They think that by forcing price disclosure, the premium price drugs would be advertised less because those drug companies would face consumer backlash once price is part of the advertisement. I have wrestled with the positives of adding price to a DTC ad. I can see some benefit giving a heads up to a potential patient that the premium priced drug may cost a lot and therefore may not be covered or restricted to use after cheaper alternatives have been exhausted.
On the other hand, a patient may misinterpret that price as being unaffordable and not pursue further even though it might not cost them much in the end. I come back to the conclusion that discussing price in the ad would probably confuse consumers more than help them. If I were a policy maker I would focus on the doctor by giving them tools to determine likely out of pocket cost for their patients. They already have the patient insurance information so determining coverage status and final cost should not be too difficult to estimate.
I understand the reason insurers and government payers dislike DTC Ads for expensive drugs. It is a legitimate argument that some of these drugs might be only marginally better than cheaper treatments. DTC Ads create demand and put pressure on payers to cover those drugs. An insurer is placed in a tough position of being the “bad” guy by not covering the latest drug. While that may be a consideration, the restricting of advertising is not the best solution. Insurers need to make their case on comparative efficacy to both doctor and patient. Insurers and patients should not want to pay for drugs with minimal incremental benefit. That case is better made downstream from an awareness DTC ad.
DTC advertisers will face a new FDA guidance on price disclosure in the next few months. It will be just a super or voice over stating the list price for a one month supply. This whole exercise is political and unfortunately will not help consumers. What might help more is the drug industry decision to offer comprehensive price information on their branded web sites announced 10/15 by PhRMA. I doubt any drug maker will drop DTC over this requirement although it may give the highest price drugs some cause for concern.

Bob Ehrlich

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