6 March 2009 VIEW on Advertising THE FORUM Marketers across the board — from sponsor companies to healthcare agencies — are having to accomplish more with fewer resources while finding new ways to address target audiences. “As an industry, we are being asked to do more with less,” says Barry Lee, product director for Cumberland Pharmaceuticals. “Advertising guidance from the FDA, the Office of the Inspector General (OIG), and PhRMA, as well as limited access to physicians, have resulted in a shift from primary means of communication such as print and television advertising and customary office visits.” According to Mr. Lee, market research suggests that today’s physicians have to see 24% more patients to maintain their income from three years ago, which leaves them little time for visits with pharma sales representatives. Research also indicates that healthcare professionals are increasingly less willing to travel to meetings for medical education, preferring instead to use online resources to obtain the information. “With heightened regulatory scrutiny, increased difficulty in accessing physicians, and new system constraints, it is critically important to develop an appropriate mix of advertising strategies and execute them effectively,” he says. Abby Mansfield of Topin & Associates agrees, adding that as both agencies and clients evolve to keep up with changing markets, media, and business models, the one thing everyone needs is smart thinking — thinking that’s both strategically creative and creatively strategic. The term “creative strategist” is starting to pop up more and more, she says, and while this may not be an official title in many agencies right now, chances are there are plenty of people who could fulfill this role if one were to look, which is particularly important in these tough economic times. (To read more about developing a unified approach to creative and strategy, please turn to page 24.) The staggering global economy and the continuing focus on improving the efficiency of the U.S. healthcare system also have contributed to the streamlining of pharma adver tising, observes William Garbarini Jr., VP of the orthopedics and urology business unit at Ferring Pharmaceuticals. “As the information overload increases and marketing budgets shrink, brand teams need to be more clear and concise than ever,” he says. “Audiences don’t have the inclination to spend excessive amounts of time pulling information from an ad, nor do budgets permit the large layouts of the past.” Mr. Garbarini says Ferring’s advertising strategy is focused on fine tuning its brand messages and doing the appropriate market research to make sure those messages are getting through clearly and concisely. REFINING DTC Direct to consumer (DTC) pharmaceutical advertising has long been the subject of scrutiny and criticism from regulators, policymakers, and watchdog groups.That focus Navigating New Channels TRADITIONAL PRINT AND BROADCAST AD MEDIA FACE INCREASINGLY DIFFICULT FINANCIAL RESTRICTIONS AND TOUGH REGULATORY SCRUTINY, pushing the pharma industry to explore new channels through which to effectively and appropriately deliver messages that are of value to the physicians and patients they serve. he currents of change continue to send pharmaceutical advertising into uncharted waters. Lifesciences companies and their advertising agencies are trimming the sails and setting a new course for the future as they learn to adapt to an ever evolving world filled with new media, regulatory changes and uncertainty, budgetary constraints, and changing customer preferences. by Carolyn Gretton 7 VIEW on Advertising March 2009 THE FORUM has become even more intense following last year’s congressional hearing on the potential risks of DTC drug ads, which included pointed questions about including endorsements from celebrities and medical experts and the mention of benefits not included in the drug’s labeling. To address these and other concerns, the Pharmaceutical Research and Manufacturers of America (PhRMA) Board of Directors recently revised and expanded its list of voluntary guiding principles on direct to consumer (DTC) advertising for prescription pharmaceuticals.These principles, which originally went into effect in January 2006, are intended to guide pharma and biotech companies in producing DTC communications that appropriately and accurately convey information about medical conditions, medicines, and other treatment options in a way that’s accessible and useful to patients and consumers. The revised guiding principles that went into effect as of March 2, 2009, are part of PhRMA’s ongoing effort to enhance the educational potential of DTC communications while respecting the relationship between patient and healthcare provider. Reflecting feedback from physician groups, policymakers, and other stakeholders, the revisions address aspects of DTC ranging from healthcare professionals and celebrities featured in advertisements, to presentation of balanced benefit and risk information, to the appropriate timing and placement of advertisements with adult oriented content. (For a detailed description of the changes, please turn to page 10.). “Pharmaceutical research companies for years have voluntarily exceeded regulatory requirements for direct to consumer advertising of prescription medicines,” says PhRMA President and CEO Billy Tauzin. “Through these strengthened principles, we renew our commitment to work with the Food and Drug Administration and health care professionals to further enhance the value of balanced DTC education for consumers and patients.” Mr. Lee agrees that the new principles reinforce pharma’s commitment to provide valued education to the consumer. “As an industry, fair and balanced presentation of data should rightly be paramount in the development of advertising campaigns,” he says. Mark Mallon, VP, marketing and sales operations, AstraZeneca, notes that his company was instrumental in helping to craft the new PhRMA principles. That involvement is evident in the company’s own DTC guidelines, established in 2007, which include such measures as con ducting an evaluation of physician awareness and acceptance of new medicines or new indications prior to airing a new broadcast DTC advertisement; reviewing broadcast advertising with healthcare practitioners and patients for tone, content, and clarity of benefit/risk messages; and advertising patient assistance programs. Mr. Mallon adds that AstraZeneca is currently evaluating its promotional policies and standards to ensure its DTC practices are consistent and compliant with the new guidelines. “For example, we will begin to consistently include actor identification, including if the actor is playing the role of a healthcare professional,” he says. “Additionally, we will provide information about the importance of diet and lifestyle changes for improved health conditions in a more consistent manner across our brands.” Even before the revised guidelines were issued, many pharma companies were taking steps similar to AstraZeneca’s to ensure their DTC campaigns remained responsible and educational in tone. “The new PhRMA guiding principles for DTC have been in the works for a long time; there really isn’t much new there,” Mr. Garbarini says. “As marketers, we need to continue exercising vigilance and common sense when it comes to marketing our products to make sure the right audiences get the right messages, at the right time, around what a product can and is labeled to do.” Barry Lee Cumberland Pharmaceuticals THOUGHT LEADERS WILLIAM GARBARINI JR. VP, Orthopedics and Urology Business Unit, Ferring Pharmaceuticals,a research driven biopharmaceutical company devoted to identifying, developing,and marketing innovative products in the fields of infertility, obstetrics, urology, gastroenterology,endocrinology,and osteoarthritis. For more information, visit ferring.com. BARRY LEE. Product Director, Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company whose mission is to acquire currently marketed and late stage development pharmaceutical products and grow them through marketing to targeted,under served physician segments.For more information,visit cumberlandpharma.com. MARK MALLON. VP, Marketing and Sales Operations,AstraZeneca, a major international healthcare business engaged in the research, development,manufacturing,and marketing of meaningful prescription medicines and supplier for healthcare services. For more information, visit astrazeneca.com. BILLY TAUZIN. President and CEO, PhRMA (the Pharmaceutical Research and Manufacturers of America), representing the country’s leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. For more information, visit phrma.org. Digital media provide additional channels to increase customer reach and frequency, but not to the exclusion of print and TV. 8 March 2009 VIEW on Advertising THE FORUM While many regulators and legislators welcomed PhRMA’s proactive effort to address their concerns, others are continuing to seek more control over DTC communications. Rep. Henry Waxman, D.Calif., has said he supports giving the FDA the power to impose a two year moratorium on consumer ads for new drugs on a case by case basis, codifying the PhRMA provision that calls for an unspecified delay between the approval of a product and the launch of a DTC advertising campaign for that product.This delay is meant to encourage companies to educate healthcare professionals in a nonpromotional setting. “For any new medication or indication, there should be a time period to educate healthcare professionals prior to the start of any DTC campaign,” Mr. Lee says. “If coordination between the educational and DTC elements is properly executed, this delay should have little to no impact on DTC advertising.” But Mr. Mallon says that AstraZeneca doesn’t believe such a time referenced moratorium on DTC broadcast ads will have any meaningful impact. “We believe it’s not how long the wait is before beginning branded DTC broadcast advertising; it’s the actions a company takes before advertising in that manner that matter,” he says. “It is also important to note that a moratorium would not prevent patients from getting information — unregulated and all too often inaccurate and/or incomplete information — from potentially unreliable sources other than the manufacturer, such as materials found on the Internet.” Mr. Garbarini says the proposed moratorium could forcibly and unfairly limit Americans’ access to information that could help them. “As the flow of information accelerates, it becomes more important for consumers/patients to become their own health advocates,” he says. “The right information in the right hands, being used in the right way, is a very powerful tool that can help the healthcare community. Thwarting this availability is a mistake.” With all these obstacles, it would be understandable if some are questioning whether traditional DTC advertising provides enough of a return to justify the high cost and considerable effort needed to run the regulatory gauntlet. And studies such as the one recently published in the Annals of Family Medicine only add to the uncertainty: results showed only a small minority of patients requested a specific prescription medication when visiting their doc tors. (For more details of the study, please turn to page 9.) Data such as these could be used to argue that television and magazine ads aren’t successfully delivering companies’ brand messages. But for every study that casts doubt on the effectiveness of DTC, there is another showing that, when properly utilized, DTC remains a valuable communications tool. Mr. Mallon believes that responsible DTC advertising raises disease awareness, fosters patient education, enhances the patient physician dialogue, and helps patients understand the importance of taking their medication as prescribed. “In fact, in a yearlong survey of more than 12,000 patients who contacted AstraZeneca for information about our prescription savings programs, almost 10% of the patients cited our DTC advertisements as the reason they become aware of the programs,” he adds. TECHNOLOGY EDGES OUT TRADITION Digital and social media have transformed from bit players to central information resources for many consumers, and pharma is becoming increasingly adept at using these ever evolving tools to reach them. Bruce Rooke of GSW Worldwide says in the past when a company had a blockbuster product in a less restrictive market, its advertising agency could apply all of the traditional marketing textbook tactics and be successful. He says the game has changed: the industry is no longer in the vacuum of a flush economy, and significant product differences are fewer and finer. If the old ways don’t work as well as they used to, the answer isn’t to stop everything; instead, he says, grab the steering wheel, crank it 90 degrees, find a new road, and hit the gas. (To learn more about the prevalent challenge marketers are facing today and ways to accelerate growth of an existing brand in a more competitive market, please turn to page 20.) “More and more consumers are seeking health information on the Web, and they also want to receive information based on personal preference,” Mr. Mallon says. “Although print and television remain the primary media vehicles, as consumers rely on other vehicles we will continue to evolve our marketing mix.” “A growing percentage of our target audiences are get ting their primary — and if not primary, then secondary — information and data from electronic sources,” Mr. Garbarini observes. “I think this trend will continue to accelerate over the coming years as the need for additional efficiencies and streamlining continues.” Mr. Mallon says AstraZeneca’s use of new media is part a greater focus on holistic and integrated messaging. “In the past, there has been a great deal of focus on television; however, television drives broad awareness, and our advertising strategy has to broadly consider digital, Websites, search marketing, online advertising, and relationship marketing,” Mr. Mallon says. “It is about under standing advertising’s role across all channels.” Marketing experts Shelagh Brooke, Liz O’Neil, and Brad Davidson of EvoLogue, part of CommonHealth Consumer Mark Mallon AstraZeneca We believe it’s not how long the wait is before beginning branded DTC broadcast advertising; it’s the actions a company takes before advertising in that manner that matter. 9 VIEW on Advertising March 2009 THE FORUM Group, believe channel planning can, and should, help determine the nature of consumers’ interactions with different media.They say the information gleaned from these encounters can be used to learn about the needs of consumers and help craft relevant messages that will be seen by them in the right context. (To learn more about channel planning and its strategic imperative, please turn to page 17.) According to Mr. Mallon, an estimated 20% of AstraZeneca’s 2008 consumer marketing budget went to the digital space, up from 15% to 16% a year earlier. The money helped finance Web 2.0 tools, such as AstraZeneca’s Symbicort brand channel on YouTube, My Asthma Story (http://www.youtube.com/myasthmastory), which features videos from patients who use Symbicort to control their asthma. However, Mr. Lee says while more resources are being dedicated to online, digital, and wireless forms of communications, these new media won’t completely supplant traditional forms of media anytime soon. “Digital media provide additional channels to increase customer reach and frequency, but not to the exclusion of print and television,” he says. “The savvy marketer under stands the value in using all of these communication vehicles to produce a single minded customer focus that benefits the customer as well as the brand.” Mr. Mallon agrees that digital is definitely becoming a bigger part of his company’s marketing mix — rich media ads, Websites, sponsorships, search engines, and so forth — but it does not operate in a vacuum. “Interactivity is important to engage an audience, but it is an integrated approach that will succeed,” he says. “We accomplish this through a consumer marketing strategy with one venue directing the audience to another venue for more information.” Jonathan Kay of TNS agrees that with social media, audiences have new ways of influencing what companies talk about and how they say it. But to make the most of social media, companies need to note the topics on the minds of those talking online and the language used to discuss those topics. Conventional research reveals what a brand’s stake holders need to know, he says, but to get the message across, marketers also need to know what audiences want to talk about and how they want to talk about it. (To learn more about how to create effective messaging to support brands through social media, please turn to page 26.) While professional print advertising remains a critical strategic element, experts see new and exciting ways to integrate this advertising staple with digital marketing tools. “We have reached a new level of integration where print advertising, Web initiatives, and other marketing campaign components must weave a cohesive message,” Mr. Garbarini says. “Print advertising will continue to command a significant portion of the budget, but that will need to be aggressively supported by a strong Web presence and a broad marketing mix to ensure an acceptable ROI.” “With print advertising, it is fairly easy to target your audience, and there is opportunity to include more inform William Garbarini Jr. Ferring Pharmaceuticals Does DTC Lack Impact? ACCORDING to results of a study conducted among 168 clinicians in 22 primary care practices across three research networks within the State Networks of Colorado Ambulatory Practices and Partners (SNOCAP), DTC advertising appears to have minimal impact on prescribing habits. Out of 1,647 patient encounters surveyed, only 3.5% referenced patient inquiry about a specific new prescription medication.The rate of patient inquiry for advertised products was an evenlower 2.6%. Community health center patients, who tend to be from lower income groups, made fewer inquiries than private practice patients (1.7% versus 7.2%).The SNOCAP report theorizes that lower income patients may be less inclined to request specific medications because of high medication costs and formulary limitations. Among the private practices, the rate of medication inquiries was less than half the rate (15.8%) cited in a report five years earlier.This suggests that the phenomenon of patient medication requests is declining, which could reflect a number of factors, including reduced trust of the pharmaceutical industry and recent industry strategies focused on raising awareness around dis eases and symptoms rather than specific medications. Despite these indicators, the report says it was difficult to determine the extent to which medication inquiries were influenced by advertising. Advertising or media were reported as the proximate source of information for only one fifth of medication inquiries; however, given the ubiquity of drug advertising in the United States, it is impossible to determine the extent to which other sources of information (e.g., family, friends, Internet) were influenced by DTC advertising as well. Other predictors of inquiries about specific prescriptions included the patient taking three or more chronic medications and the clinician being female. On an interesting note, in encounters where patients asked about a specific medication, 53% of clinicians prescribed the requested brand even though a majority of them (62%) reported it was not their first choice for treatment. And almost one0quarter of physicians interpreted the overall impact of the request on the visit as positive. Source: Annals of Family Medicine, Lack of Impact of Direct to Consumer Advertising on the Physician Patient Encounter in Primary Care: A SNOCAP Report. For more information, visit annfammed.org. As the information overload increases and marketing budgets shrink, brand teams need to be clearer and more concise than ever. 10 March 2009 VIEW on Advertising THE FORUM Information than in broadcast,” Mr. Mallon says. “However, print lacks the interactivity that social media provides, and doesn’t reach audiences the way text messaging,Twitter, online, and video can. The trend is not necessarily about an increase or decrease in print advertising, but more around how print advertising can support other ways of reaching the target audience through more dynamic tools.” These media are having an impact beyond that of advertising campaigns; they also are impacting the way marketers interact with one another. Joe Kuchta of Goble says while there is now an age of instant communication gratification where texting, Twittering, and Facebook have all but guaranteed that one is never out of touch, trading emails and IMs and text messages are a poor — and dangerous — substitute for true agency client collaboration. He warns that marketers on both sides of the table shouldn’t settle for the delivery and review of critical thinking solely via electronic means — whether it be strategic, creative, or tactical. (To read more about execution beyond the text message, please turn to page 18.) A SHARP EYE ON THE FUTURE Experts anticipate that digital advertising will soon face the same scrutiny as traditional broadcast and print for mats. Late last year, industry watchdog group the Prescription Project filed citizens petitions requesting that the FDA demand the withdrawal of company sponsored video advertisements for medical devices airing on YouTube, saying the ads lacked the required safety warnings. Billy Tauzin PhRMA Through these strengthened principles, we renew our commitment to work with the Food and Drug Administration and healthcare professionals to further enhance the value of balanced DTC education for consumers and patients. PhRMA’s DTC Prescription: More Transparency, More Education THE UPDATED PHRMA GUIDING PRINCIPLES FOR DTC ADVERTISING, WHICH TOOK EFFECT MARCH 2, 2009, INCLUDE THE FOLLOWING REVISIONS AND EXPANSIONS: A new principle states that DTC product advertisements featuring actors in the roles of healthcare professionals should identify that actors are being used. If actual healthcare professionals are featured and are compensated for their appearance, the advertisement should acknowledge the compensation. An added principle provides that DTC television or print advertisements featuring a celebrity endorser should accurately reflect the opinions, findings, beliefs, or experience of the endorser. Companies should maintain verification of the basis of any actual or implied endorsement, including whether the endorser is or has been, a user of the product. A new principle highlights the legal requirement that DTC print advertisements should include the FDA’s MedWatch number for reporting of potential adverse events, and DTC television advertisements should include the company’s toll free number or refer patients to a print advertisement that contains the MedWatch number. An existing principle regarding education of health professionals prior to a DTC campaign for a new medicine or indication has been expanded to add that companies should consider individually setting specific periods of time for education before launching a branded DTC campaign. A revised principle includes language strengthening guidance related to the content and placement of DTC advertisements with adult oriented content. Specifically, the new version states that DTC television or print advertisements “containing con tent that may be inappropriate for children” should be placed in programs or publications “reasonably expected to draw an audience of approximately 90% adults (i.e., 18 years or older).” An existing requirement addressing risk benefit balance in DTC advertising has been strengthened to specify that risks and safety information, including the substance of relevant boxed warnings, should be “presented with reasonably comparable prominence to the benefit information, in a clear, conspicuous, and neutral manner, and without distraction from the con tent.” An existing principle has been revised to include a clarification that companies should “not promote medicines for off label uses, including in DTC advertisements.” A revised principle directs companies to seek and consider feedback from healthcare professionals and consumers during the development of new DTC ad campaigns “to gauge the educational impact for patients and consumers.” A revised principle states that in light of inherent limits on the amount of information that can be conveyed in DTC television communications, television ads should direct consumers to print advertisements and/or Websites where they can find additional benefit and risk information. A revised principle includes strengthened language calling for companies to include messages about help for the uninsured and underinsured in DTC communications. To view the complete list of PhRMA Guiding Principles on Direct to Consumer Advertisements about Prescription Medicines, visit phrma.org/dtc/. THE FORUM Geoff Sheldon of Palio believes making sure that consumers receive reliable and trustworthy information is partly the responsibility of marketers, and advertising companies and agencies are falling short.And since this problem is not going away any time soon, he says companies and agencies need to develop solid strategies to manage what is being said by consumers about their brands and products online. (To read why involvement in the process is important to an online strategy, please turn to page 22.) Mr. Mallon predicts there will be further regulation regarding the presentation of safety information in these types of advertising formats. “We know from our own market research that consumers can only understand a select number of risks, and that on camera delivery of safety information increases comprehension,” he says.“But requiring the addition of too much information may result in ineffective ads that do not serve to educate consumers about diseases and medications. We are supportive of ensuring patients understand the information presented in ads and are willing to work with the FDA to ensure patient health is the first priority.” Mr. Garbarini foresees accelerated expansion of electronic communications and, at the same time, a continued focus on cost effectiveness. “I believe ultimately the digital and social media sectors will grow, but probably in different ways than they have traditionally,” he says. “Look back five years at the advertising revenue generated by Google, and now look at what Google commands today. I believe there will be more Google like growth opportunities in the future.” Mr. Lee notes that advertising agencies also must continue their evolution to meet the changing advertising needs of their clients in the world of new media. Agencies understand their need to adapt, and accept the basic fact that free enterprise, coupled with a volatile global economy and increased regulations on pharmaceutical companies, are having a profound effect on how clients choose to do business with advertising agencies. Scott Wat son and Michele Moss of CommonHealth believe that if agencies want to succeed in this mercurial landscape, they must adjust the way they do business to win and retain clients, and that finding the balance between the functional reality of finance and the emotional passion for creating great work is where the culture of an agency can be found. (To learn more about how an agency’s culture can impact brand success, turn to page 16.) “Over the next several years we will likely see greater emphasis on market and customer segmentation, an increase in resources directed to online and digital communication, and a fundamental change in the relationship between pharmaceutical companies and their advertising agencies,” Mr. Lee says. “Agencies will need to move from a tactical deployment mindset to that of a strategic partner ship, where they share the risk in helping companies better understand and meet the needs of their customers.” One way agencies can meet these client demands is through talent development. Ahnal Purohit of Purohit Navigation believes an important component of this process is through mentoring, which offers an introduction to Description of Medication Inquiry and Impact on the Clinical Encounter (n = 58) Question/Answer No of patients % How did the patient hear about the medication? (note: multiple responses allowed) Family or friends 19 32.8 Media or advertising 12 20.7 Internet 2 3.5 Other source 21 36.2 Unknown 6 10.3 Did the patient understand the purpose of the medication? Yes 56 96.6 No 2 3.4 Would this requested medication have been the clinician’s first choice of treatment? Yes 12 20.7 No 36 62.1 No opinion 10 17.2 Did the patient want a prescription for the medication? Yes 43 74.1 No 15 25.9 Did the clinician feel pressured to prescribe the medication? Significantly pressured 7 12.1 Somewhat pressured 13 22.4 Not pressured 38 65.5 Was the requested medication prescribed? Yes 31 53.5 No 27 46.5 What was the overall effect of the patient request on the visit? Positive 14 24.1 Neutral 38 65.5 Negative 6 10.3 Specific effects of the inquiry/discussion on the visit (multiple responses allowed) Facilitated discussion 33 55.1 Educated patient 28 48.3 Improved condition awareness 21 36.2 New conditions identified 6 10.3 Increased visit time 22 37.9 Raised insurance concerns 8 13.8 Negative impact on physician patient relationship 3 5.2 Source: Annals of Family Medicine, Lack of Impact of Direct to Consumer Advertising on the Physician Patient Encounter in Primary Care: A SNOCAP Report. For more information, visit annfammed.org. THE FORUM Insights From the Insiders PHARMAVOICE ASKED EXPERTS IN THE ADVERTISING ARENA TO IDENTIFY THE SINGLE MOST INFLUENTIAL FACTOR AND ITS IMPACT ON THE HEALTHCARE ADVERTISING LANDSCAPE THIS YEAR. A Digital Push The advertising landscape will be impacted this year by the continued push into digital. Digital is no longer a “check the box and we have the bases covered” consideration. Rather, more progressive marketers are starting their communication strategies from a digital hub, where they are creating assets and expanding out. Content creation to fill this digital warehouse is the new skill set. Traditional print media is becoming, well, non traditional.We think about creating communities — a connect ed experience — around brands. Netnet, there will be still less pure print advertising in pursuit of dynamic, one to one brand relationship building through imaginative and diverse customer touch points. Joe Daley President, U.S. Operations GSW Worldwide For more information, please turn to page 20. It’s the Economy… The single biggest factor impacting the healthcare advertising landscape this year is economic contraction, which brings with it a whole host of devastating effects, including brand budget cuts, client side downsizing, cost containment/procurement initiatives, supplier consolidations, and mergers and acquisitions, to name just a few. These, of course, spill further to directly impact communications agencies, their suppliers, and the media at large. Although these are the truly unfortunate realities of our day, we wrestle in vain with the pure promise of marketing courage; the marketmoving power of big, creative ideas; and the potential for great reward that comes only through great risk. We say press on. Matt Giegerich CEO and President CommonHealth For more information, please turn to page 16. AWeb Landscape The economy and healthcare reform aside, the single biggest factor on our business will be the continued migration from traditional, paper based selling to electronic and Webbased selling. For more than half a century, pharma marketers have relied on direct selling via large, nation al salesforces to achieve their goals. However, given increasing cost pressures driven, in part, by the weak economy, pharma companies are more urgently seek ing alternate paradigms for their sales and marketing efforts. The challenge for these companies and their opened everyone’s eyes to the power of a strong message delivered via targeted digital media. Social networking, online communities, viral marketing, etc. are more ingrained in our society’s psyche than ever before. Marketers have taken notice, even within the notoriously slowtoadopt pharma industry, and that is where a lot of new attention is being generated and budgets are being appropriated. Joseph Kuchta President and CEO Goble & Associates For more information, please turn to page 18. Consumer Confidence As we’re all seeing, the global economy is experiencing volatility and uncertainty in a way few, if any, have witnessed before. Con sumer confidence (and all of us are consumers) is in the gutter. People aren’t spending.Businesses aren’t spending. Everyone is waiting and fearful about what will happen next.This lack of confidence is impact ing every decision, from a patient refilling a prescription to aVP of marketing deciding whether to roll out a new campaign or how many ads to run in a particular month. As it is part of the broader “economic ecosys tem” that needs a reasonable level of consumer confi dence to thrive, healthcare advertising is going to expe rience the same ups, downs, and uncertainties until consumer confidence recovers to a reasonable level. Mike Myers President Palio For more information, please turn to page 22. Recession Proofing Undoubtedly, the biggest sin gle factor to impact advertising is the economy — so attempts to “recession proof ” a brand plan will require us to rethink strate gy. We expect to see a trend that focuses on cost rather than outcomes. Given tighter budgets, choices that are grounded in results and a higher ROI will prevail. It’s going to necessitate an entrepreneurial mindset to leverage current conditions and creatively adapt to the changing landscape. Marketers will have to rely on the innovative vs. the tried and true. Those who can eliminate inefficiencies, run operationally lean and, where brands are concerned, highlight core advan tages that address the economic concerns will define success. Anshal Purohit VP, Strategy and New Business Purohit Navigation For more information, please turn to page 28. agencies is this: how can the efficacy of direct selling be translated to a Webbased media landscape? Answering this question will be a very high priority in the year ahead. Steve Hamburg Partner/Chief Creative Officer WishboneITP Inc. For more information, please turn to page 30. An Informed Audience The biggest new thing in pharma ceutical advertising this year is that the audience now has the power to select the topics and the language of brand messages.To make the most of the online environment, companies will benefit by listening to what topics are foremost on the minds of those talking online and what language they use. Marketers may find content and repurpose it in both conventional and new channels, but only by willingly ceding some control will the brand offer a more meaningful message, with language that is sure to resonate with the target audiences — language they will recognize as their own. Jonathan Kay Head of Brand Management TNS Healthcare, A Kantar Healthcare Co. For more information, please turn to page 26. Uncertainty Ahead In a word, caution. In a time when there is a lot of uncertainty, starting with the economy and the potential for new healthcare legisla tion, the instinct of many companies is to be more cautious than ever. Budgets are being scrutinized, sales forces are being stretched, and marketing departments are being asked to do even more with less. But compa nies have to be careful not to be too careful, for the last thing marketers want to do is weaken their brands.Times like these can offer terrific opportunities to take initiatives and try different solutions to address the same old prob lems and stand out while others play it safe. Lori Kewin Director of Account Service Topin & Associates For more information, please turn to page 24. Digital Media Without a doubt, digital media is going to have the biggest impact on the industry this year. There seems to be a constellation of external and internal factors significantly impacting how marketing and advertising are being funded and executed in 2009: the economy, tighter PhRMA guidelines, significant belt tightening from within, and so on. These factors have the culture of healthcare, including a sense of responsibil ity and the desire to help others. (To read more about the value and opportunities that mentoring offers, please turn to page 28.) Alexander Thompson of Wishbone agrees that men toring programs help to retain talent in a time when com pany loyalty is the exception, and can help rejuvenate employee enthusiasm and create a more enriching expe rience. As agencies look for efficiencies, mentoring is a great start; it allows companies to retain talent; cut costs; remain competitive due to stronger, more empowered employees; and ensure the experience of seniorlevel employees is not lost when they resign or retire. (To learn why mentoring is an integral step in grooming the next generation of leaders, please turn to page 30.) PHARMALINX LLC, publisher of the VIEW, welcomes comments about this article. Email us at [email protected]. 13 VIEW on Advertising March 2009 THE FORUM Agency Strategies Extremely Very Fairly Minimally Not Important Important Important Important Important N/A Creative 65.1% 27.7% 6.0% 0% 0% 1.2% Strategy 67.5% 22.9% 8.4% 0% 0% 1.2% Reputation 13.3% 38.6% 37.3% 8.4% 1.2% 1.2% Relevant Experience 34.9% 39.8% 21.7% 2.4% 0% 1.2% Organizational Structure 0% 22.9% 38.6% 32.5% 4.8% 1.2% Past Success in Similar Campaigns 18.1% 43.4% 28.9% 7.2% 1.2% 1.2% Technological Sophistication 19.3% 50.6% 25.3% 3.6% 0% 1.2% Budgets Web 2.0 JOURNALADVERTISING In the next 12 months, do you expect your advertising budget for professional/journal advertising to: Increase by 10% 7.2% Increase by 20% 2.4% Increase by more than 20% 0% Decrease by 10% 20.1% Decrease by 20% 19.3% Decrease by more than 20% 6.0% Stay the same 24.1% Not applicable 20.1% DTC ADVERTISING In the next 12 months, do you expect your advertising budget for directtoconsumer (DTC) advertising to: Increase by 10% 6.0% Increase by 20% 4.8% Increase by more than 20% 0% Decrease by 10% 16.8% Decrease by 20% 8.4% Decrease by more than 20% 4.8% Stay the same 25.3% Not applicable 33.7% ONLINEADVERTISING In the next 12 months, do you expect your advertising budget for Internet promotion to: Increase by 10% 25.3% Increase by 20% 22.9% Increase by more than 20% 0% Decrease by 10% 6.0% Decrease by 20% 7.2% Decrease by more than 20% 0% Stay the same 20.1% Not applicable 18.1% Are you using Web 2.0 tactics? Yes 48% No 52% Web 2.0 tactics that are being employed Videos 60% Interactive Websites 55.6% Podcasts 46.7% Social Networking Sites 31.1% Blogs 31.1% RSS Feeds 28.9% Consumer Wikis 6.7% Professional Wikis 6.7% Widgets 6.7% Other 11.1% Source: PharmaVOICE,Titusville, N.J. For more information, visit pharmavoice.com. Note Figures and percentages based on 83 responses: 50% pharmaceutical, 10% biotechnology, 6% biopharmaceutical/biologics; 5% device, diagnostic, or equipment; 29% other. VIEW on Advertising Annual Reader Survey

Download PDF