• by Robert Kadar , September 6, 2007

Direct-to-Consumer pharma advertising faces a challenging future with calls for tighter regulation on what can and can't be said to general audiences.

The Internet offers a solution that enables a different type of DTC advertising, more time and space to educate and inform -- and something no other medium offers -- direct, one-to-one interaction with the patient or care-giver.

The migration of pharma DTC budgets to online is picking up speed. Recent reports indicate that as many as 80% of online consumers access health information regularly. Seniors who are major consumers of pharma products now account for the fastest growing percentage of the online population.

Meanwhile, a majority of people looking for very specific health and medical information online now start at a major search engine, driving consumers deeper into the online health Web often bypassing many of the best known sites to find high-quality, highly targeted, condition-specific niche sites.

So how is the industry thinking about online today? What are the trends? Is online a mass medium for creating awareness and building brands or is it a hyper-direct response medium for driving registrations and special promotions such as free trials and discounts?

Is the Web best used for educational purposes or to encourage patient-to-physician dialogue? How are pharma marketing managers, brand managers and their marketing partners thinking about their options when it comes to their Web marketing options today and how is this changing?

To help answer these questions, Good Health Advertising CEO Robert Kadar assembled a panel of online DTC pharma advertising experts.

They are:

Debrianna Obara: Vice President Media, Avenue A|Razorfish.*

Jason Foster: Brand Manager, Reckitt Benckiser Pharmaceuticals.

Marc Arbeit: Online Media Supervisor, MindShare Interaction.*

Marc Benjamin: Managing Director, Convergence Point Media.*

Kadar: Debrianna, how has your approach to online DTC marketing and communications evolved over the last few years?

Obara: We have been working with various pharmaceutical advertisers in the DTC arena for more than 10 years. In the beginning, everything was about measured response, though it was rare that we matched our online campaigns to scripts -- which ultimately prove ROI and are the best measure of response. These days, we see our clients working with the online media in two ways. Some are using the Web for direct response, while others are using rich media (such as Pointroll) for measuring response, acquiring consumers into a database as well as educating consumers. A few of our clients cannot afford the high cost of broadcast advertising, so they are actually using the Internet to build and/or launch brands online.

Kadar: Marc, can you speak on a more tactical basis as to how your team at MindShare engages in online media planning and buying?

Arbeit: Our current approach encompasses a mix of online tactics with a number of key success metrics such as CPM, CPC, CPL, CTC% (click to conversion %). Each brand (Rx/OTC) typically has its own specifically defined goals that not all sites can effectively deliver on, but we definitely look to leverage online as both a lead generator and DR medium whenever possible.

Kadar: Jason, can you address the inherent measurability of online media and to what extent you take that into account?

Foster: Over the last two years or so, we have refocused our direct-to-patient (DTP) marketing almost exclusively online to reach potential patients and their families. Because opioid dependence is a highly stigmatized disease, we have found the private nature and 24/7 availability of the Web to be the most effective means of connecting with our audience.

This outreach takes the form of search engine marketing, targeted email marketing, as well as a patient support CRM program all of which cover potential patients, existing patients, and caregivers. Almost all of this marketing activity is direct response in nature driving registrations, Web site visits, and/or the use of online tools. This is mostly because these kinds of activities are much more measurable than brand awareness and education activities.

Kadar: Marc Benjamin, can you discern a shift over time in how your pharma clients are viewing the online medium?

Benjamin: There has indeed been a significant shift in how online marketing and media is perceived. Many healthcare marketers with specialized target audiences have discovered that driving well-qualified registrations into a tailored content stream with well-designed response mechanisms is the Holy Grail for achieving a lofty marketing ROI.

Kadar: What effect, if any, is the increased scrutiny and possible regulatory restraints on DTC advertising using "measured media" -- meaning TV and Print -- mean for online marketing efforts? Will any further restrictions on traditional DTC advertising naturally increase usage of the Internet by pharma brand and marketing teams?

Foster: I am sure that for Brand Managers in traditional DTC disease spaces increased regulation has had and will continue to have the effect of moving more attention online. But more important, the move online is being driven by the tightening of marketing budgets and the need to show results. The days of Ready-Fire-Aim Marketing are over. You have to be much more targeted in your approach and be able to demonstrate measurable results. This is only truly possible online.

Obara: We do believe that increased scrutiny on pharma can push more dollars to the Internet space. In the online world, we can capture consumers that are actively searching to manage their health as opposed to just purchasing GRP's or a share of a desired audience. However, as more and more smart clients buy up desired endemic health content online, I can see even the Internet becoming a lifestyle buy for some clients.

Arbeit: Traditional and online media tactics have been merging together for years, and will probably continue to do so for a long time to come. The regulatory process will continue to adapt and grow with the industry (e.g. new advertising platforms) and there will certainly be some bumps in the road, but I believe that TV and print will continue to be beneficial for certain clients, while online will evolve into a necessity for all.

Kadar: Would you agree that the current regulatory environment could actually stimulate interest in online marketing communications activities?

Benjamin: Sensitivities about DTC communications span all types of media, and while the regulatory restrictions may be better spelled out for traditional channels, most pharma companies self-impose rigorous standards for their online marketing as well. By and large, it has been the pervasive use of the channel, its undeniable educational value, the need for pinpoint audience targeting and strict ROI requirements that have been driving the flight to online.

However, the regulatory dynamic does present some key "tiebreaker" advantages for online as well:

(i) highly targeted campaigns can speak frankly to a desired target audience, minimizing the need to dramatize a product's benefits or use "lowest common denominator" tag lines that often invite scrutiny;

(ii) the online channel provides a seamless link to web pages with plenty of room to support an ad with the necessary detail, disclosure, etc;

(iii) digital assets can be easily revised or swapped out on the fly, while most other media forms have a longer shelf life (print, out of home) and/or are much more expensive to produce (TV).

Kadar: Speaking about the current regulatory environment, you have somewhat divergent view points on whether the FDA's lack of Internet-specific advertising guidelines hinders innovation and creativity when it comes to taking full advantage of the online environment.

Obara: I would say that it causes a lot of confusion and lack of momentum. Some legal teams are so unfamiliar with online tactics that they prefer to squash potential marketing solutions without proper guidance or precedence. Oftentimes, the brand marketers are the ones to limit ideas due to the fear of the unknown or being first.

Foster: I don't feel hindered by the lack of Internet-specific guidance and we always endeavor to stay true to both the spirit and the letter of the law in our online and offline communications.

Kadar: Lastly, how do you think about balancing your approach to your online marketing programs when the Internet functions so well for building brands, disease awareness, patient education and specific and targeted promotional opportunities? Is the Web a strategic or tactical tool?

Arbeit: The Internet serves as a great patient education resource and additionally is a powerful promotional resource. From a strategic planning perspective, agencies need to find a balance between the two by effectively allocating advertising budgets within both traditional and nontraditional outlets.

Obara: Currently most of our clients are using rich media to help achieve both of these goals.

Foster: (Regarding Suboxone, a Reckitt Benckiser Pharmaceuticals brand) The opioid dependent patient population remains vastly underserved and there is still a general lack of awareness about Suboxone as a treatment option. Therefore we concentrate most of our online promotion on patient education about the disease and the available treatment options.

For example, we are currently partnering with MySpace to create a disease awareness presence called Addiction 411 (www.myspace.com/addiction411) that is intended to educate their users about the dangers of non-medical use of opioid prescription painkillers and provide information about the disease of opioid dependence.

Benjamin: It's well established that the Internet has substantial value for both patient education and brand awareness. The ability to do both -- often at the same time -- is what makes the online channel uniquely effective for direct to patient marketing. The ability to segment your audience between those who need education and those who are ready for a branded message is a key ingredient in using marketing dollars wisely.

Kadar: I would like to again thank our participants for sharing their views and end here with a comment by Marc Benjamin of Convergence Point Media that wraps up this discussion quite nicely:

Benjamin: Pharma companies are becoming increasingly sophisticated about online and email marketing. While internal guidelines can vary from one company to the next, there is a growing understanding of how patients and caregivers use the Internet, and this is reflected in how both regulatory and privacy measures are applied to online marketing.

This is a rapidly evolving and highly specialized area, which is why many pharma companies have selected agency partners with deep experience in online marketing and rigorous quality control standards.

*These descriptions were altered after publication.

About the author: Robert Kadar is the Founder and CEO of Good Health Advertising - www.GoodHealthAdvertising.com - an online advertising company focused on reaching and influencing the Health seeking consumer online across a collection of high-quality Health, Medical and Healthy Living Web sites. Robert may be reached at Rob@GoodHealthAdvertising.com.