New request - healthcare marketing and agency data

Part
01
of three
Part
01

Healthcare Advertising Trends

The healthcare industry advertising trends need a push into brand awareness and digital marketing. Consumers are already there and are waiting for healthcare companies to catch up. The caveat for many companies in the healthcare industry is not funding, but privacy and regulatory rules. The main company positioning trends are looking at the current brand and trying to create something new that will focus on improving growth, performance, and a unique experience for consumers, doctors, and employees. Marketing trends focus more on doctors as employees and consumers as researchers which affect purchases of products and services and of digital advertising. Advertising spending is on social media, content ,
personalization, video , and lead generation. Advertising agency spend was not publicly available but we did identify amounts that healthcare companies are spending as well as advertising agency revenues.

COMPANY POSITIONING

A company positioning is a critical need in the healthcare industry and making the company unique from the competition is a must. Some current trends in company positioning are:

1) Auditing the current brand- Companies need to study the market carefully and look at consumer reactions to what they are currently offering.

2) Identify the market- Take a look at the market, develop the companies position, and make the companies products and services appeal to the market.

3) Spotlight the brand on an opportunity to strengthen growth and performance- Find the key ingredient that the consumers have a driving desire for and why they want it. Market the brand developing that desire and determine your leverage for it over your competitors and use it to drive growth.
4) Engineer the brand and develop its new name- The structure of the brand is strategic. Many areas of the healthcare industry are confusing because of mergers and acquisitions. The companies naming structure will be key.

5) Identify and create unique experiences for consumers, doctors, and employees that will improve growth and performance- Create initiatives that will develop an alignment between patient and brand. Publicize this new strategy internally and externally to get the new message across. Being consistent will help raise brand awareness and become a name that is recognized.

Strategies

The healthcare industry marketing trends are shifting yet again. With hospitals purchasing physician offices and digital taking off rapidly, there are several to focus on.

1) Doctors are turning into employees as hospitals are gobbling up physicians offices. 21% of physicians are now employed by hospitals, 14% are employed in clinics owned by hospitals and 14% are employed in private entities owned by hospitals. Less than 10% are contractors. This removes a doctors' ability to be the final word on purchases for medical devices and services. In addition, doctors are having much less influence on healthcare with all the researching on the internet.

2) Patients are researching medical information. In the past, the doctor diagnosed and then treated the illness. Today, consumers are using the internet to research illnesses, drugs, and treatments. The statistics show that one in every three Americans will attempt to read online and diagnose a medical condition. 72% of users on the internet say they have looked online for information regarding healthcare. 47% have researched information about doctors and 38% have researched hospitals. The most common search topics are specific diseases, treatments, and information on doctors and hospitals.

3) Consumers and Payers should be where marketing is targeted. Depending on the products or services offered, the key players are now consumers, payers, and providers. According to the MM&M /Ogilvy CommonHealth Healthcare Marketers Trend Report 2016 93% said physicians are still the primary target, followed by payers and then patients.
4) Traditional marketing is on its way to the bottom. Digital marketing is the way to go. The MM&M study showed that for many of the healthcare fields social media was the popular digital marketing budget spend. Patients who search prior to making an appointment was 77%. Results show that three times as many consumer visit hospitals sites based on searching online. Nearly 50% of consumers who use their mobile phone to research go ahead and book the appointment. Healthcare websites are going to undergo transformations with new content for brand awareness. Mobile advertising is expected to grow by nearly 30% in 2018. Native ads are also expected to grow as marketers find ways to blend it into original content.
5) The decision process is finalized based on digital content. Statistics show that before scheduling an appointment consumers do the following:
77% of patients did research.
83% viewed the hospital sites.
54% viewed health insurance company sites.
50% viewed health information sites.
26% viewed reviews sites.

Advertising Spending

Budgets on advertising continue to grow, much more in the online realm than anywhere else. Phizer has spent $1 billion on advertising its top six selling brands. While the shift to digital marketing has been slow for healthcare than most other industries, it's time for it to catch up. Consumers moved rapidly to online viewing and marketing companies are pushing healthcare companies to put their resources on digital media forms. Consumer base many of their decisions on what they are seeing and reading online. There is an issue that healthcare companies must pay attention to and that is privacy and regulatory rules.

According to the CMO survey, of the 3347 marketing professionals that responded, 50% of them said they planned to increase budgets in these 5 areas.

1) Social media
5) Lead generation

Advertising Agency Spend

The amount that healthcare companies spend on advertising for current data was not publicly available. We were able to find a report from Kantar Media 2016 that showed the 2015 information on advertising spending dollars, but not specific agency spends.

1) Phizer- $1.2 billion
2) Merck- $442 million
3) Abbvie- $432 million
4) Allergen- $421 million
5) AstraZeneca- $345 million
6) Johnson & Johnson- $309 million

We also researched two healthcare marketing agencies to determine their revenue and customers and those were Wax Custom Communications and Influence Health. They were at $9.8 million and $11 million in revenue respectively. Some clients that advertise with them are Humana, AvMed, Richmond University Medical Center, Atlantic Health System, Cleveland Clinic, UC Health, Care Plus Health Plans, and Baylor University Medical Center Dallas.

CONCLUSION

In summary, the advertising trends in the healthcare industry are shifting somewhat and a revitalization is needed for many companies. These are to redo brands and distinguish themselves from the competitors in the areas consumers are asking for. Digital advertising in healthcare must catch up to the consumer. Doctors do not have as much authority in the past due to two reasons which are that physicians' offices are being purchased by hospitals and consumers are doing a lot of researching on their own. The top 5 areas that need to be addressed in advertising spend are social media, content, personalization, video, and lead generation. Lastly, while advertising agency spend amounts was not publicly available for healthcare companies, some healthcare advertising agencies are disclosing revenues around the $10 million mark.

Part
02
of three
Part
02

Benefits of Working With Advertising Agencies

The qualitative benefits of working with ad agencies include accountability, reliability, access to resources, cost-effectiveness, et al. The total cost of hiring various professionals to do the work of an advertising agency can result in an expenditure of $337,000 a year. In contrast to this, companies like Raven Tool offer services with respect to social media, SEO, and PPC for $249 a month. Below you will find a deep dive of my research.

--QUALITATIVE BENEFITS OF ADVERTISING AGENCIES

RELIABILITY AND ACCESS TO RESOURCES

Advertising agencies have a strong sense of accountability, and they are able to excel in a schedule that is deadline-driven. They help companies achieve their objectives and resolve challenges while managing a budget and working under time pressure. Advertising agencies are expected to deliver high quality products without exception. The size of the project does not matter. Advertising agencies are known for their expertise, and they have access to "film makers, artists, researchers and media buyers." These professionals can offer advertising experience that many small companies are unable to acquire through hiring. In addition to this, working with an advertising agency will allow a company's staff to work on what they do best and have training for.

A full-service agency will offer many resources that most companies would find difficult and costly to do in-house. These may include "animation and video studios, photography, graphic design, copywriting, public relations, and marketing strategy." Contracting specialized professionals may lead to work that is of a better quality and it may reduce overhead. These professionals are not employees, and for this reason they are self-sufficient and driven to complete projects.

COST EFFECTIVENESS

Hiring marketing professionals will cost a company several salaries, and the company will have to provide benefits and incentives to keep these employees. Also, companies will not have to waste time searching, hiring and training new workers. A company can skip these troubles and costs by paying a flat fee for the services of an advertising agency. Companies will find peace of mind knowing that there are professionals that will offer insights on the best tactics for a campaign. Advertising agencies can be useful in the process of creating a brand by producing logos and generating advertising that will help promote a brand. Advertising agencies can update a business to positively influence a target audience.

QUANTATIVE DATA ABOUT THE BENEFITS OF ADVERTISING AGENCIES

The salary of a digital marketing manager can be $73,000. A graphic designer can have a salary of $53,000. A web designer will have a salary of $47,000. A social media manager will have a salary of $49,000. An SEO marketer will have a salary of $60,000. A content writer will have a salary of $55,000. The total cost of hiring these various professionals would result in an expenditure of $337,000 a year.

In contrast to this, companies like Bright Local offers services in SEO for $64.99 a month. Raven Tool offers services with respect to social media, SEO, and PPC for $249 a month. Hootsuite offers social media work for $99 a month. AWeber offers email marketing services for $50 a month. Sprout Social offers social media and SEO for $500 a month. Manage Flitter provides Twitter management and marketing for "$49 per account." Release Wire provides press release and distribution for "$70 per release."

CONCLUSION

To conclude, the qualitative benefits of working with ad agencies include accountability, reliability, access to resources, cost-effectiveness, et al. The quantitative benefits of using an advertising agency can save businesses a lot of money. The total cost of hiring various professionals to do the work of an advertising agency can result in an expenditure of $337,000 a year. In contrast to this, companies like Raven Tool offer services with respect to social media, SEO, and PPC for $249 a month.

Part
03
of three
Part
03

Marketing Budgets

Marketing budgets for 2018 are looking much different from marketing budgets from the 1970s. Much of this is attributed to the digital technology our world has become adapted to. The healthcare industry is no exception. Healthcare marketing budgets on average are about 10% of the overall budget or 7.5% of the overall revenue. In those budgets include items like direct expenses of marketing, social media, employees, research, training, analytics, and other overhead. Marketing budgets are ever-increasing with the increase in digital technology. Business to consumer marketing budgets is generally larger than business to business. When looking for marketing partners, healthcare facilities typically look at its companies preferred partners and recommendations from others.

Marketing budgets

According to Deloitte statistics, healthcare companies allocate 10% of the overall budget or 7.5% of the overall revenue to the marketing budget. The average across all industries is 11%, which is up from 10.4% in 2012. In addition, all companies on average spend about 7.5% of their total revenue on marketing. This is down from 8.5% in 2012. In breaking down the healthcare industry, marketing budget amounts are varied. As a whole industry, the average spent on marketing budgets was $8.5 million, biotech companies average was $6.5 million, pharma companies average was $15.5 million, and device companies average was $4.6 million. In addition, small companies under $500 million in revenue averages around $3.9 million and medium to large companies averaged around $17.4 million.

MARKETING BUDGET MAKEUP

What goes in the marketing budget is pretty much the same across all channels and industries and are included below.

1) Direct expenses of marketing
2) Social Media
3) Marketing employees
4) Marketing research
5) Marketing training
6) Marketing analytics
7) Other Overhead

ALLOCATION OF BUDGETS

The CMO survey is a company that tracks marketing trends as well as predicting market futures. They have conducted the survey for the past 8 years and across all industries, online spending is increasing yearly. It is currently allocated at 41% and is expected to increase to 45% by 2020. Online spending was only allocated at 29% in 2014. Of this amount, 25% is currently being allocated to social media.

Of the 3347 marketing professionals surveyed, at least 50% of them said they planned to increase budgets the most in the 5 following areas.
1) Social media
2) Content
4) Video
5) Lead generation

We took a look at the areas of online spending in the marketing budget within the healthcare industry and the percentage of participants that engaged in them.

1) 87% are using digital marketing. This includes websites (72%), digital sales materials (53%), digital ads (52%), social media (52%), and mobile/tablet apps (30%).

2) 80% are using meetings and events.

3) 70% are using printed sales materials.

4) 70% still utilize sales representatives.

5) 60% utilize research/data/analytics

6) 53% provide patent education materials.

7) 52% provide paid speaker programs.

8) 49% utilize journal print ads.

9) 48% utilize direct marketing or direct mail.

10) 41% participate in advocacy education programs.

11) 38% provide continuing medical education.

MARKETING PARTNERS

When determining marketing partners in the healthcare industry, the top choices in the marketer's trend report were recommendations from others, industry relationships, inviting existing partners, the companies preferred partners, consulting reference sources, and the companies' procurement services. Amongst all healthcare facilities, the majority of them looked to recommendations from others. Smaller healthcare companies also looked at industry relationships and the medium to large companies looked at their preferred partners for marketing relationships.

CONCLUSION

In summary, marketing budgets are continually increasing and the turn is going more towards online spending as more money is being spent on digital. Social media is a large percentage of the online spending. Digital advertising is used by 87% of healthcare companies. Healthcare marketing budgets are around 10% of the total budget or 7.5% of total revenue. Marketing budgets include line items direct expenses, social media, employees, research, training, analytics, and other overhead. Business to consumers is typically spending more on marketing spending than business to business. Smaller companies on average spend more on marketing based on the percentage of its total revenue.
Sources
Sources