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1 PHARMACEUTICAL DIGITAL MARKETING TRANSFORMING YOUR MULTICHANNEL MARKETING MIX TO UNLOCK BRAND VALUE FULL TABLE OF CONTENTS & CHARTS AND GRAPHICS 1000 Park 40 Plaza, Suite 440 Durham, NC
2 TABLE OF CONTENTS 9 Executive Summary 15 Study Methodology 16 Study Definitions 17 Digital Marketing: Five Principles for Success 25 Developing Budgeting and Outsourcing Strategies to Support Digital Marketing Activities 26 Gaining Resource Support for Digital Initiatives 35 Outsourcing Digital Marketing Activities 57 Collaborating with Vendors 63 Digital Structures and Staffing Practices to Drive Brand Strategies 64 Structure Digital Teams to Optimize Strategy and Focus 88 Optimize Digital Marketing Staffing to Implement Strategies Effectively 102 Digital Marketing Team Profiles 108 Companies Multichannel Marketing Mix: Integrating Digital and Traditional Channels 110 Develop Digital Strategy Early 116 Connect Digital Initiatives to Established Company Strategies 118 Understanding the Drivers Behind Companies Use of Multichannel Strategy 119 Consolidate Diverse Marketing Platforms to Promote Efficient Multichannel Strategy 122 Companies Reported Marketing Mixes Showcase the Growth of Mobile Platforms
3 TABLE OF CONTENTS 130 Leveraging Social Media and Mobile Technology to Engage and Educate Consumers 131 Connect New Digital Initiatives to Overarching Content Strategy 140 Using Digital Channels to Educate and Communicate with Consumers 155 Company Initiative and Therapeutic Area Determine Social Media Platform Selection 170 Mobile Technology Facilitates Disease Management and Education 183 Increase Consumer Privacy and Update Mobile Apps to Improve New Digital Initiatives 189 Increased Connectivity and Engagement in the Future of New Digital 193 Measuring the True Return on Digital Marketing Initiatives 197 Benefits of ROI: Driving Marketing Mixes and Alleviating Stakeholder Concerns 200 Assigning ROI Responsibilities: Defining and Simplifying the Evaluative Process 208 Integrate Hard and Soft Metrics When Guiding ROI Strategy
4 9 Executive Summary 10 Figure E.1: Marketing Mix from 2012 to 2014: All Companies 12 Figure E.2: Companies Leading Challenges When Evaluating Digital Marketing ROI 17 Digital Marketing: Five Principles for Success 19 Figure E.3: Preferred Digital Marketing Outsourcing Strategy, by Company Type 21 Figure E.4: Types of Digital Marketing Group Structures: All Companies 25 Developing Budgeting and Outsourcing Strategies to Support Digital Marketing Activities 26 Gaining Resource Support for Digital Initiatives 27 Figure 1.1: Percentage of Teams Reporting a Dedicated Digital Marketing Budget, by Team Type 29 Figure 1.2: Selected Corporate Teams Digital Marketing Budgets, by Company 30 Figure 1.3: Selected Brand Teams Digital Marketing Budgets, by Company 35 Outsourcing Digital Marketing Activities 37 Figure 1.4: Percentage of Companies Outsourcing Some Portion of Digital Marketing Activities 38 Figure 1.5: Ratings of Perceived Importance of Vendors in Digital Marketing Initiatives, by Company Type 40 Figure 1.6: Companies Average Ratings of Vendors Digital Marketing Capabilities 41 Figure 1.7: Distribution of Brand Teams Digital Marketing Responsibility, by Company 42 Figure 1.8: Distribution of Corporate Teams Digital Marketing Responsibility, by Company 44 Figure 1.9: Preferred Digital Marketing Outsourcing Strategy, by Company Type 45 Figure 1.10: Preferred Digital Marketing Outsourcing Strategy, by Team Level 48 Figure 1.11: Percentage of Companies Using Vendors to Assist with Digital Marketing Strategy Development 49 Figure 1.12: Percentage of Companies Using Vendors to Assist with Digital Marketing Strategy Development, by Company Type 49 Figure 1.13: Percentage of Brand Teams Using Vendors to Assist with Digital Marketing Strategy Development 50 Figure 1.14: Percentage of Corporate Teams Using Vendors to Assist with Digital Marketing Strategy Development 51 Figure 1.15: Extent of Companies Responsibility for Digital Marketing Execution 52 Figure 1.16: Extent of Brand Teams Responsibility for Digital Marketing Execution 53 Figure 1.17: Extent of Corporate Teams Responsibility for Digital Marketing Execution 54 Figure 1.18: Average Distribution of Companies Mobile Initiative Development, by Activity 55 Figure 1.19: Average Distribution of Brand Teams Mobile Initiative Development, by Activity 56 Figure 1.20: Average Distribution of Corporate Teams Mobile Initiative Development, by Activity
5 57 Collaborating with Vendors 58 Figure 1.21: Companies Preferred Digital Marketing Vendor Type 59 Figure 1.22: Brand Teams Preferred Digital Marketing Vendor Type 60 Figure 1.23: Corporate Teams Preferred Digital Marketing Vendor Type 63 Digital Structures and Staffing Practices to Drive Brand Strategies 64 Structure Digital Teams to Optimize Strategy and Focus 66 Figure 2.1: Percentage of Companies with a Dedicated Digital Marketing Group 67 Figure 2.2: Percentage of Companies with a Dedicated Digital Marketing Group, by Company Type 68 Figure 2.3: Percentage of Corporate Teams with a Dedicated Digital Marketing Group 69 Figure 2.4: Percentage of Brand Teams with a Dedicated Digital Marketing Group 70 Figure 2.5: Age of Companies Dedicated Digital Marketing Group 71 Figure 2.6: Age of Companies Dedicated Digital Marketing Group, by Company Type 72 Figure 2.7: Age of Corporate Teams Dedicated Digital Marketing Group 73 Figure 2.8: Age of Brand Teams Dedicated Digital Marketing Group 75 Figure 2.9: Advantages of Digital Marketing Structures: Centralized vs. Decentralized 77 Figure 2.10: Types of Digital Marketing Group Structures: All Companies 77 Figure 2.11: Types of Digital Marketing Group Structures: Top 20 and Affiliate Companies 78 Figure 2.12: Types of Digital Marketing Group Structures: Top 50 Companies 78 Figure 2.13: Types of Digital Marketing Group Structures: Small Companies 79 Figure 2.14: Corporate Teams Digital Marketing Group Structures 79 Figure 2.15: Brand Teams Digital Marketing Group Structures 81 Figure 2.16: Functions Involved in Developing Companies Digital Marketing Strategy 82 Figure 2.17: Functions Involved in Developing Corporate Teams Digital Marketing Strategy 82 Figure 2.18: Functions Involved in Developing Brand Teams Digital Marketing Strategy 84 Figure 2.19: Function Housing Digital Marketing Group, by Team Type 85 Figure 2.20: Function Housing Digital Marketing Group, by Company Type 86 Figure 2.21: Level of Executive Leading Digital Marketing Teams, by Team Type 87 Figure 2.22: Level of Executive Leading Digital Marketing Teams, by Company Type 88 Optimize Digital Marketing Staffing to Implement Strategies Effectively 89 Figure 2.23: Total Digital Marketing Staffing 90 Figure 2.24: Digital Marketing Staffing: Senior Management 91 Figure 2.25: Digital Marketing Staffing: Middle Management 91 Figure 2.26: Digital Marketing Staffing: Community Manager Staffing 92 Figure 2.27: Digital Marketing Staffing: Design 93 Figure 2.28: Digital Marketing Staffing: Technical Development 93 Figure 2.29: Digital Marketing Staffing: Quality Assurance
6 94 Figure 2.30: Total Number of Dedicated FTEs Supporting Each Mobile Initiative 95 Figure 2.31: Number of Technical Developers per Mobile Initiative 96 Figure 2.32: Total Number of Dedicated FTEs per Mobile Platform 97 Figure 2.33: Number of Technical Developers per Mobile Platform 98 Figure 2.34: Total Number of Dedicated FTEs per Social Media Platform 99 Figure 2.35: Number of Community Managers per Social Media Platform 102 Digital Marketing Team Profiles 103 Figure 2.36: Staffing Profile: Company Figure 2.37: Staffing Profile: Company Figure 2.38: Staffing Profile: Company Figure 2.40: Staffing Profile: Company Figure 2.39: Staffing Profile: Company Companies Multichannel Marketing Mix: Integrating Digital and Traditional Channels 110 Develop Digital Strategy Early 112 Figure 3.1: A General Look at Companies Preliminary Market Research Process 113 Figure 3.2: Process for Conducting Market Research to Improve Digital Initiatives: Company E (Small Pharma) 116 Connect Digital Initiatives to Established Company Strategies 118 Understanding the Drivers Behind Companies Use of Multichannel Strategy 119 Consolidate Diverse Marketing Platforms to Promote Efficient Multichannel Strategy 122 Companies Reported Marketing Mixes Showcase the Growth of Mobile Platforms 123 Figure 3.3: Marketing Mix from 2012 to 2014: All Companies 123 Figure 3.4: Percentage Change in Marketing Mix from 2012 to 2014: All Companies 125 Figure 3.5: Marketing Mix from 2012 to 2014: US Companies 125 Figure 3.6: Marketing Mix from 2012 to 2014: Non-US Companies 126 Figure 3.7: Marketing Mix from 2012 to 2014: Top 20 and Affiliate Companies 127 Figure 3.8: Marketing Mix from 2012 to 2014: Top 50 Companies 127 Figure 3.9: Marketing Mix from 2012 to 2014: Small Companies 128 Figure 3.10: Marketing Mix from 2012 to 2014: Brand Teams 129 Figure 3.11: Marketing Mix from 2012 to 2014: Corporate Teams
7 130 Leveraging Social Media and Mobile Technology to Engage and Educate Consumers 131 Connect New Digital Initiatives to Overarching Content Strategy 133 Figure 4.1: Age of Social Media Strategy, by Company Type 134 Figure 4.2: Age of Social Media Strategy, by Team 135 Figure 4.3: Approximate Age of Selected Brand Teams Social Media Strategy 136 Figure 4.4: Age of Mobile Strategy, by Company Type 137 Figure 4.5: Age of Mobile Strategy, by Team 138 Figure 4.6: Approximate Age of Selected Brand Teams Mobile Strategy 140 Using Digital Channels to Educate and Communicate with Consumers 141 Figure 4.7: Companies Target Audiences for Social Media Initiatives 142 Figure 4.8: Brand Teams Target Audiences for Social Media Initiatives 142 Figure 4.9: Corporate Teams Target Audiences for Social Media Initiatives 144 Figure 4.10: Companies Target Mobile Audiences 145 Figure 4.11: Brand Teams Target Mobile Audiences 145 Figure 4.12: Corporate Teams Target Mobile Audiences 147 Figure 4.13: Companies Primary Social Media Objectives 149 Figure 4.14: Brand Teams Primary Social Media Objectives 150 Figure 4.15: Corporate Teams Primary Social Media Objectives 151 Figure 4.16: Companies Primary Mobile Objectives 153 Figure 4.17: Brand Teams Primary Mobile Objectives 154 Figure 4.18: Corporate Teams Primary Mobile Objectives 155 Company Initiative and Therapeutic Area Determine Social Media Platform Selection 159 Figure 4.19: Percentage of Companies Using Social Media, by Platform Type 160 Figure 4.20: Percentage of Brand Teams Using Social Media, by Platform Type 161 Figure 4.21: Percentage of Corporate Teams Using Social Media, by Platform Type 162 Figure 4.22: Companies Perceived Impact of Specific Social Media Platforms 164 Figure 4.23: Specific Brand Teams Use of Social Media Platforms, by Therapeutic Area 165 Figure 4.24: Therapeutic Areas with Facebook Initiatives 166 Figure 4.25: Therapeutic Areas with Twitter Initiatives 167 Figure 4.26: Therapeutic Areas with YouTube Initiatives 168 Figure 4.27: Therapeutic Areas with Pinterest Initiatives 169 Figure 4.28: Therapeutic Areas with Other Social Media Initiatives 170 Mobile Technology Facilitates Disease Management and Education 172 Figure 4.29: Percentage of Companies Using Mobile Applications, by Channel 173 Figure 4.30: Percentage of Brand Teams Using Mobile Applications, by Channel
8 174 Figure 4.31: Percentage of Corporate Teams Using Mobile Applications, by Channel 175 Figure 4.32: Percentage of Corporate Teams Using Mobile Applications, by Channel 176 Figure 4.33: Mobile Initiative Platforms Commonly Used by Digital Marketing Groups 177 Figure 4.34: Number of Mobile Applications, by Brand Team 178 Figure 4.35: Brand Teams Target Mobile Audiences 180 Figure 4.36: Therapeutic Areas with Mobile Initiatives Targeted at Patients 182 Figure 4.37: Therapeutic Areas with Mobile Initiatives Targeted at Physicians 183 Increase Consumer Privacy and Update Mobile Apps to Improve New Digital Initiatives 189 Promote Increased Connectivity and Engagement through New Digital Channels 193 Measuring the True Return on Digital Marketing Initiatives 194 Figure 5.1: Percentage of Companies Currently Measuring Digital Marketing Activity ROI 197 Tracking the Value of Digital Marketing Initiatives 200 Assigning ROI Responsibilities: Defining and Simplifying the Evaluative Process 201 Figure 5.2: Companies Digital Marketing ROI Evaluation Method 202 Figure 5.3: Groups Involved in Companies Digital Marketing ROI Analyses 204 Figure 5.4: Digital Initiative ROI Buy-In Cycle: Company E (Small Pharma) 206 Figure 5.5: Average Amount of Time After Digital Initiative Launch That Companies Begin Measuring Branded ROI 206 Figure 5.6: Average Time After Digital Initiative Launch that Companies Begin Measuring Unbranded ROI 208 Figure 5.7: Companies Preferred Digital Marketing ROI Metrics 208 Integrating Hard and Soft Metrics When Guiding ROI Strategy 210 Figure 5.8: Percentage of Companies Using Specific Metrics to Evaluate Digital Marketing Success 212 Figure 5.9: Percentage of Companies Using Specific Methods to Determine Digital Marketing Channels Most Effective in Engaging Viewers 214 Figure 5.10: Incorporating Healthcare Audiences Perspectives Into Digital Marketing ROE Analyses: Company G (Top 20 Pharma) 216 Figure 5.11: Companies Ratings of Perceived Importance of Specific Digital Marketing ROI Metrics 217 Figure 5.12: Digital Marketing ROI Study: Company G (Top 20 Pharma) 219 Figure 5.13: Companies Leading Challenges when Evaluating Digital Marketing ROI
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