2016 Report. Online Marketing Benchmark for Healthcare Providers. Created by
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1 2016 Report Online Marketing Benchmark for Healthcare Providers Created by
2 Contents Executive summary Why care about online marketing? Healthcare is catching up The new word-of-mouth A sizeable budget? Measure your happiness Benchmark scoring Page 2
3 Executive summary We surveyed 62 hospitals and OVERVIEW clinics in 19 countries to assess ABOUT MEDIGO trends in online marketing among healthcare providers Whether you are looking for an oncologist in Berlin, a dentist in Bangkok, or a 86% of surveyed hospitals and clinics actively use online marketing, with the overwhelming goal of increasing patient acquisition cardiologist in Bangalore, MEDIGO.com supports individuals and healthcare organizations everywhere. It is an easy-to-use platform and service that helps patients to find and schedule affordable, high-quality medical treatment The average budget for online marketing is $4,755 per month. 72% of hospitals and clinics employ an external agency to develop and implement their online marketing campaigns Google and Facebook are by far the most popular preferred channels for paid marketing campaigns Most hospitals and clinics do not consistently create ROI+ online marketing campaigns and underspend relative to best abroad. For hospitals and clinics, MEDIGO has developed a simple patient communication and payment platform, and offers online marketing services targeted at patients globally. With more than 700 trusted hospitals and clinics in 36 countries, and a dedicated 24/7 Care Team, MEDIGO improves access to healthcare worldwide. NUMBER OF PROVIDERS SURVEYED 62 AVERAGE MONTHLY BUDGET $4,755 NUMBER OF COUNTRIES 19 PROVIDERS ACTIVE WITH ONLINE MARKETING 86% PREFERRED CHANNELS FOR MARKETING CAMPAIGNS Facebook Google performers in other industries Page 3
4 Why care about online marketing? Research shows that at least 3 in 4 people customer service, and distribute hospital- searching for health information online or treatment-specific information. with search engine like Google or Bing (Pew Research Center). As a relatively inexpensive and scalable channel, online marketing has the potential to reach an audience of 4.3 billion people connected through the internet (Internet Live Stats). This is the first global survey to define the use and success of online marketing by hospitals and clinics. The Benchmark Survey (see Appendix #1) includes questions on the size, type of activity, and results of marketing campaigns created That s why search result page real estate by healthcare providers. The survey was is so valuable, irrespective whether a good distributed in July 2016 to marketing ranking is achieved through paid search departments at 282 clinics and hospitals engine marketing (SEM) or through a strong and collected 62 responses among organic web presence (SEO). Although facilities in 19 countries (21% completion companies rely on a combination of the rate). The respondents represented a two, many hospitals and clinics are just broad range of clinics and hospitals, from starting to understand how to create a private practices with a single doctor strong presence online. all the way to university hospitals. Each Today, hospitals and clinics (or marketing agencies) launch online marketing campaigns primarily to acquire more patients, to create stronger brand recognition, to improve traditional survey was scored according to the MEDIGO Benchmark Methodology (see Appendix #2). This report should encourage learning and discussions about the current state of online marketing best practices for online marketing. The specifc goal of the hospital and clinic survey was to develop a benchmark that allows hospitals and clinics to compare their online marketing performance with similar organizations around the world. We hope that this report summary creates a clearer picture for the reader of the current state of online marketing at medical facilities. Page 4
5 Healthcare is catching up Online marketing has completely reshaped the way we make decisions every day: from cheap flights to unique shoes, well-placed advertisements and content pieces influence the way we make decisions. And why should healthcare be any different? According to our survey, 86% of hospitals are using online marketing actively and about 10% of hospitals are looking to launch their first online marketing campaigns. Today s forward-thinking hospitals and clinics are attracting users and converting them into patients through a number of online channels: paid advertising on search engines (Google, Bing), engagement on social media (Facebook, Twitter, Instagram, Pinterest and Youtube), and through content marketing (newsletters, blog posts). And they don t have to start from scratch: the relatively established online marketing industry has some good ways to measure performance and improve user engagement. But there is one major learning that is unique to the healthcare industry: that the best healthcare marketing includes patient education. FURTHER READING 4 Ways Healthcare Marketers Should Utilize Social Media How to Create a Profitable Google AdWords Campaign (from Scratch) A Beginner s Guide: How to Advertise on Facebook Page 5
6 Social media is the place to be: more than 40% of consumers say that information found through social media affects the way they deal with their health, and affects their choice of a specific doctor, hospital, or medical facility (Mediabistro, The Spark Report). marketing strategy is to become a trusted source for genuinely useful content for an engaged following 2. Social media is the new word of mouth Online communities form the new meeting space for doctors, nurses, patients, and caregivers. More than half (53% to be exact) of all the paid channels, are social media platforms and at 34%, Facebook clocks in as the most popular social channel for hospital marketers. However, Google paid marketing remains the largest single channel with over 35% of hospitals and clinics purchasing paid advertisement there. Which campaigns work best on social media? If you feel lucky, you might create viral campaign 1. A more pragmatic Respondents could answer more than once. Thus the percentage on each channel represents the number of hospitals using that channel divided by all responses. FURTHER READING Social Media for Health Care: Who s doing it right? Understanding Word of Mouth in the Social Media Age Mayo Clinic Center for Social Media 1 - The Ice Bucket Challenge was a viral campaign to promote awareness of amyotrophic lateral sclerosis and generated more than $100 million in donations to the ALS Association 2 - The Mayo Clinic boasts more than 1.3 million Twitter followers and posts content 7 to 10 times per day Page 6
7 A sizeable budget? Hospitals and clinics spend anywhere from $1,000 to $50,000 per month on their online marketing, with a majority keeping their marketing budget under $5,000 per month. The average spend varies largely by type of facility; healthcare providers with patient volumes between 10,000 and 50,000 tend to spend more than four times the amount that providers with fewer than 1,000 patients annually. As an industry, healthcare is one of the most conservative digital marketing spenders, allocating only 2.2% of each company s revenue to the marketing budget (Gartner). A large marketing budget does not necessarily indicate a strong marketing strategy; rather, healthcare providers who spend their budget efficiently follow best practices and deliver ROI positive results. Interestingly, 72% of hospitals and clinics use a marketing agency, which are paid a 18% average commission. (The commission ranged from 5% to 35%). When is a marketing agency a good solution? If a hospital or clinic does not have an established marketing department, an experienced agency can quickly build up a solid campaign framework and test various channels for performance. Oftentimes, such agency work requires a flexible budget to test various messaging and channels. For those organizations with a solid in house marketing team, an agency can be used to lead one-off campaigns or to try out a new marketing channels. For those organizations not interested in investing in a marketing agency, it is possible to build and train a solid inhouse team. Seeing results will take longer than with an agency because of the learning curve. FURTHER READING Defining Digital Health ROI: 5 elements that might actually make sense Top 25 Medical Practice Marketing Ideas Seven Low-Cost Marketing Ideas The frequency of response for larger patient organizations was not high enough to be considered in this analysis Page 7
8 Measure your happiness More than half (57%) of the surveyed These are called hard metrics because hospitals and clinics were happy with their they follow deliberate user actions. current marketing efforts. This group is Soft metrics represent an inferred user actively engaged in creating and evaluating behavior and include bounce rate, their online marketing campaigns. The best way to understand whether your average time on page, number of pages visited per user. Google Analytics and campaigns perform well is to Facebook Power Editor establish metrics that follow auto-calculate a number of your user funnel by channel 43% the most popular metrics, and over time. although some site-specific conversion rates need to be In the case of a hospital of hospitals and clinics surveyed seeking to increase reported an increase in patients acquired through their online calculated in-house. marketing campaigns. the number of patients Overwhelmingly, the scheduling appointments, a hospitals and clinics set of KPIs would track the user from the advertisement, to first visit, to scheduled appointment. These could include: cost per click (CPC), click through rate (CTR), cost per visit, cost per inquiry, conversion rate to patient, and cost per patient. indicated that the explicit goal of their online marketing is to acquire more patients (87%). However, only 43% of hospitals and clinics surveyed reported an increase in patients acquired through their online marketing campaigns. The remaining 57% either don t see an effect on patient traffic to their facility or more likely, aren t measuring the effect of their campaigns correctly! Running online marketing campaigns without performance insights is like driving a car blindfolded -- chances are high that you will run into a wall sooner or later. Proper campaign tracking should be in place. If in-house knowledge is missing on this part an agency could help you set this up for a one off small fee. FURTHER READING 9 Marketing KPIs that drive performance in the right direction The 16 Marketing KPIs you should be measuring (but you probably aren t) Top 5 Google Adwords Metrics to Monitor each day with your breakfast Page 8
9 Where do you stand? The survey respondent were clustered into four groups based on the final score of their survey. Most hospitals and clinics are not consistently delivering ROI+ online marketing campaigns, they are lacking the tracking technology to evaluate their online marketing efforts or don t have a strategy in place. We call them the Overspenders in our benchmark. You can find the methodology in the appendix. Want to improve your online marketing? Get a free consultation today: Send an to marketing@medigo.com or Give us a call at The Money Burners The Overspenders The Underspenders The Professionals LOW The Money Burners If you are a Money Burner, then it is very likely that you are spending and seeing no return on your investment. The main points that are lacking here are no tracking to visualise the performance numbers and no online marketing strategy in place. This results in heavy ROI negative marketing campaigns. The Overspenders If you are an Overspender, then it is very likely that although you see results of your marketing efforts, your campaigns are very costly. Your return on investment is not zero, but a profit is not clearly demonstrated either. Your main RETURN ON INVESTMENT problems are probably not having clear oversight into performance numbers (tracking) or not having a consistent marketing strategy in place. The Underspenders If you are an Underspender, then it is very likely that your campaigns are still more expensive than the cost of implementation. You have probably covered the basics and have a clear marketing strategy as well as tracking in place for your key outcomes. However, getting to profitable means significant testing of new channels and dramatic optimisation of your existing campaigns. HIGH The Professionals Well done if you are a Professional, it is very likely that your campaigns are doing well, either you are making a profit or breaking even. Your marketing strategy consists of multiple channels. One might work better than others, and if you re really a pro, then all channels are contributing to your positive return on investment. You have robust tracking and reporting in place to tell you how well each channel performs. But even you probably have something to learn! :) Gurus with ROI++ are constantly AB-testing, performing extensive campaign optimisations, and landing page optimisations. OUR SERVICES Facebook Audience creation Custom conversion implementation Ad copy AB testing Ad copy creation Remarketing audience creation Remarketing strategy implementation Audience optimisation Campaign type strategy Adwords Keyword campaign structure Keyword market research SEM strategy Keyword bidding Search query optimisation Targeting optimisation Ad copy AB testing Ad copy creation Sitelink creation Device strategy Custom conversion implementation Negative keyword optimisation Network strategy Landing pages Landing page creation UX strategy on page Tracking implementation Content writing in multiple languages User journey mapping Analytics Analytics implementation High-level reporting Detailed channel reporting Content management Content creation in multiple languages Trending content market research Content outreach Content performance reporting marketing Subscriber list growth Newsletter creation Open rate AB testing performance reporting Click through rate AB testing User experience or usability testing UX reporting on conversion funnels Content AB testing CTA AB testing Web development or system integrations Heatmap tracking User session recording External communication integrations Add conversion increasing widgets Design Content design Website design Youtube Video audience creation Ad copy creation text or video AB testing ad content Targeting optimisation Placement exclusions Audience optimisation Twitter Custom conversion implementation Remarketing audience creation Ad content creation AB testing ad content Targeting optimisation Placement exclusions Banner audience creation GDN Remarketing banner creation Remarketing strategy implementation Remarketing user segment creation Banner audience creation Ad copy creation text or image Sitelink implementation AB testing ad content Targeting optimisation Placement exclusions Page 9
10 Appendix #1: Benchmark Survey Appendix #2: Benchmark Methodology 1.What type of hospital do you work for? Private clinic Single private practice Specialised center (<5 specialties) University hospital Multi-specialty center (>5 specialties) Hospital group 2.What is the size of your organisation? <1,000 patients per year 1,000 to 10,000 patients per year 10,000 to 50,000 patients per year 50,000 to 100,000 patients per year >100,000 patients per year 3.What percentage of your patients are international patients? 0% 1-5% 5-10% 10-20% 20-30% >30% 4.Do you use online marketing for patient acquisition at your hospital/clinic? I have no transparency about these numbers Yes, online marketing is very important for us Yes, but we just started with online marketing No, but we are interested to start No, we don t use online marketing 6.Which paid marketing channels do you use? Google Bing Facebook Twitter Pinterest Instagram Remarketing Other 7.What is your monthly online marketing budget? 0 <$5,000 $5,000 - $10,000 $10,000 - $20,000 $20,000 - $30,000 $30,000 - $40,000 $40,000 - $50,000 >$50,000 8.Are you happy with your current online marketing efforts? Yes No 9.Which of the following is most important to your current online marketing efforts? Reporting on value delivered Creating ROI+ marketing campaign Acquiring more patients Other 10.Rate this statement: With the use of online marketing, we have noticed an increase in the number of patients Do you use an agency for your online marketing efforts? Yes No 12.Please estimate the percentage of your marketing budget that you spend on your agency? 0-5% 5-10% 10-15% 15-20% 20-25% 25-30% 30-35% >35% If you are doing well at online marketing then your campaign should have clearly defined return on investment, this forms the core of our benchmark score. The more return on investment you have, the higher your score. The highest possible score is set to reflect a high performance specialist marketing agency, which makes the scoring more competitive and more accurately reflect the actual market standards. The score is calculated based on the survey answers and focuses on four areas described below. If you believe we ve made a mistake in analysing your marketing strategy, we are more than happy to review, just send us an ! Spend & Commission The more budget available to a hospital or clinic, the lower the commission that an agency demands. So if you have a high budget and low commission than you are doing well, no penalty points will be deducted. Are you a high spender with a high commission then you will be penalised because a positive ROI is harder to achieve. If you don t use an agency thus don t pay commission then Marketing Mix Relying on more online marketing channels is healthier. The odds that you find a profitable online marketing campaigns is higher when you use more channels. Thus we penalised those users that have less than 2 channels irrelevant to spend. Although the higher spenders should also focus on more than 2 channels if not they will be penalised. Priorities A combination of all the available KPIs gave the right mindset to do Online Marketing. You want to acquire more patients through successful ROI+ campaigns with full insights so you can keep this flow going. If one piece of this puzzle is not in your focus you will be penalised in our scoring. Satisfaction We evaluated this statement on the basis of the questions and the statement whether you saw an influx of patients. If you did not answer positive on either of the questions we think that the current efforts aren t running smoothly and an acceptable ROI is not insight. We penalised those that showed us that were most unhappy about their current performance. the height of your budget will be evaluated in combination with your happiness score. Page 10
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