From Buzz to Biz: the Social Media Challenge for Pharma and Care

Matthew Fraser EphMRA Conference Berlin, 23 June 2010 BUSINESS AS USUAL?

Social Media?

“Society is in the early phases of what appears to be a media revolution on the scale of that launched by Gutenberg in 1448.”

– The Economist Web 1.0 = “read only”, one-way

Web 2.0 = networked, interactive social (created 2004) - 500 million

(2005) - 2 billion views a day

(2003) - 50 million

(2006) – 105 million users Velocity : 150 million as benchmark

= 5 years

 iPod = 7 years

 cell phone = 14 years

 television = 38 years

 telephone = 89 years Power diffusion: shift towards users

 “prosumer” – we are not only consumers, but also producers  content/information production no longer top-down, one-way “push”  now networked and participatory

Generational Factor: Millennials

“Facebook generation”

 born between 1980-1995  now graduating and moving up ranks  new “values” and assumptions about how people interact in organisations & companies  empowerment, participation, sharing  decisions as consumers based on knowledge Fear Factor! Vertical vs Horizontal Organizations/corporations/govts  top-down, command-and-control hierarchies  recognition/status based on title/rank  communication in “push” broadcast model

Web 2.0 Networks  open, networked, collaborative  recognition based on expertise & performance  communication is networked and participatory with feedback

Health Care & Social Media

Web 2.0 impacts:

 Consumer/patient empowerment  Pharma-doctor-patient relationship  Research & Development  Knowledge management  Decentralized health-care Consumer/patient empowerment

Knowledge is power:

 USA: 60% adults search health info online  Web forums: share info on disease/treatment  Blogs: expert info/opinion publicly available  Medical websites – AskDrWiki, WebMD  Podcasts for medical information via iTunes  Facebook groups sharing health information  Mobile apps like Medscape and ReachMD

Pharma/doctor/patient relationship

 patients now empowered – doctor ratings  DTC in the United States  doctors networking on sites like Sermo – “information arbitrage” business model  Big Pharma pays fees to monitor online doctor “conversations” – “e-detailing”  knock-on effects for doctor detailing and market research? Pharma R&D

 networked R&D – outside walls of company  P&G outsources more than 50% of new product development  InnoCentive – crowdsourcing brain trust spun off by Eli Lilly  harnessing “collective smarts” or “wisdom of crowds” Knowledge Management

 diffusion of power from centralised systems towards consumers/patients  user/patient - owner of his/her records  helps government reduce costs  “HealthVault,  raises issues like privacy Decentralised health care

 primary care moving to grass roots  distant care, tele-medicine  predictive modelling  “virtual hospital”  professionals/patients can get treatment info on mobile iPhone apps like Medscape

Big Pharma industry

 revenues falling, patents expiring  R&D budgets slashed  hyper sensitive to government regulations  marketing still focused on medical profession  negative reputation - doctor-focused marketing involves unethical conduct  advertising spending as % of Web ad spending: projected 5% in 2011 – or $2.2 billion Pharma’s “slow adoption” of Web 2.0

“The pharmaceutical industry is still failing to embrace the Web 2.0 strategies that could help it better engage consumers looking for health care assistance.” -- eMarketer report

Pharmaceutical Marketing Online: Stuck in Web 1.5 Health Care: vertical

- large corporate institutions - regulation by govt bureaucracy

Web 2.0: horizontal

- “social” dynamic - open, networked, participatory Values Clash? Health Care/Parma:  “scientific” culture  regulated – marketing restrictions  “big iron” mainframe computing – data centrally controlled  intellectual property protected  control-oriented and risk adverse – fear of criticism

Web 2.0  “social” culture – no status hierarchies of “experts”  open and risk-oriented – entrepreneurial, fast-paced  information transparent and horizontally “shared”  privacy values open – data moves freely USA–Europe differences?

YES  Europe heavier regulations  DTC advertising restrictions NO  Web 2.0 represents a major “rupture” for govts too  Gov 2.0 – govts looking for new ways of connecting with citizens  individual empowerment via information, participation is a global phenomenon Market Research? Market Research 1.0  “prompted” or “constructed” methodology  surveys, focus groups, market experiments  can provide accurate insights  but not always responsive and timely Market Research 2.0

 tools don’t “construct” situations by asking “prompted” questions  monitor and “listen in” to “unprompted” social interactions  qualitative data -- “spontaneous” and “authentic”  already written so can be easily collated Brand Monitoring  social sentiment “mining”  real-time data on “what people are saying” about brands  blogs, forums, Twitter, Friend Feed  free search tools like Google Alerts, Omgili and Social Mention  more sophisticated software tools on market Trend Analysis  monitoring blogs and social networks  “influencers” on Twitter and in blogosphere  Sermo doctor website gives Big Pharma trend data  Google Trends, Trendrr, Trendpedia Customer Data

 keyword search - gather data on current and potential customers  bloggers and people who post comments identify themselves as customers  Google Blog Search, BlogPulse, BackType CRM: Customer Relations Management

 monitor sites to discover customer needs – including “unmet”  learn how how to “talk” to customers – social engagement  Talk Digger, Whos Talking, Twitter Competitive Data

 monitor competitors  social sentiment mining about their brand/products  BI on companies  LinkedIn, Jigsaw, Crunchbase, ChubbyBrain, Glassdoor Challenges?

 resistance from Legal Depts  ethical guidelines about reporting  conservative corporate cultures resist social media  new approaches threaten old ways of doing things What next?  Web explosion of “social” data about health/pharma  patient empowerment – culture of “sharing” info  consumer/patient “ratings” as the norm (Vitals.com)  mobile health apps  formidable opportunity for market research – despite obstacles  social media as additional tool Social Media as research tool?

 shift from doctor-focused to patient-focused research results (customer feedback)

 monitor “authentic” conversations – results are not biased by constructed settings

 find the right search and software tools to meet specific research needs Takeaways  Health care/pharma at turning point  governments seeking to lower health costs  Web 2.0 represents a “game changer”  consumer/patient empowerment  Big Pharma remains slow-moving and resistant  pressure on revenues will lead to new research and marketing models  market research can seize on social media as tool to aggregate new forms of data Thank you [email protected]

Twitter: @frasermatthew