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DHC/Google 2013 Executive Landscape Study

Digital Health Coalition 2013 Executive Landscape Study The Voice of the DHC Membership

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q  Feedback gathered in September/October 2013

q  Online survey sent to invited members/organizations

q  Responses from a total of 60 members/organizations

q  Survey topics included digital, online video, mobile, and change management/innovation

Digital Health Coalition 2013 Executive Landscape Study Invitations Went to Members at the Following Organizations

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q  WebMD q  JUICE Pharma q  Google q  Chandler Chicco q  Physicians Interactive q  Greater Than One q  Klick q  Digital Insights Group q  CMPI q  Arnold Friede & Associates q  MDM q  PPC q  CHC q  SPM q  pathForward q  Roche q  Lilly q  Sanofi q  AZ q  GSK q  Roche Diagnostics q  JNJ q  Galderma q  GE q  Inventiv q  Velocidi

q  Doximity q  E-Healthcare q  M3 q  Twitter q  Manhattan Research q  Roska q  CMI Media q  QualityHealth q  Havas q  Digitas q  InTouch q  Siren q  Digitas q  GA Communications q  Heartbeat q  QuantiaMD q  HealthDay q  MePlusYou q  comScore q  SAS q  ListenLogic q  The Futures Company q  Palio q  Semantelli q  IO Media q  Pfizer q  PAAB

q  Lundbeck q  Novo q  Novartis q  Daichi-Sankyo q  Takeda (Millenium) q  Hologic q  Boston Scientific q  Abbott q  Genentech q  Gilead q  Shire q  Biogen q  Eisai q  Bayer q  Amgen q  CSL Behring q  BI q  Optimer q  Astellas q  MedImmune q  Siemens q  UCB q  SocialQI q  Evolution Road q  Virsci q  WEGO q  Hale Advisors

Digital Health Coalition 2013 Executive Landscape Study

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43%

8% 15%

20%

8% 5% Type of Company

Pharmaceutical Device Agency Consulting/Advisory Technology Other

Average of 5.9 years in current position …average of 3.4 years in current position (pharma/device)

51% “Industry”

Among “Industry” respondents… 31% working on several brands 56% working in central digital group 13% in regulatory/legal 81% Primary Focus is US 19% Global 36% work in “top 10” pharma

Respondent Profile

Summary Insights The Voice of the DHC Membership

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q  The biggest budget increase (for physicians) is expected for mobile content for tablets, mobile content for smartphones, and mobile apps.

q  The biggest budget increase (for consumers) is expected for mobile content for smartphones, consumer video for education and outreach, and social media for consumers.

q  For physician initiatives, paid search has the highest level of perceived ROI, followed by search optimization and mobile content for tablets.

q  For consumer initiatives, paid search has the highest level of perceived ROI, followed by search optimization and mobile content for smartphones.

q  70% of respondents believe the industry is behind in digital overall. q  57% of respondents believe the industry is behind in online video. q  82% of respondents believe the industry is behind in mobile media. q  83% of respondents believe the industry is behind in social media.

Summary Insights The Voice of the DHC Membership

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q  71% report online video is important to advertising and marketing goals. q  92% agree online video allows smaller brands (under $1B) an option

when TV is not possible. q  84% agree online video provides better targeting compared to TV. q  Specific to video platforms, companies report the highest level of

utilization with YouTube and Medscape and the least with Vimeo and Hulu. q  The primary hurdles to further adoption of online video are regulatory

concerns followed by measuring ROI then dealing with ISI in online video. q  Leading metrics to judge success of online video are time spent watching

video, visits to brand site, and click through rate. q  Respondents estimate they spend 7% of their digital budget on video

today … and project that will increase to 9% next year. q  59% agree native or contextual ad placement is important in 2013. q  88% agree targeting is the primary benefit offered by online video.

Budget Allocation Next 12 Months by Activity (Physician)

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0% 50% 100%

Social Media for Health Professionals

Mobile Content for Smartphones

Mobile Content for Tablets

Mobile Display for Health Professionals

Mobile Video Advertising for Health Professionals

Product Sites (Brand.com) for Health Professionals

Professional Video for Branded Products

Professional Video for Education and Outreach

Online Video Advertising for Health Professionals

Display Advertising for Health Professionals

Paid Search for Health Professionals

Search Optimization for Professional Content

Mobile Apps for Health Profesisonals

Email Marketing for Health Professionals Decrease

Stay the Same

Increase

Don't Know

Budget Allocation Next 12 Months by Activity (Consumer)

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0% 50% 100%

Social Media for Consumers

Mobile Content for Smartphones

Mobile Content for Tablets

Mobile Display for Consumers

Mobile Video Advertising for Consumers

Product Sites (Brand.com) for Consumers

Disease or Unbranded Sites for Consumers

Consumer Video for Branded Products

Consumer Video for Education and Outreach

Online Video Advertising for Consumers

Online Communities for Consumers with Conditions

Display Advertising for Consumers

Paid Search for Consumers

Search Optimization for Consumers

Mobile Apps for Consumers

Emailing Marketing for Consumers Decrease

Stay the Same

Increase

Don't Know

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Expected Return on Investment by Activity (Rank Order)

160 169

204 220

243 264

301 309 311

351 362

372 375 381

0 50 100 150 200 250 300 350 400 450

Social Media for Health Professionals Mobile Video Advertising for Professionals Online Video Advertising for Professionals

Mobile Display for Professionals Display Advertising for Professionals

Mobile Apps for Professionals Product Sites (Brand.com) for Professionals

Professional Video for Education and Outreach Professional Video for Branded Products

Mobile Content for Smartphones for Professionals Email Marketing for Professionals

Mobile Content for Tablets for Professionals Search Optimization for Professional Content

Paid Search for Professionals

Total Score (Weighted) Professionals

"Total Score" is a weighted calculation. Items ranked first are valued higher than the following ranks, the score is the sum of all weighted counts.

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Expected Return on Investment by Activity (Rank Order)

220 223 227

249 250

264 266

279 299 303 310

323 326

359 373

433

0 50 100 150 200 250 300 350 400 450 500

Mobile Video Advertising for Consumers Mobile Display Advertising for Consumers

Online Video Advertising for Consumers Mobile Apps for Consumers

Consumer Video for Branded Products Display Advertising for Consumers

Social Media for Consumers Online Communities for Consumers with Conditions

Email Marketing for Consumers Consumer Video for Education and Outreach

Mobile Content for Tablets for Consumers Disease or Unbranded Sites for Consumers

Product Sites (Brand.com) for Consumers Mobile Content for Smartphones

Search Optimization for Consumers Paid Search for Consumers

Total Score (Weighted) Consumers

"Total Score" is a weighted calculation. Items ranked first are valued higher than the following ranks, the score is the sum of all weighted counts.

Majority Agree Pharma/Device “Behind” in Digital Overall

24%

46%

24%

7%

0% 0% 5%

10% 15% 20% 25% 30% 35% 40% 45% 50%

We Are Very Far Behind

We Are Slightly Behind

We Are "Just Average"

We Are Slightly Ahead

We Are Very Far Ahead

With respect to the use of digital overall, how would you describe the pharmaceutical and device industry compared with other industries…

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Industry Believes Pharma/Device “Average” to “Slightly Behind” in Online Video

26%

31% 35%

7%

2% 0%

5%

10%

15%

20%

25%

30%

35%

40%

We Are Very Far Behind

We Are Slightly Behind

We Are "Just Average"

We Are Slightly Ahead

We Are Very Far Ahead

With respect to the use of online video, how would you describe the pharmaceutical and device industry compared with other industries…

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Vast Majority Agree Pharma/Device “Slightly Behind” or “Far Behind” in Mobile Media

36%

46%

15%

4% 0%

0% 5%

10% 15% 20% 25% 30% 35% 40% 45% 50%

We Are Very Far Behind

We Are Slightly Behind

We Are "Just Average"

We Are Slightly Ahead

We Are Very Far Ahead

With respect to the use of mobile media, how would you describe the pharmaceutical and device industry compared with other industries…

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Majority Agree Pharma/Device “Very Far Behind” in Social Media

64%

29%

6% 2% 0%

0%

10%

20%

30%

40%

50%

60%

70%

We Are Very Far Behind

We Are Slightly Behind

We Are "Just Average"

We Are Slightly Ahead

We Are Very Far Ahead

With respect to the use of social media, how would you describe the pharmaceutical and device industry compared with other industries…

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Online Video

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Importance of Online Video to Marketing Strategy

0%

8% 5%

13%

3%

15%

33%

18%

5% 3%

0%

5%

10%

15%

20%

25%

30%

35%

Not at all Important

2 3 4 5 6 7 8 9 Very Important

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71% Say Important

Online Video Allows Smaller Brands (under $1B) an Option When TV Is Not Possible

0% 0% 3%

0% 3%

8%

35%

13%

8%

28%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Strongly Disagree

2 3 4 5 6 7 8 9 Strongly Agree

Don't Know

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92% Agree

Online Video Advertising Providers Better Targeting Compared to TV Advertising

0% 3%

0%

5%

0%

13%

8%

23%

10%

30%

10%

0%

5%

10%

15%

20%

25%

30%

35%

Strongly Disagree

2 3 4 5 6 7 8 9 Strongly Agree

Don't Know

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84% Agree

Utilization by Video Platform

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0% 20% 40% 60% 80% 100%

YouTube

Hulu

Vimeo

Medscape

QuantiaMD

Sermo

EverydayHealth

WebMD Use for HCP

Use for Consumers

Use for Both

Do Not Use

How Are You Using YouTube?

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How Are You Using WebMD?

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Hurdles to Increased Use of Online Video Adoption

6% 9%

14% 17% 17%

20% 23%

26% 29%

31% 34%

37% 43%

49% 51% 51%

54% 60%

0% 20% 40% 60% 80%

The market of consumers is not ready for online video

The market of physicians is not ready for online video

Lack of innovative agencies, vendors, and solution providers

Hiring qualified people to work on online video projects

The pack of standardized metrics (to measure success)

Lack of support by the C-suite

The perceived high price of online video compared to other digital

Compliance concerns

Staying up to date on the latest technology trends and changes

Lack of strategy specific to online video

The need to educate staff about the effective use of online video

Lack of budget earmarked for online video

Legal concerns

Integrating the data/analytics from online video into existing

Creating compelling content that resonates with key audiences

Dealing with ISI in online videos and online video advertising

Measuring the effectiveness and ROI of online video

Regulatory concerns

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Metrics to Judge Success of Online Video Strategies

29%

34%

46%

54%

63%

66%

71%

71%

0% 20% 40% 60% 80%

Mouse over rate

Brand awareness or recall

Social engagement (sharing/likes)

Ability to reach target audience

Video completion rate

Click through rate

Visits to the brand site

Time spent watching video

Growth Predicted for Online Video (as share of Digital)

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Among Pharma/Device Companies… Estimated allocation to “online video” in 2013 = 7% (average)

Estimated allocation to “online video” in 2014 = 9% (average)

Importance of Native or Contextual Ad Placement in Online Video in 2013

9%

21%

12%

44%

15%

0% 5%

10% 15% 20% 25% 30% 35% 40% 45% 50%

Not at all Important Somewhat Important Not Sure Somewhat Important Very Important

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59% Say Important

Effectiveness of Online Video Compared to TV

0%

21% 21%

49%

9%

0%

10%

20%

30%

40%

50%

60%

Much Less Effective Somewhat Less Effective

As Effective Somewhat More Effective

Much More Effective

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58% Say More Effective

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Aspects of Online Video You Find Beneficial

18%

52%

52%

55%

70%

88%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ad unit formats

Reach

Engaging formats

Cost efficiencies

Price relative to TV

Targeting capabilities

For More Information…

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DHC/Google 2013 Executive Landscape Study www.digitalhealthcoalition.org

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DHC/Google 2013 Executive Landscape Study