in the Pharmaceutical Industry

Utilization of Social Media

Olaf Paetz, Christian Pütter, 2012-08-22

Is Social Media still fashionable?

Stock Price in Dollar

Source:

Spiegel, Thomson

Reuter Datastream

Loss of

market cap

since IPO:

$53bn! 18,0

04. Sept. 18. Mai

HCPs and patients are increasingly using Online / Social

Media to improve their understanding of medications

• BBS 4:3 Template 2010 • June 2011 Page 3

Patients go online before talking to a doctor The internet is the top health resource for Physicians

Of physicians have used the Internet to gather health,

medial, or prescription

drug information

The Internet far exceeds the following resources for gathering health,

medical, or prescription drug information

Training – 78%

Peer Reviews Journals – 77%

Pharmaceutical

sales representatives – 77%

Colleagues – 67%

Books – 56%

Health-related organization/

association – 54%

Magazines – 35%

Videos/DVDs – 20%

Despite the fact that ‚Health‘ is big online, patients have

not accepted online offerings by pharmacos so far

46.956.000

42.240.000

14.748.000

11.064.000

8.664.000

Onmeda.de

Netdoktor.de

Qualimedic.de

Gesundheit.de

Lifeline.de

Typical Pharma

Patient website

Website Visits p.a. based on IVW

data July 2012

Example: Usage of leading health-related online portals in Germany

20.000 – 100.000 visits p.a.

Patients prefer unbiased online information of leading publishing houses. The usage of pharma patient

websites is neglectable. Without a convincing value propositions ROI cannot be achieved.

Source: Extrapolation of monthly IVW data as of July 2012

Physicians spend twice as much time in Social Media

than with reps and prefer to rely on online communities

3.2

3.4

3.4

2.0

3.0

Online physician

community

* Percent of physicians time spent to get clinical information in %, N=278

** Average rating of “<Source> was able to influence my view about relevant medications”; (0=strongly disagree, 4= strongly agree); N=286

Source: Survey of the online physician community Sermo

24

23

24

9

20

100% (hrs/wk) =

Other online

media

Publications or

presentations

Direct

peer-to-peer

Pharmaceutical

company

Online physician

community

13

Pharmaceutical

company

Direct

peer-to-peer

Publications or

presentations

Other online

media

Percent of physicians’ time spent to get clinical

information*

Rated influence of different media on physicians’ view about

relevant medication**

Opportunities for Pharma to capture value

5 maturity levels of Social Media activities

• Name of Presentation • November 29, 2011

Listen to

conversations

Promote and

advertize

Participate in

conversations

Publish to Social

Media Platforms Build communities

Level 1:

Find out what others

publish about Bayer,

brands, products,

services with Social

Media analysis,

monitoring or topic

tracking, KOL

identification etc.

Level 2:

Use Social Media

Platforms and

services to promote

Bayer services and

products through

advertizing

Level 3:

Join interesting

conversations and

provide others

(customers, KOLs)

with knowledge

Level 4:

Publish marketing

and communication

Material to Social

Media Platforms,

which provide

additional value.

Level 5:

Build up communities

for special interest

topics (e.g. on

Facebook) and

motivate others to

join the conversation

Applying the different Social Media Measures bears

varying benefits and success probabilities

• BBS 4:3 Template 2010 • June 2011 Page 7

Probability of success (higher →)

Po

ten

tia

l b

enefit (h

igh

er

→)

Listen to…

1. Plan Campaigns

2. Monitor Campaigns

3. Determine Reputation

4. Generate Market &

Customer Insights

5. Detect Trends & Topics

6. Identify Influencers

7. Monitor Competitors

8. Identify partners

Advertise to…

1. Raise Awareness

2. Generate Leads

Participate to…

1. Influence Brand Image

2. Customer Service

3. Influence Opinions

Publish to …

1. Raise Awareness

2. Influence Brand Image

Join/build communities to…

1. Support CRM

2. Support Market Research

3. Launch Microsites

4. Run Open Innovation

5. Do eDetailing

6. Offer CME

7. Found communities

8. Recruit medical or study

resources

9. Run campaigns

1 2

3

4

5

6

7

8

1

2

1

2 3

1 2

1

2

3

4

5

6

7

8

9

Applying the different Social Media Measures bears

varying benefits and success probabilities

• BBS 4:3 Template 2010 • June 2011 Page 8

Probability of success (higher →)

Po

ten

tia

l b

enefit (h

igh

er

→)

Listen to…

1. Plan Campaigns

2. Monitor Campaigns

3. Determine Reputation

4. Generate Market &

Customer Insights

5. Detect Trends & Topics

6. Identify Influencers

7. Monitor Competitors

8. Identify partners

Advertise to…

1. Raise Awareness

2. Generate Leads

Participate to…

1. Influence Brand Image

2. Customer Service

3. Influence Opinions

Publish to …

1. Raise Awareness

2. Influence Brand Image

Join/build communities to…

1. Support CRM

2. Support Market Research

3. Launch Microsites

4. Run Open Innovation

5. Do eDetailing

6. Offer CME

7. Found communities

8. Recruit medical or study

resources

9. Run campaigns

1 2

3

4

5

6

7

8

1

2

1

2 3

1 2

1

2

3

4

5

6

7

8

9

Selected

Case Studies

Social Media Listening could identify Online KOLs and

assess their influence on customers to enable an

effective KOL management

• BBS 4:3 Template 2010 • June 2011 Page 9

KOL

„Offline“ KOL „Online“ KOL

HCPs

influences

Conferences, Journals

publishes in/on

x

HCP Platforms

x

Patient Forums

publishes in/on

Patients

influences

To detect „Online“ KOLs is easy and cheap

Tools and services exist to determine the reach, influence and opinions of „Online“ KOLs

BUT: Management of „Online“ KOLs is challenging

Management of „Online“ KOLs must take additional risks

into consideration

• BBS 4:3 Template 2010 • June 2011 Page 10

• “Online” KOLs’ motivation is different

• The influence in community networks on

individuals is unknown

• Only a few “hot” topics are discussed

• The interests and topics change rapidly

• Answers to questions are expected within

hours

• Members from pharma companies might not

be accepted as valuable members of the

comunity

• It is impossible to control the discussions

• Unpredictable comments of individuals will

drive discussions in different directions

Understanding the mechanisms within

community take time, but is key for successful

Social Media activities

The high dynamics and speed within community

networks requires new processes within

pharma companies

Building trust is a long term and time consuming

investment on an individual basis. Any

Marketing messages are contra productive and

will fail.

Pharma companies have to accept that

negative mentions could not be avoided and

must develop new communication strategies.

Ris

k M

anagem

ent

Social Media Listening can be used to create or verify

content and message planning for Online and Offline

Campaigns

• BBS 4:3 Template 2010 • June 2011 Page 11

Social Media Listening Results

Quantified and qualified

• Topics

• Trends

• Opinions

• Sentiments

Campaign and Content Planning

WebSite Apps Newsletter

…

HCP Social Media Platforms have proven to be a source

of high quality traffic for Company Websites & Portals

• BBS 4:3 Template 2010 • June 2011 Page 12

x HCP Community Platform

x

Branded Microsite

HCPs

x

Company Portal

HCP Community Platform have

significantly more visitors than

typical Pharma Websites.

Pharma could raise the awareness

of Company Websites through

Branded Microsites.

Traffic directed from Branded

Microsites shows significantly

lower leakage and CPT /CPC than

traditional methods like

SEO/SEM.

Most HCP Social Media Platforms offer features to

support (payed) Surveys

• BBS 4:3 Template 2010 • June 2011 Page 13

The process for running

Online Surveys is simple:

Design

the Survey(s)

Implement and Run

the survey

Identify

appropriate participants

Collect and Interpret

answers

Supported by

the community platform

HCP community platforms

Offer to incorporate surveys

into campaigns. Example:

Measure product

awareness

Run an awareness

campaign within a

platform, e.g. through

branded MicroSites

Measure product

awareness

Major learnings from test surveys:

• Good return rate (>90%)

• High level of detail of provided

physicians profile

• Short response and execution

times (<50% of regular

Market Research possible)

• Low costs (<50% of regular

Market Research)

• High and valuable traffic on

Microsites

• Biased answers

• Risk of wrong information in

physician‘s profiles

Community surveys serve

as a good addition to

traditional Market Research.

In Summary: Pharma should integrate Social Media

as a core channel in the marketing mix

• Social Media needs to be part of a larger design, it has only limited value on its own: Develop a

comprehensive e-strategy with the explicit goal to make it a core element of the commercial

model!

• Value cannot not only be leveraged in reaching lower-value physicians but also in reaching high-

value that prefer this approach: Social Media should be the backbone for influencing and

building trust more broadly!

• Understand key issues that must be addressed to overcome internal biases from different

stakeholders (e.g., compliance risks, benefit/impact, fit with future commercial model)!

• Do not aim for a perfect solution, but rather test, learn and continuously optimize: Social Media -

as the internet in general - offers great opportunities for easy and cost-efficient testing and

optimization of different approaches. Best practices develop iteratively!

Thank you! Danke!

2012-08-20 Olaf Paetz, Christian Pütter