media procurement

8/11/2019 Media Procurement

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www.pmlive.com/heal_mediaprocurement

The pharmaceutical industry is grappling with the challenge

of gaining and maintaining the balance between thinking

global and acting local. Instead of continuing to look at local

silo markets, there is a growing trend towards developing

brand strategy on an international basis.

Pharma companies across the EU, along with their

counterparts in the life science and healthcare industries, are

beginning to look increasingly at Europe as a single market,

rather than as a series of separate ones. Its the beginning of

a direction of travel: Europe today, global tomorrow.

In other marketing disciplines, most notably creative

and branding, there is a growing trend for companies to

appoint network agencies to work across core European

markets Germany, France, UK, Italy and Spain as well as

others, to develop a centralised brand strategy.

Using this approach, directives are issued from Europe and

provided to the local markets for implementation meaning

that while operations are still being conducted on a local

basis, they are being strategised from a central position.

This approach makes perfect sense. But often, the

nal execution of the brand strategy engagement with

customers via multi-channel brand communication

remains an individual, local decision. And at times, there is

little connectivity between the local implementation andthe core objectives of the overall brand strategy.

And so the question is: could a centralised approach be

applied to channel planning/buying? In reality, as companies

continue to seek efciencies and quality gains across their

operations, there may not be a choice. As pharma evolves,

adopting a centralised approach may not be an option, but

an imperative.

Evolution not revolution

Procurement departments across Europe increasingly

enquire about pan-European media buying solutions an

estimated 30% of the major pharma companies in Europe

are proactively considering the approach. And in tandem,

marketers are becoming wise to the benets.

The good news is that delivering the solution does not

require a wholesale change of structure. It is simply about

building on strong local foundations that already exist, and

exploiting a network that maximises local excellence to

deliver best practice and RoI across all markets.

Using resources effectively

At present, all companies are focused on the efcient

use of scarce resource. It is not necessarily a matter of

how much money we can save, but how we can use the

resources we are given most effectively so that ultimately

the product is communicated in a responsible and

productive manner, says Ian Talmage, Senior Vice president

of Marketing, Bayer Schering.Can the way in which we buy media be globalised in

order for us to gather efciencies? If it can, this will carry

great potential benet. The industry does require better

planning, and the better we plan, the better we will be able

to utilise resources effectively. If pulling together all the

various components of a media plan can be carried out

more effectively then the industry really should look at it. If

there are benets to be derived, we are listening.

Changing face of media use

The past few years have seen a sea change in media usage in

healthcare. Brand managers are looking for media that cuts

SHARING CENTRE STAGE

Think global, act local has been a common philosophy for businesses across allsectors for much of the past decade. But managing the balance between the two,

and in the process, achieving consistency while embracing local idiosyncrasies,

remains an ongoing battle.

Can the way in which we buy media

be globalised in order for us to gatherefciencies? If it can, this will carry

great potential benet.

Ian Talmage, SVP of Marketing, Bayer Schering


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across different geographical markets deploying products

that focus on individual therapy areas, but have a pan-

European or international reach, rather than a local focus.

The rapid development of digital technology has certainlysupported the cross-market approach and helped improve

learning, research and thinking about best practice.

In fact, the proliferation of media channels in recent

years has precipitated a major change in the role and

perceived value of media agencies. Media planning itself

dated terminology has become more sophisticated, and

much more strategic. The evolution of digital channels has

meant that media strategy now encompasses electronic,

interactive and multimedia, alongside all the other

traditional routes to audience engagement.

The challenge is to integrate a package of media

(channels) in the most effective way with specic

clear roles allocated to each. In essence, the meaningful

communication of content designed to achieve a specic

interaction with the audience.

It is much better to have a single-minded

communication and messaging based on common data

that supports it. This is clear and transparent, rather than

allowing a fragmentation of ideas that have different

nuances in different countries, Talmage asserts.

We now have instant communication and the ability to

access information anywhere and at any time. We should

therefore try to create a situation where we treat the

brand as one and have a single team, both internally and

externally, that provides transparency and consistency

across all communications, he adds.

Era of personalisationAs channel consumption and behaviours have evolved,

so too have marketers objectives. Marketing is no longer

simply about pushing messages using a linear channel

route to promote a product. Were entering the era of

mass personalisation where critical mass is achieved

through the supply of content repurposed into different

formats to meet different access opportunities and needs.

Media agencies are best placed to provide the metrics that

can help brand managers choose the most effective and

appropriate routes to market. Inter-channel planning is a

specialist activity and getting it right means understanding

the landscape in which a particular brand is competing.

Todays market encompasses a broad range of

inuencers, says Talmage. Once weve identied our key

audiences, how best do we get our core messages to them

using traditional and new media?Often the global team will develop the strategy,

the positioning and the core concepts, then leave the

execution and the conversion of theory into practice to the

local countries. So how can we improve on that?

Ultimately, the tangible outcome of media buying is

communicating a message through an appropriate channel

to the right audience. But to get there, you need to

develop a deeper, richer understanding of your audiences

behaviour, ensuring that any content thats developed can

work effectively in the chosen environment.

Cross-channel metrics

The way audiences consume media has evolved

considerably. Customers want different things from a

print journal than they do online. Often they are not

mutually exclusive.

The skill lies in developing the research in order to get abetter understanding of how to target each client group.

Do they want news, or are they interested in clinical

information? If customers go online, are they interested in

platforms that enable them to connect with peer groups

to share information, thinking and advice in a social media

context? What are their educational needs and which

environments and techniques are most likely to satisfy

them? Its about understanding how different customer

groups consume media, and very often its a mixture based

on personal preference.

Understanding channel metrics is fundamental to media

planning but establishing them requires robust data and

Often the global team will develop the

strategy, the positioning and the core

concepts, then leave the execution and

the conversion of theory into practice

to the local countries. So how can we

improve on that?

Ian Talmage, SVP of Marketing, Bayer Schering


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specialist expertise. Single-channel metrics are challenging

enough, but developing cross-channel metrics across

geographical markets is ever more complex.

In an industry that is increasingly looking to centralise its

marketing operations, the development of cross-channel

and cross-market metrics on which brand teams can

base critical strategic decisions will be vital. Furthermore,

facilitating a shared understanding of the vagaries of

individual local markets to help develop an integrated, cross-

region media plan is likely to become a key requirement.

Companies that are able to deliver this will have the best

chance of implementing efcient, effective and consistent

brand plans across all core markets.

The centralised approach

The adoption of a centralised media planning approach is,

at best, at an embryonic stage across European pharma.

While strategy for many of the other marketing initiatives PR, medical education and advertising is now directed

from a higher European level and subsequently rolled

out across local markets, media planning is still largely

considered to be a local activity.

But in an increasingly international marketplace, a

continued reliance on the traditional localised approach

may be shortsighted.

In many cases, its likely that the traditional approach

contains inefciencies and inconsistencies that are

impacting overall brand effectiveness and RoI. Such

inefciencies could easily be addressed by adopting a

centralised methodology. But at present, key stakeholders

in both marketing and procurement may be unaware of

the possibility, let alone the benets, of such an approach.

Dr Juergen Seran, VP Corporate Marketing, Sirona

Dental, however, does understand the benets of a

centralised approach. We serve more than 120 countries

and have signicant media spending in our core countries.

But there are challenges having so many media agencies

managing our local media.

It would make it much easier to have a consistent media

plan across Europe or internationally.In todays environment,

it is much more difcult to put all the local media plans

together and maintain a consistent plan across Europe.

A centralised approach can also help us get better prices,

better performance and better value, he continues.

A good media agency is important not simply in buying

media but also in getting expertise in terms of what are

the right channels for our overall goals. The challenge is

to nd an agency that can offer good knowledge of allthe respective countries we want to reach, and specic

understanding of our industry, its customers and their

needs, he adds.

The benets of adopting a collaborative, central approach

to media planning and implementation across Europe

and, over time, into other major international markets such

as the US and Japan are signicant. They include:

Maintaining a consistency of message is a key objective for

European brand managers, who invest considerable time

and resources in developing a core brand value proposition.

Base: All secondary care clinicians EU 5

Source: HRS/Manhattan/EPG Health Media/HEAL Network research

Figure 1: Channel imperatives EU 5 (aggregated)

usefulness of events, meetings or congresses

Cardiology

Dermatology Neurology

RenalA&E/Critical care

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140

120

100

80

60

65

107

163

108

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Despite this, the current approach means that there is

often considerable variability in how media plans are

interpreted at a local level.

Local agencies are given the autonomy and exibility to

develop approaches according to individual experiences

and preferences but with no integrated plan, or indeed, a

central organisation to keep them in line with core objectives,

there is a risk that communications will drift off message.

To deliver demonstrable RoI, and consistency of message,

media agencies must increasingly ensure plans remain in line

with corporate and international objectives. A centralised

approach and framework is the best way to achieve this.

Intimate knowledge of the nuances of local environments

is a vital ingredient in ensuring that brand communications

are appropriate, relevant and productive across all markets.

As a consequence, the need to harness and maximise localexpertise is pivotal to any integrated brand plan. If properly

executed, an integrated approach need not dilute the

power and value of local knowledge it should enhance it.

Developing an overarching media plan that captures

insights and understanding from all local stakeholders will

be the key to a successful centrally managed strategy.

Local brand teams do not wish to be dictated to in terms

of writing and implementing their own marketing plans

and the centralised approach does not deprive them of this

opportunity. Rather it provides an integrated framework

with which their plans must align a framework that will be

built around agreed core objectives.

Equally, local brand teams retain responsibility and

accountability for their own marketing budgets. The

centralised process merely ensures that local spending

aligns with centrally agreed objectives.

Moreover, the appointment of a centralised media

agency to lead planning strategy does not eliminate the

important role of local specialist agencies. Local agencies

will still play a crucial role in developing and implementing

the plan capitalising on their local knowledge, expertise,

publisher relationships and buying power.

Just as importantly, sharing and showcasing also helps raisestrategic and implementational standards across markets.

Collaborative metrics

There is a whole diaspora of different disciplines across a

range of clinicians and healthcare stakeholders, with each

group accessing information in different ways. Throw

regional and cultural variation into the mix and a complex

metric becomes even more complicated.

However, aggregated customer understanding that

capitalises on shared and collated local knowledge enabled

by a collaborative pan-European approach led by a single

lead agency brings with it obvious benets.

It would make it much easier to have

a consistent media plan across Europe

or internationally.

Dr Juergen Seran, VP Corporate Marketing,

Sirona Dental

133

103

123

112108

133

128

123

118

113

108

103

98

93

UK

Base: All secondary care clinicians EU 5

Source: HRS/Manhattan/EPG Health Media/HEAL Network research

France Germany Spain Italy

Figure 2: Channel imperatives EU 5 (aggregated)

oncologists usefulness of publisher websites


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To underline this, aggregated data from the EU shows

how predisposed different audiences are to using specic

channels either by therapy area, or by country. For example:

than clinicians across the top 5 EU markets

events/congresses useful (see Figure 1).

Channel usage reects the work style of specic therapy

areas. Oncologists, for example, are generally more

collaborative in mindset so certain channels are more

appealing to them. A&E/critical care consultants work

in an intense environment and, consequently, congress

attendance holds less appeal.

Clearly, shared data facilitated by a cross-market network

approach can help brand managers better understand how

different audiences engage.

At the moment, the traditional silo nature of pharma makes

it hard for companies to know what is going on in their

own local market, let alone whats happening outside of it.

Communication between local markets is often stymied by

organisational structure, meaning there are no synergies

and no economies of scale.

A single, centralised solution that can coordinate a

collaborative approach across local markets provides industry

with an opportunity to improve its internal communication

and in the process help to deliver greater value.

Appointing a media agency is a crucial decision. From theindustrys perspective there are two key stakeholder groups

that have a vested interest in that decision; procurement

and marketing. Understandably, each stakeholder group has

its own perspective and selection criteria.

A procurement departments natural focus is cost and

the demonstration of value. Marketers, on the other hand,

look for KPIs around service delivery; specialist expertise,

local knowledge and the ability to innovate. The common

thread for both parties is the need to demonstrate

RoI, which combines the overarching qualities of value,

productivity, innovation and performance.

A centrally managed media plan can help reduce waste,

increase efciencies and deliver economies of scale. A good

example of this is digital media usage. Currently, digital

technologies are providing an excellent platform for brandteams to cross boundaries yet local marketers still develop

their own projects in isolation. This can be inefcient.

A more efcient approach would be to develop one

international platform based around core data and core

objectives. This would achieve far greater synergies, a greater

reach, reap greater value, and cost much less than building a

handful of smaller, eclectic local sites. It would also innitely

improve understanding of value, performance and relevance

as limited resources are more effectively invested.

Earlier this year, one major international pharma company

took down a large number of dormant brand websites a

coordinated approach, built around established brand

objectives, may have helped discourage the development of

such sites at the outset, saving valuable resource.

Equally, the perceived lack of communication between

local markets can often lead to duplication of advertising

messages in the same international media. Once again,

this is costly, inefcient and could easily be avoided by

deploying a central lead agency.

Adopting a centralised approach that captures local

insights from all the core markets, and knits them into an

overall, integrated media plan can help pharma generate

genuine economies of scale.

Maximising the collective buying power, local knowledge

and market expertise of established local media agencies

cannot only save money, but it can also expedite internal

process, improve quality and increase market penetration.

Monitoring and benchmarking progress is a crucial part of

any media plan. But from a brand managers perspective,

the current approach is onerous and inefcient. At present,

European marketers have to liaise with each of their local

agencies to pull together reports on important aspects

such as local coverage, regional frequency and spend data

both from an internal and a competitor perspective.

For the core EU markets alone, this means making a

number of calls to receive a number of reports in, potentially,

a number of different formats. A centralised approach


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coordinated and managed by the lead agency brings

increased efciency and consistency to reporting. The best

media plans will undoubtedly be those that are developed

collaboratively, integrated and presented as one.

The implementation of a centralised approach to all

marketing activity is a direction of travel for the life science

industries. At the moment, change is incremental, but as the

collective imperative to drive efciency, improve productivityand deliver increased value grows, the need to adopt a

central strategy that maximises local expertise will intensify.

A strong, integrated specialist healthcare media agency

network can help brand teams navigate increasingly complex

areas, not only in terms of the channels available to them,

but also the customer insight and compliance needs that

relate to their associated local markets.

Crucially, media agencies are independent of specic

marketing disciplines, and as such can become trusted

advisers in the strategic development of a communications

plan. Perhaps its time for them to share centre stage?

Contacts

Andrew King

[email protected]

+44 (0)1932 345 519

Laurence Carrasset

[email protected]

+33 (0)1 4643 3219

Noelia Cruzado

[email protected]

Matthias Haack

[email protected]

[email protected]

+39 (0)2 3361 4533

www.heal-international.com

The importance of compliance

The life sciences industries are, of course, heavily regulated. As such, compliance is a key issue when

attempting to view Europe as a single market. There is considerable variability in the industry codes of practice

across all countries, and marketers seeking to advertise on a pan-European basis must ensure they complywith the individual requirements of them all. Specialist healthcare media planners working across Europe and

internationally, have a wealth of knowledge relating to compliance and codes of practice, and can help to

develop campaigns that will be compliant and effective across Europe.

In addition to fullling all the medico-legal requirements associated with healthcare communications, any

centralised approach must be undertaken in partnership with agencies that can demonstrate appropriate

knowledge of the EFPIA Code, as well as individual local regulations.

The trend towards regional marketing is driving a number of understandable changes in all market sectors.

This includes compliance considerations, says Steve Gray, Managing Director, Compliance Hub. While the

various European national codes share a common core the EFPIA code, there are important national

variations that can hold dangers for the unwary European marketer.

Nor is it acceptable to be simply aware of the potential dangers. Modern European marketers need to

design campaigns that they know are suitable across Europe or be able to easily adapt campaigns for sub-

European clusters of countries. Pan-European agencies are rapidly gaining experience in meeting these cross-

border compliance challenges.

Those that work closely with experienced compliance specialists are particularly well placed to deal with the

compliance environment as it evolves in real-time, he adds.


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For more information on international media procurement,

contact Andrew King, HEAL [International] at

[email protected] or on

+44 (0)1932 345 519, or visit www.heal-international.com

media procurement

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