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DHC Executive Landscape 2012

@digitalhealthco fb.com/digitalhealthco

Digital Health Coalition 2012 Executive Landscape Study The Voice of the DHC Membership

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q  Feedback gathered in September/October 2012 q  Responses from 61 organizations q  Topics including social, mobile, regulatory, legal

Summary Insights The Voice of the DHC Membership

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q  The median budget allocation to digital (out of total marketing budget) in 2012 is 15%; with 20% (median) expected in 2013.

q  The biggest budget increase is expected for content for tablets, content for smartphones, and social media initiatives for consumers.

q  Search has the highest level of perceived ROI, including paid search, search marketing, and search engine optimization.

q  Eighty-one percent of executives surveyed stated they are very far behind and 19% stated they are slightly behind in social media when compared to other industries.

q  The vast majority of executives agree social media provides better insight into customers – the primary motivation to engage in social today.

q  The majority of respondents agree pharma/device has an ethical responsibility to correct misinformation online in social media.

q  However, almost 1/2 of respondents state the risks of social (legal and regulatory) outweigh the benefits of participation today.

Summary Insights The Voice of the DHC Membership

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q  Fully 85% agree that regulated healthcare companies should not be held responsible for comments made by online users (with no relationship or connection to the company) on third-party social media sites such as Facebook, Twitter or YouTube.

q  Specific to platforms, companies report the highest level of sophistication with Facebook and YouTube – the least with Pinterest.

q  The primary hurdle to adoption of social media is “measuring ROI” followed by regulatory then legal.

q  Nearly all pharmaceutical and medical device companies agree that participating in social media benefits public health.

q  Over 80% agree the lack of guidance from the FDA has limited their ability to put forth innovative programs in social media.

q  The industry is more optimistic about mobile than social media: only 69% feel the industry is behind (25% very far behind and 44% slightly behind).

q  Fifty-five percent agree that mobile is the future of pharmaceutical and medical device advertising.

Digital Health Coalition 2012 Executive Landscape Study The Voice of the DHC Membership

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Sales, Marketing, and Customer Service Model Broken The Voice of the DHC Membership

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Budget Allocation Next 12 Months by Activity The Voice of the DHC Membership

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Despite Industry Challenges, Growth Predicted for Digital The Voice of the DHC Membership

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Among Pharma/Device Companies… Estimated allocation to “digital” in 2012 = 15% (median) Estimated allocation to “digital” in 2013 = 20% (median)

Expected Return on Investment by Activity The Voice of the DHC Membership

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Expected Return on Investment by Activity The Voice of the DHC Membership

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Vast Majority Agree Pharma “Very Far Behind” in Social The Voice of the DHC Membership

Vast Majority Agree Social Provides Consumer Insight The Voice of the DHC Membership

Most Agree Not Responsible for UGC on 3rd Party Sites The Voice of the DHC Membership

Despite Benefits, The Risks Outweigh Benefits for Many The Voice of the DHC Membership

Current Activities in Social Media The Voice of the DHC Membership

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Future Plans for Activities in Social Media The Voice of the DHC Membership

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Level of Sophistication by Social Platform The Voice of the DHC Membership

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Hurdles to Social Media Adoption The Voice of the DHC Membership

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31% cite as primary 27% cite as primary

15% cite as primary

Regulatory Concerns – 27% Legal Concerns – 15%

•  3rd party comments as off label •  Responding to consumers?? •  Adverse events •  Monitoring comments •  Use of pre-approved comments

•  Product liability •  Inaccurate information posted •  Risk for litigation •  Unsubstantiated claims by users •  Liability for privacy and data management

Hurdles to Social Media Adoption The Voice of the DHC Membership

The Industry Seen as Further Ahead in Mobile The Voice of the DHC Membership

The Future of Media is … Mobile The Voice of the DHC Membership

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