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Author: Chris Copeland, CEO, GroupM Search Research Leads: Brandon Fischer, Predictive Insights, GroupM Search Janea Schaeffer, Predictive Insights, GroupM Search
February 2012
In 2011, pharmaceutical companies spent more than $4 billion in advertising, according to data obtained from Kantar Medias Stradegy tool. Of that, search advertising accounted for just 2.6 percent. New research conducted by GroupM Search, seeking to establish the real impact search marketing has on patients going on script, shows that 42 percent of patients who fulfilled new prescriptions used paid search in their decision making process. This suggests that search advertising is either the best value possible for pharma advertisers or there is great potential to further impact prescriptions via search marketing. And therein lies the challenge for pharma brands in determining an ROI on digital advertising, search marketing included. To date, digital advertising for pharma relies on proxy site-side consumer activity metrics as a guide for investments, leaving marketers to guess the true impact on their brand. Until now, the largely unanswered question has remained, what is the impact of digital advertising on the critical key performance indicator (KPI)prescriptions filled. From the research by GroupM Search, that question is answered. A new understanding of searchs role as a vehicle for pharma brands is discovered, and a proprietary model developed, which advertisers can apply to determineand predictthe role paid search marketing plays in driving the fulfillment of new prescriptions for their brand.
Background
The research sought to quantify the relationship between a consumers search behavior and new prescription volume (NRx). Using proprietary competitive benchmarking data from five competing drugs for an indication (condition), and Wolters Kluwer PHAST database information for total prescription volume, GroupM Search developed a model to determine the relationship between paid search clicks for a drug and a new prescription being filled.
NRx
Drug 1 0.73 clicks = 1 NRx
Time
Source: Clicks to Scripts Research, GroupM Search, February 2012
Clicks to Scripts: Search Marketing Model Predicts New Pharmaceutical Prescriptions Fulfillment February 2012
These findings are critical for the pharmaceutical industry, which until now has largely relied on on-site user conversion actions as a proxy for potential prescriptions filled. In the drug class studied, medication that requires daily usage was likely to convert to a script with as few as one paid search click required. By contrast, a drug with an annual usage
1
Time
Source: Clicks to Scripts Research, GroupM Search, February 2012
required more than 35 clicks to convert a single new prescription fulfilled. In furthering the research, GroupM Search used the standard site-side conversion actions of an active pharma client to assess the dynamic between that metric and a new prescription filled. In this scenario, it was found, with a high statistical confidence interval, that one could predict how many of the measured site-side actions by a patient it would take to lead to a prescription being fulfilled. This gives brands an even deeper linkage between the channel activity and new scripts, and enables the ability to make informed decisions on their investment in search marketing in the future.
Key Takeaways
Pharma brands can now link channel activity to new scripts Pharma brands that have been reliant on measuring digital advertising success with site-side actions now have a statistical model to tie more closely back to their true KPIprescriptions filled. Search represents a great bargain with potential expansion opportunities for pharma brands In most cases, search makes up less than 3 percent annually of a brands total advertising budget, and at that level, can be directly attributed to 7 percent of prescriptions filled on a monthly basis. With a new understanding of the direct correlation paid search has on new prescriptions, the channel potential for brands opens up. Cost-prohibitive costs-per-clicks (CPCs) can now be justified Brands have previously placed limitations on search buying owing to high CPCs (average $2.51 CPC for keywords in the prescription drug category in January 2012). With the new understanding of clicks to scripts, a brand can better justify pharma CPCs, weighing the direct ROI versus a proxy metric, given in some cases, a new prescription will be fulfilled with a single click.
Clicks to Scripts: Search Marketing Model Predicts New Pharmaceutical Prescriptions Fulfillment February 2012
NRx