in association with HEAL [International]

PME GUIDE TO
INTERNATIONAL
MEDIA
PROCUREMENT
2
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
fnal 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 and
the 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 effciencies 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 benefts.
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 effcient
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 effciencies? If it can, this will carry
great potential beneft. 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 benefts 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 all
sectors 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 gather
effciencies? If it can, this will carry
great potential beneft.
Ian Talmage, SVP of Marketing, Bayer Schering
3
www.pmlive.com/heal_mediaprocurement
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 certainly
supported 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 specifc
clear roles allocated to each. In essence, the meaningful
communication of content designed to achieve a specifc
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 personalisation
As 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
infuencers, says Talmage. Once weve identifed 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 a
better 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
4
www.pmlive.com/heal_mediaprocurement
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 effcient, 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 ineffciencies and inconsistencies that are
impacting overall brand effectiveness and RoI. Such
ineffciencies 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 benefts, of such an approach.
Dr Juergen Serafn, VP Corporate Marketing, Sirona
Dental, however, does understand the benefts of a
centralised approach. We serve more than 120 countries
and have signifcant 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 diffcult 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 fnd an agency that can offer good knowledge of all
the respective countries we want to reach, and specifc
understanding of our industry, its customers and their
needs, he adds.
The benefts 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 signifcant. They include:
Con8I8tenCy of me888Qe
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
Renal A&E/Critical care
160
140
120
100
80
60
65
107
163
108
76
5
www.pmlive.com/heal_mediaprocurement
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 fexibility 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.
Enh8nCed IoC8I knoWIedQe
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 local
expertise 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 raise
strategic 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 benefts.
It would make it much easier to have
a consistent media plan across Europe
or internationally.
Dr Juergen Serafn, VP Corporate Marketing,
Sirona Dental
133
103
123
112
108
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
6
www.pmlive.com/heal_mediaprocurement
To underline this, aggregated data from the EU shows
how predisposed different audiences are to using specifc
channels either by therapy area, or by country. For example:
UK O|CO|O_| a|C S |O|C |||C|\ O f|C CO|C uCtu|
than clinicians across the top 5 EU markets
SOa|| | 33 |O|C |||C|\ O f|C |C a|C CC F|_u|C 2:
-&E/C|||Ca| Ca|C CO|u|a| a|C 3S |C |||C|\ O f|C
events/congresses useful (see Figure 1).
Channel usage refects the work style of specifc 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.
ImproVed CommunIC8tIon8 8Cro88 IoC8I m8rket8
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.
DeIIVerInQ V8Iue; efCIenCIe8 8nd eConomIe8 of 8C8Ie
Appointing a media agency is a crucial decision. From the
industrys 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 effciencies and deliver economies of scale. A good
example of this is digital media usage. Currently, digital
technologies are providing an excellent platform for brand
teams to cross boundaries yet local marketers still develop
their own projects in isolation. This can be ineffcient.
A more effcient 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 infnitely
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, ineffcient 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.
A Centr8II8ed reVIeW 8y8tem
Monitoring and benchmarking progress is a crucial part of
any media plan. But from a brand managers perspective,
the current approach is onerous and ineffcient. 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
7
www.pmlive.com/heal_mediaprocurement
coordinated and managed by the lead agency brings
increased effciency and consistency to reporting. The best
media plans will undoubtedly be those that are developed
collaboratively, integrated and presented as one.
DIreCtIon of traVeI: CentraII8atIon
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 effciency, improve productivity
and 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 specifc
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
HEAL IUKl Andrew King
andrew.king@heal-international.com
+44 (0)1932 345 519
HEAL IFPANCEl Laurence Carrasset
laurence.carrasset@heal-international.com
+33 (0)1 4643 3219
HEAL I5PAINl Noelia Cruzado
spain@heal-international.com
+34 C:91 4SS S49C
HEAL ICEPMANYl Matthias Haack
matthias.haack@heal-international.com
+49 C:G9 G9SC CSG2
HEAL IITALYl
italy@heal-international.com
+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 comply
with 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 fulflling 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.
For more information on international media procurement,
contact Andrew King, HEAL [International] at
andrew.king@heal-international.com or on
+44 (0)1932 345 519, or visit www.heal-international.com