The DHC/Google 2013 Executive Landscape Study surveyed 60 members from various healthcare organizations on their use of digital technologies. Key findings include: - Respondents expect the biggest budget increases for physician initiatives to be in mobile content for tablets and smartphones, and for consumer initiatives to be in mobile content for smartphones and consumer video. - Paid search was seen as having the highest return on investment for both physician and consumer initiatives. - The majority of respondents believe the healthcare industry lags behind other industries in digital technologies, online video, mobile media, and social media. - Online video is seen as important for marketing, and provides better targeting than television advertising. The primary hurdles to more online video use

1. DHC/Google 2013
Executive Landscape Study
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2. Digital Health Coalition 2013 Executive Landscape Study
The Voice of the DHC Membership
q Feedback gathered in
September/October 2013
q Online survey sent to invited
members/organizations
q Responses from a total of 60
members/organizations
q Survey topics included digital,
online video, mobile, and change
management/innovation
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3. Digital Health Coalition 2013 Executive Landscape Study
Invitations Went to Members at the Following Organizations
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WebMD
JUICE Pharma
Google
Chandler Chicco
Physicians Interactive
Greater Than One
Klick
Digital Insights Group
CMPI
Arnold Friede & Associates
MDM
PPC
CHC
SPM
pathForward
Roche
Lilly
Sanofi
AZ
GSK
Roche Diagnostics
JNJ
Galderma
GE
Inventiv
Velocidi
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Doximity
E-Healthcare
M3
Twitter
Manhattan Research
Roska
CMI Media
QualityHealth
Havas
Digitas
InTouch
Siren
Digitas
GA Communications
Heartbeat
QuantiaMD
HealthDay
MePlusYou
comScore
SAS
ListenLogic
The Futures Company
Palio
Semantelli
IO Media
Pfizer
PAAB
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Lundbeck
Novo
Novartis
Daichi-Sankyo
Takeda (Millenium)
Hologic
Boston Scientific
Abbott
Genentech
Gilead
Shire
Biogen
Eisai
Bayer
Amgen
CSL Behring
BI
Optimer
Astellas
MedImmune
Siemens
UCB
SocialQI
Evolution Road
Virsci
WEGO
Hale Advisors
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4. Digital Health Coalition 2013 Executive Landscape Study
Respondent Profile
8%
Average of 5.9 years in current position
…average of 3.4 years in current position (pharma/device)
5%
Type of Company
Pharmaceutical
Device
43%
20%
Agency
Consulting/Advisory
Technology
15%
Other
8%
Among “Industry” respondents…
51% “Industry”
31% working on several brands
56% working in central digital group
13% in regulatory/legal
81% Primary Focus is US
19% Global
36% work in “top 10” pharma
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5. Summary Insights
The Voice of the DHC Membership
q The biggest budget increase (for physicians) is expected for mobile
content for tablets, mobile content for smartphones, and mobile apps.
q The biggest budget increase (for consumers) is expected for mobile
content for smartphones, consumer video for education and outreach,
and social media for consumers.
q For physician initiatives, paid search has the highest level of perceived
ROI, followed by search optimization and mobile content for tablets.
q For consumer initiatives, paid search has the highest level of perceived
ROI, followed by search optimization and mobile content for smartphones.
q 70% of respondents believe the industry is behind in digital overall.
q 57% of respondents believe the industry is behind in online video.
q 82% of respondents believe the industry is behind in mobile media.
q 83% of respondents believe the industry is behind in social media.
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6. Summary Insights
The Voice of the DHC Membership
q 71% report online video is important to advertising and marketing goals.
q 92% agree online video allows smaller brands (under $1B) an option
when TV is not possible.
q 84% agree online video provides better targeting compared to TV.
q Specific to video platforms, companies report the highest level of
utilization with YouTube and Medscape and the least with Vimeo and Hulu.
q The primary hurdles to further adoption of online video are regulatory
concerns followed by measuring ROI then dealing with ISI in online video.
q Leading metrics to judge success of online video are time spent watching
video, visits to brand site, and click through rate.
q Respondents estimate they spend 7% of their digital budget on video
today … and project that will increase to 9% next year.
q 59% agree native or contextual ad placement is important in 2013.
q 88% agree targeting is the primary benefit offered by online video.
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7. Budget Allocation Next 12 Months by Activity (Physician)
Decrease
Email Marketing for Health Professionals
Stay the Same
Mobile Apps for Health Profesisonals
Increase
Search Optimization for Professional Content
Paid Search for Health Professionals
Don't Know
Display Advertising for Health Professionals
Online Video Advertising for Health Professionals
Professional Video for Education and Outreach
Professional Video for Branded Products
Product Sites (Brand.com) for Health Professionals
Mobile Video Advertising for Health Professionals
Mobile Display for Health Professionals
Mobile Content for Tablets
Mobile Content for Smartphones
Social Media for Health Professionals
0%
50%
100%
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8. Budget Allocation Next 12 Months by Activity (Consumer)
Decrease
Emailing Marketing for Consumers
Mobile Apps for Consumers
Stay the Same
Search Optimization for Consumers
Increase
Paid Search for Consumers
Don't Know
Display Advertising for Consumers
Online Communities for Consumers with Conditions
Online Video Advertising for Consumers
Consumer Video for Education and Outreach
Consumer Video for Branded Products
Disease or Unbranded Sites for Consumers
Product Sites (Brand.com) for Consumers
Mobile Video Advertising for Consumers
Mobile Display for Consumers
Mobile Content for Tablets
Mobile Content for Smartphones
Social Media for Consumers
0%
50%
100%
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9. Expected Return on Investment by Activity (Rank Order)
Professionals
Total Score (Weighted)
Paid Search for Professionals
381
Search Optimization for Professional Content
375
Mobile Content for Tablets for Professionals
372
Email Marketing for Professionals
362
Mobile Content for Smartphones for Professionals
351
Professional Video for Branded Products
311
Professional Video for Education and Outreach
309
Product Sites (Brand.com) for Professionals
301
Mobile Apps for Professionals
264
Display Advertising for Professionals
243
Mobile Display for Professionals
220
Online Video Advertising for Professionals
204
Mobile Video Advertising for Professionals
169
"Total Score" is a
weighted calculation.
Items ranked first
are valued higher
than the following
ranks, the score is
the sum of all
weighted counts.
160
Social Media for Health Professionals
0
50
100 150 200 250 300 350 400 450
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10. Expected Return on Investment by Activity (Rank Order)
Total Score (Weighted)
Paid Search for Consumers
Search Optimization for Consumers
Mobile Content for Smartphones
Product Sites (Brand.com) for Consumers
Disease or Unbranded Sites for Consumers
Mobile Content for Tablets for Consumers
Consumer Video for Education and Outreach
Email Marketing for Consumers
Online Communities for Consumers with Conditions
Social Media for Consumers
Display Advertising for Consumers
Consumer Video for Branded Products
Mobile Apps for Consumers
Online Video Advertising for Consumers
Mobile Display Advertising for Consumers
Mobile Video Advertising for Consumers
Consumers
433
373
359
326
323
310
303
299
279
266
"Total Score" is a
264
weighted calculation.
Items ranked first
250
are valued higher
249
than the following
ranks, the score is
227
the sum of all
223
weighted counts.
220
0
50 100 150 200 250 300 350 400 450 500
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11. Majority Agree Pharma/Device “Behind” in Digital Overall
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
46%
24%
With respect to the use of digital overall, how would you describe the
pharmaceutical and device industry compared with other industries…
24%
7%
0%
We Are Very We Are Slightly We Are "Just We Are Slightly We Are Very
Far Behind
Behind
Average"
Ahead
Far Ahead
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12. Industry Believes Pharma/Device “Average” to
“Slightly Behind” in Online Video
With respect to the use of online video, how would you describe the
pharmaceutical and device industry compared with other industries…
40%
35%
35%
30%
31%
26%
25%
20%
15%
10%
5%
7%
2%
0%
We Are Very We Are Slightly We Are "Just We Are Slightly We Are Very
Far Behind
Behind
Average"
Ahead
Far Ahead
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13. Vast Majority Agree Pharma/Device “Slightly Behind”
or “Far Behind” in Mobile Media
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
46%
With respect to the use of mobile media, how would you describe the
pharmaceutical and device industry compared with other industries…
36%
15%
4%
0%
We Are Very We Are Slightly We Are "Just We Are Slightly We Are Very
Far Behind
Behind
Average"
Ahead
Far Ahead
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14. Majority Agree Pharma/Device “Very Far Behind”
in Social Media
70%
With respect to the use of social media, how would you describe the
pharmaceutical and device industry compared with other industries…
64%
60%
50%
40%
30%
29%
20%
10%
0%
6%
2%
0%
We Are Very We Are Slightly We Are "Just We Are Slightly We Are Very
Far Behind
Behind
Average"
Ahead
Far Ahead
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15. Online Video
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16. Importance of Online Video to Marketing Strategy
71% Say Important
33%
35%
30%
25%
18%
20%
13%
15%
8%
10%
5%
5%
0%
15%
5%
3%
3%
0%
Not at all
Important
2
3
4
5
6
7
8
9
Very
Important
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17. Online Video Allows Smaller Brands (under $1B) an
Option When TV Is Not Possible
92% Agree
40%
35%
35%
28%
30%
25%
20%
13%
15%
8%
10%
5%
0%
0%
0%
Strongly
Disagree
2
3%
3
0%
4
8%
5%
3%
5
6
7
8
9
Strongly
Agree
Don't
Know
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18. Online Video Advertising Providers Better Targeting
Compared to TV Advertising
84% Agree
35%
30%
30%
23%
25%
20%
13%
15%
8%
10%
0%
Strongly
Disagree
0%
2
10%
5%
3%
5%
0%
10%
3
0%
4
5
6
7
8
9
Strongly
Agree
Don't
Know
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19. Utilization by Video Platform
WebMD
Use for HCP
Use for Consumers
EverydayHealth
Use for Both
Do Not Use
Sermo
QuantiaMD
Medscape
Vimeo
Hulu
YouTube
0%
20%
40%
60%
80%
100%
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20. How Are You Using YouTube?
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21. How Are You Using WebMD?
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22. Hurdles to Increased Use of Online Video Adoption
60%
54%
51%
51%
49%
43%
37%
34%
31%
29%
26%
23%
20%
17%
17%
14%
9%
6%
Regulatory concerns
Measuring the effectiveness and ROI of online video
Dealing with ISI in online videos and online video advertising
Creating compelling content that resonates with key audiences
Integrating the data/analytics from online video into existing
Legal concerns
Lack of budget earmarked for online video
The need to educate staff about the effective use of online video
Lack of strategy specific to online video
Staying up to date on the latest technology trends and changes
Compliance concerns
The perceived high price of online video compared to other digital
Lack of support by the C-suite
The pack of standardized metrics (to measure success)
Hiring qualified people to work on online video projects
Lack of innovative agencies, vendors, and solution providers
The market of physicians is not ready for online video
The market of consumers is not ready for online video
0%
20%
40%
60%
80%
22

23. Metrics to Judge Success of Online Video Strategies
Time spent watching video
71%
Visits to the brand site
71%
66%
Click through rate
63%
Video completion rate
54%
Ability to reach target audience
46%
Social engagement (sharing/likes)
34%
Brand awareness or recall
29%
Mouse over rate
0%
20%
40%
60%
80%
23

24. Growth Predicted for Online Video (as share of Digital)
Among Pharma/Device Companies…
Estimated allocation to “online video” in 2013 = 7% (average)
Estimated allocation to “online video” in 2014 = 9% (average)
24

25. Importance of Native or Contextual Ad Placement
in Online Video in 2013
59% Say Important
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
44%
21%
9%
Not at all Important Somewhat Important
15%
12%
Not Sure
Somewhat Important
Very Important
25

26. Effectiveness of Online Video Compared to TV
58% Say More Effective
60%
49%
50%
40%
30%
21%
21%
20%
9%
10%
0%
0%
Much Less Effective
Somewhat Less
Effective
As Effective
Somewhat More
Effective
Much More Effective
26

27. Aspects of Online Video You Find Beneficial
88%
Targeting capabilities
70%
Price relative to TV
55%
Cost efficiencies
Engaging formats
52%
Reach
52%
18%
Ad unit formats
0%
10% 20%
30% 40% 50%
60% 70% 80% 90% 100%
27

28. For More Information…
DHC/Google 2013 Executive Landscape Study
www.digitalhealthcoalition.org
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29. DHC/Google 2013
Executive Landscape Study
29