MEDNET - Analysis

Case Analysis: MedNet.com Confronts “Click-Through” Competition

Monique Priestley

Winter 2011: MCDM COM588 Digital Media Marketing & Branding

Rick McPherson/Brian Marr

Monique Priestley

Winter 2011: MCDM COM588 Digital Media Marketing & Branding

Table of Contents Analysis & Strategy

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Executive Summary

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Situation Analysis

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Strategic Alternatives

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Proposed Strategy

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Appendix A: Environmental Analysis - SWOT

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Appendix B: Positioning Map

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Appendix: References

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Case Study: MedNet.com Confronts ”Click-Through” Competition

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Monique Priestley

Winter 2011: MCDM COM588 Digital Media Marketing & Branding

Analysis & Strategy Executive Summary MedNet is an award-winning site that provides trusted, evidence-based, consumer information. It is currently facing new competition from several sites that offer an array of information on therapeutic treatments, alternative medicine, and specific aliments such as cholesterol. MedNet is using a cost-per-thousand-impressions advertising model, which is the best model to use in their case. In order to get more impressions and offer its advertisers more value, MedNet needs to increase traffic to its site. The site can do this by utilizing traditional media (e.g., print newspaper ads, print phone directory ads, print magazine ads) to drive traffic to the site. Using social media and other web tools (e.g., wikis, discussion boards, customizable profiles) MedNet can keep those visitors engaged and encouraged to return.

Situation Analysis According to a Forrester Report by Monique Levy (2005), “Consumers’ demand for products that enable them to take more control of their health decisions and benefits will grow...although various factors (e.g., more access to health information, increased direct-to-consumer advertising) have driven consumers’ empowerment it has grown slowly.” Levy also reports that 52% of online consumers, “Would be interested in using the web to evaluate or manage at least one aspect of their healthcare in the future.” In a Forrester report from 2008, Levy found that, “Eight percent of online users said they are using the Internet more often because it is becoming more difficult to get the care they need from a doctor. Social websites such as PatientsLikeMe report that their communities are flourishing and providing users with unrivaled support and information.” In another report, Levy also found that 36% of online health connectors use the internet, “To see what other consumers say about a medication or treatment.” Levy found that, “When making drug-related decisions, online consumers are significantly more influenced by information from peers than from corporations.”

Environmental Analysis Strengths MedNet is a award-winning website that is considered a trusted, evidence-based, source of the best consumer health information on the Internet. MedNet’s website is not only easy-to-navigate and accessibly written; its content is developed by, “24 trained journalists, doctors, designers, and administrators.” On top of that, MedNet also has input from the faculty of a prominent medical school, news agencies, [and] a photography service.” MedNet has a monthly audience of 4.3 million users that visit its site and utilize web banners of companies that can offer immediate solutions to health concerns. After an initial visit, MedNet’s visitors often return to research any following aliments. During site visits, those visitors usually end up covering many more areas of the site then are related to what they are searching for. MedNet’s visitors also tend to buy more products from advertisers when they finally decide to purchase. This includes asking their physicians for prescription medication when it isn’t available over-the-counter. Weaknesses A portion of MedNet’s traffic is starting out by going through the search engine, Marvel. Although MedNet won’t be able to compete with Marvel’s traffic rates, MedNet needs to use a mix of traditional and digital strategies in order to get direct traffic (or traffic through MedNet profiles on networking sites). Search engines such as Marvel not only have a large audience; they have returning audiences that use the site regularly, and in a predictable pattern. Right now, many of MedNet’s visitors come only when they need medical information “in crisis.” If MedNet can form an audience of regularly returning customers, even if they are regular visitors to MedNet’s network profiles, the site would be in good shape. Opportunities MedNet has an active community of visitors that use blogs, chat, and virtual reality. Although competition is on the rise, many of MedNet’s competitor’s are focusing on providing visitors a narrow scope of information or pushing remedies to the public that have not been scientifically proven. When it started, MedNet chose to target its efforts towards getting pharmaceutical companies to buy banner advertising. By focusing on pharmaceutical companies, MedNet is missing out on a whole slue of opportunities such as medical centers, doctor offices, drug stores, and medical reference publishers.

Case Study: MedNet.com Confronts ”Click-Through” Competition

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Monique Priestley

Winter 2011: MCDM COM588 Digital Media Marketing & Branding

Because MedNet’s visitor community is filled with repeat visitors who are active in social media, MedNet has a huge opportunity to engage those visitors across a variety of networks. Threats Sites such as ClinicalTrials.com have entered the market offering a variety of aliment specific information and information on alternative remedies. Nonprofit and governmental websites such as the US National Library of Medicine and the World Health Organization also provide mainstream medicine information to site visitors. At the same time, large corporations have begun to offer health intranets to their employees, which have been cutting into MedNet’s visitor base. Although not a direct competitor, Alternativehealth.com has a much larger audience and more robust sales and advertising strategy than MedNet. Marvel is hugely successful with an audience of 19 million visitors per month and is selling advertisements in a number of categories, including the pharmaceutical market. A new group of niche, condition-specific competitors have entered the playing field. MedNet is facing serious competition from Cholesterol.com which can offer Windham’s specific target market by offering information regarding cholesterol specifically. Sites such as Cholesterol.com tend to offer the latest information and interactive tools which stores visitor data. Cholesterol.com specifically, has a huge advertising budget and offers the site in 13 different languages.

Strategic Alternatives Although MedNet has many options, including a change of content, change of message, and approach to advertising price schemes, MetNet has the opportunity to grow both its visitor traffic and its value to advertisers by simply boosting its communications strategy. MedNet could offer unproven therapies and alternative medicine, but that won’t be helpful to its current customers (neither visitor demographic, nor advertisers as it would attract an audience unlikely to trust corporate pharmaceuticals anyways). MedNet could worry about changing it’s advertising structure from cost-perthousand impressions to cost-per-click, but again, this isn’t solving the main problem - it needs to attract more visitors and it needs to generate more returning traffic to its site. In order to do this, it needs to keep the same content, but offer new value with community tools and communication outlets.

Proposed Strategy MedNet can already see that visitors to its site enjoy using forums, chats, and other social media tools. MedNet needs to leverage these tools, as well as make new tools available to its visitors. Not only will visitors find them useful, they will also return to the site over and over to test other tools, explore, and engage. MedNet also needs to use traditional media to channel more advertising to drive visitors to its site. Another avenue that was not discussed is the use of traditional advertising in and around doctors’ offices and retail health services (e.g., Walmart, Target, CVS). According to a Forrester report by Julie Snyder (2007), “More consumers seek health information (78%) than finance or business information.” The Forrester survey found that out of 7,500 consumers, 35% prefer to use websites to get health information. This was followed by print magazines at 16%, print newspapers at 14% and TV at 10%. The report suggests that, “The health industry’s eBusiness investments do not match consumer interest...healthcare eBusiness executives spent and average of $4.5 million in 2006...versus an industry average of $10.1 million...it’s apparent that it’s time to ramp up online spending and efforts.” When it comes to trust, 42% of those surveyed said that they trusted the advertising found in the Yellow Pages. This was followed by print newspaper ads (33%), magazine ads (27%), and direct mail (26%). When it comes to online media, 41% of health information seeker’s trust advertising in the form of consumer opinions. Health information seekers also trust advertising emails which they signed up for (36%) and brand Websites (30%). In another Forrester Report by Monique Levy (2005), “45% of online consumers said they used online tools, services and information to manage or evaluate at least one aspect of their healthcare benefits and treatment choices during the past year.” The report also found that, “21% of online consumers said they used online resources to help them decide if particular drugs were best suited to them.” In the same report, Levy found that insured online consumers have one of the highest adoption rates of decision-making resources. Levy reported that 70 percent of, “Online consumers who care for someone with a chronic condition have used health decision or management tools during the past year...Caregivers are most interested in evaluating and comparing the cost of drugs as well as being able to assess what is wrong.” In another report Levy found that, “97% of active online caregivers look for a wide range of health information online.” In order for MedNet to increase the value offered to Windham, MedNet needs to increase its visitor traffic, the amount of time that visitors stay on its site, and the amount of times that visitors return for more information. In order to do this, Case Study: MedNet.com Confronts ”Click-Through” Competition

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Monique Priestley

Winter 2011: MCDM COM588 Digital Media Marketing & Branding

MedNet needs to provide its site visitors with new ways to explore its content, share, and engage. To do this, MedNet needs to first focus on channeling traditional, print advertisements through doctors’ offices, health insurance providers, and retail pharmacies. MedNet should also spend a portion of its advertising budget on ads in telephone directories, print newspapers and print magazines. These ads could be either invite consumers to visit MedNet.com or a simple information collaboration between MedNet and its offerings such as Windham’s prescription medications. After it gets its traditional media in place, MedNet needs to add additional focus to social media tools such as Facebook, Twitter, wikis, and discussion boards/forums. According to a Forrester report by Snyder (2008), “Many healthcare consumers are likely to use online healthcare community tools like discussion boards and blogs. In fact, nearly onequarter (24%) of commercially insured online consumers have used an online community health resource.” Not only does this allow users to interact, it allows users to interact on a 24/7 basis and shine new light on MedNet as a partner in health and wellness. The specific technology used by the commercially insured online consumers include wikis (54%), discussion boards (33%), blogs (20%), and online chats (10%). Snyder reports, “The most common reasons healthcare consumers visit online community resources include asking minor health questions (42%), researching health topics (42%), and getting help understanding medical information (36%).” Out of these consumers, they are using community resources for two distinct needs: informational and emotional. “Today, 44% of healthcare consumers who use Social Computing tools seek information alone, 9% seek emotional support alone, and 34% seek a combination of both.” What better way to serve these consumers by inviting them to form a bond with other community members? Community members could use the tools not only to search for help and information, but also to provide it as well. MedNet could not only offer a “general health” community, but it could also offer aliment-specific communities comparable to the site, PatientsLikeMe.com. The task of monitoring and providing content to the community could be handled by MedNet’s employees or outsourced to community members themselves, or by asking for sponsored posts from its advertisers. PatientsLikeMe partners with pharmaceutical companies to provide information. In order to encourage repeat customers, MedNet could invite guest bloggers/social media users to offer content and could offer incentives to the community for engaging. Many discussion boards have an incentive of rankings and different badges. In 2008, a Forrester report found that 20% of online users are interested in customizing a health website. “Customizers are significantly more likely than average online users to go online to find out information about prescription drugs, see a prescription drug ad, in an e-mail newsletter, see a prescription drug ad in a banner ad, and discuss a drug they learned about in an online ad with their doctor.” These users are high-frequency users, 33% of which go online weekly, compared with 21% of all online users. Among this group of customizers, 27% use products online to manage a condition or disease. MedNet’s best target segment of visitors are those that fit into the PRIZM (2003) F1: Accumulated Wealth life stage group. This group fits between the ages of 25-54, is well-off, college-educated and consists of families with children. This group is most likely to have health insurance and be digitally literate. This segment is already online. According to a Forrester report by Golvin and Schadler (2008), 38% of the 23.6 million commercially insured Baby Boomers (29-42 year of age) visit health sites. This stat increases with commercially insured members of Generation X (43-63 years of age), 42% of which visit health sites. According to another Forrester report (2007), 48% of Older Boomers (ages 51-61) are likely perform health research online in order to confirm what their doctors tell them during their checkups. A further target segment would be those in the Accumulated Wealth life stage group that have a health condition or disease. If MedNet were to employ social tools, profiles, and discussion boards, it would be more likely to attract the customizers from the Accumulated Wealth life stage group. MedNet would be wise to target producers medication for high blood pressure, high cholesterol, allergies, and depression/anxiety as its providers of advertising content. According to the same report, over 20% of US adults have diabetes, and 40% of them research the condition online; 15-20% of US adults have high cholesterol and 41% research the condition online; and 10-15% of US adults have allergies, 55% of which research allergies online. Finally, just under 10% of US adults have depression/anxiety and 56% research those conditions online. MedNet needs not only to appeal to these people in general, it needs to appeal to people who are emotional, “in-crisis,” or simply in search of health information. MedNet has a great opportunity to engage its existing customer base and a great opportunity to attract new customers. As PatientsLikeMe testified, this type of engagement empowers consumers by putting the patient back at the center of the healthcare system.

Case Study: MedNet.com Confronts ”Click-Through” Competition

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Monique Priestley

Winter 2011: MCDM COM588 Digital Media Marketing & Branding

Appendix A: Environmental Analysis - SWOT • Award-winning website that is considered trusted, evidence-based. • Best source of consumer health information on the Internet. Strengths

• Easy-to-navigate and accessibly written with information developed by professionals. • Monthly audience of 4.3 million visitors that often return “in crisis.” • Visitors usually cover many areas of the site besides the information they are looking for. • Visitors tend to buy more products from advertiser when they decide to purchase. • A portion of MedNet’s traffic goes through Marvel and other search engines.

Weaknesses

• MedNet can’t compete with Marvel’s traffic rates or rate of returning visitors. • Many of MedNet’s visitors only visit “in crisis.” • MedNet has an active community of visitors that use blogs, chat, and virtual reality.

Opportunities

• MedNet can broaden its advertisers beyond pharmaceutical companies such as doctors‘ offices, retail pharmacies, and medical centers. • Aliment specific information sites are entering the market. • Nonprofit and governmental websites such as the US National Library of Medicine and the World Health Organization have entered the market.

Threats

• AlternativeHealth.com is among the many sites offering information on alternative medicine, massage, and therapeutic remedies. • Marvel and other search engines are also advertising for MedNet’s clients. • Cholesterol.com is among the many niche, condition-specific competitors entering the market. Cholesterol.com offers interactive tools and has a huge advertising budget.

Case Study: MedNet.com Confronts ”Click-Through” Competition

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Monique Priestley

Winter 2011: MCDM COM588 Digital Media Marketing & Branding

Appendix B: Positioning Map MedNet WHO

ClinicalTrials AlternativeHealth

US Nat’l Lib. of Medicine Cholesterol.com

Ease of Use

HIGH

LOW

HIGH

LOW

Variety & Trust Worthiness

Case Study: MedNet.com Confronts ”Click-Through” Competition

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Monique Priestley

Winter 2011: MCDM COM588 Digital Media Marketing & Branding

Appendix: References Golvin, C., Schadler. (2008). The state of consumers and technology: Benchmark 2008. Retrieved from http:// www.forrester.com/rb/Research/state_of_consumers_and_technology_benchmark_2008/q/id/44126/t/2 Claritas (2003). PRIZM NE: The new evolution segment snapshots. Retrieved from http://www.icyte.com/system/ snapshots/fs1/0/3/1/5/03155d650fb7015aacba5303706d9ea56b4fac61/index.html?anno_id=27835#top Levy, M. (2005). Empowered online health consumers. Retrieved from http://www.forrester.com/rb/Research/ empowered_online_health_consumers/q/id/51835/t/2 Levy. M. (2004). Online caregiver segmentation. Retrieved from http://www.forrester.com/rb/Research/ online_caregiver_segmentation/q/id/51224/t/2 Levy, M. (2007). Online health. http://www.forrester.com/rb/Research/online_health/q/id/52144/t/2 Levy, M. (2008). Online health behavior. Retrieved from http://www.forrester.com/rb/Research/online_health_behavior/q/ id/53019/t/2 Levy, M. (2008). Online health information. Retrieved from http://www.forrester.com/rb/Research/ online_health_information/q/id/52007/t/2 Levy, M. (2007). Online health information and marketing. Retrieved from http://www.forrester.com/rb/Research/ online_health_information_and_marketing/q/id/52044/t/2 Levy, M. (2008). Online health sites. Retrieved from http://www.forrester.com/rb/Research/online_health_sites/q/id/ 53182/t/2 Levy, M. (2005). Online health support groups and consumer-created health content. Retrieved from http:// www.forrester.com/rb/Research/online_health_support_groups_and_consumer-created_health/q/id/51719/t/2 Levy, M. (2006). Health search marketing. Retrieved from http://www.forrester.com/rb/Research/health_search_marketing/q/id/ 52446/t/2 Levy, M. (2006). Online prescription drug marketing. Retrieved from http://www.forrester.com/rb/Research/ online_prescription_drug_marketing/q/id/52964/t/2 Levy, M. (2008). Social media in health. Retrieved from http://www.forrester.com/rb/Research/social_media_in_health/q/ id/53114/t/2 PatientsLikeMe (2010). About us: Company milestones. Retrieved from http://partners.patientslikeme.com/about/ Snyder, J. (2008). Building an online healthcare community. Retrieved from http://www.forrester.com/rb/Research/ building_online_healthcare_community/q/id/44721/t/2 Snyder, J. (2007). Healthcare consumers continue to migrate online. Retrieved from http://www.forrester.com/rb/ Research/healthcare_consumers_continue_to_migrate_online/q/id/44297/t/2 Snyder, J. (2007). How different generations use online health research. Retrieved from http://www.forrester.com/rb/ Research/how_different_generations_use_online_health_research/q/id/42119/t/2

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