Digital Marketing (DM) technologies are rapidly transforming the commercial marketplace – challenging companies to develop new Marketing skills that employ a broad range of new tools and techniques. This research examines how successful organizations maximize the value provided by the DM function to drive greater commercial engagement. Best Practices, LLC, conducted this study to help healthcare companies measure and improve performance across a wide range of Digital Marketing (DM) functional areas and activities. The study delivers insights on performance tracking, new tools and technologies, demonstrating value, better alignment with brand teams, talent acquisition and development, mitigating Regulatory risk, and investment trends.

1. REPORT SAMPLE:
Digital Marketing Excellence: Generating Top Value
in an Emerging Healthcare Function
Best Practices, LLC Strategic Benchmarking Research & Analysis
BEST PRACTICES,
®
LLC

2. Table of Contents
 EXECUTIVE SUMMARY……………………………………………………3



Research Overview……………………………………………………………..4
Participating Companies………………………………………………………5
Key Findings & Insights……………………………………………………….6
 DETAILED RESEARCH FINDINGS
1.
2.
3.
4.
5.
6.
7.
8.
Performance & Tracking for Greater Effectiveness…………………24
Making the Value Case for Digital Marketing…………………………...38
Identifying & Mitigating Top Regulatory Risks…………………………44
Optimizing the DM Function Structure………………………………..…55
Aligning the DM Function for Maximum Impact…......………………...62
Critical Trends in Talent Recruitment & Skills Development…….…..69
Piloting New Digital Services………………………………………….…..80
Digital Investment: Staffing & Budget Trends…………………..……...86
 About Best Practices, LLC……………………………………….……..91
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3. Research Objectives, Methodology & Results
Digital Marketing (DM) technologies are rapidly transforming the commercial marketplace – challenging
companies to develop new Marketing skills that employ a broad range of new tools and techniques.
This research examines how successful organizations maximize the value provided by the DM function
to drive greater commercial engagement.
Topics Included
Study Overview
 Research Objective:
This Best Practices, LLC
benchmark study is designed to help healthcare
companies measure and improve performance across
a wide range of Digital Marketing (DM) functional areas
and activities. This research delivers insights on
performance tracking, new tools and technologies,
demonstrating value, better alignment with brand
teams, talent acquisition and development, mitigating
Regulatory risk, and investment trends.
These research findings provide healthcare industry
metrics that can serve as a planning and improvement
tool for Digital, Social, Multi-Channel, and other
Commercial leaders seeking to maximize the value of
Digital Marketing in the challenging pharma, biotech,
and medical device marketplaces.
 Methodology: Best Practices, LLC engaged 31
Marketing leaders at 28 companies through a
benchmarking survey instrument.
Performance Tracking
• Highest-Impact Digital Marketing Fronts
• Best Metrics, Activities & Tools to Show Value
Identifying & Mitigating Top Regulatory Risks
• Impact of Regulatory Concerns on Actual DM
Investments
• Highest Perceived Risk Areas across Key Digital
Platforms
 Optimizing the DM Function Structure for High
Performance
• Corporate Alignment and Strategy
• Center of Excellence Role & Effectiveness in Digital
Marketing
The Next Generation of Digital
• Talent Recruitment & Critical Skills Development
• Pre-launch Processes for Testing and Rolling Out
New Digital Services
• Mobile Content Creation & Optimization
• Investment Trends: Staffing & Budget Levels
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4. Universe of Learning: 28 Top Companies Participated in Study
Thirty-one benchmark survey respondents from 28 companies participated in this study. More than
half of respondents are directors, senior directors or vice presidents, and 62% are based in the
United States. The vast majority of these Digital Marketing leaders work in the healthcare and
pharmaceutical industries.
Benchmark Class:
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5. Sample Key Findings:
Making the Case for the Digital Marketing Function
The following key findings and insights on making the value case for Digital Marketing within the
organization emerged from this study.

Tactical Decisions on Displayed Online Content Are Often Made as High as at VP Level:
At 30% of companies, decisions around what DM content is displayed online on various Social Media
platforms are made at the vice president level or higher! That these tactical considerations are made
at the executive level underscores both the importance companies attach to Digital presence in
today’s marketplace (and also, for healthcare organizations, the deep concern over incurring
Regulatory scrutiny in all corners of the industry).

Sales Force Effectiveness and Training Programs Are Well-Suited to Demonstrating ROI:
Overall, 72% of DM groups report that various SFE programs (e.g., equipping the sales force with iPad
technology) and sales training support activities (48%) are more conducive to demonstrating ROI than
are more “core” DM channels like Social Media. However, before increasing sales support activities,
companies must decide whether these responsibilities rightly fall under the banner of DM.
5
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6. Sample Data Slide:
Research Examines High-Impact Digital Marketing Opportunity Areas
This benchmark research examines key opportunity fronts across which Digital Marketing teams are
seeking to both drive and demonstrate value. Benchmark respondents rated performance tracking
metrics, mitigating Regulatory risk, better corporate alignment, improved piloting programs, and greater
focus on key skills as highly important opportunities for achieving best-in-class performance.
Q. Please indicate which topics are of the greatest importance to your organization.
Rating Digital Marketing Areas:
Not Important at this time
Tracking metrics for greater
3%
effectiveness
Recognizing and avoiding
regulatory risk
Corporate alignment and strategy
Piloting a New Digital Marketing
service
11%
Skills, Training, and Personnel 3%
Digital Marketing organizational
structures
21%
14%
7%
7%
Staffing and Investments 3%
Somewhat Important
(n=)
Highly Important
29
76%
28%
29
59%
55%
45%
64%
72%
30
52%
36%
30
54%
38%
30
29%
24%
30
30
% Responses
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7. Sample Data Slide:
YouTube, Email, Websites Earn Highest Social Media Ratings
Among Social Media, three channels – YouTube, Email, and company websites – win highest positive
impact ratings. Interestingly, various other channels – Facebook, Forums, Twitter, LinkedIn and Blogs –
also win a smaller but enthusiastic following.
Q. For each of the following forms of Social Media, express the impact upon your target audience
Social Media Impact:
High negative impact
Some negative impact
No impact
YouTube (or other video-type media)
Some positive impact
17%
48%
Email marketing 3%
3%
Company-hosted websites
40%
Company-hosted discussion forums
Twitter 5%
LinkedIn
Blog
RSS feed
Slideshare
Pinterest
20%
45%
36%
29
19%
38%
46%
8%
28
25%
40%
42%
26
28%
61%
25
14%
24
8%
42%
64%
22
36%
73%
Google Plus 4%
22
27%
77%
79%
24
8%
46%
42%
(n=)
24
35%
66%
14%
Facebook
High positive impact
23%
17%
22
22
23
% Responses
7
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8. Sample Qualitative Slide:
Regulatory Concerns Greatly Slow Time-to-Market for New Digital Services
In the highly regulated healthcare sector, government regulations not only impair a company’s ability to
reach and inform patients via new online technologies, they also create challenges for DM teams to
successfully support their own internal customers. As one interviewed director noted: “[Our] adoption
rate of new channels has halted until global standards can be implemented and scaled.”
Impact of Regulations:
• Limits Use of New Technology, e.g., Social Media
• Does Not Allow Direct Contact with Patients
• Increases Time to Market for Digital Services
“Adoption rate of new channels (social) has halted until
global standards can be implemented and scaled.”
– Director, Digital & Innovation
“Decision not to enter Social Media for the time being;
increased time-to-market for Digital services (due to
extra approvals required from authorities); no right to
address Marketing messages directly to patients.”
– Strategic Marketing Manager
http://www.pharmatimes.com/magazine/latest%20issue/dec/p
p27.pdf
“Everything we say or do must be approved by Legal and
Regulatory. We do not send out branded tweets, and if there
is any mention of a product we must also include a link to risk
information.” – Director, Global Marketing Communications
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9. Sample Data Slide:
For 1/3, Directors Hold Decision-Making Power on Content for SM Platforms
Directors make the final decision for determining content for Social Media platforms at a third of
companies, while 30% of benchmarked companies place the decision making at the vice president level
or higher.
Q. At what level is the final decision made regarding content displayed on Social Media platforms in your organization?
Decision Level:
At the
Community
Manager
level, 3%
Other, 10%
VicePresident
level or
higher, 30%
Management
level, 23%
Other:
• Varies depending on channel
• Not formalized
• Multi-stakeholder decision
Director
level, 33%
(n=30)
9
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®
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10. Sample Data Slide:
CoEs Show Some Effectiveness in Steering Key Areas
From a responsibility standpoint, Centers of Excellence are best equipped to support brand teams with
specific tactical work in areas like Digital analysis (82%) and email Marketing campaigns (90%). More
opaque areas such as corporate strategy have proven difficult to contribute to.
Q. How effective is your CoE in furthering the company's products and services through each of the following
categories?
Center of Excellence (CoE) Effectiveness: Responsibility
Highly Effective
27%
55%
Somewhat Effective
70%
82%
73%
27%
36%
27%
20%
27%
18%
Inetrgrate with Digital Analysis Email Marketing
Integrate with
Brand Marketing
Marketing /
Team
Brand Team
Corp. Strategy
9%
9%
Support Brand Support Business
Strategy
Unit Strategy
Blogs
(n=12)
10
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®
LLC

11. Sample Data Slide:
34% Don’t Conduct Pre-Launch Testing of New DM Services
Nearly two-thirds of benchmark companies test new Digital Marketing services prior to launching, many
using an alpha or a beta test to iron out any problems or issues. Just 10% conduct both alpha and beta
testing prior to launch.
Q. Prior to launching a new Digital Marketing service (e.g., new Social Media platform, new mobile platform), does your
organization employ any of the following processes?
Pre-Launch Testing:
A small "alpha" test (not yet available to the public)
24%
A "beta" test (available to small portions of the
public)
24%
Both "alpha" and "beta" tests
Other (please specify)
10%
Other:
• Pilot with a small group
to determine feasibility
7%
None of the above
(n=29)
34%
% Responses
11
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®
LLC

12. Sample Info Slide:
Solid Risk Mitigation Requires Systemic Approach from Day 1
In order to play aggressively in the Digital space, an organization must feel confident that it has taken
every possible step to mitigate risk. Companies must be highly systematic in their approach to
anticipating and addressing Regulatory risk factors. From knowing the landscape itself to setting up
clear internal protocols, to executing in the field, a risk-mitigation mindset should permeate all Digital
activities.
1. Stay
Abreast of
Regulatory
Requirements
6. Revise
Strategy to
Meet New
Demands
Best
Practices for
MITIGATING
RISK
5. Track AE
Reporting
4.
Communicate
Operational
Hurdles to
Internal
Customers
http://www.pharmaphorum.com/2013/03/26/donald-a-norman-vs-steve-jobsand-jony-ive-design-principles-for-pharma-Digital-strategy/
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2. Develop a
Strong
Adverse
Events
Reporting
Process
3. Set Clear
Internal
Protocols w/
Stakeholders
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13. About Best Practices, LLC
Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet
profound principle that organizations can chart a course to superior economic performance by studying
the best business practices, operating tactics, and winning strategies of world-class companies.
Best Practices, LLC
6350 Quadrangle Drive, Suite 200
Chapel Hill, NC 27517
www.best-in-class.com
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BEST PRACTICES,
®
LLC