RESEARCH TRIANGLE PARK, N.C.--()--Only 26% of surveyed drug companies use financial metrics to track return on investment for social media initiatives, according to a study published by Cutting Edge Information.
“Traditional pharmaceutical marketing channels such as television or print can translate to increased sales as ROI indicators, but social media capture more intangible factors, such as consumer engagement, that are much more challenging to track”
The study, “Pharmaceutical Digital Marketing and Social Media,” found that 22% of pharmaceutical companies use softer metrics, such as clickthroughs, to gauge digital media campaign success. But another 26% do not measure digital marketing ROI at all. Companies participating in the study also ranked demonstrating ROI as the most significant hurdle to social media adoption, at an average 7.2 on a scale from 1 to 10.
“Traditional pharmaceutical marketing channels such as television or print can translate to increased sales as ROI indicators, but social media capture more intangible factors, such as consumer engagement, that are much more challenging to track,” said Ryan McGuire, research team leader at Cutting Edge Information. “Despite the challenges that come with using a new marketing channel, digital marketing is an increasingly critical tool driving brands’ strategic objectives forward.”
Cutting Edge Information’s study explores the techniques that pharmaceutical companies employ to measure ROI for digital initiatives. From simply tracking Facebook registrations to using software to code and identify positive or negative language about brands, companies’ attempts to understand brand sentiment are evolving into something more sophisticated.
McGuire recommends carefully defining what success look likes for digital marketing campaigns. From that point, marketers must determine the best metric to reach that success. In some cases, the metric will be traditional: increased market share or prescription lift. For other objectives, a softer metric is more appropriate to measure ROI.
“The key is to track metrics before, during and after an initiative — and in that sense, gauging ROI in social media campaigns is similar to how you would do it with traditional channels,” McGuire said.
“Pharmaceutical Digital Marketing and Social Media: Managing Growth, Mitigating Risk, and Mastering Strategy” (http://www.cuttingedgeinfo.com/research/marketing/pharmaceutical-digital-marketing-social-media/) contains best practices and benchmarks detailing how pharmaceutical companies are navigating the digital marketing landscape. Its data will help company decision-makers:
- Expand digital resources to keep pace with customer expectations and competitor innovations.
- Adopt a digital marketing strategy and management structure.
- Address specific pitfalls, including internal hesitation, regulatory confusion and compliance issues.
For more information, contact Elio Evangelista at email@example.com or (919) 433 0214.