By Kristin Mengel & Kristina Przitulsky

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W H A T H E A L T H M A R K E T E R S S H O U L D W A T C H I N 2 0 1 9
Trends poised to shake up the healthcare marketing industry
Prepared by Kristin Mengel and Kristina Przitulsky | January 2019

2. 1 : 1 C U S T O M E R E X P E R I E N C E S :
F O U N D A T I O N F O R S U C C E S S I N 2 0 1 9
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It’s no secret that the average customer’s expectations have shifted drastically as brand
experiences have become increasingly personalized. From streaming services such as Hulu,
Netflix, and Spotify to retailers such as Amazon, Stitch Fix, Fabletics, and Blue Apron – across
most verticals, retailers are becoming more trusted advisors to their customers and more
capable than ever of providing them with personalized and immersive experiences.
Ultimately, consumers want more relevancy. In today’s age of digital disruption, consumers are
hyperconnected across devices used on a daily basis. By 2020, it is expected that customer
experience will overtake price and product as the key brand differentiator.1 Success lies in
creating 1:1 experiences and delivering them in an authentic, engaging manner.
Traditional healthcare organizations are striving to model retail companies’ success in
personalizing communications and services to customers. Market disruption driven by
companies such as Apple, Amazon, and Google is heavily impacting the way healthcare
companies are changing how they engage with consumers. Additionally, the growth of AI,
machine learning, conversational UI, and virtual care, as well as dynamic addressable
advertising, are some of the technologies that allow healthcare companies to take
personalization to a new level – further enabling them to match and tailor digital experiences to
the customer journey.

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2 0 1 8 W A S A B R E A K T H R O U G H Y E A R O F
T E C H N O L O G I C A L A D V A N C E M E N T I N H E A L T H
• Tech & Healthcare merger and acquisition
deals broke records, crossed verticals, and
brought new players into the healthcare landscape
• Digital Health VC funding topped $8 billion
• Advances in immunotherapy and personalized medicine
• FDA-approved, scalable, wearable medical devices (e.g. Apple Watch EKG)
• Mainstream and enterprise adoption of Artificial Intelligence tools and platforms
Source: MobiHealthNews

4. F O R C E S I M P A C T I N G P H A R M A & H E A L T H C A R E M A R K E T I N G I N 2 0 1 9
1 . M A R K E T D I S R U P T I O N
Even the most regulated industry is not immune to the effects of disruption. Tech giants are seizing the opportunity to
make an impact on the healthcare experience.
2 . V I R T U A L C A R E
Rising healthcare costs, a shortage of physicians, and an aging population are increasing challenges for the traditional
model of care. Virtual health and digital technologies may not only help the industry manage these challenges, but also
help deliver a 1:1 experience for patients, leading to increased engagement in their health.
3 . C O N V E R S A T I O N A L U I
The rapid growth of voice technology is transforming the way consumers engage in their daily routines. Industries
across the board are taking notice and competing to adapt their offerings to align with the latest tools and technologies.
4 . A R T I F I C I A L I N T E L L I G E N C E
Only recently has the hype of artificial intelligence in healthcare begun to merge with reality, debunking robot-takeover
fears and providing real utility for patients and healthcare professionals.
5 . A D D R E S S A B L E A D V E R T I S I N G
Addressable TV is poised to reach $3.7 billion in 2020. Mass-audience advertising for traditional TV is becoming obsolete
with the growth and investment in addressable communications. Advertisements specifically tailored to individual
consumers based on audience characteristics and segmentation is possible – and it’s increasingly important to ensure
relevancy that drives activation.
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Tech Giants Investing in Healthcare
(2012 – 2018)
M A R K E T D I S R U P T I O N
The healthcare market has proven to be a promising new opportunity for tech giants. Over the course of the past five years, companies
such as Apple, Amazon, Alphabet, Microsoft, and Uber have all made substantial moves in the healthcare sector, as witnessed by a string
of new hires, product announcements, and acquisitions. While there have been unsuccessful health ventures, such as Google’s Google
Health, which failed to take flight despite heavy investment, tech giants are learning from their mistakes and playing to their strengths.
For example, instead of embarking on health ventures alone, Alphabet’s life-sciences group Verily has partnered with healthcare
companies on a variety of research and development projects. Through these partnerships, Verily is able to benefit from experts such as
Johnson & Johnson and Sanofi in areas they know well, such as regulation, while focusing on its own strengths in product development,
design, and engineering.
The same can be seen with other companies like Google, Apple, Amazon, and even Uber. Google’s “brain group” is leveraging their
expertise in machine learning to analyze and aggregate medical data, while Apple leans into their expertise in design and consumer trust
with the Apple Watch. With the latest enhancements to the Apple Watch, the device is helping consumers lead healthier lives. Apple has
even devised a way for customers to use their iPhones to compile and store medical records, aligning closely with the company’s
consumer privacy morals.
Similarly, Amazon has focused on what it knows best – supply chain, logistics, and customer experience. Earlier this year, Amazon began
selling medical supplies and equipment through Amazon Business and cloud services via Amazon Web Services. Then, they acquired
online pharmacy PillPack – a move that shook the pharmaceutical industry and has brands thinking about ways to partner in hopes of
cracking the code for their respective patient adherence issues. And then, there’s Uber and the launch of Uber Health. Sticking with their
strength in seamless transportation, Uber Health provides a ride-hailing platform available specifically to healthcare providers, letting
clinics, hospitals, rehab centers, and more easily assign rides for their patients.
With the entrance of these tech giants comes the exponentially increasing shift in customer expectations, as well as the growing
importance of collaboration in the pharmaceutical industry to help meet changing customer needs. Despite the competitive atmosphere
between pharma and tech, the pooling of resources and expertise can help drive further innovation in the marketplace and better health
outcomes for patients.
W H A T T H I S M E A N S F O R P H A R M A M A R K E T E R S
All in all, the healthcare market has proven ripe for disruption. The pharmaceutical industry must find ways to keep up with the
ever-changing healthcare landscape – and it’s going to require some new approaches as technological competence continues to become
increasingly important for success. In 2019 and moving forward, pharma companies can certainly learn some things from the tech
companies that continue to dominate their fields. As industries converge, giving rise to new competitors, and as customer
expectations continue to shift, it will be increasingly vital for pharma to know when to realize the power of partnerships
and when to reinvent themselves.
Source: CBInsights
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6. V I R T U A L C A R E
Virtual care is growing at the intersection of telecommunication technologies, advances in medical diagnostic and monitoring devices,
and the increasing importance of information science. Now, consumers are taking healthcare into their homes – the growing home
healthcare market is expected to reach $517 billion by 2025.2 Advances in technology, such as video chat, augmented reality, and live
streaming, are making it easier than ever for people to keep in touch, regardless of where they are.
The increasing cost burden from chronic health conditions, as well as an aging population, are prominent drivers for digital health
solutions that empower and enable individuals to manage their own health. There are currently 100 million Americans living with
chronic illnesses that require regular monitoring. Additionally, the estimated cost of in-home care for the elderly totals roughly $4,000 a
month on average in the US.2 The Centers for Medicare and Medicaid Services announced some big strides forward in promoting
digital health technology in 2019, including widened telemedicine coverage. With this update, CMS will begin paying physicians for
“brief check-ins” via telemedicine as well as remote evaluation of images and videos taken by patients. This expansion of CMS
reimbursement will likely encourage increasing use of virtual care to resolve patient concerns in a convenient and cost-effective
manner.
The rise of app technology has led to the development of new medical apps that allow patients to interact with healthcare professionals
conveniently online. These apps make it possible for patients to receive medical care outside of traditional office hours, and with the
ubiquitous use of smartphones, doctors are able to check for a wide range of symptoms to provide care.
As virtual care continues to gain traction and provide real utility for patients and providers, telehealth will become increasingly available
to all consumers. Health giants like CVS, Walgreens, and United Healthcare are beginning to offer virtual care to their consumers, too.
Last August, CVS Health announced that MinuteClinic is rolling out a new virtual care offering for patients with minor illnesses and
injuries, skin conditions, and other wellness needs. Currently available in 18 states, MinuteClinic Video Visits will continue to expand
throughout 2019. MinuteClinic Video Visits will provide patients with access to virtual care services 24 hours a day, seven days a week
from their mobile device. During initial testing, CVS Health found that 95% of patients who opted to receive virtual care visits were
highly satisfied with the quality of care received, and 95% of patients were also satisfied with the convenience of the experience.
W h a t t h i s m e a n s f o r P h a r m a m a r k e t e r s
Ultimately, patients have become more comfortable with taking their well-being into their own hands, resulting in patients developing
stronger relationships with their health. At the core, the change in customer expectations when it comes to their health, and the
preference for digital tools available, highlight the importance of customer-centric strategy for brands. For pharma marketers, this
digital transformation presents exciting and increasing opportunities to connect with and engage patients in their health. Continued
investment in digital health tools enables brands to optimize their touchpoints throughout the customer journey,
broadening the opportunity to engage patients and physicians at multiple points of the patient care process.
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According to eMarketer, more than 6 in 10 consumers who use voice search for
health-related topics are seeking information about symptoms and treatments.
Nearly the same number look for information about doctors, hospitals, and clinics.
C O N V E R S A T I O N A L U I
Over the past few years, voice technology usage has grown significantly in the consumer space, largely because the technology is
integrated in mass-market devices such as smart phones and home speakers, making solutions more scalable than ever before.
We’ve all heard the stats – over half of all searches will be performed via voice by 2020, and nearly 1 in 5 US adults have smart
speaker devices in their home. Right now, the majority of smart speaker users likely use their devices to answer queries, set timers
and reminders, ask about the weather, or listen to music.
There have been successful pilots using voice technology over the past year, including Boston Children’s Hospital’s KidsMD, a voice
application that provides meaningful health recommendations and personalized content from leading pediatric physicians.
A number of voice startups have launched as well, including Avia, a company focused on the health system’s challenges and
opportunities, including physician burnout, mental health, and consumer engagement. Using a custom voice application, Avia has
developed a solution that allows physicians and nurses to properly delegate administrative tasks and work in the hospital, easing the
workflow to allow physicians and nurses to spend more time with their patients.
W H A T T H I S M E A N S F O R P H A R M A M A R K E T E R S
As this voice interaction gradually becomes the norm, we as pharma and healthcare marketers should start thinking of how these
devices can remove friction and alleviate burden from the patient and physician experience. Whether it’s medication or refill
reminders, setting up appointments, disease information, symptom checking – the use cases are limitless. 2019 is the year, if you
haven’t already, to begin discovery regarding how to make your brand experiences conversational using this emerging user interface.
Possible use cases to take note of include patient engagement, patient-physician communications, bringing health services home,
supporting the elderly, physician documentation and transcription, and vocal biomarkers.
Principles to keep in mind:
1. Define a business problem to be solved
2. Keep context in mind – ensure relevance and a compelling message
3. Ensure your brand’s solution is connected across the experience ecosystem
4. Ensure your brand’s solution is consistent with your brand character
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A R T I F I C I A L I N T E L L I G E N C E
The ability to aggregate, analyze, and effectively utilize big data to identify business opportunities and engage consumers has
become increasingly valuable to healthcare organizations. Artificial Intelligence’s potential in the healthcare space is great
given the size and scope of data collected on a minute-by-minute basis, from electronic health records, to clinical trial data, to
medical journals.
We are finally seeing scalable solutions hit the mass market for consumer consumption. Whether it’s through voice-powered
technology, chat bot services, or decision tree-powered surveys, there are opportunities to make brand experiences much
more personal given the amount of data we as patients and users are willing to share via applications on our personal devices.
Buoy Health is an AI-powered symptom checker that has successfully partnered with CVS health, Boston Children’s Hospital,
and various pharmaceutical companies to provide online symptom-checking services for patients. With the goal of avoiding the
deadly fake diagnosis that self-search often serves, Buoy uses AI technology to simulate a conversation with a doctor and
provide recommendations for care. Buoy solves a consumer problem, is convenient, and is a solution that makes sense given
the context of online search.
W H A T T H I S M E A N S F O R P H A R M A M A R K E T E R S
Artificial Intelligence can be a powerful tool to deliver personalized experiences to both patients and physicians. Given the
amount of data sources we as marketers have available to us, we should think about how this technology may help remove
tension by aggregating and analyzing data to make it more palatable and useful to our customers. Some use cases may be
personalized health assessments, assisting patients with managing medication regimens and chronic conditions, or powering
intelligent support tools to enhance the patient experience. Great places to test solutions would be within CRM programs,
brand.com websites, customer service or patient support services, and social.
Principles to keep in mind:
1. Define a business problem to be solved
2. Identify data sources available
3. Train the system with experts
4. Deploy the solution
5. Always iterate
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9. A D D R E S S A B L E A D V E R T I S I N G
Addressable advertising allows brands to present different advertisements to different viewers watching the same
programming or consuming the same content online. It presents flexibility in advertising to drive supreme relevancy that
was not readily available before. While the technology has been around for some time, it has only recently begun to gain
real traction. Because of the variety of devices that people now consume content on, ads do not present equal value to all
audiences across every environment. Additionally, while there is no one type of glasses wearer, no one type of music
enthusiast, no one type of fashion lover, there is also no one type of patient. We as healthcare marketers know this, but
are we delivering on this insight?
Despite decent scale – roughly 65 million homes out of 120 US households – addressable/advanced TV advertising has
existed alongside a considerable amount of doubt.3 But one area where there is little doubt in the success and importance
of addressable advertising is digital. For the first time, digital ad revenue surpassed 50% of total ad spending in the United
States. However, addressable TV provides considerable opportunity for brands. Delivering ads via addressable TV
platforms enables marketers to reach a smaller number of potential consumers, but drives a much better return on
investment given a smaller, more targeted audience is more likely to convert. These days, advertising is entering a new
era of precision targeting on TV driven by the rapid growth of smart TV purchasing. Will the rise of smart TV purchasing
lead to the end of traditional TV advertising that we are so familiar with?
W h a t t h i s m e a n s f o r P h a r m a m a r k e t e r s
Health is personal and health advertising should be, too. What someone experiences with their condition may be different
for another, and what works for one consumer doesn’t necessarily work for another. Not only does the physical body vary
from person to person, but so does the mindset, circumstance, and decision-making process. However, when it comes to
healthcare advertising we put so much focus on health privacy that at times it can be a roadblock on our path to providing
personal messaging and driving unique relevancy with our patients.
While consumers are most interested in the information they receive from their healthcare providers, health ads are also a
trusted source of information and a key driver of behavior – when they’re relevant to the audience. In a report by
PulsePoint, survey data indicated that “89% of consumers would take action if they saw a relevant digital healthcare ad”.4
Addressable advertising across digital and TV will provide promising opportunities for delivering personalized messaging.
Advertisers can now leverage data to identify homes whose members have a greater likelihood of having the
medical condition treated by their pharmaceutical product, and tailor their media buys accordingly.
In the era of personalization and digital transformation, addressable advertising can help marketers
improve relevance and enhance audience engagement, lead to less ad burnout, and ultimately enhance ROI.
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K R I S T I N M E N G E L
VP, Strategy Director
Kristin.Mengel@hhcc.com
K R I S T I N A P R Z I T U L S K Y
Strategist
Kristina.Przitulsky@hhcc.com
Q U E S T I O N S O R C O L L A B O R A T I O N S ?
L E T ’ S C O N N E C T
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