October 21, 2011
Research shows Americans ignore internet ads more than advertising in any other medium.
The old adage that “half of my advertising budget is wasted, now if I only knew which half” appears to have a lot of merit. Especially with internet ads. Research produced by 
Adweek/Harris Poll from an online survey conducted by Harris Interactive indicates that:
- 63% of Americans ignore or disregard internet ads.
- 43% say they don’t pay attention to banner ads.
- 20% ignore search ads.
For hospital marketers, those are significant numbers.
Wayne Friedman reported the findings in MediaPostNews. Other media compared to the internet faired much better. Only 14% ignore television ads, 7% for radio and 6% for newspaper. Probably not surprising, 91% of consumers ignore some of the ads they see.
Even out of the largest users of the internet, adults 18-34, 40% of them state they ignore internet banner ads. And of those consumers who have some college education or a college degree, 46% ignore banner ads compared to just 40% of those with a high school diploma or less. There was practically no difference between men and women.
So for healthcare marketers maybe we shouldn’t rush out and totally embrace internet advertising and shift significant amounts of money away from traditional media. Some voices are constantly telling us that our budgets are out of whack because the percentage we spend on internet advertising is typically far below the percentage of our audience who are regularly on the internet.
Sure, we should have an internet presence and take advantage of opportunities of reaching and engaging our target audience. But the number of people using the web is not the only factor to consider. Research is indicating that it’s harder to break through the clutter and gain traction with internet advertising than with traditional mediums.
Internet advertising is viable and should be in the media mix but it’s certainly not time to abandon traditional mediums for the web. Internet advertising and social media are the new kids on the block. But the old standbys aren’t dead yet. In fact, this research indicates less of our advertising on traditional mediums is not as wasted as much as advertising on the internet. But of course for each medium, we are still stuck with the question: which part is wasted and which is effective?
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Posted by Jimmy Warren
October 20, 2011
Overall, adults spend as much time on the internet as they do watching TV while younger adults spend more time on the web than TV.
For the first time, the amount of time adults spend on the internet and spend watching TV is equal - 13 hours each per week. Forrester recently conducted the survey and published the results. Brian Morrissey reported in Adweek that research has already indicated younger adults (18-30) already spend more time on the web than watching TV and now it’s true of 31-44 year olds too.
The losers in the survey were radio (down 15%), magazines (down 18%) and newspapers (down 26%). Continuing the trend of the last few years.
So for healthcare marketers, that begs the question if an equal amount of your advertising budget should be allotted to the web as to TV. Some argue the percentages of ad spend are way out of line and marketers are hanging on to better known traditional media way too much. And there is a tremendous opportunity for those who align their budgets to actual consumer habits.
Others argue in contrast, that television is still the most effective way to build and sustain a brand and that web advertising does not have the impact of television.
As Morrissey stated, one important factor to remember is that over a third of the hours consumers spend on the web are work related while practically all the time watching TV is for leisure and entertainment.
It is obviously true that adults are spending more time on the web and that time is now equal to the time they spend watching TV. But I’m not sure it’s time yet to spend as much of our scarce budget on web advertising as television. Television continues to prove that it is extremely effective building a brand. And when people watch TV they are truly engaged – and actually watching TV. But while they are on the internet, they are often at work or may be searching for specific information with restricts their attention to web advertising. They are more often “on a mission” when they are on the internet than when they are watching TV and thus less likely to notice ads. Sure, one can rightfully argue that people can leave the room or tune out the TV when there are breaks in programming. But research indicates that happens much less often than assumed.
For healthcare marketers, it’s important we take advantage of the opportunities available on the web. And as consumers spend more time on the web, it becomes even more important. It also seems logical to take some of the budget from mediums that are declining in audience share to accomplish this. But the time spent watching television has remained stable over the past 5 years and therefore it remains an extremely viable media option.
It’s an argument that will continue and healthcare marketers will continue to experiment to determine the media mix that is most effective.
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Posted by Jimmy Warren
October 12, 2011
Placement of web ads greatly influences effectiveness. 
Ads that appear on the first screen of a user’s browser window above the fold have been found to be most effective. Research by Casale Media has shown that ads above-the fold can be seven times more effective at generating click-through than ads below the fold.
Casale analyzed nearly 2 billion ad impressions and found that users were three to four times more likely to act on an ad if it is the first or second ad they see during their session. As the consumer continues to browse, ad effectiveness continues to diminish.
As reported in Media Post, repetition is proven to increase effectiveness. Ads seen five times or more by a consumer were 12 to 14 times more effective than ads seen less than five times.
The research also indicated that ads appearing on cluttered sites lose effectiveness. Ads surrounded by photo galleries or clusters of other ads were much less effective. And ads may not be seen at all when displayed on a web site that uses auto-refresh mechanisms to inflate impressions.
As hospital marketers we have long known the importance of ad placement. We are careful which radio stations to buy and what time periods. We buy the most watched or most cost effective television programming. We buy specific placement in magazines. We ride outdoor locations to choose the very best addresses. And we often complain about the placement of our ads in the newspaper.
But many times in placing our hospital’s adverting on websites we have been much less particular. That is partially because we have not known much about ad placement and the ad effectiveness on the web. We have had our intuitions but research like the kind conducted by Casale is beginning to give us the reliable information we’ve needed. And what we are finding is ad placement on the web is just as critical for effectiveness as every other medium.
So as hospital marketers increasingly utilize web advertising it’s important to know where the ad will be seen and in what type of environment. There are many websites with lots of traffic but designed in such a way that makes the ads placed on the site much less effective than sites with less traffic.
And it’s still true that frequency matters. Repetition and frequency is just as important on the internet as it is in other mediums. It’s only effective if we commit enough to make sure it is seen and seen often.
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Posted by Jimmy Warren
February 11, 2011
Women turn to the internet for health information over family, friends or doctors. 
Women are uncomfortable discussing health concerns with other family members, friends, doctors or even spouses. And as a result they turn to the internet for information and answers. iVillage conducted an online poll for Harris Interactive, which revealed women’s dependence on the internet for health concerns.
Some of the results from the survey are:
- 82% of women are uncomfortable discussing health concerns with family and friends
- 62% are twice as likely to turn to the web over their own mothers about health issues
- 64% use online communities to discuss health concerns
- 49% stated that online would be the first place they would go to research health issues. More than twice the amount who would go to their doctor first (25%) or family (15%) or friends (6%).
- 30% gather information from online communities to prepare them for their doctor’s visit.
These results verify women’ s dependence on the web for health information. Healthcare marketers must recognize this and develop web strategies for communicating to women. Robust web sites, web advertising and the development of social networking sites are some of the tools that may be used to reach women. Even directing consumers to existing websites can be helpful in creating relationships and building strong brand perceptions.
Women are traditionally viewed as the primary influencer and decision maker in regards to their family’s health. As they increasingly turn to the web for valuable information, healthcare marketers must recognize it and create ways to meet them there.
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Posted by Jimmy Warren
January 30, 2011
After receiving resistance to their new logo, Gap went back to the old logo. Did they overreact? 
After undoubtedly a series of focus groups and extensive research, Gap decided it needed to change its logo. They wanted a more contemporary look that was current but yet honored its heritage. A tremendous amount of research and work went into developing the updated logo. So Gap introduced it’s new logo on it’s website. But four days later reversed the decision and returned to their original logo.
The change occurred because consumers took issue with the new mark and voiced their disapproval using various social networking sites. The reaction was strong and fervent. So four days later, Gap president Marka Hansen announced the logo change was being rescinded and the company was returning to the original logo.
Many people praised Gap for listening to its customers and paying attention to their concerns. And for responding rapidly and answering the consumers’ requests. It’s the way marketing works today. Consumers are in control. They voice their opinions and solicit others in the network to join the crusade. And a company is highly regarded for listening to consumers and responding to their concerns and wishes. Everything you read about marketing today would affirm that GAP did exactly as it should.
Maybe that’s true. But maybe not. Was all the research conducted by Gap about their logo just wrong? Was it bogus? Did the resistance merit abandoning the new logo? Were those complaining brand loyalists? Would those who resisted the change stop buying Gap clothing? Is it no longer strategically important to update the logo for the future?
A survey commissioned by AdAge and conducted by Ipsos Observer found that 80% of consumers had no idea the logo had changed. Is it possible to put too much emphasis on consumer social networking responses? Do consumers know what is best strategically for a company’s future success? Are consumers always right? What happens when Gap someday raises prices to remain economically feasible and they meet resistance in social media? Do they sacrifice the company’s financial health because some consumers express dissatisfaction?
This real life example raises questions about how much influence unsolicited consumers should have on your brand. I don’t have all the answers. I commend Gap for listening and responding to consumers. That’s the value of social media. But I also cringe somewhat because they caved to the wishes of a relatively small amount of consumers. I wonder why some opinionated consumers who didn’t like the new logo trumped all the research that had indicated an update was needed.
Healthcare marketers should listen to consumers. They should be responsive to consumer feedback and input. But should they forsake research findings and strategic planning for the wishes of a small percentage of customers? I know social media experts say we should respond quickly to consumer complaints but I would have liked to have known who the complainers actually were (consumers or non-consumers) and if they were consumers who would have stopped buying Gap products because of the logo change.
Social media is helpful and exciting. But should it hijack and derail strategic planning that’s based on solid research? It’s a serious dilemma and deserves further consideration and study.
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Posted by Jimmy Warren
December 19, 2010
Although newspapers have been pronounced mortally ill they now reach 61% of the adult population - online.
Newspaper websites reached a total of 102.8 million unique visitors in 
September of 2010. That represents 61% of the total adult population. A study conducted by comScore and reported by the Newspaper Association of America found that on an average day newspaper websites attract 20.3 million unique visitors and the average visitor makes 8.5 visits per month.
These web visitors spent more than 3.3 million minutes reading newspapers online and viewed over 4 billion page views. Newspapers readers online outpaced other web news sites. Yahoo News reached 51% of the adult population, 22% visited CNN online and 26% visited MSNBC.
And those who visit newspaper websites tend to be more affluent too. Twenty-five percent of adult visitors to newspaper websites had annual household income of over $100,000 compared to 21% of all internet users.
So even though newspaper circulation is declining, more consumers are reading their newspaper online. Healthcare marketers should take notice and seriously consider a web presence on local newspaper sites. The web audience will undoubtedly continue to grow as circulation continues to decline and healthcare organizations can capture this growing audience by having a significant web presence on newspaper sites. Readers are going web and so should healthcare marketers.
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Posted by Jimmy Warren
December 19, 2010
Baby Boomers are into technology, spending more money on technology than any other age group.
Technology and social media are ways to reach the younger generations. Right? Not so fast. Baby boomers might be the real target. The latest figures from the Bureau of Labor Statistics indicate that baby boomers have fully embraced technology. They are the biggest spenders on technology according to Forrester Research’s annual benchmark tech study.
Think about the boomers you know. The typical boomer has a desktop computer at work, a laptop at home, are on facebook, have a smartphone, have multiple accounts on the internet, DVRs their favorite television shows and is wishing for an iPad. If they don’t already have one.
“It’s actually a myth that baby boomers aren’t into technology. They represent 24% of the population, but they consume 40% (in total dollars spent) of it”, stated Patricia McDonough, senior VP-analysis at Nielsen and reported by Beth Snyder Bulik in Ad Age.
Baby boomers are not early adapters but they certainly pile on. Ten years ago only 25% of boomers went online daily. Today 70% go surfing everyday. And examine these stats about baby boomers:
- 47% use social media
- One in five use social media every day
- A full 66% use their cell phone for texting
- 91% use email
- 88% use search engines
- 78% use the internet to research health information
- 74% get news from the internet
Baby boomers are aging and have become huge users of health services and that will grow tremendously as they age. To healthcare marketers they are a huge and critical target audience and if we think they can only be reached by traditional media we are making a critical mistake. Technology and social media have been embraced by boomers and have become a very common and pervasive part of their lives. Technology, new media and social networking are effective ways to reach, communicate and even build relationships with those 45-64 ears old.
Boomers are the greatest spending generation. And they spend their money and their time on technology. It would be a huge disconnect for healthcare marketers to assume otherwise.
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Posted by Jimmy Warren
November 17, 2010
Almost 90% of Americans who use the internet have gone online to search for health information.
Next to their doctor, Americans depend on the internet more than any other source for health information. And the type of website visited depends on the stage of the
health condition. The MARS Online Behavior Study was recently released and provides a wealth of information about how consumers use the internet as a health resource. The study conducted by Kantar Media reveals that consumers use health information sites more than search engines across all stages of the 40 ailments covered in the study. And the sites most visited are those that offer helpful tools or connect them to a larger community of people with the same condition. Sites that offer access to medical professionals are also generally preferred.
Here are other findings from the report:
- Of the 178 million Americans who go online monthly, 89% have used the internet for health research with the typical user being females under the age of 50.
- The primary reason for going online is to gain general information about a condition (71%) followed by researching specific symptoms (59%).
- 56% stated a healthcare professional recommendation makes a site trustworthy followed by 46% who cited inclusion of academic articles or scientific research.
- 79% believe the internet is very helpful in providing health and wellness information but 74% were very cautious about which sites to access.
For those recently diagnosed with a condition, 77% say they turn to the internet for information second only to 81% who depend on a healthcare professional.
It’s obvious, and no surprise, that the internet is a major source of healthcare information. For healthcare marketers, the challenge is to discover how to tap into this behavior and become a viable source or clearinghouse for Americans who rely heavily on the internet for health information.
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Posted by Jimmy Warren
October 19, 2010
Americans are watching more, surfing more, texting more and consuming media more! 
Americans continue to consume more and more media. And there doesn’t seem to be an end in sight. Due to a slow economy, ubiquitous broadband, widespread Wi-Fi access, increased multi-tasking and the proliferation of new devices and technology, consumers are living a lifestyle of almost continuous media consumption. In the past 18 months we watched two more hours of television per week, sent and received half a trillion more text messages and spent 1.3 more hours on the internet. “We’re finding a way to do more of it, watch more of it and take more of it with us”, stated Patricia McDonough, VP-analysis, Nielsen Company.
Beth Snyder Bulik reported in Ad Age some of the latest figures for U.S media consumption.
Television
- 116 million Americans have at least one television
- 55% of households have at least 3 televisions
- There are more televisions than people in the US
- Americans spend an average of 35 hours and 34 minutes per week watching traditional TV
- Another two hours is spent each week watching time-shifted TV, such as DVR
- We spend an average of 20 minutes per week watching videos on the internet
- TV watching is shared with social networking (21%), playing video games (16%), purchasing products online (15%), participating by phone or internet with what’s happening on TV (7%) and tweeting (4%).
Internet
- On an average day, 78% of Americans with internet access go online
- 62% send /receive email
- 49% use a search engine to find information
- 43% get news
- 38% go online for fun
- 38% use social media
- 34% check the weather
- 26% do banking
- 23% watch video
Newspapers
- Only 31% of those surveyed read a newspaper on a given day
- 65 and older – 62%
- 50-64 – 44%
- 40-49 – 39%
- 18-24 – 20%
E-Readers and iPads
- 3.7 million e-readers sold last year
- 10.3 million predicted to be sold this year
- 15.5 million predicted sold next year
- 30 million predicted sold by 2015
- 10 million American’s either already own an iPad (2.5 million) or intend to buy one (7.4 million)
Mobile Phones
- In 2009 there were 286 million wireless subscribers
- 72% of consumers now text
- There are 153 billion texts sent each month
- Teens send and receive an average of 50 texts per day – adults an average of 10
- 42% use their cell phones to access the internet
- 30% do mobile search
- 27% download apps
- 26% use it for buying products
- 15% use their cell phone to purchase products
Social Media
- Linkedin has 75 million members
- Twitter has 100 million members
- Facebook has 500 million members
- 40% of Americans maintain a social-networking profile
- 86% of adults 18-24 use social media
- 47% of boomers use social media
- 26% of adults over 65 use social media
It is clear that Americans consume an enormous amount of media. And it continues to increase. These figures vividly show the power and influence of the media. They are tools, when used wisely, that can deliver our messages to consumers.
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Posted by Jimmy Warren
September 21, 2010
Social media is not the answer to marketing woes. But a strong, strategic plan is. 
“TGIF” – that’s Twitter, Google, the Internet and Facebook. And listening to some people you might get the impression the answer to every marketing problem is one or all of the above. We just need to use these four tools, use them more often, invest more money and resources in them and we will become the market leader. There is no doubt these four revolutionary developments have forever changed how we market products and services. But are they the answer to all our marketing issues?
I think not! As powerful and effective as these mediums can be, they are not at the core of what makes brands strong. The most important thing is an effective marketing strategy. Without it, no combination of TGIF can resurrect a bad brand or sustain a good one. Al Ries, chairman of Ries & Ries effectively made this very point in an article in Ad Age. He emphasized that better strategies, not better weapons, win wars. And he gave some compelling examples.
Linen N Things didn’t go bankrupt because it didn’t effectively use Twitter. It went bankrupt because it was a knock off of Bed Bath & Beyond and never differentiated itself from the market leader.
DHL didn’t pull out of the U.S. market because it didn’t buy enough AdWords from Google but because it was the No. 3 brand in a category dominated by UPS and FedEx.
Kmart didn’t go bankrupt because it couldn’t figure out how to use the internet to promote the brand. Rather it went bankrupt because it was caught in no man’s land between low cost Wal-Mart and the high end Target.
Coca-Cola didn’t fail in 3 attempts to build a leading energy drink brand (KMX, Full Throttle and Tab) because it didn’t have a Facebook page but because it waited too long after the launch of Red Bull.
The point is obvious. While TGIF are useful, effective and should be important elements in most marketing campaigns, they will not compensate for a bad marketing strategy. As Ries states, “what wins wars are better strategies.” We sometimes spend a lot of time analyzing and utilizing Twitter, Google, the Internet and Facebook and not nearly enough time developing a strong effective strategy. Without a good strategy, no medium will be effective. With an effective strategy, just about every medium can be effective.
Let’s do the hard work. Let’s focus on our brand strategy. Then we will be prepared to choose the appropriate tactics to win the brand wars.
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Posted by Jimmy Warren
Adweek/Harris Poll from an online survey conducted by Harris Interactive indicates that:
