VAB REPORT: ITS TIME FOR A CHECK UP! UPDATE ON THE HEALTHCARE INDUSTRY

Transcription

1 VAB REPORT: ITS TIME FOR A CHECK UP! UPDATE ON THE HEALTHCARE INDUSTRY

2 SUMMARY Healthcare Summary Personal health care expenditures projected to grow 26% in the next 4 years Hospital care sector comprises largest share at 37% with professional services following at 32% Older adults tend to utilize healthcare services more A Key healthcare target, baby boomers, will grow 3% by next year; TV s reach will expand as A55+ TV population will increase 1.7 million by 2016 A55+ tend to be more influenced by healthcare advertising, especially mature TV viewers Healthcare advertising up 11% v. yag Growth driven by pharma houses sector which is up 19% 66% of advertisers increased their TV budget in 2014 TV has continued to increase its share of the total revenue pie - captured 65% in 2014 Mobile content has grown consumers utilizing web for medical information Online, consumers spend more time with ad-supported TV content than with the 4 portals where a big bulk of health searches are initiated When factor in TV, time spent with ad-supported TV content is 2X than with 4 portals+facebook combined Overall, Ad-Supported TV s reach is undeniable across all platforms Social media engages prospective healthcare consumers and goes hand in hand with TV Social media drives consumers to TV and brands and encourages viewers to engage with programs and commercials

3 EXPENDITURES Personal Health Care Expenditures Projected to Grow 26% In The Next Four Years % Growth v 2 yag $2,117 Personal Health Care Expenditures (in Billions) 7.3% 7.8% 10.5% 11.6% 13.1% 13.3% $2,271 $2,448 $2,706 $3, Source: Centers for Medicare & Medicaid Services; personal health exp= hospital care, professional services; home health care; nursing care; RX; Medical equipment and products projected $3,413 $3,866

4 SHARE OF EXPENDITURES Hospital Care Comprises The Largest Share Of The Health Care Sector at 37% With Professional Services At A Close Second With 32% Personal Health Care Sectors Share of Total Expenditures Hospital Care Professional Services Presciption Drugs Medical Equip/Products Other 16% 4% 11% 32% 37% % 4% 11% 32% 37% 2017 Source: Centers for Medicare & Medicaid Services; Professional services= physician/clinical/dental; other= home health/nursing care/other Personal care; projections 16% 4% 11% 32% 37% 2021

5 FUTURE GROWTH Hospital Care & Professional Services To Experience Large Gains Over Next Several Years Due To Aging Population & Improved Economic Conditions $777 $672 $328 $255 $ Hospital Care Presciption Drugs Other $841 $721 $356 $262 $92 $919 $777 $384 $272 $97 $1,009 $857 $423 $309 $108 Professional Services Medical Equip/Products $1,128 $954 $478 $342 $119 $1,276 $1,077 Source: Centers for Medicare & Medicaid Services; Professional services= physician/clinical/dental; other= home health/nursing care/other Personal care $544 $382 $134 $1,449 $1,219 $618 $430 $ Average Annual Growth For Medical Services & Goods, Presciption Drugs Physician & Clinical Services Hospital 5.7% 6.0% 6.2%

6 UTILIZING HEALTHCARE Older Adults Tend To Be More Concerned About Their Health & More Likely To Utilize Healthcare Services Source: MRI 2014 Doublebase Index to General Population A18+ A55+ A18-49 Go to doctor regularly for check- ups Eat right Take prescription medicines as prescribed Prefer popular brand- name drugs, even if cost more Will take RX drugs even if insurance doesn t cover them Carry Prescription Drug Insurance Carry Hospital/Accident/Medical Ins Spent $300 on health/beauty aids Newer drug brands work better than older brands Medication has improved quality of my life Before I begin taking any drug, I look for as much information about it as possible SUMMARY TIME SPENT W/TV HEALTHCARE ADV TV VIEWERS ADV ADV BY SECTOR ADV SHARE BY MEDIUM TV CONTENT V AD-TECH P55+ TV CONTENT V AD-TECH

7 KEY HEALTHCARE TARGET Baby Boomers, A Key Healthcare Target, Will Grow 3% by 2016; Television s Reach Expands Baby Boomers born between will reach ages in They are a large segment in U.S. Population and key target for healthcare industry as large consumers of their products. Source: Nielsen Advanced UE s P55+ Population (OOO) by Ethnicity Jan 15 Jan 16 Absolute Gain Composite 85,510 87,790 +2,280 Black 8,657 9, Hispanic 7,414 7, Asian 3,939 4, and Television Reaches This Key Target As Adults 55+ Will Increase Another 1.7 Million By Next Year P55+ TV HHs (OOO) by Ethnicity Jan 15 Jan 16 Absolute Gain Composite 83,950 85,690 +1,740 Black 8,504 8, Hispanic 4,000 4, Asian 3,831 4,

8 TIME SPENT WITH TV Mature Consumers Are Large Viewers of TV Throughout The Day, Spending Almost Double The Time Source: CAB analysis of Npower timeperiod put level data; 3/15 Time Spent With TV / Week (hrs:min) P18-49 P55+ Total Day (M-Su 6a-6a) 26:42 47:43 Primetime (M-Sa 8-11p & Su 7-11p) 6:41 11:47 Early Morning (M-F 6a-10a) 2:46 5:35 Daytime (M-F 10a-4:30p) 5:16 11:18 Access (M-F 4:30-7:30p) 3:52 8:35 Late Night (M-F 11:30pm-2a) 2:47 3:38 Overnight (M-F 2a-6a) 2:23 2:59

9 EFFECT OF HEALTHCARE ADVERTISING Adults 55+ Are Highly Influenced By Healthcare Advertising; Driving Them to Fill Prescriptions, Learn About Drugs and Visit Doctors Source: MRI 2014 Doublebase Actions Taken Result of Healthcare Advertising Last 12 Months Index to General Pop Called toll-free number for info Requested free sample Consulted Pharmacist Asked Doctor to prescribe drug Discussed ad with friend/relative Discussed ad with doctor Made appt to doctor Refilled RX A18-49 A SUMMARY TIME SPENT W/TV HEALTHCARE ADV TV VIEWERS ADV ADV BY SECTOR ADV SHARE BY MEDIUM TV CONTENT V AD-TECH A55+TV CONTENT V AD-TECH

10 TV VIEWERS ACTIONS and Mature Television Viewers Tend To Be Even More Driven by Healthcare Advertising; Driving Them To Point of Purchase Television Viewers Actions Taken Result of Healthcare Advertising Last 12 months Index to General Pop Source: MRI 2014 Doublebase Called toll-free number for info Requested free sample Consulted Pharmacist Asked Doctor to prescribe drug Discussed ad with friend/relative Discussed ad with doctor Made appt to doctor Refilled RX A18-49 A

11 HEALTHCARE ADV Healthcare Advertising Revenue Has Been Steadily Increasing Over The Past Several Years Up 11% versus Year Ago $9, $9, Healthcare Ad Revenue by Year (in Billions) $6, $9, $10,992 Source: Nielsen s Adviews; Drug & Remedies category= Fitness/diet pgm/spa/exercise equip/ Hospital/medical appliances& equip/over counter remedies/pharma houses/physicians and Medical centers/misc. Across all media (including internet). 2014

12 HEALTHCARE ADV BY SECTOR Healthcare s Advertising Growth Is Driven Primarily By The Pharmaceutical Houses Sector Up 19% $754,552 Pharma Houses (RX) Healthcare Ad Revenue Absolute Change in 2014 v Yag by Sector ($OOO) $138,830 Physicians/ medical centers $110,221 Hospital $75,798 Over counter/ vitamins $37,356 In home tests/firstaid/ other Source: Nielsen s Adviews; Drug & Remedies category= Fitness/diet pgm/spa/exercise equip/ Hospital/medical appliances& equip/over counter remedies/pharma houses/physicians and Medical centers/misc. Across all media (including internet). -$20,517 -$7,488 Fitness/diet/ exercise Medical appliances/equip

13 SECTORS SHARE OF REVENUE In Fact, The Pharmaceutical Houses Is The Only Sector To Gain Share Of Total Ad Revenue In Last Three Years Over Counter Medicine/Vitamins Share Continues To Decline Less Than Half The Level It Was At 20 Years Ago 6% 4% 68% 9% 6% 7% 1% 7% 43% 35% 7% 4% Healthcare Sectors Share of Total Ad Revenue Fitness/diet/exercise Medical appliances/equip Over counter/vitamins Physicians/medical centers 1% 3% 7% 49% 27% 6% 5% 5% 2% Hospital In home tests/firstaid/other Pharma Houses (RX) Source: Nielsen s Adviews; Drug & Remedies category= Fitness/diet pgm/spa/exercise equip/ Hospital/medical appliances& equip/over counter remedies/pharma houses/physicians and Medical centers/misc. Across all media (including internet). 12% 45% 23% 6% 6% 6% 1% % 43% 25% 5% 7% 5% 1% 15% 39% 25% 5% 8% 6% 2% 16% 40% 26% 5% 9% 4% 1% 15% 43% 24% 5% 9% 3% 1%

14 TOP ADV Looking At Top 50, Healthcare Spending Grew by Over A Billion With 66% Of Advertisers Increasing Their Television Budget Source: Nielsen s Adviews; all media spending Top Healthcare Advertisers ($OOO) Across All Media 2014 V. YAG Rank Parent Company ($OOO) (+/-) $OOO 1 PFIZER INC $1,317,873.0 $262, BAYER AG $464,704.0 $15, JOHNSON & JOHNSON $452,778.7 $124, ELI LILLY & CO $368, $114, ABBVIE INC $363, $37, ASTRAZENECA PLC $342,907.6 $54, PROCTER & GAMBLE CO $262,461.8 $19, ACTAVIS PLC $257,615.6 $50, SANOFI SA $257,043.4 $80, SAINT JUDE CHILDRNS RSRCH HSPTL INC \ $244,832.4 $95, BRISTOL-MYERS SQUIBB CO $225,821.3 $62, GLAXOSMITHKLINE PLC $217, $59, MERCK & CO INC $214, $63, SUMITOMO CORP $192,058.9 $162, CH BOEHRINGER SOHN $173,716.7 $52, OTSUKA PHARMACEUTICAL CO LTD $138, $6, PRODUCCIONES INFOVISION SA DE CV $137,824.9 $64, AMGEN INC $136, $55, ADERANS CO LTD $133,358.2 $32, RECKITT BENCKISER GROUP PLC $113, $52, IRONWOOD PHARMACEUTICALS INC $102,944.3 $102, INTERNATIONAL CAPTL & MNGNT CO LLLP $100, $16, ABBOTT LABORATORIES $95, $14, NUTRI/SYSTEM INC $86, $6, ROCHE HOLDING AG $84,573.0 $20, V. YAG Rank Parent Company ($OOO) (+/-) $OOO 26 ARTAL LUXEMBORG SA $84, $15, NOVARTIS AG $79, $42, EISAI CO LTD $79,700.5 $67, VALEANT PHARMACEUTICALS INTL INC $75,865.6 $30, SHIONOGI & CO LTD $70,804.3 $62, HISAMITSU PHARMACEUTICAL CO INC $66,343.4 $39, CARLYLE GROUP LP $65,654.2 $19, NOVO NORDISK A/S $61, $61, IOVATE HEALTH SCIENCES INTL INC $61, $8, CHURCH & DWIGHT CO INC $59,395.1 $11, GILEAD SCIENCES INC $57,093.7 $53, ALTRIA GROUP INC $53,319.7 $53, LOREAL SA $50,691.2 $22, MYLAN INC $49,221.9 $14, NESTLE SA $45,343.0 $11, CLEARCHOICE HOLDINGS LLC $42,805.7 $8, LORILLARD INC $38, $10, PFIP LLC $35,877.7 $8, LIFESTYLE LIFT HOLDING INC $33, $20, ASPEN DENTAL MANAGEMENT INC $33,271.6 $9, VANDA PHARMACEUTICALS INC $32,116.4 $30, AVANIR PHARMACEUTICALS INC $30,725.1 $12, MEDIFAST INC $30,073.6 $9, ASTELLAS PHARMA INC $29,637.9 $22, HCA INC $28,357.6 $3,128.1 GRAND TOTAL $7,779,968.7 $1,104,267.5

15 SHARE OF ADV BY MEDIUM In 2014, Television Captured 65% Of the Total Ad Revenue Pie Up Four Points From Last Year TV 57% 58% 58% 61% 65% Newspaper 9% 9% 9% 9% 7% Magazine 22% 21% 21% 20% 20% Radio 5% 4% 4% 4% 3% National Internet 4% 4% 4% 2% 1% Other* 3% 4% 4% 4% 4% Source: Nielsen s Adviews; Drug & Remedies category; other= b2b, outdoor; TV=cable+bdcst+spot tv+syndication Only Medium To Experience Growth

16 SHARE BY MEDIUM BY SECTOR All But One Healthcare Category Increased Their Spending On Television With Hospitals Detailing Largest Gains 48% 59% 69% 41% 37% 42% 60% Source: Nielsen s Adviews; TV= national cable+bdcst; spot tv+syndication TV s Share of Total Ad Revenue By Sector Fitness/diet/exercise Medical appliances/equip Over counter/vitamins Physicians/medical centers 48% 69% 69% 36% 46% 44% 59% Hospital In home tests/firstaid/other Pharma Houses (RX) 50% 70% 70% 45% 46% 50% 66% 54% 71% 71% 50% 42% 58% 72%

17 TOP TV ADV Looking At Top 50 TV Healthcare Advertisers, 70% Are Up Over A Million 2014 V. YAG Rank Parent Company ($OOO) (+/-) $OOO 1 PFIZER INC $919,826.3 $229, BAYER AG $401,170.2 $1, JOHNSON & JOHNSON $369,641.7 $120, ABBVIE INC $330, $19, ELI LILLY & CO $262, $97, ASTRAZENECA PLC $251,776.9 $83, SAINT JUDE CHILDRNS RSRCH HSPTL INC $240,453.0 $96, SANOFI SA $217,231.3 $84, PROCTER & GAMBLE CO $169, $11, SUMITOMO CORP $158,359.9 $138, CH BOEHRINGER SOHN $155,196.3 $62, BRISTOL-MYERS SQUIBB CO $153,962.5 $42, GLAXOSMITHKLINE PLC $151, $41, PRODUCCIONES INFOVISION SA DE CV $137,824.9 $64, ADERANS CO LTD $133,166.7 $32, ACTAVIS PLC $120,785.4 $33, AMGEN INC $112, $42, RECKITT BENCKISER GROUP PLC $100, $20, MERCK & CO INC $96, $13, INTERNATIONAL CAPTL & MNGNT CO LLLP $95, $14, OTSUKA PHARMACEUTICAL CO LTD $88, $9, ABBOTT LABORATORIES $83, $9, NUTRI/SYSTEM INC $74,775.8 $13, ARTAL LUXEMBORG SA $73, $14, ROCHE HOLDING AG $62,221.7 $8,785.6 Source: Nielsen s Adviews; TV=cable+bdcst+syndication+spot Top Healthcare Advertisers ($OOO) On TV 2014 V. YAG Rank Parent Company ($OOO) (+/-) $OOO 26 IRONWOOD PHARMACEUTICALS INC $61,840.2 $61, NOVO NORDISK A/S $58, $61, NOVARTIS AG $53, $21, EISAI CO LTD $49,013.4 $49, HISAMITSU PHARMACEUTICAL CO INC $47,620.5 $28, CHURCH & DWIGHT CO INC $46,471.2 $6, VALEANT PHARMACEUTICALS INTL INC $41,376.7 $12, CARLYLE GROUP LP $39,574.0 $19, SHIONOGI & CO LTD $38,496.6 $38, MYLAN INC $35,251.0 $16, NESTLE SA $33,492.4 $7, ASPEN DENTAL MANAGEMENT INC $31,446.2 $9, AVANIR PHARMACEUTICALS INC $30,725.1 $12, LIFESTYLE LIFT HOLDING INC $29, $13, CLEARCHOICE HOLDINGS LLC $28,365.2 $8, PFIP LLC $27,854.9 $5, LOREAL SA $25,837.9 $18, LIFE LINE SCREENING OF AMERICA INC $25,479.8 $25, ASTELLAS PHARMA INC $24,433.7 $19, LASER SPINE INST LLC $24,121.9 $7, GILEAD SCIENCES INC $23,044.7 $22, VANDA PHARMACEUTICALS INC $22,080.1 $22, GRASSHOPPER HOUSE LLC $22,066.2 $3, IOVATE HEALTH SCIENCES INTL INC $21, $4, ROYAL DSM NV $17,184.8 $2,976.6

18 HEAVY TV INVESTMENT Of Those Who Advertise On TV, They Tend To Do So Heavily Over 50% TV Over 90% TV Only TV % TV Media Mix of Total Ad Revenue Base: Any TV Advertising 62% 68% Source: Nielsen s Adviews; Drug & Remedies category= Fitness/diet pgm/spa/exercise equip/ Hospital/medical appliances& equip/over counter remedies/pharma houses/physicians and Medical centers/misc. TV=cable+bdcst+syndication+spot 84%

19 MOBILE S ROLE Mobile Content Has Grown Diagnosing and Treating Illnesses from Far Away Mobile allows for greater communication between providers within healthcare systems, enabling doctors to communicate with their patients Many doctors have a social presence today (are on Facebook) Apps are used for medical purposes (diagnosing, tracking and treating); for sports/recreation (tracking fitness) and health/lifestyle (tracking calories/nutrition) Over 13,000 health and medical apps are available Some consumers consult internet to research a medical condition 13% began at a site that specializes in health information, like WebMD Only 1% started at a social site like Facebook 1 in 4 people seeking health information online have hit a pay wall 26% were asked to pay for access to something they wanted to seeonline. Of those who were asked, only 2% paid for access Source Pew research center s internet and american life project

20 TIME SPENT ONLINE Online, Consumers Spend More Time With Ad-Supported TV Content Than With The 4 Portals 20:12 18:30 Monthly Time Spent Online (Hrs:min) 5:28 A :06 18:47 15:47 A55+ Average minutes per visitor Source: Nielsen Npower Live+7 March 2015, CAB analysis of comscore duplicated March 2015 data. Ad-Supported Television Brands represents all measured Ad-Supported Cable nets, mvpds. And Broadcast Television FOX, CBS, NBC, ABC, ion and CW. 4 portals = Google, AOL, MSN, Yahoo! 6:34 0:08 Ad-Supported TV Content 4 Portals Facebook Webmd.com

21 AD-SUPPORTED TV V ADTECH When Factor in TV, Consumers Spend More Than 2X The Time With Premium Ad-Supported TV Content Across All Screens Then They Spend With The 4 Portals+Facebook Combined Ad-Supported TV Brands (Cable + MVPDs+ Broadcast: TV+ Web) 4 Portals (Google, MSN, AOL & Yahoo!) Facebook Monthly Time Spent (Hrs:Mins) A :33 85:26 20:12 17:55 22:45 18:30 4:15 23:24 5:28 17:56 Average minutes per visitor Source: Nielsen Npower Live+7 March 2015 A18-49, CAB analysis of comscore duplicated March 2015 data A18-49 (mediametrix, multiplatform). Nielsen Social March Ad-Supported Television Brands represents all measured Ad-Supported Cable nets, mvpds. And Broadcast Television FOX, CBS, NBC, ABC, ion and CW. 4 portals = Google, AOL, MSN, Yahoo! 2M Tweets

22 A55+ AD-SUPPORTED TV V ADTECH Among Older Adults, Time Spent Is 4X More Than Time With The 4 Portals+Facebook Ad-Supported TV Brands (Cable + MVPDs+ Broadcast: TV+ Web) 4 Portals (Google, MSN, AOL & Yahoo!) Facebook Average minutes per visitor Monthly Time Spent (Hrs:Mins) A :27 153:53 18:47 17:47 26:41 15:47 10:54 14:24 6:34 7:50 Source: Nielsen Npower Live+7 March 2015 A55+, CAB analysis of comscore duplicated March 2015 data A55+ (mediametrix, multiplatform). Nielsen Social March Ad-Supported Television Brands represents all measured Ad-Supported Cable nets, mvpds. And Broadcast Television FOX, CBS, NBC, ABC, ion and CW. 4 portals = Google, AOL, MSN, Yahoo! 8K Tweets

23 AD-SUPPORTED TV S REACH Overall, Ad-Supported TV s Content Reach Is Undeniable Across All Platforms P18-49 Total Ad-Supported TV Brands (MVPDs+ Cable Nets + Broadcast Nets: TV+ Web) (Hrs: Mins) 123:33 4 Portals + Facebook (Yahoo!+ Google + MSN + AOL) (Hrs: Mins) 46:09 P55+ Total Ad-Supported TV Brands (MVPDs+ Cable Nets + Broadcast Nets: TV+ Web) (Hrs: Mins) 190:27 Source: Nielsen Npower Live+7 March 2015 P2+, CAB analysis of comscore duplicated data. Cable Television represents all measured Ad-Supported Cable nets by Nielsen and ComScore; Broadcast Television represents FOX, CBS, NBC, ABC, ion and CW; Four Portals represent: Yahoo, Google, MSN and AOL. 4 Portals + Facebook (Yahoo!+ Google + MSN + AOL) (Hrs: Mins) 41:05

24 SOCIAL MEDIA S ROLE Social Media Engages Prospective Healthcare Consumers & Goes Hand in Hand with TV Social media and healthcare are a good fit as both revolve around personal matters Average minutes per visitor Consumers are more empowered than ever to share feedback and support. Healthcare brands are staying connected to customers, engaging prospective patients, posting content on their products and building buzz about their brands. Healthcare targeting older adults to reach an audience with more healthcare needs. Facebook is oldest social networking platform and is still popular today. Social Media and TV Go Hand in Hand One Driving to The Other 76% of Brand Tweets are sent by people who Tweet about TV (Nielsen) Twitter TV authors drive 3X more brand conversation than non-tv authors (Nielsen) Source: Nielsen Npower Live+7 March 2015 A55+, CAB analysis of comscore duplicated March 2015 data A55+ (mediametrix, multiplatform). Nielsen Social March Ad-Supported Television Brands represents all measured Ad-Supported Cable nets, mvpds. And Broadcast Television FOX, CBS, NBC, ABC, ion and CW. 4 portals = Google, AOL, MSN, Yahoo!

25 SOCIAL ENDORSES PRODUCTS Socially Active Viewers Endorse Products Over 30% Comment on an Ad See what others think about the show Big fan of show Keep in touch w/friends Discuss show w/fans Makes watching more interesting CAB Custom Study; Video Nation: Anytime, Anywhere, Anyplace BASE: Respondents who engage in social TV 610 Previously you indicated you do the above. Why do you do these activities? Select all that apply Teens: 28% 18-24: 34% 25-34: 29% 35+: 29% 50+: 26% Saw an ad/product I like and want to share Get insider info about show 28 Like engaging in play along games 19 Chat with stars

26 CONTACT US If you would like additional video advertising information, insights or analysis please visit our website at or feel free to contact us directly: Sean Cunningham President & CEO Jason Wiese VP Strategic Insights Follow us on and like us on Danielle DeLauro SVP Strategic Sales Insights Evelyn Skurkovich Sr. Director, Strategic Insights