PR View by Charlotte Wray

The question of public relations versus other marketingspends is probably a debate that never will go quietly into the night. PR, itseems, is destined to require continual defense and explanation, even as thediscipline gains recognition as a critical component of marketing. Why this isremains unclear, but perhaps, like the shoemaker whose children have no shoes,and the architect whose house is in disrepair, we as communicators are simply noteffective at promoting our own industry.

This article takes a broad look at the current state and artof public relations and specifically focuses on one area of public relations -healthcare – against the backdrop of key market events and drivers.

Economy

To start, there is no denying that the economic downturn -yes, recession – has impacted our industry, just as it has our corporateclients. Account losses and reassignments, lay-offs, and reorganizationsthought not widespread, are increasingly being reported.

Strong agency leadership is required to stabilize, andcertainly to grow, billings, and PR budgets are under more scrutiny than everbefore.

In healthcare public relations, the added variables ofregulatory delays and data setbacks are fueling the instability. The lamentablenumber of 2007 FDA-approved new molecular entities (17, the lowestnumber in 25 years) may well be undercut in 2008. In addition tooutcomes, clinical trial design is under increasing examination; endpoints arebeing re-evaluated with the advent of novel, targeted therapies that treatdisease in small populations. As important, the number of developmentalcompounds facing discontinuation or delay is affecting budgets and staffing formany agencies. For the first time in many years, it is a buyer’s market, withmany accomplished and experienced public relations professionals facingunemployment.

Paid vs. Earned Media Trends

A look at how clients are spending their consumeradvertising dollars provides insight into what the future will hold for publicrelations.

Spend by channel has profoundly changed in recent years, andthe trend is progressive. Early this year, Nielsen reported that, for the 4thconsecutive year, Internet advertising outpaced that of all other channels. Insecond place are national magazines, but this sector is facing significantchallenges.

And network TV and radio, as well as national and localnewspapers, historically a key channel for conveying public relations messages,the spend continues to decline. Anyone who reads the New York Times inhard-copy form sees the impact: thinner sections, more prominently placedadvertisements, etc.

This is indeed a cautionary tale for PR practitioners. Itnow seems likely that the future media landscape no longer will include printednewspapers as a venue for message communication. And radio, for so long aneffective and economic channel for delivering PR messages, also facesunprecedented declines in listenership, share of voice and ad revenues.

So where are ad dollars going? It is no surprise thatInternet spending is up, but the percentage of increase year to year maysurprise some:

online advertising rose 18.9% from 2006 to 2007. The onlinemedium abounds with opportunities to communicate, educate and influence opinion.From social networking sites to blogs to online patient advocacy organizations,public relations has begun to effectively deliver messaging across theInternet, but healthcare public relations lags behind, due to regulatorybarriers and client reluctance to widely embrace the new medium.

So the trends are clear and present. This is the time totake a breath and look at what PR can deliver during this challenging time formarketing. A solid understanding of these factors will inform decision-makingon behalf of clients seeking strategic public relations programming.

PR In the Marketing Mix: What Has and Has Not ChangedSeveral factors continue to make a case for the economy of PR. First, the ROIof a PR campaign compared to its advertising counterpart remains unchallenged.Even the most expensive national public relations campaign is small marketingpeanuts compared to consumer advertising.

And PR can deliver both as part of a fully integratedcampaign or as stand-alone programming in the absence of advertising,promotion, sampling or any other marketing program.

For pharmaceutical marketing communications,direct-to-consumer advertising must remain a viable option in the marketingmix. But criticism of direct-to-consumer advertising is not likely to diminishin

2008 and in fact may escalate. Most recently, the HouseCommittee on Commerce and Energy took up the issue in a May 8th hearing on DTC,directly challenging the marketers of Vytorin, Procrit and Lipitor to defendthe value and spend. So for marketers putting together their brand budgets, themajor decisions on dollar allocation center on the big-ticket items likeadvertising, while PR is the engine that consistently delivers results inmeasurable, impactful ways.

Credibility Factor

The credibility of editorial message delivery also remainsunchallenged, and in fact, has increased with the growth and legitimization of

peer-to-peer communication.  The magazine editor’s pronouncement must be validatedthrough reader acceptance; the blog expresses and coalesces opinion around acentral issue.

In healthcare public relations marketing, the advent ofpeer-to-peer empowerment manifests itself in several ways. As patients becomeeducated consumers of healthcare, the physician no longer dictates treatment ina vacuum. The interaction requires a dialogue in which the patient maychallenge or question a treatment approach, often presenting information duringthe office visit generated by a public relations campaign.

Today, the complex array of players in healthcare deliverydemands that patients play an activist role. From complicated health insurancecompany coverage policies to prescription medication directions to the dauntingMedicare Part B application process to navigating clinical trial entry options,today’s healthcare consumers must approach the purchase of any healthcare itemas they would a car, mortgage or other large purchase.

On the physician side, peer-to-peer influence is just asimportant in shaping opinion. Sermo, the online physician networking community,has become instrumental in driving medical opinion through commentary onpractice experiences. Launched in 2006, Sermo has created a new channel forhealthcare companies to engage directly with prescribers. Through real-timeexchange on the latest medical and clinical insights and observations,physicians aggregate their observations from daily practice and challenge orcorroborate one another’s opinions. This new “grand rounds” approachhas accelerated awareness of medical trends and insights on medications,devices and treatments, which physicians then apply in practice to achievebetter patient outcomes.

As a designated Sermo partner, Rx Mosaic Health has beenable to apply insights drawn from the community discussion to build targeted communicationstrategies for clients, achieving highly targeted and measurable results.

So whether the audience is patient or professional, publicrelations has the opportunity to shape and deliver content to target audiencesthat are seeking and receiving information across new venues, and who, morethan ever, are receptive to content that is credible and meaningful.

Smart PR Programming During a Recession

With all indicators showing that the recession will be withus through at least 2008 and likely into 2009, public relations practitionersmust be responsive and flexible in meeting client needs.

Campaigns need to be targeted and directly aligned toaudiences, and deliver return-on-investment against agreed-upon metrics. PRbudgets are likely not to grow significantly, but must work just as hard todeliver results.

All in a day’s work for today’s public relationspractitioner.