3 ways oncology marketing is changing

As the baby boomer generation ages and pharmaceutical companies develop new breakthrough cancer treatments, the oncology market is poised for growth. According to a report from Research and Markets, the oncology market is projected to grow at a compound annual growth rate of 11.17 percent between 2017 and 2021.

However, the high price of cancer treatments actually impedes the overall growth of the industry. PM360 reported that a gap remains between the price of treatments and their perceived value. With the medical industry shifting toward value-based payments - away from fee-for-service payments - pharma manufacturers will need to work harder to define their value propositions, suggested consulting agency Valid Insight.

1. A surge in direct-to-consumer marketing

Direct-to-consumer oncology ads, practically unheard of just four years ago, now represent a $233 million market, reported Medical Marketing & Media magazine. This paradigm shift means patients are more aware of the latest cancer-fighting medications and they're more informed about what treatment options are available.

But there's a big difference between knowing a product exists and knowing whether or not it's the best course of action for a particular patient. For that, they still need to rely on physicians. DTC marketing of cancer drugs may seem like they're cutting out the middleman, but without support from the medical community, it will be difficult to turn that increased awareness into sales growth.

Nevertheless, the push for more DTC marketing isn't without its merits. Gil Bashe, a managing partner at global marketing and communications firm Finn Partners, told MM&M that cancer patients may not be aware of the available treatment options.

"Unlike other disease states, where we've grown accustomed to [different] types of therapy, the area of cancer therapy has so many breakthrough medicines that it's very hard for patients to stay in tune with what's happening and what's new," Bashe said.

Patients are more exposed to DTC cancer treatment ads than ever before.

2. Heavy competition among pharma companies

Even in the digital age, prime advertising real estate is finite - and pharma companies are paying a premium to get their DTC ads in front of patients. MM&M reported that in 2016, Bristol-Myers Squibb spent $167,835,000 to advertise Opdivo, a treatment for advanced stage lung cancer. During the same period, Merck spent $61,281,000 on advertisements for their competitor, Keytruda. In total, the top five manufacturers spent more than $264 million on DTC cancer treatment advertisements.

Matt Arnold, principal analyst for Decision Research Group, told MM&M that, while necessary, a massive, televised awareness campaign needs to be followed by a supportive push online.

"The more brands you cram into the category, the thinner each wedge of that pie is going to be, and the outlays for these campaigns are substantial," Arnold said.

Once patients are aware of their options, they can have a more informed conversation with their physician. At that point in the sales process, it may help if pharma advertisers sent physicians supporting collateral to make that discussion easier. That way, when a patient approaches their doctor to talk about a treatment option they saw on TV, the physician can work from a base of more precise knowledge to provide each patient with a personalized recommendation.

3. Pharma marketers can't bypass physicians

The oncology market presents a number of interesting challenges for marketers, because cancer patients may want the drugs they see advertised on TV, but may not understand that the complicated nature of cancer means that every drug won't work for every patient.

Food and Drug Administration regulations are changing these conversations, too. For instance, most cancer treatments are approved based on where in the patient's body the cancer developed. However, the FDA approved Keytruda based on a tumor's biomarkers. That gives physicians more freedom to prescribe the medication to those who are most likely to benefit from it - an important distinction in a value-based payment environment.

Because of these factors, pharma marketing may shift to a more even-sided approach where they first raise awareness among patients, then target relevant physicians.

To learn more about how pharma marketers can reach oncology physicians, visit ELSMediaKits.com for a list of Oncology journals, or explore PracticeUpdate's Oncology channel.