Marketing shifting to more digital media for ophthalmic practices

Marketing expert Bill Fukui explains why changes are occurring and how marketing budgets are being redistributed.

Issue: April 10, 2016

ByJohn B. Pinto

“Social media is the ultimate equalizer. It gives a voice and a platform to anyone willing to engage.”
– Amy Jo Martin

“To err is human — and to blame it on a computer is even more so.”
– Robert Orben

As someone who started one of the country’s first boutique health care advertising agencies in 1979, and who wrote the first book on ophthalmology practice promotion, published by SLACK Books exactly 30 years ago, marketing is a comfortable topic for me. At least “old guy” marketing — the kind you find in newspapers and on TV and bus benches.

But at this stage of life, I am part of the “digital fringe generation,” half old-school and half new-school. With real continuing education effort, I can just barely hold my own with the e-prowess of the typical 12-year-old. If I do not keep educating myself on all things digital, I rapidly fall behind. You probably do, too.

With that in mind, I recently visited with Bill Fukui, who directs marketing for Page 1 Solutions, one of the oldest Internet marketing firms catering to medical practices. Bill addressed the most common questions surgeons and administrators have in a manner that reminded me how long ago 1979 was.

Here is a curbstone catch-up and a set of recommendations for you and your staff.

1. How has the appropriate marketing budget ratio changed through the years between “old” media (TV, newspapers and the like) and “new” media (social media, Google placements, pay per click)?

Even though the recent Super Bowl ads exceeded $5 million each, Internet marketing expenditures will surpass TV media ad spending in the near future. The trend toward larger online marketing budgets is even greater with small businesses. I believe there are two primary drivers.

The first is competition. Few practices have the budget or stomach to advertise on TV or radio. However, every practice understands the need to market online. The Internet marketplace is increasingly crowded and competitive.

The second is consumer activity. Online consumers spend more time doing more things and access a wider variety of websites and apps. Thus, successful online campaigns are much broader today. Internet marketing budgets, once limited to website updates and search engine optimization, now include video advertising, social media, display advertising, email marketing, review and rating campaigns, remarketing/retargeting, directory listings and much more.

Many practices have reallocated marketing dollars that used to go to traditional advertising into Internet marketing campaigns. What was once a $500 per month online marketing budget now can exceed $3,000 per month, but that is still far less than the typical direct-to-consumer media campaign.

2. Is this strong shift of marketing dollars into digital still the case, even though most ophthalmology patients are older?

I believe it varies based on the type of market. We see less of a shift in rural low-density population areas, while major metropolitan markets have seen significant shifts due to higher return on investment potential and low relative barrier to entry costs. Keep in mind that recent studies indicate many baby boomers (51 to 69 years old) spend even more time online than millennials.

Today, boomers spend an average of 16 hours a week watching television and 19 hours online. Eighty-two percent of them also use the Internet to research health-related information. Effective health and wellness marketers recognize these trends and continue to invest more to reach them. The days of believing the Internet is not a medium to market to seniors are over.

3. What is working best to reach the 65+ senior demographic?

The senior consumer market is still dominated by relationships, trust and referrals. Although search engine marketing remains a marketing staple to gain exposure, relationship-building platforms, specifically social media and email, continue to have increasing impact. More than one in three seniors not only indicate they use social media, but they are comfortable and confident with it. This growing online population is also dominated by female seniors, who incidentally drive most family health choices. The key is to not simply post on your social media, but to also engage and conduct outreach.

4. What is working to reach younger patients for services such as LASIK and cosmetic lid surgery?

Younger professional demographics typically dominate much of the expanding mobile marketplace. They are also the population driving the broader use of various platforms and apps. Although Google and other search engine listings continue to be a key source for leads, effectively reaching out to this audience demands a more diversified effort. Some of these include highly targeted display advertising, video pre-roll ads (the short video ads that precede many popular videos), as well as paid social media advertising. Leveraging review and rating platforms such as Yelp and Google+ should also be part of your Internet marketing efforts.

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The key to reaching this audience is to be multidimensional. We have seen some campaigns deliver tremendous targeted reach and lead generation, all at a fraction of the cost of mass media and standalone Google AdWords PPC campaigns. The old market adage of “the whole is greater than the sum of its parts” should be your mantra for Internet marketing.

5. What should the average practice with just a basic website do next in digital marketing?

Practices that are earlier in the digital marketing process may feel a bit overwhelmed. But the most valuable advice I can offer: Don’t be frozen by indecision — take action!

Start by identifying the type of patients you want to attract and then determine the pace you want to, or are able to, grow. This can help you establish a realistic budget to start building your digital marketing campaign. It will also allow you to identify the type of image or brand messaging you want to project and the digital channels to select.

One other pearl I suggest is to start inside and work your way out. What I mean here is to assess your, your team’s and your practice’s ability and processes to grow. It also suggests building an Internet marketing campaign around your most accessible and valued audience — your patients, referrers, contacts and people you know. Keep in mind, effective Internet marketing is less about advertising and more about building and expanding your online community and brand. This likely includes email marketing, review marketing and social media.

6. Imagine three doctors in practice together, providing cataract and LASIK surgery, with $3.5 million in annual collections and an annual digital budget of 1.5% of collections, or a bit more than $50,000. What would that budget buy, and how should it be prioritized?

Fifty thousand dollars may sound like a lot, but it will not go far in traditional mass media advertising, especially diluting it to try and reach different demographics with different messages. However, it can go a long way on the Web.

Of course, recommendations will vary based on the practice’s marketplace and goals. However, the first priority is to assess your most important online marketing asset, the website. It is the “hub” of all your marketing. The image, content, navigation, interactivity, optimization and calls-to-action should all be evaluated and upgraded as necessary. Comprehensive, custom website development can range from $8,000 up to $15,000 or more, depending on size, animation, video production and custom photography.

As for marketing, you should consider a diversified, multichannel campaign:

Search engine optimization (including blogging, new pages, Google+ Local)
Paid advertising, display ads, remarketing to website visitors
Social media marketing, both organic and paid
Review and rating marketing platforms
Live chat service
Lead-generating and lead-nurturing email marketing automation (inbound marketing)
Video marketing: video blogs, video pre-roll advertising (ads before videos)
Monthly/quarterly informational email/e-newsletter campaign

Although the amount can vary based on aggressiveness and campaign make-up, multichannel Internet marketing campaigns typically start around $2,500 per month and go up from there.

7. What is coming at us over the horizon in the next 5 to 10 years?

I imagine the Internet will not look the same as it does today in the years ahead. Consumers will spend the bulk of their time on the Web doing more and more interactive activities.

Technology will offer marketers even greater resources and ability to more accurately target and communicate to high-quality prospects, at the right time. The cost of marketing online will increase dramatically, but it will be an investment practices will be forced to make if they want to stay competitive for high-value potential patients.

For more information:
John B. Pinto is president of J. Pinto & Associates Inc., an ophthalmic practice management consulting firm established in 1979. John is the country’s most-published author on ophthalmology management topics. He is the author of John Pinto’s Little Green Book of Ophthalmology, Turnaround: 21 Weeks to Ophthalmic Practice Survival and Permanent Improvement, Cashflow: The Practical Art of Earning More From Your Ophthalmology Practice, The Efficient Ophthalmologist, The Women of Ophthalmology, Legal Issues in Ophthalmology, Ophthalmic Leadership: A Practical Guide for Physicians, Administrators and Teams and a new book, Simple: The Inner Game of Ophthalmic Practice Success. He can be reached at 619-223-2233; email: pintoinc@aol.com; website: www.pintoinc.com.
Since 2001, Bill Fukui has been the director of marketing for Page 1 Solutions, a comprehensive Internet marketing agency specializing in medical practices. He has been involved with ophthalmology marketing communications since 1995. He has consulted with practices on all forms of media advertising and comprehensive Internet marketing strategies, including website design, SEO, PPC, inbound email marketing, social media, database marketing, reputation marketing, display advertising and staff training. He can be reached at 303-396-1209; email: billf@page1solutions.com.