Highlights

Facebook recently announced the launch of Premium Ads. The new ad units enable brands to use the content they post on their page as the ad unit. The premium ad units will appear on a users Facebook homepage, integrating seamlessly into the users news feed. The ads are highly social, allowing users to like and comment directly on the ads. User comments and likes will subsequently also be reflected on the advertisers page. Pharmaceutical marketers can leverage the new features of the premium ads to better engage and understand their target audience. However, pharmaceutical marketers should manage their content closely to avoid FDA violations, as the new format allows for open-field comments and potential exposure of a patients health information.

Facebook Premium Ads: Implications for Pharmaceutical Marketing

By: David BenBassett, Ruth Lim and Remy Wainfeld, Lian Han and Sara Collis Digital Integration & Innovation, RTC March 2012

Summary Facebook recently rolled out new Premium Ads that provide marketers with the opportunity to engage with both fans and nonfans through interactive content drawn directly from their brand pages. The new Premium Ads are highly social, allowing users to like and comment directly on the adthese interactions are then posted on friends news feeds as well as on the advertisers brand page. These changes will influence the way that marketers in all industries use Facebook, but for the pharmaceutical industry specifically, these Premium Ads have implications in terms of FDA compliance, including decreased control over open fields, off-label or adverse eventrelated comments, and potential exposure of a patients health condition. Despite these challenges, the new ad formats offer a better platform for social engagementpharma can continue to utilize Facebook by following some guidelines, and by leaning toward unbranded rather than branded content. Key Information On February 29 at an invitation-only conference for marketers, Facebook announced a departure from traditional advertising and the introduction of new Premium Ads. The functionality of the new ads puts more social in social media advertising. They differ from past Facebook ad units by extending reach and impressions across Facebook users, even those that are not fans of a brand, by providing more room for interaction, likes and comments, and by offering more ad formats than before. The new formats feature content drawn from a brands page posts, and will appear in a users news feed and on the right-hand side of the Facebook homepage. Marketers can now choose from six different formats: Photo, Video, Question, Status, Event and

Link. Depending on which ad format they choose, marketers have between 90 and 150 characters of text to work with in each ad. The biggest change related to these new formats is the way in which they will be served up to Facebook users, and the way the content of the ad is formulated. For example: Brands can now choose to promote content that is drawn directly from brand posts on their page, rather than ads that are independently written. This changes the art of ad copywriting, as ad copy and post copy are now one and the same. Ads will show up on the news feed of fans as well as those who are not fans but have a friend who has taken action on a page (like, comment, share, check-in, claim an offer, etc.). This expands reach and socialization of a brands content. The larger format will show users which of their friends (pictures and names) have already liked the advertiser, exposing users preferences and habits to others. For people who have already liked the page, the ad will include an expanded interface that will allow them to like and/or comment directly from the ad. The likes and comments will subsequently be reflected on the brands page.

Photo: Courtesy of Facebook

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Implications and Action Items As advertisements on Facebook become increasingly social, this poses greater challenges for pharmaceutical marketers to advertise on Facebook without running the risk of violating FDA compliance rules and compromising patients privacy. By disseminating brand page content as advertisements, the new format exposes brand content as well as accompanying user comments to a greater range of audiences, making it difficult for brands to contain discussions within the walls of their brand page. Open-field functions in the new format lend themselves to the risk of off-label and adverse events mentions in comments, and the increased distribution of the ads themselves across Facebook users increases exposure of a patients health condition, creating potential ethical implications. These issues and suggested action items are outlined in the chart below. Facebook Changes and Implications for Pharmaceutical Marketers New Format Implications Action Items
Ad content drawn from posts directly from advertisers brand page Branded content no longer only confined to brand page Strategically select posts that comply with existing FDA regulations on advertising All content must present fair balance of risk/benefit information and avoid unsubstantiated claims Carefully yet respectfully monitor social activity and comments on the ads Inform users of the legal limitations and implications of their communications on the brand page and warn them of potential comment deletions Content should direct conversation away from possible FDA violations Provide MedWatch and Contact Us information on Facebook page/ad Rather than using premium ads as a way to reach new consumers, use them to encourage existing fans to interact with the brand via Facebook by limiting promoted content to be viewed by fans only Consider using unbranded content only

Old Format
Advertising copy written independently from Facebook page content No likes or Comments on ads

Users can like and comment on the ad directly Brands no longer allowed to disable comments on their page posts and ads1

Open fields lead to less control over user-generated conversation, including potential off-label and adverse events comments

Users interaction on brand pages and ads is kept private

Text and image only

Users interaction on the brands ad will appear on their Facebook friends news feeds Ads include names and photos of the users friends who have liked the page Six different formats advertisers can choose from (Status, Photo, Video, Question, Event, Link) 90-150 characters

Increased exposure of the condition of patients who interact with the brand page Increased chances of non-stakeholders participating in discussions Multimedia may help with including fair balance, but character limits may make fair balance compliance difficult

Consider using unbranded content only Ensure all content includes fair balance, including multimedia and all copy

Pharmaceutical marketers with Facebook pages have different privacy options than other marketers, and at this time it is unclear how that may change with the introduction of the Premium Ad format.

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However, despite the many challenges, the new ad formats present opportunities for pharmaceutical marketers to better engage their audience. For example, the Premium Ads place the brands page in the spotlight like never before, extending their content to a new and expanded audience. The ads enable marketers to step outside traditional text and links, and include photos, videos and questionnaires in their ad content. Premium Ads are also more cost efficient: By using content from the brands pages as the main content of the new premium ads, Facebook simplifies and cuts down the process of ad creation. Marketers can now quickly and easily alter and improve their ad content according to the feedback and response they get from these new ads. Finally, Premium Ads provide marketers with valuable insights about their target consumers, as likes and comments can now be analyzed in regards to the ad unit (and the ads content) itself. Conclusion and Final Thoughts This all having been said, the new format does require more strategic thinking as marketing content becomes more portable and reach more expansive. Marketers need to carefully manage the relationship between their Facebook fan page and what content is being redistributed in the ad units, as well as monitor user engagement, feedback and ad performance to optimize content management. Additionally, there are some key strategic topics that pharmaceutical marketers should consider discussing regarding the new Premium Ad formats. These are as follows: Consistent brand image. Any disconnect between the brands Facebook communications and other platforms will be more obvious than before. Marketers should ensure that advertising content across platforms offers a consistent image and personality. Consistent management. Marketers should consider the resources they have to manage their Facebook page, since it is now inherently social media and advertising at the same time marketers now need to actively monitor user comments and interactions on the brands Facebook page and ads, as well as have more reason to keep their Facebook page heavily engagement oriented. Analysis matters. By analyzing users interactions (e.g. likes, shares, comments) with ad content, marketers can better understand users preferences and better tailor future creative and copy strategy to appeal to their target audiences. Unbranded is better. While the FDA has never entirely addressed social media in its guidelines, the Premium Ads expose a brands content and a users privacy more so than before. Unbranded efforts provide a wider safety net than branded efforts, and eliminate the need to work within the constraints of fair balance. Engage with richer media. The upgraded premium ad formats enable brands to better communicate and engage with their audiences through a variety of multimedia content, including traditional text and links, as well as photos, videos and questions. Brands can use the opportunity to educate their audiences via videos or illustrated diagrams, or better understand their audiences via polls.

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It is understandable that pharmaceutical marketers may shy away from advertising on Facebook in order to avoid risking violation of FDA guidelines. However, with increased options of customizing ad content, marketers can now better engage and interact with target audiences on Facebook. Therefore, we recommend that pharmaceutical marketers who wish to advertise on Facebook restrict their ads to fans only, and also devote manpower and time to ensure that all content on the site (inclusive of user comments) does not violate FDA guidelines. Additionally, we urge the use of unbranded content over branded content across the platform, in order to have more flexibility in being social. If you are interested in discussing the impact of these changes for your particular brand, RTC is here for youjust contact your Digital Strategist, Account Manager or our Business Development office. More information on Facebooks Premium Ads can be found online:
https://www.facebook.com/business/fmc/guides/premium?campaign_id=250393211715997&creative=premium

About the Digital Integration and Innovation Team

The RTC Digital Integration and Innovation team is tasked with keeping track and making sense of the ever-changing digital world. Its our job to understand the nuances of how and why different types of people use technology and what that tells us about them. More importantly, its our job to help our clients apply this knowledge to better communicate with their customers. We help clients translate business goals into marketing campaigns that build relationships with customers. In the 21st century, understanding how and why someone uses technology is as important as understanding where they live, what gender they are, and how old they are. Thats where we come in. From ensuring that digital behavior is considered in the research phase, to tactical plans that align digital, print and broadcast tactics, we work with clients and internal partners to make sure it all works. Its not about whats cool. Its about what works.

About RTC
RTC is a full-service direct and relationship marketing agency based in Washington, D.C., in the heart of Georgetown, with an additional office in New York. RTC boasts more than 45 years worth of innovative, targeted solutions that grow its clients brands and help them forge lasting, valuable relationships with their customers. What distinguishes RTC is its unique ability to analyze data and research on both a rational and emotional level, and to leverage insights gleaned from that data to motivate customers and prospects to take action. RTCs clients include AARP, Procter & Gamble and Janssen Pharmaceuticals, as well as other major brands in the pharmaceutical, financial services and telecom industries. To learn more about RTC, please visit www.rtcrm.com or follow the Twitter feed @rtcrm

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