With healthcare marketing budgets declining by 8 percent and a slowing U.S. economy, hospital and health system marketing leaders told Becker's they are carefully assessing their marketing budgets and are laser-focused on return on investments for marketing campaigns and channels.
According to a survey conducted by MM+M, healthcare marketing budgets have not made a comeback since 2019 when spending budgets reached a peak of $12.3 million. In addition, Kaufman Hall reported that 2022 was one of the worst financial years for hospitals and health systems since the start of the COVID-19 pandemic.
This kind of landscape, accompanied by a worsening economic landscape, is putting pressure on hospital and health system marketing leaders to work with waning budgets.
"We are navigating the challenging economic climate by carefully managing our marketing budget," PJ Sibille, vice president of marketing and communications at New Orleans-based LCMC Health, told Becker's. "We are adopting a strategic approach to ensure that our marketing efforts remain effective while being cost-conscious."
This year, LCMC Health's marketing budget was cut, according to Ms. Sibille, so the health system is striving to strike a balance between "prudent financial management" while maintaining effective marketing efforts that contribute to the success of the organization.
It is doing this by prioritizing its key marketing initiatives, closely monitoring the return on investment for its marketing campaigns and channels, continuously evaluating and adjusting its marketing strategies, and using digital channels such as social media to maximize its market impact.
"We understand that the economic landscape is dynamic, and we regularly assess the performance of our marketing activities," Ms. Sibille said. "By continuously evaluating and adjusting our strategies, we can ensure that we remain agile and responsive to changing circumstances while maintaining financial prudence. Specifically, we are focusing on data analytics to understand what drives revenue to develop more efficient campaigns and outreach."
Amy Stevens, vice president of marketing and communications of Murrells Inlet, S.C.-based Tidelands Health, has worked in healthcare marketing for more than 25 years. She said that over the years, she has become well-acquainted with the financial pressures facing hospitals and health systems.
Tidelands Health, according to Ms. Stevens, has been proactive for moments like this and developed a method for when traditional marketing budgets are constrained.
"We have built our marketing strategy on a foundation of content marketing," Ms. Stevens said. "By investing in the people to produce content and the channels to distribute it, we have protected our ability to engage with our consumers — even when budget pressures require reductions in traditional marketing spend."