What’s in store for Medicare & AEP in 2023?
As with anything in life, it takes a number of factors to create change and this holds true for Medicare and what lies ahead for AEP 2023.
If you have ever looked at a Medicare advertisement and felt confused, you are not alone. The Centers for Medicare and Medicaid Services have responded to complaints suggesting misleading, confusing and inaccurate information and practices. As a result, starting this year, insurers are required to receive approval from regulators before airing a commercial on TV.
This concern is not new and the need for clear and concise information is reflected in consumer’s purchasing habits. Medicare beneficiaries now expect an omnichannel experience that includes a digital component to allow for research and sign up. Seniors are increasingly comfortable using technology and with an average of 30+ health care plans to choose from in each State, providers need to use online tools to clearly differentiate their service and plans.
With this in mind, and an increase in marketing spend of 5% annually since 2016*, how should providers allocate spend between channels? Digital is a growing and key component (representing 17% of yearly spend*) with search engines and online ads emerging as a leader. That being said, TV still holds the bulk of the spend representing 64% of total yearly budget*. Frankly, this is no surprise when US adults spend an average of 2hrs 55 mins/day watching linear TV and 1hr 55mins/day watching CTV**. TV still remains the most compelling channel. In contrast many of the traditional media channels such as magazines and newspapers continue to decline.
To maximize marketing efforts, providers need to “fish where the fish are”. According to research by McKinsey & Company, enrollees highlighted TV, email, and online advertisements as the most informative methods of marketing, reflecting the need for an omnichannel approach. Not only does this allow for greater engagement, it empowers providers to interact with beneficiaries through their preferred marketing channels. Furthermore, with increasing acquisition costs and greater competition there is a continued desire to improve retention. Providing the tools to allow an omnichannel and integrated approach further leans into the need for clear and concise information.
With AEP only two months away, we believe the need for thoughtful consumer interactions and engagement through an omnichannel approach could provide the greatest opportunity for providers yet to improve acquisition and retention.
*Mckinsey Medicare Shopping Survey 2022
**Insider Intelligence, 2023
Nicky de la Salle is the Vice President of Growth at DirectAvenue. With more than 20 years of experience, including a decade at a “Big 6” global agency, in performance marketing and growth strategy, she is a proven senior leader with specializations in omni-channel marketing, eCommerce and digital marketing channels. Nicky has driven the performance marketing vision for Fortune 500, Entrepreneurs and Tech-Disrupters alike both in the US and internationally.
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