For as long as demand side platforms (DSPs) have existed, advertisers have relied on key performance indicators (KPIs) to guide their optimization strategies. But for pharma brands, traditional KPIs like clicks or click-through rate (CTR) often fall short. These metrics, while easy to measure, don’t reflect the realities of healthcare advertising—where outcomes like prescriptions or doctor visits matter most. Fortunately, better KPIs tailored to the unique needs of pharma brands are available.

The Evolution of Optimization KPIs

Before the advent of pharma-specific KPIs, clicks reigned supreme because they were easy to measure and seemed to signal interest. So, DSP algorithms would analyze various signals—creative, time of day, zip code, web domain—to predict what would generate the most clicks. Cost efficiency was added to the mix with metrics like cost per click (CPC), which allowed brands to get more clicks for less money. 

As programmatic advertising evolved, tracking capabilities got more sophisticated. Third-party cookies, placed on brand websites, allowed DSPs to offer conversion tracking, giving rise to new KPIs like click-through rate (CTR) and cost per acquisition (CPA). Brands could pepper their websites with DSP cookies on different pages, capturing a consumer’s progression through their sales funnel. So, DSPs adapted to optimize media buys for these conversion events. 

By the late 2010s, more diverse KPIs emerged, reflecting an increasingly omnichannel programmatic market. DSPs rushed to optimize toward more upper-funnel goals, like unique reach and viewability, and mid-funnel metrics such as video completion rate and interaction rate also gained traction. Recently, advertisers have started exploring more nuanced KPIs, like attention and customer lifetime value (CLV).  

Why Traditional KPIs Don’t Work for Pharma

But brands with long conversion windows or offline purchase events—like in pharma—are questioning the relevance of traditional goals like clicks or online conversions. While these KPIs can point to interest or awareness, they often fail to provide meaningful insights in an industry where key outcomes (like prescriptions) are measured through external data sources (like IQVIA) and not necessarily through clicks. For pharma brands, relying on these traditional KPIs often leads to underwhelming campaign results. 

The Solution: Optimize to Pharma-Specific KPIs

This is where a specialized health DSP comes in. Designed for a vertical like pharma, it introduces new optimization goals tailored to what conversion looks like in healthcare. Two KPIs are particularly impactful for health advertisers: 

1. Audience quality (AQ): A powerful signal showing what percentage of a campaign’s ad exposure is being delivered to patients suffering or likely suffering from a given condition.
2. Health-specific outcomes: Metrics such as doctor visits, new patient starts (NPS), and total prescriptions (TRx), which directly correlate to business results for pharma brands. 

Unlike traditional media-based signals, these pharma-specific signals come from health data integrated into privacy-compliant identity graphs that adhere to regulations like HIPAA. 

How to Adopt Pharma-Specific KPIs

Transitioning from traditional KPIs to healthcare-specific ones may seem daunting, but it can be highly effective with the right approach. Here are some practical steps to get started:

1. Assess Current Metrics: Begin by evaluating which KPIs your campaigns currently use and identify gaps where traditional metrics fail to align with pharma-specific goals.
2. Invest in Technology: Partner with a health DSP that integrates privacy-compliant health data, such as Audience Quality (AQ) and Total Prescriptions (TRx). Ensure the platform adheres to regulations like HIPAA.
3. Leverage Data Partnerships: Collaborate with trusted data providers, such as IQVIA or other healthcare analytics companies, to access robust data sets to optimize your campaign.
4. Train Your Team: Educate your marketing team about the nuances of healthcare KPIs and the importance of compliance with data privacy regulations.
5. Monitor and Refine: Continuously track the performance of pharma-specific KPIs, analyze results, and refine your strategies to maximize outcomes.

The Impact of Shifting to Pharma-Specific KPIs

The value of shifting from legacy KPIs like CTR to pharma-focused optimization goals is enormous. By leveraging real-time health data, advertisers can achieve significant gains. Cost per prescription can drop by more than half. This shift allows health brands to deliver relevant ads to doctors and patients—increasing awareness and treatment and ultimately improving health outcomes.