Benchmark Report The state of dental practice marketing · Benchmark Report Website Design and Marketing ... A practice website and search engine optimization continue to be the top

The state of dentalpractice marketing

Benchmark Report

Website Design and Marketing

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The State of Dental Practice Marketing 2016 ProSites, Inc. All rights reserved. 02

Introduction and Methodology

Executive Summary

Current Marketing Practices

Resource Allocation and Practice Marketing Budgets

Respondent Characteristics

Contents


To get a pulse on industry Internet marketing

activities, ProSites commissioned a third party to

survey dental practices. This survey was conducted

via email between July – September 2016.

Participation was 100% voluntary. To qualify for the

survey, respondents were required to:

● Currently be employed at a dental practice that actively markets its services

● Have significant influence on marketing decisions

The result is insight from 302 dentists across both

sole proprietorships and larger, multiple-partner

practices.

Methodology

Introduction


Patients are increasingly turning to the Internet to find and research

healthcare providers, and the following industry snapshot indicates

dental practices are following in droves.

A substantial portion of dental practices’ marketing resources are

allocated to online marketing. Aside from word-of-mouth

advertising, dental practices rely primarily on online methods to

reach current and prospective patients. In fact, the majority allocate

about half of their total marketing budget to online marketing

specifically. Furthermore, 51% of respondents expect their

marketing budget to increase over the next three years,

suggesting that online marketing spend will increase accordingly.

Of those practices engaged in online marketing, approximately half

currently use an online marketing provider, stating expertise and a

desire to save time and increase o�ce e�ciency as driving factors.

These findings provide insight into preferred marketing methods,

both online and o�, and understanding into how dental practices

manage their marketing e�orts. While marketing strategies and

tactics vary, the common goal is practice growth and profitability.

Executive Summary

Executive Summary



43% 33% 22%

Rank 1 Rank 2 Rank 3 Rank 4

34% 34% 30%

21% 32% 44%

95%

An increase in the total number of net-new patients

Retaining/recalling existing patients

Increasing average revenue per patient

Other

When measuring the growth and profitability of your practice, how important are the following?


Respondents consider an increase in net-new patients to be a highly important measure of their practice’s

growth and profitability, with 43% ranking it the most important measure. Patient retention also ranked highly,

followed by increasing revenue per patient. “Other” responses include positive reviews, more referrals, and

staying up-to-date with technology and patient care.

How do dentists define growth and profitability?



The sustained popularity of word-of-mouth

advertising notwithstanding, it’s clear that the dental

industry has followed the masses online.

How are dentists marketingtheir practice?

Behind word-of-mouth (96%), dental

practices currently rely on a wide range of

online marketing tools. These include practice

websites (93%), social media (88%), and

search engine optimization (77%).

Not surprising, the number of practices

engaged in some form of online marketing is

significantly larger than those currently using

print (40%), radio (40%), direct mail (36%), and

TV (29%) advertising.

Current Online Marketing Tools vs. Traditional Methods


Word of mouth

Practice website

Social media

Yellow Pages

Search engine optimizationPrint ads

Programs/Sponsorships

Direct mailReview websites

Email marketing

Coupons/Groupons

Pay-per-click

Radio advertising

TV advertising

Outdoor/Billboard Ads

Other

92%

Marketing Methods Ever Used

Marketing Methods Currently Used

82% 64%

55%

54% 51%

44% 44%

40% 34%

22% 22%

12% 9%

8% 3%

Word of mouth

Practice website

Social media

Search engine optimization Review websites

Programs/Sponsorships

Pay-per-click

Email marketing

Outdoor/Billboard Ads

Yellow Pages

Radio advertising

Print ads

Direct mail

TV advertising

Coupons/Groupons

Other

96% 93%

88% 77%

69% 60%

58% 54%

52% 46%

40% 40%

36% 29%

21% 90%


A practice website and search engine optimization

continue to be the top marketing methods for

dental practices.

The top three “ever been used” marketing methods

mirror those currently in use (word-of-mouth,

practice website, and social media); however, more

predictive statistics are associated with the use of

expanded online marketing services.

More traditional marketing methods (e.g. Yellow

Pages, Print Ads, and Direct Mail) had previously

been tried by approximately half of the respondents,

however are no longer being used by the majority of

people who once used them.

Marketing methodsthat dentists utilize.


YesNo

51% 49%

Less than6 months

6 months - less than

1 year

1 year - less than2 years

2 years -less than5 years

5 years -10 years

More than10 years

13%11% 12%

39%

20%

5%

Do you use an online marketing provider (i.e. a company that designs your website, manages your social media

and/or your other online marketing strategies)?

How long have you been using an online marketing provider?


Respondents are split. Just over half (51%) of

respondents report using an online marketing

solutions provider, with 76% of those doing so for

more than a year.

Are dentists getting helpwith their marketing e�orts?


Website design

Search engine optimization

Patient reminder communications

Social media management

Practice branding materials

Email marketing

Practice branding materials

Reputation management

Pay-per-click

Referral marketing

83%

64%

49%

39%

35%

28%

20%

20%

13%

8%

Which of the following services do you get through an online marketing provider?


There are a variety of reasons that dental practices have hired online marketing providers. The majority reported to

use online marketing providers primarily for website design (83%) and search engine optimization (64%) services.

What do dentists use online marketing providers for?


COMMON THEMES PERCENTAGE EXAMPLES

Providers’ expertise/skills

Saves time/more convenient

Easier/more e�cient

To boost name recognition/marketing

Cost e�ectiveness

Other

34%

27%

15%

10%

3%

8%

“Not sure how to do it myself and feel that a marketing company can do it better.”

“[They are] best qualified to get us a well-working, visible website.”

“I don’t have time to do it.”

“Convenience; do not want the hassle.”

“Easier than trying to do it myself.”

“Simpler and more e�cient.”

“To help get our name out to patients.”

“To assist in marketing, knowing that most patients today are online.”

“It seemed low cost.”

“It’s more cost e�ective than having an employee who does it.”

“[To] keep up with the times.”

“Trying something new.”

Why do you use an online marketing provider?


The number one reason that dental practices outsource their marketing is due to lack of expertise and marketing

skill internally.

Why are dentists using an online marketing provider?


I do it myself

These e�orts are manged outside the practice

Someone else in the practice does

27%

26%

46%

Who in your practice manages your website and/or marketing e�orts?


Among respondents who use an online marketing solutions provider, just under half (46%) manage their practice’s

website and/or marketing e�orts themselves. Of those who reported marketing e�orts were managed by some-

one else in the practice, 45% said the responsibility was handled by an o�ce manager or coordinator.

Who manages the dental practice’s marketing e�orts?


Resource Allocation


Over the past two years and currently, on average, how much money do you think your practice has spent on

marketing per month?

How do you think your overall marketing budget will change over the next three years?

Two years ago One year ago Today

101 to250 dollars

11%12%

10%

251 to500 dollars

20% 19% 21%

501 to1000 dollars

15%18%

16%

1001 to5000 dollars

22%24% 25%

More than5000 dollars

10% 11%9%

Stay the sameDecreaseIncrease

51% 41%

7%


In recent years, marketing budgets have remained fairly stable. The median marketing spend for a dental practice

two years ago was $500 per month. The monthly marketing spend rose to $600 one year ago and is currently

estimated at $500 per month.

Despite the relative budget consistency of late, 51% of respondents anticipate an increase in marketing budgets

over the next three years.

Marketing budgets are on the rise.


Online marketingPrint marketingTV/radio marketingOther

51%

23%

21%

4%


Online marketing comes in first. On average, dentists estimate that just over half of their practice’s total marketing

budget (51%) is spent on online marketing. This is significantly greater than the average estimated budget spent on

print (23%) TV/radio (4%), or other (21%) marketing.

Which marketing method garners the greatest portion of a dentist’s budget?


What percentage of your overall marketing budget do you spend on the following?

O percent 1 to 25percent

25 to 50percent

51 to 75percent

76 to 100percent

18%

31%

8%

23%15% 18%

8%3%

51%

26%

Online marketing solutions provider Internal practice sta�


Respondents estimate that a majority (62%) of their practice’s online marketing budget is allocated to solutions

providers, while 38% goes to internal sta� who manage online marketing e�orts.

How do dentists allocate their online marketing spend?


What percentage of your online marketing budget is allocated to marketing providers or internal sta�?

31%

37%

5%5% 2%

9%

11%

Want new patients/revenueExpand to other marketing channelsMaking changes to the practiceIncreased competitionIncreased cost of marketingOtherNo Answer

“Increased hosting fees,

additional expenditures for SEO”

“Increased competition and

lower reimbursement rates.”

“Want to get the word out about

new technologies we have invested in.”

“Reaching markets that increasingly

opt out of traditional media.”

“Better economy.”

“The more we advertise,

the more patients come in,

the bigger profit.”


Most dentists are increasing their marketing spend over the next few years to meet their goal of new patients/revenue

(37%) and allow for expansion into additional marketing channels, including websites and social media (31%).

Dentists are planning to increase their marketing spend – but why?

Most dentists are increasing their marketing spend over the next few years to meet their goal of new patients/revenue

(37%) and allow for expansion into additional marketing channels, including websites and social media (31%).


What do you believe will drive your practice's increased marketing spend over the next three years?

West

Northeast

South

Midwest

Outside of the U.S.

Increase Stay the same Decrease

51% 41% 8%

43% 49% 8%

57% 32% 2%

48% 45% 7%

50% 25% 25%


Respondents located in the South are most likely to indicate that practice marketing budgets will increase over the

next three years. Those located outside the United States are most like to indicate that budgets will decrease.

Where are dentists planning to increase their marketing budgets?


How do you think your overall marketing budget will change over the next three years?

RESPONDENT CHARACTERISTICS


Which statement below best describes the last 12 months for your practice?

$100,000 to

$249,999

$250,000 to

$499,999

$500,000to

$749,999

$750,000 to

$999,999

$1,000,000or more

Prefernot toanswer

8%

16%

Which of the following best describes your annual practice revenue?

17%

14%

28%

16%

29%

16%

2%

52%The practice has been about asbusy as usual/the last year

The practice has been busierthan usual/the last year

The practice has been less busythan usual/the last year

The practice opened within the last year


Just over half of respondents (52%) report their

practice has been about as busy as usual, and 41%

report that business has been about the same since

last year.

However, nearly a third of respondents (29%)

indicate that business at their practice could be

better.

More than one in four respondent practices have an

annual revenue of $1,000,000 or more. Just under

half (46%) report practice revenue is between

$250,000 and $999,999 annually.

How has businessbeen for dentists?


Which of the following best describes the practice you currently work in?

How many other dentists work in your practice?

No otherdentists

One Two Three ormore

36%

38%

14%11%

What is your dental practice focus?

Private practiceGroup practiceHospital-based practice

8%

91%

1%

67%

15%5%

6%

7%

General DentistPeriodonticsOrthodonticsCosmetic DentistryOther


Respondent Demographics

The vast majority of respondents work in a private

practice (91%). More than one-third of respondents

(36%) work at a single dentist practice, and 67%

provide general dentistry.


MaleFemalePrefer not to answer

34% 64%

2%

20 to 29 30 to 39 40 to 49 50 to 59 60+ Prefer notto answer

2%

16%

27%

24%

3%

27%

What is your gender? Which of the following best describes your age?


Just under two in three respondents (64%) are male, and 55% are between the ages of 40 and 59.

Gender and Age Demographics


83%

11%

1%

2%

2%

I am the sole decision maker

I am a joint decision maker with equal weight in the decision

I have significant influence on these decisions, but do not make

the final decision

62%

25%

13%

Dentist/Dental Surgeon

O�ce Manager

Dental Marketing Specialist

Dental Assistant

Dental Hygienist

Other

1%


What is your current position? How involved are you in the marketing decisions made by your dental practice?

The majority of respondents are dentists or dental surgeons (83%), with 62% reporting they are the sole

decision-maker relative to marketing their dental practice.

Who are the primary decision makers in the practice?


5 yearsor less

6 to 10years

11 to 15years

More than15 years

7%11%

72%

Fewer than 2

2 to 4 4 to 6 6 to 8 8 to 10 10 ormore

6% 5%8% 8%

14%

59%

11%


The majority of respondents practices (72%) have been operating for more than 15 years. And, more than half of

respondents indicate their practice will continue to operate for 10 or more years (59%).

How long are dentists staying in the game?

How long has your practice been in business? How many additional years will you continue to operate your practice?


Conclusion

With 82% of respondents reporting they have had a

practice website at some point in the past and 93%

currently utilizing one, it’s fair to say that websites have

become core to dental marketing strategy. Strong

website usage, coupled with the surge in demand for

additional online marketing services such as pay-per-click

(PPC) advertising, search engine optimization (SEO), and

social media indicate that the dental market recognizes

the value of Internet marketing and is poised for continued

expansion.

This hypothesis is further validated by the fact that 51% of

respondents anticipate an increase in their marketing

budgets over the next three years. This expected increase

is primarily attributed to the desire to capture additional

patients / revenue (37%) and expand into additional

marketing channels in an e�ort to reach new audiences

that opt out of traditional media (31%). What’s more, the

average dentist estimates that over 50% of their total

marketing spend will be allocated specifically to online

marketing e�orts.

Conclusion


For over a decade, ProSites has been dedicated to helping dental

practices achieve measurable practice growth through innovative

marketing solutions.

ProSites o�ers a comprehensive suite of online marketing solutions

for dental and medical professionals including website design,

search engine optimization, social media management, and

pay-per-click advertising. Our solutions are designed to help

doctors accelerate practice growth, engage with current patients,

and deliver measurable results.

For additional information on ProSites portfolio of services, visit

www.prosites.com.

About ProSites

About ProSites

DENTAL WEBSITE DESIGN

SEARCH ENGINE OPTIMIZATION

PAY-PER-CLICK

SOCIAL MEDIA MANAGEMENT

MARKETING ROI


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Documents

Benchmark Report The state of dental practice marketing · Benchmark Report Website Design and Marketing ... A practice website and search engine optimization continue to be the top