Here's the question we get most often (and we get a LOT of questions via email, phone and IM):
Can Steve Case's Revolution Health Play with the Big Boys?
The Big Boys, of course, are Microsoft HealthVault, WebMD, Intuit (see our post from 1/9/2008), and (coming soon) Google. Naysayers point to their layoff of 25% of their staff as a sign that Revolution Health lacks the legs for the rapidly heating up PHR race.
We say (emphatically) yes, they can play with the big boys, for five reasons, and in each case the link is to a press release from "RH" that supports our point:
- Their audience is big already, and growing fast. And health advertisers are seeking online avails at ever higher CPMs. This cagey deal with iVillage is helping.
- They are hip to the fact that Social Networking is rolling over Online Health/PHR/EMR, and are angling at the vast diet/exercise market, too. See this deal with SparkPeople.
- They not only continue to buy important firms at compelling prices, they're buying the right firms. Advertisers pay more for ads in/around rich media content than flat content; see this deal regarding HealthTalk.
- You need a "Scrips" play in Online Health/PHR/EMR; pharmaceuticals are key because sick people take a lot of drugs, and the pharmas can pay up for contextual advertising. Note RH's deal with PBM giant Medco.
- They recognize the role of EMRs: The most trusted health relationship is doctor-patient; it's essential to recognize that EMRs will be extended through to patients as a meaningful wedge of PHR uptake. RH is allied now with the powerful American Academy of Family Physicians (AAFP), one of the nation’s largest medical associations with more than 94,000 physician and medical student members.
Revolution Health is one of the companies we cover in-depth; the entire list is here. Should we be covering your company? Email us at mattc [@] marketintellnow.com.
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