The meds stop working so WebMD needs a makeover

“In September, we updated our healthy living site with additional content and a new look,” WebMD Chief Executive Cavan Redmond, who took over in June, told Reuters. “We are providing more editorial content that matches individuals who are looking to stay healthy and looking for health tips.”

The company has made similar changes to its Facebook page and has issued apps for mobile devices that help users track their weight, fitness and overall health

Redmond, a former Pfizer executive, said WebMD has launched two applications designed to get users to come back regularly.

“Baby App” keeps track of a baby’s growth, sleep and feeding patterns and how often a diaper change is needed. It also stores photos and videos than can be shared via social networking sites. “Pain Coach” logs pain levels and triggers, and provides pain management tips approved by WebMD doctors.

TWEAKING THE MODEL

One of WebMD’s biggest strengths - its reputation for reliable information - is also one of its biggest challenges, however, as it is expensive to produce.

Producing cheaper content is not an option as the company is also competing with non-profit websites such as those run by the Mayo Clinic and Harvard Medical School as well as MedlinePlus, a site run by the National Institutes of Health.

“WebMD is competing for quality with websites who have different business models,” said Kurt Kessler of sales and marketing consulting firm ZS Associates.

“The Harvard or the Mayo Clinic do not rely on advertising dollars as it is not their core business.”

One way to derive more revenue from content would be to syndicate WebMd’s information to other websites, although this runs the risk of diluting its brand. Another option would be to expand e-commerce tie-ups with retailers.

“Maybe if they partner with Walgreen, like (they did with) Boots in the United Kingdom ... that’s the only type of e-commerce that would work,” Stifel’s Rubis said.

In its collaboration with Alliance Boots, WebMD provides healthcare information to customers of pharmacy chain Boots. Alliance Boots is 45 percent owned by Walgreen Co.

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By Esha Dey