Med Shows Stalling

By Jillian Dauer -- Tradeshow Week, 3/27/2006

If an apple a day keeps the doctor away, then are exhibitors eating too many?

Medical and pharmaceutical tradeshows in 2005 seemed healthy on the surface, but the findings of Tradeshow Week's Annual Medical and Pharmaceutical Shows Report might indicate they could use more vitamins.

Although shows in the medical sector continued to improve in two of the three indexes tracked by TSW, the growth was not as substantial as in 2004. According to the report, in 2005 net square footage saw a 2.6-percent improvement and exhibiting companies remained stable, while attendance was slightly down for the first time in three years.

By comparison, 2004 medical shows experienced a 3-percent increase in net square footage, 3.4-percent growth in exhibiting companies and 1.3-percent improvement in attendance over the previous year. In 2003, growth in net square feet and number of exhibiting companies was modest, 1.7 percent and 1.5 percent respectively, but attendance shot up 8.5 percent.

Industry members could not pinpoint a reason for the slowdown. However, they were able to offer some insights, which had less to do with the economics of the tradeshow industry than with the dynamics of the health care sector.

Because medical meetings are driven by the advancement of science, they tend to be more resistant to macro-economic forces, said Eric Allen, executive vice president of the Healthcare Convention & Exhibitors Assn. And the Internet, as a way to disseminate information, has become a force to be reckoned with.

Javad Mokhbery, president and CEO of Irvine, Calif.-based Futek Advanced Sensor Technology, exhibits at five tradeshows a year, including Canon Communications' Medical Design & Manufacturing (MD&M) East and West shows.

His company's participation in tradeshows has changed dramatically with development of the Internet. Customers now can go online to look up product information; doctors can get their continuing medical education; and companies have another source of advertising revenue. During its early years, Mokhbery saw the Internet as a useful tool in the marketing of his company, so he transferred at least some of his marketing budget from tradeshows to the Internet. It was a move that paid off, but now he is putting that money back into tradeshows.

"The Internet provides you with very good information, but a show isn't just for finding products. There's the networking aspect," Mokhbery said.

Even though some have found a use for the Internet as a training tool, when it comes to growth of medical meetings the primary driver continues to be medical education credits, a constant need. The states mandate that doctors receive a certain number of CME units every year or two in order for them to maintain their licenses to practice.

"They can get the hours online, but I have not seen any data indicating that it's having an impact on attendance at tradeshows," Allen said. The Internet is available at home or in the office, but there are distractions. At off-site meetings, the physicians are focused on learning.

But CME isn't the only issue impacting medical and health care shows.

"The biggest change affecting exhibiting companies in the industry has been regulations dealing with medical marketing," Allen said. Since 2002, regulations have been put on the marketing of medical products and pharmaceuticals. However, Allen has no information indicating that companies are taking less space at tradeshows as a result of these codes.

Mokhbery agreed.

"What matters is the people you have there and what you're displaying," he said.

Organizers may be responsible for putting the show together, but Mokhbery believes attracting attendees takes teamwork between the exhibitors and the organizers.

"Get exhibitors involved as a team to make the show happen," he said.

There are three things an exhibitor can do to help boost attendance, according to Mokhbery.

Before the show, companies should identify their potential customers and let them know that the company will be there and what it has to offer. During the show, exhibitors should create energy at the booth and be creative with their displays to get attendees' attention. He also suggested emphasizing the introduction of new products at a show to encourage attendance. Finally, Mokhbery advises following up with attendees to see how they felt about the show.