HCEA 2012 STATE of the INDUSTRY

Frank Skinner, HCEA Executive Director

HCEA 2012

STATE of the INDUSTRY

Research Underwriters

Understanding big picture trends empowers you to make better informed decisions.

Why is this important?

HCEA State of the Industry

Industry perspective from multiple viewpoints

1MeasurableTrends

2Future

Outlook

3IndustryIssues

Measurable Trends

Top 50, Attendance, Exhibits, Space Cost, International

1

Attendance Growth in the Top 50, 2010 to 2011

2.2%professional attendance

5.4%total

attendance

Attendance Growth in the Top 50, 2011 vs .2007

Professional attendance has rebounded to pre-recession levels.

2.7%

Attendance Growth in the Top 50

Professional attendance growth for some, not for others.

8meetings10+ %

5meetings20+ %

Attendance Growth by Meeting Category

Large Meetings: 4,000+ Total Attendee

5%professional attendance

.8%total

attendance

Attendance Growth by Meeting Category

Medium Meetings: 2,000-3,999 Total Meetings

9.3%professional attendance

1.9%total

attendance

Attendance Growth by Meeting Category

Small Meetings: Less than 2,000 Total Attendees

13.5%professional attendance

22.7%total

attendance

Note: There was a decline in the number of meetings reported with less than 200 attendees, likely making the average increases higher than normal.

International Attendance Growth

From meetings with 10,000+ total attendees

1998 23.6%2003 19.9%2008 29.0%2010 23.2%2011 25.2%

*Percentages from 1998 and 2003 include smaller sample sizes and historical estimates by event organizers.

International Attendance Growth

From meetings with 4,000+ total attendees

2010 18.3%

2011 18.9%

• Over 8 events with 50%+ international attendees.• Range from 60% to less than 1%.

Exhibit Hall Growth by Meeting Category

Large Meetings: 4,000+ Total Attendee

.06%net sq. ft.

6.2%number of

exhibits

Note: Exhibit figures have been adjusted from 2007 to 2011 to reflect updated reporting definitions.

Exhibit Hall Growth by Meeting Category

Medium Meetings: 2,000-3,999 Total Meetings

.2%net sq. ft.

15.5%number of

exhibits

Note: Exhibit figures have been adjusted from 2007 to 2011 to reflect updated reporting definitions.

Exhibit Hall Growth by Meeting Category

Small Meetings: Less than 2,000 Total Attendees

Note: There was a significant decline in the number of meetings reported with less than 200 attendees, likely making the average increases higher than normal.

-26%net sq. ft.

20.7%number of

exhibits

10x10 Space Cost by Meeting Category

Space cost increased across all meeting categories.

5%

18.4%

9.5%

Cost per professional attendee

Benchmarking the baseline

Very Large Large Medium Small

$0.21 $0.28

$1.12

$3.12

Medical Meeting Location Trends

2011 and the last five years

Medical Meeting Location Trends

2011 and the last five years

1 Orlando 2942 San Diego 2923 Washington 2704 Chicago 2465 Las Vegas 2306 San Francisco 1937 Boston 1928 New Orleans 1659 San Antonio 131

10 Atlanta 10911 Baltimore 10212 Phoenix 10113 Philadelphia 8914 New York 8815 Denver 8716 Seattle 8617 Scottsdale 7018 Anaheim 6719 Nashville 5820 Minneapolis 54

2011 Top 20 Destinations Top 20 Destinations, Last 5 Years1 Las Vegas 492 Washington 433 Orlando 374 San Diego 345 Chicago 306 San Francisco 287 New Orleans 238 Boston 219 San Antonio 20

10 Scottsdale 1611 Atlanta 1412 Denver 1312 Miami 1314 Baltimore 1214 Phoenix 1216 Minneapolis 1017 New York 917 Philadelphia 919 Columbus 819 Honolulu 8

48%of all reported

meetings in 2011 were held

in the top 20 destinations.

52%of all reported meetings over

the last five years were held

in the top 20 destinations.

Note: Only meetings reported to HCEA are tabulated.

Medical Meeting Timing Trends

When are medical meetings most often held?

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

53

71

117

149 145 147

6455

137

177

88

27

71%of meetings

were held in 6 months: Mar, Apr, May, Jun, Sep and Oct.

2 Future Outlook

What do your colleagues think?

Industry Jobs

Layoffs, Pharma• 61,109 in 2009• 53,636 in 2010• 19,076 in 2011

Layoffs, Health Care/Products• 46,220 in 2009• 28,058 in 2010• 27,373 in 2011

Source: Challenger, Gray & Christmas

Dow Jones Titan Index of Healthcare

Source: Dow Jones

Healthcare Exhibitor Spend Outlook

In 2012 do you anticipate that your needs in the following areas will increase, decrease or stay the same?

Hotel Room Nights

Hospitality Functions

Sq. Ft. of Total Annual Exhibit Space

Custom Built Exhibits

Portable Modular Exhibits

Table Top Exhibits

A/V

In-Booth Multimedia

In-Booth Clinical Experts

Lead Retrieval

Premiums

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

IncreaseNo ChangeDecreaseUnsure

Medical Show Organizer Outlook

In 2012, do you anticipate that your primary conference attendance will:

Medical Show Organizer Outlook

In 2012, do you anticipate that the number of your exhibits will:

Medical Show Organizer Outlook

In 2012, do you anticipate that the net square footage of your exhibit hall will:

Future Outlook

What do you see as the biggest challenges facing healthcare conventions in the coming year?

Future Outlook

What do you see as the biggest challenges facing healthcare exhibitors in the coming year?

3 Industry Issues

Existing and emerging trends, concerns and opportunities

Industry Issues

• Exhibit space has been in decline.• Sponsorship is under a magnifying glass.• Concern about reaching the right people.• Need better metrics to make better decisions.• Better options for reporting HCP interactions and better NPI

integration.• Cost of exhibiting makes participation a harder sell.

Company scrutiny of ROI

Industry Issues

• Attendance at large shows is up but that doesn’t mean attendance is up in the hall.

• Better reporting of attendance demographics.

Attendance dynamics; Opportunities

Industry Issues

Can European industry codes impact exhibits and attendance at U.S. medical meetings? Yes

• EFPIA – European Federation of Pharmaceutical Industries and Associations

• EucoMed Medical Technology

Emerging Issues in Europe

Industry Issues

• Supreme Court – What will decision be?• NPI challenges and opportunities• Compliance paralysis?

PPACA, Sunshine and Compliance

Industry Issues

Exhibitors must be even more creative to attract HCPs and provide a stellar learning experience with each booth visit.

More hands-on learning opportunities in the hall.

Better collaboration between show organizers and exhibitors to make the exhibit hall “the place to be.”

Innovating the exhibition experience

The industry is rising to the challenge of re-inventing the medical meeting and exhibition experience.

New era of learning and engagement

Frank Skinner, HCEA Executive Director

HCEA 2012

STATE of the INDUSTRY