How Large Show Attendees & Exhibitors are Changing Large Show Roundtable • San Diego 2008 Michael Hughes Associate Publisher & Director of Research Services
Growth & Outlook
How Attendees are Changing at Large Shows
Committing closer to the show dates. Not staying as long. Better informed before the show.
More competition for time and resources.
Demographic changes. Boomers retiring; Generation X and Y emerging.
“ Attendees today are more specialized.”
Placing increased importance on value and education.
Source: Tradeshow Week Research Exhibitors on Today’s Attendees Buyers are sizing-up and comparing booth staff “behind the brands”.
How Important is “Extending the Relationship” After the Event? How well is this done? Source: Tradeshow Week, SISO & JEGI DISCONNECT
How Show Producers Extend the Relationship with Attendees and Exhibitors Year-Round Source: Tradeshow Week, SISO & JEGI
Web & Digital Media Challenges & Opportunities
Determining ROI; revenue/cost model
Sufficient resources: time, people, budget
Booth sales; registration
Building deeper relationships with community
Effective matchmaking and social networking
New revenue streams and partnerships
Targeting new participants
Source: Tradeshow Week, SISO & JEGI
80% of exhibitors say: “ The job is getting more complex.”
How Exhibitors Select Events Today Exhibitors need more attendee data; this is much more important than perceived ROI-ROO Source: Tradeshow Week Research
Source: Tradeshow Week Research – survey of corporate exhibitors Is there more pressure to prove ROI? Yes, we track ROI? DISCONNECT
Source: Tradeshow Week Research Event cost as % of total marketing budget? Estimated total sales resulting from events.
Other TSW surveys have found this % closer to 20%.
Source: Tradeshow Week Research Top 3 Box: Based on a 10 point scale: 10 = Highest Value; 1 = Lowest 87% 72% 63% 41% 36% 31% 16% 14% 4% 51% Perceived Value of Marketing Media DISCONNECT This is a survey of exhibitors. ABM has surveyed higher-level marketers and events have scored #1.
Exhibitor Survey Question: Have any event marketing funds been shifted to other marketing mediums in 2007? Source: Tradeshow Week Research – survey of exhibitors The Web is the Primary Competitor Which mediums received shifted event marketing funds? 1. Web Site and Email Marketing 79% 2. Direct Mail and Catalogs 26% 2. Trade Magazines 26% 4. Sales Force 21% 4. Telemarketing 21%
Source: Tradeshow Week Research Do Exhibitions or Private, Corporate Events Provider Higher ROI?
Source: Tradeshow Week Research Plans to Participate in Non-Traditional Events in Next Two Years?
Source: Tradeshow Week Research Has Corporate Event vs. Tradeshow Budget Allocation Changed?
Source: Tradeshow Week Research – survey of show managers Show Producers: How important is exhibitor training? Yes, we provide training? DISCONNECT
Over the Next Five Years, U.S. Show Producers Would Like To… Source: Tradeshow Week Research
International Markets of Most Interest
China, and other Asia
Other Middle East
Canada, Mexico and Other Latin America
% of Large U.S. Show Organizers with International Events vs. % of U.S. Exhibitors Going Overseas Source: Tradeshow Week Research – U.S. exhibitors that exhibited in at least one show overseas in 2007 DISCONNECT The average for all show producers is 15%.
Source: Tradeshow Week Research – 75 large shows held in 2007 with 2006 comparison 2007 Preliminary Growth Rates: Large Shows in Sectors Represented by LSR January 2008 Participants
NSF ExCos Attend Amusement & Entertainment 5.8% 3.8% 8.4% Automotive & Trucking -3.2% -3.5% 0.4% Aviation 1.0% 1.7% -5.8% Beauty & Hair Care 10.6% 13.7% 3.0% Building & Construction 3.8% -0.8% 0.3% Graphics and Printing 5.0% 0.1% 1.4% Hobbies & Crafts -1.7% -6.0% 8.4% Source: Tradeshow Week Research – 75 large shows held in 2007 with 2006 comparison 2007 Preliminary Growth Rates: Large Shows in Sectors Represented by LSR January 2008 Participants Slide #1 of 2.
NSF ExCos Attend Information Technology 5.1% 2.9% -1.9% Manufacturing & Industrial 1.7% -0.2% 1.8% Media 3.5% 4.8% 29.9% Medical & Health Care 1.9% 0.1% 5.6% Retail 1.8% 3.2% 1.5% Safety & Security 6.9% 6.5% 3.1% Source: Tradeshow Week Research – 75 large shows held in 2007 with 2006 comparison 2007 Preliminary Growth Rates: Large Shows in Sectors Represented by LSR January 2008 Participants, cont. Slide #2 of 2.
Exhibition Industry Growth Cycle
Attendance grows faster than net square footage
Slow merger and acquisitions market
Negative national and local press
First attendance grows faster than net square footage, then at about the same rate
Strong corporate travel and meeting spending
Hotel rates rise
More business-to-business events launched
Positive press – “events are back”
Net square footage grows increasingly faster than attendance
Strong exhibition and event mergers and acquisitions
Strong corporate travel and meeting spending
Harder to launch business-to-business events
Strong convention hotel development
Net square footage demand increases faster than slowing attendance growth
Marginal new shows cancelled or postponed
Source: Tradeshow Week Research Slowdown 1 – 2 Years Expansion 3 – 4 Years Peak Recovery 2 – 3 Years Where is industry in the cycle today?
Key Economic Indicators
Hotel Occupancy and RevPar
Public Companies in Your Industries; Public Companies in the Exhibition/Events Industry
Today’s Positive Economic Factors
International Growth and Weak Dollar
Slowing M&A Environment, Reduces Consolidation
Show Management Pricing Power
“ Still-buoyant lodging sector” ( Financial Times , November 29 th )
Associate Publisher & Director of Research Services, Tradeshow Week
As head of Tradeshow Week Research, Michael produces proprietary research, consulting and marketing projects for leading exhibition industry organizations around the world. He works closely with exhibition industry leaders, corporate exhibitors, entrepreneurs, investors and real estate developers to provide strategic information, analysis and recommendations. His client’s include nearly all industry leaders in every segment of the industry as well as leaders in the investment and consulting community. Michael is frequently quoted by major newspapers and national magazines such as The Chicago Tribune; The Los Angeles Times; Newsweek; The New York Times; and The Wall Street Journal. In January of 2003, he was selected as a “Person to Watch” by min’s btob newsletter. Since 1999, Michael has been a presenter at over 70 industry conferences and meetings. He is also the research director and editor of Tradeshow Week’s syndicated Executive Outlook research surveys, and he writes Tradeshow Week’s “Industry Analysis” column and blog.