Trends: Impact on Exhibitor ROI and Attendee Value

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Trends Impact on Exhibitor ROI and Attendee
Value
Presented at 72nd UFI Congress Moscow, October
19-22, 2005

• Skip Cox, President
• Exhibit Surveys, Inc.
• skip_at_exhibitsurveys.com

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Trends Impacting Exhibitions
MAJOR BUSINESS ECONOMIC TRENDS
IMPACTING EVENT TRENDS
Value and Success of Trade Shows Private Events
IMPACTING EVENT CONSTITUENTS
Value of Attendees, Exhibitors, Organizers,
Builders/Designers, GCs, Suppliers, Venues
(ROO/ROI)
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Exhibition Ecosystem - Interdependency
Organizers ROI Organizational Goals Image/Brand
Suppliers ROI Exposure Image/Brand
Attendees Information Interaction
Exhibitors ROO/ROI
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Principles of a Successful Exhibition for
Attendees

• Deliver highly valued information to attendees
• Provide environment and experience that fosters
  personal interaction for effective exchange of
  information

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Simple Principles Complex Execution

• Attendees seeking many types of information
  (e.g., purchasing, trends, market intelligence,
  professional development, problem solving, etc.)
• Information delivered in variety of ways
• Organizer controls education, keynotes, web
  site, SIGs, formal networking, etc.
• Exhibitors control much of the information
  delivered, and thus the value attendees
  receive.

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Exhibitor Control of ROI and Attendee Value
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Situation Trends Impacting Exhibitor Value

• Less face to face interaction in exhibits
• Demand (lead) generation a higher
  priority
• Lower Traffic Density
• Competition with other media (particularly
  interactive media)
• Cost per Visitor Reached rose steadily and
  at a high rate up until 02

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Situation Trends Impacting Exhibitor Value

• More corporate/proprietary events
• Long term More large ad agency
  involvement/influence
• Investor expectations budgets and
  objectives
• Little ROI measurement

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Exhibitor ROO/ROI
Two Keys to Optimum Exhibit Performance

• Selective Attraction
• Personnel Performance

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Exhibit Performance Model
EXHIBIT ATTRACTION

• Exhibit Size
• Promotion

• Awareness/Perception
• Products Exhibited
• Design/Graphics

• Attention-getting Techniques

EXHIBIT EFFICIENCY (Person-to-Person Contact)

• Profile of Staff
• Staff Knowledge

• Training

• No. of Staff
• Staff Performance

RESULTS
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Less Face to Face Interaction
Staff Interaction Rate (SIR)(Personal Contact
Achieved With Prospects Attracted)
SIR Industrial 58 Medical
61 Retail 41 Hi Tech 59
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Less Face to Face Interaction
Exhibitors better at attracting potential
audience, but level of face to face has not
increased.

• Changing objectives - changing tactics
  (i.e., less face to face opportunities)
• Less staff or less staff in proportion to
  Potential Audience
• More competitive playing field (smarter
  exhibitors and changing attendee activity)
• Driven by marketing - less involvement by
  sales/sales management

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Cost-Per-Visitor Reached
Cost Per Face to Face Interaction In Exhibit
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Exhibitors Role in Attendee Value AND ROI

• Increase face-to-face using knowledgeable staff
• Highly valued by attendees
• Increased importance as attendees advance along
  purchasing path
• Essential to exhibitors ROO/ROI
• More focus on sales related objectives for
  anchors - involve sales management

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Exhibitors Role in Attendee Value AND ROI

• Introduce products new to show
• Improve attendee value
• Improve ROO/ROI
• Control costs still overspending by some
  anchors
• Measure ROO/ROI to improve ROI

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Organizers Role in Delivering Value and ROI
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Develop Real Partnerships with Exhibitors

• Anchor exhibitors critical to delivering
  high value information to attendees
• Valuable resource to organizer industry
  trends, issues, marketplace changes, new
  product development
• Strategic focus of show relevancy to
  marketplace
• Understanding distribution channels/buying
  and selling process
• Relevant programming

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Develop Real Partnerships with Exhibitors

• Customize show to maximize their ROI
• Does it always (or only) have to be floor
  space?
• Leverage their investment in other ways on
  a revenue equivalent basis
• Negative impact on attendee value and ROI if
  exhibitors not in alignment with show

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Questions Organizers Need to Address
Do we have the relationship to become a
partner? Do we truly understand the exhibitors
needs and objectives? Do we have the level of
strategic sales and marketing expertise with the
skill sets necessary? Do we have the
resources/capability to personalize a USP for
each anchor? Do we provide credible
decision-support information?
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Marketplace Knowledge - Deliver High Value
Information

• Need strong team with extensive knowledge and
  deep understanding of the marketplace to
• Remain relevant to the marketplace
• Create relevant content
• Develop relationships with the key industry
  players
• Understand culture of marketplace
• Monitor new product development
• Monitor general marketplace trends - take
  leadership position
•  

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Is Bigger Better for Exhibitors and Attendees?

• Higher likelihood of success for smaller, more
  focused events - easier to meet information
  requirements
• Large/horizontal shows must take segmented
  approach (verticalize) to be productive and
  valuable to attendees and exhibitors in future
• Easier to consume by attendees
• Easier to deliver high value information
• Easier to maximize ROI/ROO
• Employ managed growth strategy maintain
  satisfactory traffic density

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Traffic Density All Shows
Traffic Density (Td) Lower(Td Attendees/100
sq.ft.)
TD Industrial 2.1 Healthcare 1.9 Retail
2.2 Hi Tech 2.6
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Traffic Density Relative to Value
Low
Exhibitor Value
High
Low
Attendee OrganizerValue
High
Assumptions Average Hours Viewing Exhibits 8.0
hrs. Total Show Hours
20 hrs.
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Strategies to Grow the More Focused Show in the
Future

• Attendee growth will come from multiple niche
  markets
• Must meet information needs of new segments
• Need alignment of attendee product interest
  and exhibitor representation
• Consider co-locations with caution good
  audience/exhibitor alignment necessary for
  success
• Focus on new
• Focus on large buyers who are increasingly hard
  to attract
• Develop partnerships/relationships
• Customize show for individual companies

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Summary

• Success will come from focusing on improving
  value
• Delivering highly valued information
• Provide environment and experience that
  fosters personal interaction for exchange of
  information
• Exhibitors are in control of much of attendee
  value and their own ROI
• Real partnerships with anchors are essential
• Be flexible in partnerships

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Summary

• Organizer control of value
• Strong marketplace knowledge essential
• Highly focused events large horizontal
  events must verticalize
• Managed growth strategy for exhibit space
• Focus on new
• Develop relationships with large buyer
  companies
• Be cautious of co-locations
• Good attendee and exhibitor alignment