Natural Selection: How Exhibitors Choose Events

Michael Hughes -- Tradeshow Week, 3/14/2005

The fact that so many exhibitors go to the same shows every year must account for well over half of the exhibition industry's total gross revenue. In fact, based on Tradeshow Week surveys, 60 percent of exhibitors say tradition is the key event-selection criteria.

This is interesting, with all of the discussion about exhibitors demanding a high ROI from events. How many marketing media benefit significantly from so many tradition-based decisions? Except for the major automakers, movie studios and beverage makers, most companies don't advertise on the same big telecasts every year. Direct mailers don't mail the same pieces to the same lists every year ad infinitum.

The second-most-important event-selection criterium is a show's perceived opportunity for lead gathering. These findings, along with other survey data we've collected, suggest that there is a splitting of the exhibitor community into two groups. Some companies scrutinize their event-marketing programs and others do not. Company size is not the key predictor of which camp they are in. Many very large, big-name companies simply wing it at tradeshows.

In fact, less than half of exhibitors say they track ROI at all, while 60 percent say they go to the same shows every year like clockwork. Of course, just because a company goes to the same shows every year based on tradition doesn't mean it doesn't track ROI or scrutinize show management and its own budgets.

One of the interesting findings relating to the second-most-common event-selection factor — the perceived lead-gathering opportunity — is that until recently, gathering leads was perennially the top reason, by far, that exhibitors said they participated in exhibitions. But over the past few years raising brand awareness has tied with leads as the key reason for exhibiting.

These findings speak to the different trends of two types of exhibitor. The first goes after leads to feed the sales force; the second primarily focuses on putting its brand name front and center and making a big public relations splash. The great thing about exhibitions is that the medium is effective at both. Show producers should make sure they are promoting both benefits aggressively to their exhibitor and sponsor prospects.

Other key event-selection criteria involve evaluating attendee demographics. I'm surprised by how little data show producers provide their exhibitor prospects on their attendees. At least that's what we see in the many exhibitor prospectuses and Web sites that we review. Most show producers only provide a page or two of data on job titles and industry sectors.

The more data show producers can provide on their audiences, the better. Expect more detailed requests for audience profiles to be made by your exhibitors. Well, at least, by half of your exhibitors.

Lower down on the event-selection criteria list are perceived ROI or ROO opportunity, and attendance numbers and projections. Fewer than half of exhibitors estimate what their ROI or ROO will be if they exhibit at a show.

Also, many exhibitors don't believe show producers' overall attendee figures. The trouble is that the minority of shows that have played fast and loose with their attendee figures have made exhibitors skeptical of nearly all show forecasts. Obviously, third-party audits help build credibility.

So, besides providing exhibitors with more detailed demographic data, how else can show producers help exhibitors select the right events? One way is to continue to bolster the traditional aspects of events. Few shows overtly speak to this issue when they market to exhibitors, besides stressing that their show is the leading annual show in the marketplace.

Yet I've seen some shows list information about their role in their industry's development over many years. Certain technology shows and auto shows, for example, have listed all the new products launched in the past on their showfloors as well as more recent launches.

Exhibitions are about helping close sales now and shortening the future sales process. But it's still worth reviewing if your show's history and standing in your industry is well-explained, especially to new exhibitors and prospects.

Where exhibition producers can also be more effective is in explaining the lead-gathering opportunity, and doing this without over-promising. Testimonials and aggregate data from post-show exhibitor surveys are useful for communicating this.

Show producers do a very good job of explaining who's exhibiting and where their booths are located. In fact, this is one of the key sales approaches, for obvious reasons. But only about half of all shows list their exhibitors on their Web sites or in their exhibitor or attendee pieces. Sometimes these lists are only basic white paper printouts, i.e., they are not embedded in official marketing pieces.

The challenge is when a leading exhibitor (with many competitors) is on the fence or has dropped out of the show, which usually happens when they are dissatisfied with the attendance or they are experiencing financial problems.

If there's a perceived issue about attendance, diplomatically see if you can help the exhibitor with promotion and marketing. If there's a financial issue, also offer lower-cost options or more added value. Marketing the show as an investment, especially to the senior executives, is also suggested.

There's no magic solution, but open communication should almost always lower the risk of the surprise exhibitor exit.