Growth Spurt Continues Into the First Quarter

Industry consolidation and venue expansions are credited for growth

By Jillian Dauer -- Tradeshow Week, 5/23/2005

Tradeshow managers were free to strut their stuff as the year of the rooster started off with a bang. Shows held in the first quarter improved in every index over those held during the same period last year.

Managers of shows that grew said smarter marketing strategies, industry consolidation and venue expansions were behind the average 3.2-percent increase in net square footage, 1.3-percent increase in exhibiting companies and 4-percent rise in professional attendance.

For example, the February installment of The WSA Show reportedly experienced a 71.3-percent increase in professional attendance over its 2004 edition, after a new management team at the World Shoe Assn. initiated a new marketing plan that used advertising partners rather than the association buying advertising space for the WSA shows.

"We placed a minimum of three ads in each media outlet in exchange for publicity at the show," said Catherine Upton, chief marketing officer for the association. "This instantly tripled our media exposure."

The organization was also more aggressive about recruiting new attendees. "The old association only sent badges to attendance alumni, which was about 10,000 to 11,000 people," Upton said. "This year, 250,000 guest passes went out for the February show" to members and exhibitors.

Finally, the association targeted U.S. footwear retailers who weren't regular attendees, and sent them each at least three pieces of promotional material about the show. As a result, the group drew in 7,000 new attendees.

As consolidation continues to sweep through the U.S. economy, some shows are prospering, while others have suffered.

The Golf Course Superintendents Assn. of America, organizer of the show previously named Intl. Golf Course Conference & Show, teamed up with the Natl. Golf Course Owners Assn. this year to create the renamed Golf Industry Show. Although the two associations held their own separate conferences, they combined their exhibitors on one showfloor.

As a result, net square footage increased by 12.8 percent, the number of exhibiting companies rose by 20.8 percent and professional attendance was up 17.7 percent over last year.

Julia Ozark, senior trade show manager for GCSAA, said the show's exhibitors told her they wanted more quality buyers who would stay on the floor longer. "Now we have all of the qualified buyers in one area, which cuts down on costs for exhibitors," she said.

In addition, besides building a putting green in the middle of the showfloor, this year's show also had diagonal aisles, a driving range and a vehicle test center.

HELI-EXPO 2005 benefited from just the possibility of industry mergers. "Some companies were looking at buying other companies that exhibit at the show," said Marilyn McKinnis, director of marketing and expositions for Helicopter Assn. Intl.

Consequently, prospective acquirers bought more space, just in case mergers went through by show time. For those companies whose mergers didn't happen, it was too late to reduce the booth size. The result: a 12.8-percent increase in net sq. ft. at the 2005 show.

Of course, what contributed to the show's success this year may be next year's downfall. "I have to look at things realistically," McKinnis said. "I don't know if this will happen next year."

Customer service could be the real answer, as the show has grown every year since 2001.

"We really try hard to meet the needs of our exhibitors," McKinnis said.

Other shows, such as EXFOR 2005, have certainly not benefited from the merger game.

"We've lost at least 50 companies over the last three years, because they've been bought out by other companies," said Wayne Novak, general manager for ActivExpo, which manages EXFOR, a show that caters to the pulp and paper industry.

This year's show was down 5.9 percent in net sq. ft., 6.7 percent in number of exhibiting companies and 3.1 percent in professional attendance from last year.

In the longer term, Novak blamed the overall economy for the up-and-down nature of the tradeshow industry.

"For the last five years, the North American economy hasn't been thriving," he said. "But if people have money to spend, they'll come to tradeshows and spend it."

Location and the simple opportunity to offer exhibitors more space has also proved to be an important element affecting the success of some shows.

After undergoing a 40,000 sq. ft. expansion, Rosemont's Donald E. Stephens Convention Center provided more space for the Chicago Midwest Beauty Show America's Beauty Show. The 2005 show expanded exhibitor product preview rooms and sold them as exhibit space, contributing to a 10-percent increase in net sq. ft.

"The expansion of the Donald E. Stephens Convention Center allowed us to provide individual classrooms to exhibitors, and enabled them to educate salon professionals on their newest products and how they can be utilized in the salon," said Paul Dykstra, CEO of Cosmetologists Chicago, a SmithBucklin client.

"We have also been successful with our exhibitor 'closing' rooms; off-the-floor space where the manufacturer or distributor can entertain special customers — owners of large salons or chain salons — in a quieter atmosphere than the exhibit floor offers. Providing such facilities has been a win-win for the show and for our exhibitors."

By moving from Boston's John B. Hynes Veterans Memorial Convention Center, the show's home since the early '90s, to the Boston Convention & Exhibition Center, The Intl. Boston Seafood Show and Seafood Processing America Show had 30,000 more sq. ft. of space available. This resulted in a 21.8-percent increase in net sq. ft. over last year.

"From 1996 onwards, the show was maxed out at the Hynes. It is a wonderful location, but we really did need to move to be able to grow the show and to update the event," said Mary Larkin, vice president of seafood expositions for Diversified Business Communications, which manages the show.