Theme for 2006: Adding Value

It's one of the most discussed issues in the industry. More exhibitors are demanding proof of ROI. Well, at least more exhibitors are discussing ROI when they negotiate with show producers.

Attendees are also focusing on their own ROI, and they are attending events today with more detailed agendas than ever before.

This fits with a general trend of more detailed procurement processes in corporate America. Businesses are requiring more accountability from nearly every supplier, service provider, and marketing and media organization — and exhibitions are no different. In fact, show producers tell us that exhibitor and sponsor ROI is the primary challenge facing the events industry, followed closely by containing exhibitor costs (also related to ROI).

A key theme this year and going forward will be the expansion of the convention, exhibition and conference value proposition.

Show producers are not launching a range of new services and revenue streams as an enhancement to the traditional convention and exhibition model. Show producers today are doing more pre-show marketing in the form of more mailers and e-mails. They are providing more information on their Web sites for exhibitors and attendees, offering more sponsorship levels and scheduling more (and better) educational sessions.

Besides responding to exhibitor issues, another reason for adding value is that it is so hard to launch a business-to-business show. Tellingly, only 17 percent of show producers plan to launch events over the next few years, and only 15 percent plan to launch new conferences. And only a small number of for-profit players have been acquiring shows. This means that growth must come organically for most show producers — by adding services and value, and by raising prices modestly.

Based on recent Tradeshow Week research, the primary way for shows to add value for exhibitors is to spend more time and resources on pre-event marketing on their own or in tandem with exhibitors. Our research has shown that for-profit show producers are focusing a little more on enhanced marketing on buyers before the show than associations. For-profit show producers have increased their attendee marketing budgets and efforts.

Exhibitors are also being offered more advertising and sponsorship opportunities before, during and following shows. We see associations somewhat playing catch-up in this area. They are starting to provide the level of advertising opportunities that the for-profits have provided for many years.

It's important to note that while in many sectors added value is translated to mean free, it shouldn't always be the case as exhibitors will pay for real value. Exhibitors also simply want more visibility for their cost of entry to shows. They want to know what they are getting.

A simple way for shows to help exhibitors is to explain their various sponsorship options in more depth, with reach and "impressions" estimates. Many shows simply don't provide much more than a one-sheet explanation with gold, silver and bronze levels describing their sponsorships in very brief terms.

Other added-value strategies include extending show hours, offering more group networking sessions and opportunities for round-table discussions, facilitating one-on-one buyer-seller meetings, offering pre-show seminars on event marketing techniques and matchmaking.

We hear anecdotally from show producers that they are offering significantly more value, but that exhibitor response and participation is limited. A common industry refrain naturally is that "exhibitors don't know what they are doing," but that they still complain about the medium.

If one thing is true about exhibitions, it's that exhibitors are not a unified constituency that adheres to a long set of best practices and management systems. Sure, many exhibitors "don't know what they are doing," but many simply look at exhibitions in different ways.

In short, show producers are working harder to prove to exhibitors that they have their best interests in mind. Some exhibitors are distracted by long and demanding event schedules and other work responsibilities, but one could argue that adding value (both for free and for additional fees) is working. Total net square footage and attendance growth has been healthy for a number of years, and the outlook is solid for the next few years.

Show producers are also focusing on the attendee experience. Many show producers have been enhancing their Web sites by adding more information and services. Other common strategies include:

• enhancing conferences and educational content
• collocating with other shows and conferences
• offering information-based services to inform buyers before, during and after events.

Forty-one percent of show producers tell us they are surveying or communicating with their clients about their goals, challenges and opportunities more often. There's a sense that this is a transformational period in business and society, and show producers need more communication to stay on top of trends.

One issue some show producers, especially associations, are concerned about is reaching and attracting professionals in their 20s and 30s as show attendees and as prospective association members. Students and younger professionals just out of school and managers and executives over 40 are still show stalwarts, but in some industries it's harder to reach up-and-comers that are still establishing themselves in their organizations and industries.

Show producers' reaction is sensibly to add more "things" and "aspects" to the show — to add more value. But the issue is also partly a marketing and communications challenge. The younger generation is harder to reach and the Internet allows them to be self-learners unlike any other generation.

Conventions and exhibitions are great places to learn and enhance careers, but the message may not be getting out as forcefully as it needs to. Going forward, expect to see shows and associations begin to tailor their value proposition to different age groups, not just different sectors of an industry.