Tradeshows Experience Ups, Downs in All Indexes

History appeared to repeat itself as the chapter closed on the first quarter of 2007. With gains in net square footage and the number of exhibiting companies — and across-the-boards drops in attendance — it nearly mirrored the year-ago quarter.

The Tradeshow Week Quarterly Report of Tradeshow Statistics found a 2.8-percent increase in net square footage for shows that occurred January through March, compared with 2.7-percent growth in 2006.

The number of exhibiting companies barely pulled itself above even with growth of 0.3 percent, compared with last year's 1.4 percent. Attendance experienced a 1.6-percent drop for the second year in a row.

Even with the unveiling of new products and the absence of terrorist threats or natural disasters — aside from the generally expected less-than-friendly winter climate — to thwart travel plans, attendance figures are on a slow but steady decline. Attendance last rose in 2005, with a 4-percent increase over the immense 11-percent attendance surge of 2004's first quarter.

However, the decrease was consistent across the board. Health care shows experienced a 1.5-percent decrease in visitors, and Lady Luck didn't even smile on Las Vegas, where shows held in the city collectively saw their attendance dip 1 percent.

ASD/AMD's New York Variety Merchandise Show, SEMA Spring Expo (Specialty Equipment Market Assn.) and the Boston Gift Show were hit the hardest, as attendance at each show declined more than 25 percent. ASD/AMD's New York show Group Director George Stewart explained that attendance falloff could be attributed to the fact that the show is undergoing a major transition.

"We've gone through a lot of executive changes here, and I think you're going to see a dramatic change in the fall," Stewart said.

Regardless of the losses, David Korse, vice president and general manager of the Nielsen Business Media Merchandise Group, maintained that ASD/AMD's exhibitor retention rate is as good as or better than it has been for past shows.

Higher hotel room rates have been met with grumbling, and not only from buyers. The escalating hotel costs, in almost direct proportion to rising hotel demand, signal trouble for many shows. According to the American Hotel & Lodging Assn., the average overnight rate in 2006 was $97.31, up 6.6 percent from the 2005 average of $90.88.

"I would agree (that rising hotel costs hurt attendance). It makes it that much more of an obstacle to get someone to come to the show," Korse said. "At the end of the day, it's going to be about return on investment. So we're trying to continue to demonstrate there is more value by being with us in Las Vegas or New York or Atlantic City than standing on the sidelines."

But even as attendance dipped, the size of the showfloor grew. The Intl. Builders' Show/TecHOMExpo broke 1 million net square feet for the first time, due to the 7.5-percent growth in net square footage and 14.6-percent increase in exhibiting companies. Unfortunately, this swell in show size was not matched in visitor turnout, which was down 4.3 percent from 2006. Vice President of Expo Sales Ignacio Cabrera did not fret over the attendance figure, concentrating instead on the show's successes and plans for next year.

"We're proud of what we've done in the past few years, and we continue to serve the industry," Cabrera said. "We engage our exhibitors in helping us to market to their own clients and we constantly try to find new things to entice attendees to come." Efforts include tracking hot topics in the industry to determine keynote speakers.

Despite the overall downward trend in attendance, several shows were exceptions to the rule. The Cattle Industry Annual Convention & Trade Show topped the attendance growth chart with a 61.7-percent increase. Natl. Cattlemen's Beef Assn.'s Kristin Torres, manager of tradeshow and association marketing, attributed the results to a significant increase in direct mail distribution, reaching out not only to NCBA members, but also to prospects in the region. While most other shows are jumping on the electronic bandwagon, the cattle industry show continues to be successful using good ol' snail mail.

"We're kind of unique in that respect because we're dealing with rural America," Torres said. "More and more we're using (electronic media), but right now for us, it's still direct mail."

That doesn't mean the group's marketing efforts are limited to the print media. According to Torres, NCBA has launched its own television show, a development it hopes will help get the word out.

World of Concrete had the highest attendance growth rate of the first quarter's largest shows (those with 900,000 net sq. ft. or more), at 12.4 percent. Show Director Tom Cindric credited the success to an ongoing online marketing campaign, as well as some popular components of the show. A fundraising auction features products donated by exhibitors, and a new educational format gives attendees the option of choosing between three-hour sessions and new 90-minute sessions.

"A segment of our attendee base needs real technical information," Cindric said, "but we have a whole other segment that wants to get the cutting trends, management seminars, things like that. They don't need the three-hour sessions."

Celebrated last year as a TSW Fastest 50 show, catersource 2007 Conference & Tradeshow also recognized education as its hottest commodity. The January show saw numbers climb across the board again, as net square footage soared 45.9 percent, number of exhibitors 71 percent and attendance 21.8 percent.

"We've combined this extensive educational show with a tradeshow," said Vice President of Sales Jolene Ihle. "It's a challenge for (catering professionals) to find the right resources and education to continue to grow in their business, and we offer that. That's huge."

Catersource and Event Solutions Magazine recently announced plans to combine efforts for a 2008 show.