For-profits: How to Handle the Show

The association doesn't always run the show. Sometimes, it doesn't even own the show. And sometimes the show launches before the association is even formed.

Nielsen Business Media's retail group, for example, has relationships with associations that, in one way or another, have resulted in highly profitable shows, according to David Loechner, group senior vice president. The four groups of shows – Outdoor Retailer Summer and Winter Markets, Fly-Fishing Retailer World Trade Expo, Interbike Intl. Bicycle Expo and Action Sports Retailer January and September Trade Expos – are sponsored or endorsed by associations in their respective industries.

“The show predates all of these associations,” Loechner added. “At the end of the day, we have about eight official association sponsors and endorsements.”

But it's the two entities – the associations and Nielsen – working together that make the shows successful.

“They typically receive funding from us in exchange for endorsement of our event,” Loechner said. The associations also could receive other types of support, including member discounts for show exhibitors. “It's more than just a dollar figure,” he added.

In exchange, “we gain a consolidated opinion of a collected group of opinions,” Loechner said. “That helps us.”

The Board Retailers Assn., a sponsor of ASR Trade Expo, primarily focuses on providing education to specialty retailers in the board sport industry, said Melissa Clary, executive director of the association.

“The tradeshows have embraced our initiatives and implemented seminars, presentations and roundtable discussions aimed at providing retailers insight on running their businesses successfully and profitably,” she added. “Because so many association members are gathered together at one time during the tradeshow, their support of these education sessions is invaluable.”

The sponsorships and endorsements are contractual and can last anywhere from three to 20 years, Loechner said.

“It's ... dependent upon the association: strategic plans, the health and longevity and background of the association,” he added. “Rarely is it short term.”

And, when the association officials were asked how long they saw the partnership lasting, all of them said they could see no end in sight.

“If it's up to me, in perpetuity,” said Gary Berlin, president of the American Fly Fishing Trade Assn. “My second day on the job, someone from Nielsen came to Colorado to meet with me, and that meant a lot to me.”

Loechner said the agreements work out for everyone because they lead to a healthy industry: The associations work on regulatory and lobbying issues, consumer participation, training and education.

“All of those things are important, but none of those things do we want to do as a show producer,” he added.

The agreements also keep the industry unified, as evidenced by the one that Nielsen recently signed with Bikes Belong, the U.S. bike industry's advocacy group, to endorse Interbike for 10 years.

Before the agreement, there was speculation that Bikes Belong would break away from Interbike and launch its own event.

“It keeps the industry from fragmenting by having an agreement with a pretty important group like Bikes Belong,” Loechner said.

Those aren't the only kinds of relationships a show manager can have with an association. Take the Shooting, Hunting and Outdoor Trade Show as an example. Though it has been managed by for-profit heavyweight Reed Exhibitions (or its predecessors) since its launch in 1979, the show is owned and sponsored by the Natl. Shooting Sports Foundation.

“It is all them,” said Jim Buckley, the show's manager with Reed. “It's their show.”

Buckley said Reed's job is to advise the association about the show, but it's handled like any employer-employee situation: Reed Exhibitions does what the boss, NSSF, tells it to.

The show has grown and expanded in its 30 years. It was ranked No. 23 on the most recent TSW 200 with 656,100 net square feet of exhibit space, 1,870 exhibiting firms and 20,390 professional attendees.

The benefits of such a relationship can flow in both directions between the association and its show manager. Buckley said Reed can find multiple cost savings opportunities, which benefit the association, because of the multiple shows the company produces.

“Certainly that first year was a risk for us and for them,” Buckley said. “Fortunately, this show was a risk and a big reward.”