Show Size Down, New Media Marketing Up
Showfloors, exhibitors and attendance go down; prices increase
By Kerri Zerlin -- Tradeshow Week, 12/8/2008
The economy's starting to take its toll on the tradeshow industry, and show managers are facing new fears, with less space being booked and fewer exhibitors and attendees coming to events.
According to the 2008 Tradeshow Week Exhibition Management Survey, this year, the average size of respondents' largest exhibition was 231,451 net square feet, compared with 250,024 net sq. ft. in 2007; the average amount of exhibiting companies dropped to 514, compared with 529 last year; and the number of attendees fell to 19,377 from 25,637 a year ago.
And, to top it off, the average cost of exhibit space – not including package plans or discounts – rose 50 cents per square foot, from $21.99 in 2007 to $22.49 in 2008.
“People are trying to offset their labor,” said Eric Smith, vice president of Summit Business Media, whose shows include Art Miami, Artexpo New York and Artexpo Las Vegas. “That's exactly what it is. ... Do you know how much a journeyman carpenter makes?”
Smith added that part of the problem for his shows is location, and, he said, for his trade-consumer hybrid shows, the cities that cost the most are the ones that can bring in the most attendees.
“Originally, convention centers were ... designed to bring more people to the city,” he added. “I can rent enough square footage in Miami to put on a really good show and make a good profit for $60,000. That same thing in New York would cost me $300,000. ... But New York has the population, ... so we get a good turnout there.”
With attendee numbers dropping, a hot topic in exhibition management circles is marketing the shows, and this hot topic was, by far, respondents' most pressing issue as well – with 92 percent of respondents listing attendance promotion as their biggest concern. In second place was controlling exhibitors' costs, with 72 percent, followed by exhibitor satisfaction, at 68 percent.
“I think (the economy) impacted (tradeshows) dramatically,” said Charles Olentine, executive vice president of the U.S. Poultry & Egg Assn.'s Intl. Poultry Expo. “I think we're going to – at least for the near future – ... see double-digit decline in attendance.”
So, what can show management do to change these tidings and better promote shows to attendees? What are they doing wrong?
“I'm just finding ... attendees get resentful with being barraged with information,” said Patrick Shield, president and owner of Shield Associates Ltd., show management for CMX-CIPHEX (Canadian Mechanicals Exposition) Natl. Trade Show & Learning Forum and Win-Door North America. “People want clean, concise, clear information about what the values are to the show; they don't want the carnival-type 'oh, if you respond, you can win a car or blender.' ... That just doesn't work anymore.”
A combination of new media with the tried-and-true methods is becoming more popular among organizers. In fact, in 2008, 54 percent of respondents said they did utilize this combination to market to audiences, drive sales or build community in the industry, with 46 percent saying they didn't. In 2007, those numbers were reversed, with only 46 percent employing new and old media.
“The last several years, we've been using a lot of e-mail,” Olentine said, “but with the filters and screens on e-mails now, we're having to go more and more to direct mail. ... Quick postcard-reminder types are probably our most effective (marketing) at this stage.”
Attendee marketing isn't the only concern facing the industry. For the first time in three years, show organizers found a new No. 1 threat to their shows' success. Unlike 2006 and 2007, industry consolidation didn't take the top spot, dropping to fourth with 13 percent, instead, that honor was bestowed on industry change/crisis, with 29 percent.
Surprisingly – or not – in second place, at 27 percent, was other, with the majority of respondents specifying the economy in their write-in answers, followed by budget cuts in third, with 25 percent.
Together, all of these issues create uncertain economic conditions, which caused 62 percent of show managers to change their business plans for 2009. These changes, along with budget cuts at many companies, make for less traffic on the showfloor.
“We were off by our American traffic, which is not a huge part for Win-Door, but ... (Americans are) 20 percent of the overall, (and so) we were off by almost 90 percent on Americans,” said Shield, whose Canadian show is held at the Metro Toronto Convention Centre. “They just won't travel right now.”
He added that Canadian traffic, although not as drastic, also was down by 20 to 25 percent.
| Which of the following best describes your organization? | |
| Response ratio | |
| Association/society/institute (nonprofit organization) | 56% |
| For-profit exhibition organizer (with events as the primary business) | 27% |
| Integrated business-to-business media company (with other businesses such as magazines) | 9% |
| Corporate meeting planner | 0% |
| Conference producer | 0% |
| Other | 8% |
| What types of events do you own, manage or plan? | |
| Response ratio | |
| Trade exhibitions | 38% |
| Association conventions | 26% |
| Consumer shows | 18% |
| Conferences/meetings/seminars | 9% |
| Corporate meetings | 1% |
| Special events | 1% |
| Other | 7% |
| In what industries are your shows classified? | |
| Response ratio | |
| Manufacturing | 14% |
| Medical | 14% |
| Construction | 12% |
| Retail | 9% |
| Automotive | 8% |
| Business | 8% |
| Computers/electronics | 8% |
| Food & beverage | 8% |
| Apparel | 3% |
| Government | 3% |
| Service | 3% |
| Other | 46% |
| What was/is the size of your largest convention, exhibition or meeting held in 2008 or to be held in 2008 by the following? | |
| Average | |
| Net square feet of exhibit space | 231,451 |
| Number of exhibiting companies | 514 |
| Number of attendees/delegates | 19,377 |
| Number of meeting rooms | 38 |
| Number of peak night hotel guest rooms | 3,568 |
| Number of total hotel guest rooms nights (for entire event) | 10,647 |
| What was the total revenue that your largest exhibition generated in 2008? | |
| Average | $6,328,513 |
| Median | $2,000,000 |
| How much do you charge for exhibit space per square foot, not including package plan, discounts for multiple booths, island or peninsula exhibits? | |
| Average | $22.49 |
| Median | $20.50 |
| What was the percentage of increase for space rates, compared with your previous show?* | |
| Average | 7.7% |
| Median | 4.4% |
| What is the percentage change in total revenue that your largest exhibition generated in 2008, compared with 2007? | |
| Average | 3.6% |
| Median | 3.5% |
| Which of the following would you like to begin doing in the next five years? | |
| Response ratio | |
| Include more overseas pavilions in domestic show | 35% |
| Organize shows outside the U.S. and Canada | 32% |
| Work as a partner with overseas organizer | 25% |
| Organize a pavilion of U.S. exhibitors in foreign shows | 15% |
| Other | 28% |
| What percentage of your show management staff has some formal exhibition or events training (college program or certification)? | |
| Average | 32% |
| Median | 25% |
| Is certification an important factor when hiring show managers? | |
| Response ratio | |
| Yes | 30% |
| No | 63% |
| Don't know | 7% |
| How do you follow industry trends that impact your show or prompt new show launches? | |
| Response ratio | |
| Poll our exhibitors | 77% |
| Attend shows in related industry sectors | 74% |
| Trade magazines | 74% |
| Poll our attendees | 72% |
| Keep in contact with industry experts | 62% |
| Monitor competition | 58% |
| Exhibitor advisory committee meetings and feedback | 51% |
| Web site research | 49% |
| General, national or international business or consumer magazines | 42% |
| Survey industry professionals beyond our current attendee and exhibitor base | 23% |
| Other | 6% |
| What percentage of your exhibitors are from outside the U.S.? | |
| Average | 11.7% |
| Median | 5% |
| What percentage of your attendees are from outside the U.S.? | |
| Average | 12.4% |
| Median | 8% |
| What do you think are the most pressing issues that face exhibition managers right now? | |
| Response ratio | |
| Attendance promotion | 92% |
| Controlling exhibitors' costs | 72% |
| Exhibitor satisfaction | 68% |
| Cost control | 57% |
| Hotel contract negotiations | 36% |
| General services fees | 34% |
| Participation barriers to foreigners | 25% |
| Association education programs' quality | 21% |
| Vendor relations | 15% |
| Reliable vendors | 11% |
| Academic training for show managers | 9% |
| General services delivery | 9% |
| Society's appreciation of industry | 9% |
| Attendee wash from online bookings | 8% |
| Quality of general services | 6% |
| Management's appreciation of show | 4% |
| Recruiting | 2% |
| Other | 13% |
| Do you have a plan in place for your shows to deal with natural disasters, terrorism, epidemic scares, etc? | |
| Response ratio | |
| Yes | 67% |
| No | 33% |
| What is the biggest threat to the success of your show? | |
| Response ratio | |
| Industry change/crisis | 29% |
| Budget cuts | 25% |
| Industry consolidation | 13% |
| Stagnation | 4% |
| Outside acquisition | 2% |
| Board of directors | 0% |
| Image/reputation problems | 0% |
| Internal reorganization | 0% |
| Prior mismanagement | 0% |
| Other | 27% |
| Have uncertain economic conditions caused you to change your business plans for 2009? | |
| Response ratio | |
| Yes | 62% |
| No | 38% |
