Organizing the Right 'Experience'

Maximizing Value as Interactions Change

During the U.S. exhibition industry's major expansion over the past 35 years, most companies relied on sales and marketing people as CEOs. These leaders had personally experienced the value of exhibitions and accepted the long-standing practice of measuring return on objectives (ROO). As MBAs moved into "C" management positions with little or no exhibition experience, emphasis shifted to return on investment (ROI). The exhibition industry is about to unveil an ROI Calculator, and the successful exhibition organizers will be those who add real value - and measurement - for visitors and exhibitors.

With widespread Internet use, many worried that "virtual" would some day replace "physical." Exhibitions seemed particularly vulnerable. That hasn't happened, but those who think we have nothing to fear are wrong. Today, Google answers 1.2 billion questions a month from 500 million users; 100 million auctions are in progress on eBay. As people become more comfortable buying online, that behavior will transcend their business lives. Exhibitions are the last bastion of face-to-face marketing. Their future success depends upon the ability of those who organize them today to attract Gen X and Y attendees - then provide the kind of experience that will cause them to return.
Doug Ducate
President and CEO, Center for Exhibition
Industry Research (www.ceir.org)

Evidence, Not Just Potential, of ROI

As the trend toward creating impactful customer experiences grows, the perceived value of face-to-face marketing is increasing. This bodes well for the future of exhibitions.

The pressure from corporate chief marketing officers demanding accountability across all marketing channels and media has never been greater. This is being driven by ongoing pressure on cost-cutting, competition for marketing dollars, better marketing-mix strategic decisions, and as it relates to events, better event-mix strategy decisions as companies increasingly use and see value in private corporate events.

In the past, it has been sufficient for exhibition organizers to demonstrate the potential for ROI by proving audience quantity and quality. In the future it also will be imperative for organizers to demonstrate to exhibitors that ROI is being realized among their attendees. In addition, it will become increasingly important to demonstrate ROI on a comparable basis with other marketing channels and media (including private corporate events), in order to compete for limited marketing dollars.

The time is right to quantify the ROI attendees are providing exhibitors, while the general trend of corporations to create face-to-face customer experiences is moving strongly upward and companies are committing resources to making them successful.
Skip Cox CEO, Exhibit Surveys Inc.
(www.exhibitsurveys.com)

Prepare for Next Economic Downturn

With an 18- to 24-month planning horizon, the most important thing association executives can do for their meeting and trade show assets is to get ready for the next economic downturn after the elections. This means building budgets to continue to support marketing activities for these assets, while aligning member service program budgets to pay for these business-building investments.

Now is also the time to conduct in-depth market research with association meeting and trade show audiences to understand what they want and what they'll pay for. In economic downturns, people will still pay for what they truly value. By researching what target audiences value, association executives can build conference and trade show programs that are compelling and financially successful.

Contingency planning now will facilitate association executives' ability to protect against potential financial vulnerabilities while also supporting their member service programming.

Remember that travel and meetings are dispensable items in the corporate cash flow picture. CFOs are more tight-fisted as the economy slows down. Association events need to be well targeted and marketed to convince CFOs to approve travel and exhibiting budgets.
Francis Friedman
President, Time & Place Strategies Inc.

Engaging Face-to-Face and Online

"College students spend an average of seven hours a week on social networking sites," reported The Washington Post (Aug. 14, 2007). The day before, B2B announced, "CMP Technology is the first media company certified by Linden Labs, which operates virtual world Second Life, as a full-service content developer for the Second Life community."

Because college graduates will continue to learn, network, and do business, exhibition producers must follow CMP's lead and become certified to deliver content where Gen X and Y expect to be - online. At the same time, exhibition producers must promote the fact that exhibitions offer stronger connections that accelerate sales more than the Web. According to Advertising Research Foundation's Steve Rappaport, "By December 2007, data will be available that relate attendees' level of engagement in an exhibitors' booth to sales. This data will be available across other marketing communications channels, providing exhibitors with apples-to-apples comparisons of media performance for the first time."

In 2008, successful producers will plant their exhibition's flag online while selling the heck out of the undeniable power of face-to-face marketing.
Sam Lippman Producer, Exhibition and Convention Executives Forum
(www.eceforum.com), and the Large Show
Roundtable (www.largeshowroundtable.com)

Virtual-only Events Are Coming

Over the next year, we will see the exhibitions and events industry start to really embrace "social media" - Web-based tools that enable individuals to network around the world. While many have tried these tools in the past few years, results have been patchy due to a lack of encouragement and facilitation by the provider and a lack of understanding and experience of intended users. We will start to see this change as more exhibitors and attendees see the value of targeting people with the exact profile they want to meet, starting a dialogue before the event, and keeping it going during and after the show.

The tools also will encourage dialogue, profile potential speakers, judge their likely popularity, and target a range of special offers to attendees to encourage their loyalty. Some will go further and experiment with virtual worlds such as Second Life, where they can provide a more interactive experience, reach a potentially larger global audience, and keep the show open 24/7.

Such virtual shows are more likely to develop as enhancements to live events, but we will also see more virtual-only events.
Rohit Talwar CEO, Fast Future;
he researches, consults, and speaks on the future of
exhibitions, events, and the meetings industry.
(www.fastfuture.com)

Containing Production Costs

Time for a Change

Over half of my convention costs are controlled by show management-negotiated rates: exhibit space, labor, and drayage. A study of one exhibitor's costs at a representative sample of the exhibitor's conventions between 1996 and 2003, presented at Healthcare Convention and Exhibitors Association's annual meeting in June 2007, revealed: 

• average total of material handling charges increased 257 percent
•  average total I&D (installation and dismantle) charges increased 21 percent, while average I&D hours only increased 4 percent
• average exhibit size increased 88 percent.

Does this trend point to a future where exhibitors may no longer be able to afford exhibiting? Where would that leave the exhibitors and associations? It is time for change. What if:

show management negotiates and pays for material handling and labor (at the same rates charged to exhibitors)

• show management institutes blended rates for overtime and straight time material handling ‰ individuals have choice of General Service Contractor
• associations eliminate undisclosed rebates.
  Sue Huff Director,
  Corporate Conventions, Medtronic Inc. (www.medtronic.com)

Rethinking the Details

Containing real costs, such as labor, fuel, and technology investments, will continue to be a challenge. The tight job market increases the cost of attracting and retaining employees. To contain labor cost increases at show site, Freeman negotiates contracts so that rates and working conditions will be fair for all parties. Unpredictably rising fuel prices, along with the cost of petroleum-based products used to produce events, will continue to influence the cost of shipping, material handling, rental items, and graphics.

Events will increasingly seek more eco-friendly production, such as creating graphics on re-usable substrate and eliminating printed service manuals in favor of online ordering. Recycling products post-event is increasing. One resource turns old aisle carpet into drainage pipes, allowing Freeman to recycle more than two million yards of carpet in just one year.

Show organizers are realizing that their event is an opportunity to build their brand, not just a vehicle to provide education or a venue to bring buyers and sellers together. Understanding that the experience is paramount to building a show's brand will drive tactics and logistical details, not the other way around. 
Carrie Freeman Parsons
Vice President, Marketing, Freeman
(www.freemanco.com)

Share Goals With Partners

Effective cost containment begins with building a budget to match your goals. Reach out to your service contractor, facility service providers, food service, hotel, and others to discuss what you need to accomplish. Share your budget and ask, "How do we get there together?"
If we take time to review your objectives, we will come up with solutions within your budget based on good discussion and information exchange. If you wait until the 12th hour, you will most likely make a decision solely based on cost and increase your probability of less value.
Do an annual or biannual check-up of your event. Can you modify the international lounge and still provide the same service, but reduce cost and use those dollars elsewhere? Can you reduce 20 banner locations with repetitive information and still provide an efficient way-finding system at lower cost? Plus new technology, like GES's interactive ordering system "IntelliKit," features business logic and budget builders. There should be a natural cleansing to allow for "new ideas" to come to fruition at your show, adding more value to your event without necessarily adding new cost.
John Patronski
Executive Vice President,
GES Exposition Services (www.ges.com)