Trade Show Feed

Eric Allen of the Healthcare Convention & Exhibitors Association writes about a survey of HCEA members regarding their trade show marketing spends for 2011.

Allen writes that:

While the healthcare convention marketing industry is still fundamentally sound, it appears that budgetary pressures are the “new normal,” and results measurement will become increasingly important to help exhibitors make better investment decisions and justify their convention marketing programs.

The survey was taken in December 2010 so it’s fresh data.  According to the survey:

37% of HCEA’s healthcare exhibitor members expect decreases in their convention marketing budgets in 2011, while 18% expect increases.

Other key results of the survey include:

• Roughly two-fifths (40%) of members plans to decrease the size of their exhibits by an average of 17%.

• Almost a third of members (33%) plan to decrease the total number of conventions they participate in for 2011, while 29% plan an increase.

• Two-fifths (40%) of members plan to increase their participation in regional and local events.

• About a third of convention marketing members plan to decrease certain sponsorships and promotions.

The survey also assessed the perceived importance of critical issues faced by healthcare exhibit marketers including:

• legal and regulatory compliance – 97% ranked this with high importance (as compared to 82% in 2010)

• cost containment – 82% ranked this high importance (as compared to 94% in 2010)

• booth traffic generation – 79% ranked this as highly important (as compared to 94% in 2010)

• ROI/ROO – 72% rated this as being highly important (as compared to 78% in 2010)

You can read Allen’s full article at the EIC blog here.

Think there should be a ‘Consumer Reports’ for trade shows?  Jim Wurm on the EIC blog thinks so.  And he’s pretty adamant  about it too:

If Consumer Reports can put together comparative product info on products that cost as little as $50, why can’t the trade show industry, with exhibitors who budget in the millions for some shows, have a system that allow our customers to gain comparative market info prior to making their buying decisions?

After all, advertisers/marketers are accustomed to this type of information. Lacking verifiable market data on trade shows one can appreciate why a good percentage of senior marketing executives are more trusting of their television advertising spends than they are of trade show spends. I believe it’s well past the time that this dynamic is changed.

He’s got a point.  And a method.  The post goes on to outline the type of indices that would be used to show the true value of the show.

1. Marketing Index

This index would give exhibitors a broad-based rule of thumb that would let them know the general marketing reach of show participation. And, I believe, this number would be relatively easy to generate.
Marketing Index = Total Verified Buyers / Avg. Total Costs per booth

2. Sales Index

This Index would give exhibitors very specific information on the value of exhibiting based upon sales generated at the show. While more challenging to generate this number, it would be a far more compelling yardstick.

Sales Index = Total Sales / Avg. Total Costs per booth

No doubt, this kind of information would be valuable.  But will it ever happen in a truly transparent way.  Most of Wurm’s examples (Consumer Reports, pissedconsumer.com) are indeed third party.  But they are groups that can independently purchase and test products.  Trade show organizers would have to audit this information themselves or pay someone to do it.  Motivating them to do that will be difficult.

And an audit simply is not a magic bullet.  Exhibiting at a trade show is like advertising.  An audit report will tell you who you are reaching, but it’s up to you to create an effective ad (or booth) to reach that audience in a meaningful way.

Still, Wurm makes a good point.  Trade show organizers need to provide their exhibitors with better information to help them market smarter.  It may not be a magic bullet but it’s long overdue and it will ultimately help most trade shows (and their exhibitors) succeed.

Read all of Jim Wurm’s post here.

The Exhibit Industry Council (EIC) recently released its first  Best Practice:  Full Disclosure and Control of Exhibitor Costs.

From the EIC press release:

The purpose of this Best Practice, as stated in the recommendation, is to increase exhibitor value and improve the effectiveness of event marketing, to advocate for the full disclosure over trade show and event marketing costs, and to guide the industry in making adjustments that will support its financial future and continued presence in the corporate marketing mix.

At TSF, we believe that exhibitors should know more about what they are paying for.  This helps exhibitors determine ROI and the most efficient way to make their trade show experience successful.  In that spirit, we’re hosting a petition supporting the main principals of the EIC Full Disclosure and Control of Exhibitor Costs.

This is an important movement for the entire trade show industry and those that use trade shows to market products and do business.  We won’t publish or sell your name — the purpose of this document is solely to make important changes in the industry

The Petition

The Exhibit Industry Council (EIC), comprised of five major trade show industry associations, was formed to define and advocate for exhibitor-focused Best Practices for trade shows, conventions, congresses, and private events. The goal is to unite all industry stakeholders to support reputable, consistent standards.

Currently, there are conditions in the industry that impede the value exhibitors gain from face-to-face marketing events specifically conventions and trade shows. This Best Practice Guide outlines these conditions and suggests “best practices” to overcome the challenges created in this otherwise productive and effective sales and marketing environment.

Exhibiting companies need to understand the total cost of event participation to make decisions about which events will provide a sufficient ROI to their marketing plan. In order to understand and control costs, exhibitors need full disclosure of pricing by the organizers as well as general service contractors (GSCs) before exhibit space contracts are signed. This helps exhibitors make informed financial decisions before the event and also eliminates surprises down the road.

This petition calls for:

• Greater cost transparency for exhibitors
• An end to practices such as bundling and forced shipments.
• Discounts to be offered to both the exhibitor and the exhibitor’s third party contractor
• The elimination of hidden benefits such as undisclosed discounts between the general service contractor and the trade show, convention, and congress organizers.
• An end to exclusive facility contract, allowing all qualified suppliers who meet the technical requirement to compete for the right to provide goods and services in a given facility.