2 Ways Event Organizers Can Outperform GDP

The recent CEIR Index report on 2016 exhibition industry report was…meh.

The overall tradeshow industry growth for the year was 1.2 percent, down from 2.3 percent the year before. Gross domestic product growth for 2016, on the other hand, was 1.6 percent. The most discouraging analysis of this indicates it has been more than a decade since the factors measured by the CEIR Index routinely outperformed GDP. Meanwhile, marketing channels that directly compete with events continue to enter the arena.

CEIR economists predict stronger growth for the CEIR Index this year (2.5 percent) and even stronger growth in 2019 (2.8 percent). Their explanation is that they anticipate tradeshows in the heavy equipment and raw materials sectors will pick up – although I’m not sure I understand why they would.

At some point, event organizers will have to understand they are on their own when it comes to competing with digital marketing channels and they must offer both buyers and sellers something different than in the past – and many organizers are catching on.

The first element, for attendees, is engagement. Face it – if you haven’t already – your show is no longer the one place in the world where the industry professionals you serve can get information they need to do their jobs or news about new products. That’s what the Internet is for.

What the Internet cannot offer them is the ability to engage with each other in a meaningful way. The first time several years ago I saw a B-to-B event create a time slot for roundtables where attendees could sit down wherever they want and talk to each other, it sounded like a waste of time in a valuable event schedule. Who would just sit down and talk to a stranger?

And yet today you would be hard-pressed to find an organizer who’s thinking about the future of their show who doesn’t include a space for these roundtable discussions in their event.

The second element, for exhibitors, is more data on who is coming to your event. With enhanced data analytics, choosing a marketing channel to communicate with potential buyers is increasingly being commoditized. Marketers have the means to use numbers to find the most effective way to reach the people they want to communicate with.

So, do your part. Give them the attendee information you have; collect more of it if you need to; and make sure exhibitors and sponsors understand they can count on you to deliver to them the leads they want.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

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Is Your Show Transactional or Transformational?

In a recent CEIR Blog post, Robert Hughes noted that, after interviewing hundreds of exhibitors, he found that more than 90 percent of them thought the general contractor owned the tradeshow they were exhibiting in.

What is wrong with this picture?

The evidence for this revelation is clear: The biggest check an exhibitor writes is to the general contractor, not the show manager. The general contractors often represent the only human beings exhibitors meet, the ones they know to go to if they have problems.

Apparently, most exhibitors only talk to show management when they’re booking their space – and who among us has not made preselling the next year’s show our top onsite goal?

This may be efficient on the part of the show manager, but it’s no way to grow an event. It’s no way to worm your way into the heart of a community, which is exactly what events must do in the future if they are going to remain competitive with digital marketing vehicles.

The successful relationship between a show manager and an exhibitor (or an attendee, for that matter) cannot be transactional. It cannot simply be the exchange of something perceived to be of value, money in exchange for a booth in the exhibit hall.

A successful relationship between an event and its participants must be transformational. It must be more than the hackneyed “place where buyers meet sellers.” A transformational event is one that puts itself at the center of an industry’s community, the place where that community comes together from time to time to meet itself.

You certainly don’t want participants calling it the “contractor’s show,” or even the “show manager’s show.”

You want them to say, “This is our show.”

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

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Is E3’s New Attendance Policy Right for Your Show?

Last week’s news that E3, the Electronic Entertainment Expo, would open wide its doors this year to any gamer who can afford a ticket is startling to somebody who has watched the video game show over the last 12 or 14 years.

A decade or so ago, E3 was one of the most highly restricted tradeshows in the industry, keeping a close watch to make sure only those with tight links to the electronic gaming industry got inside the Los Angeles Convention Center. Even then, I saw plenty of people absorbed in games on the showfloor who I didn’t imagine were old enough to be involved with any industry.

According to show organizers, last year when E3 still set a high bar for access to the showfloor, 20,000 people participated in a companion E3 Live outside the convention center and 50,000 more watched via live streaming or social media.

The explanation for the changes over time is simple: Distribution patterns in the gaming industry have changed. Gamers no longer go to a brick-and-mortar store to buy a product. They primarily download them to devices.

They also learn about new games via their devices as well, with the help of bloggers and sophisticated marketing campaigns that incorporate social media. An exhibitor’s target audience is not a retailer attendee, but the end user.

Certainly, organizers of events serving industries other than electronic gaming would say, “But that’s not us. That’s not how our industry works.”

Still, I defy any show organizer to say the industry they serve hasn’t changed its relationships with its customers over the last 10 years or so.

How have the relationships between your exhibitors and their customers changed? And what are you doing to make sure you give your exhibitors and sponsors the greatest access possible to their customers?

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

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How Your Event Can Replace the Mainstream Media

Whether I like it or not, much of the world is unhappy with the mainstream news media today.

As somebody who spent the first part of his professional life as a journalist, I have a perspective on the problems, the causes, the impacts…but that is a blog post for another day.

I am disappointed in much of the B-to-B media as well, which focuses more and more on what advertisers and sponsors want to the detriment of industries’ thirst for information.

I am even more disappointed in the way both the mainstream and B-to-B media have abandoned their roles as community builders. Starting way back with my first job as the editor of a weekly newspaper in a small suburb to my most recent role as the editor of a multi-platform B-to-B organization, I have always thought of myself as somebody whose responsibility it was to provide the “meeting place” for a community, the vehicle it uses to learn about itself.

Media organizations, large and small, have for the most part abandoned the following four tenets I think are necessary to be a true community builder – the good news is that they are tenets your event could adopt:

  1. The news report: A community-building news organization provides the story, the facts that make up the community or the industry – who did what, when, where and how.
  2. The data bank: In my newspaper days, we called it the “refrigerator door file”: Who won the track meet and what was their time, which house on your block sold and for how much. The story of a community told in the numbers.
  3. The honor roll: Who won the awards presented by the industry association? Who’s doing something interesting that nobody knows about yet? Who are the stars of the smallest companies and the biggest?
  4. The industry op-ed page: What do members of your industry think about what’s going on? What are the issues important to them today?

And, by the way, the news organizations that fulfilled these four community-building imperatives also managed to make a good living selling ads while providing a public service.

As the economics of the media business have changed and media organizations have begun to shrink from their responsibilities, they present events with opportunities to take their place as an industry’s community builder – and to sell a few sponsorships and booths along the way.

  1. With your conference content, you give your community the vital information it needs.
  2. With the data and research you and your exhibitors compile, you provide your industry with its “refrigerator door file.”
  3. With your awards programs and ceremonies, you honor the heroes of your community.
  4. And you carefully select the keynoters and speakers that constitute your industry’s live “op-ed page.”

Event organizers have never had a better opportunity than today to put themselves at the center of the industry community they serve – and make a few dollars at the same time.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

 

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How Many Pet Industry Tradeshows Does the World Need?

What with Global Pet Expo, SuperZoo, P3 and InterZoo, is there really a need for another pet industry show?

And yet in the last two months, I have talked to three different people who are mulling over launching a new one.

I get it, on one level. For many of us, it’s no longer enough to build a doghouse out in the backyard and call it quits. Today, we’re paying for knee surgeries for our animals and feeding them gluten-free diets.

Americans spent $24 billion on pet food last year, up 30 percent from 2010. They handed veterinarians $16 billion and spent another $15 billion for over-the-counter medications.

But tradeshow entrepreneurs are not the only ones to have noticed this phenomenon. Earlier this week, Mars Inc. – which some of us thought was strictly in the M&Ms business – paid $7.7 billion for veterinary and dog day-care company VCA Inc.

Wouldn’t this be a sign of an industry consolidation, the same type of move that led to similar consolidations in other consumer-facing industries like hardware and corner drug stores, followed eventually by the demise of some well-established colossal tradeshows?

Who needed the American Hardware Assn.’s annual tradeshow in Chicago once Home Depot and Lowe’s started running the mom-and-pop hardware stores out of business?

By the way, in case you missed it, Mars isn’t new to the pet products world. It got into the business back in 1935 and acquired the Iams brand of pet foods from Proctor & Gamble for $2.9 billion three years ago. With the VCA acquisition, it adds 17,000 veterinary clinics and dog day-care centers to its pet empire.

Do you really think its buyers will be trolling tradeshow aisles for new products any more than WalMart’s buyers are?

What am I missing with all the talk of new pet products tradeshow launches?

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

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4 Hacks Donald Trump Has for the Event Organizer

trump-imageClosing in on a month after the election, I thought by now half of us would have gone back to making their own pesto, collecting butterflies and sitting alone in a dark room listening to “Pagliacci,” while the other half would have returned to their hootenannies, bearing profane messages on their T-shirts and racing their RVs.

But, alas, election fever isn’t over quite yet. However, the result is in: Like it or not, Donald Trump won, and he did it in the most untraditional of ways.

What means did he use that event organizers can hack?

First, they can abandon their faith in traditional communication channels and find the most direct way to reach potential attendees. Throughout the election, pundits declared there was no way Trump could compete in this or that state without buying more television air time.

Instead, he famously took to Twitter and put on daily over-the-edge performances in locations that didn’t seem to make sense politically. Yet his message resonated with a certain voter in a way that Hillary Clinton’s didn’t.

Is it time for you to drop those tired e-mail and direct mail campaigns and find a channel to communicate directly with your audience?

Second, he worried less about “getting out the vote” on Election Day and more about creating a brand that somebody who might potentially vote for him could identify with.

It’s a scary proposition but, given the limited resources you have available, are you still better of fretting about where your registration numbers are compared to last year? Or would you be smarter to focus more on simply getting your message out to everybody who might be intrigued?

Third, about the nonstop questionable “facts” Trump blurted out: Even though much of what he said could not get past the media’s fact checkers, enough voters in the right states didn’t care. Post-election analysts have it right. Media watchers tried to take him literally, but not seriously. Exactly the opposite with his voters. They cared less about the details and more about Trump’s underlying message to them.

Do you spend your time telling potential attendees how your event will help their businesses and their careers? Or are you busy making sure they know what time the opening reception starts?

Finally, Trump reached those on the margins, people who in many cases had not voted in years, and converted them into loyal brand followers.

Does your marketing target those who attended your event last year? Or are you looking for a way to reach those who don’t even know about you yet, but who could benefit if they did? And how do you reach them?

Michael Hart is a business consultant and writer who focuses on the events industry. He will participate in a webinar Dec. 16 entitled “Keep Your Attendees from Cheating on You.” Hart can be reached at michaelhart@michaelgenehart.com.

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The SIA Snow Show’s Real Problem?

or-imageThe three acquisitions that Emerald Expositions made in the space of a month and a half captured the tradeshow industry’s attention. However, another move by Emerald during the same period that provoked less comment may tell us more about the future of the industry than a few additions to its portfolio do.

A couple of weeks ago, Emerald announced it would be shifting the dates of its two Outdoor Retailer Markets AND adding a third Winter Expo in January 2019. So, eventually, there will be three Outdoor Retailer markets, in January, June and November of each year.

Emerald officials said they surveyed the industry and this is exactly what it wants.

SnowSports Industries America, which typically runs the SIA Snow Show every January in Denver? Apparently, Emerald didn’t include its leaders in the survey, because it isn’t exactly what they want.

SIA President Nick Sargent said, “We feel that this will result in unnecessary stress and economic duress on the suppliers and retailers — not only for SIA members, but across all winter outdoor stakeholders.”

At first glance, it seems like a gutsy move to launch what would be a fourth outdoor sports-related show in what appears to be a relatively small marketplace. How many of these annual events do suppliers and retailers really need?

Or could it be that the for-profit organizer believes it has a better sense of what the industry wants than the trade association that purports to represent it? Could the real motive be to take advantage of a weak association and supplant SIA’s show?

If so, and if Emerald is successful, it will not be the first or last time a nimble for-profit has had its ear closer to the ground than the traditional association show.

Associations are in a bind today. With membership dwindling, along with dues revenue, they are forced to rely more and more on their events to generate income. However, membership-driven associations remain sufficiently resistant to change and innovation, putting their event organizers in a bind: Deliver more dollars, but don’t spend more money doing it…and don’t make anybody mad!

Look across the association landscape and you’ll see those who are making exciting moves with their event portfolios – the Natl. Assn. of Broadcasters and the Consumer Technology Assn., to single out two – are acting entrepreneurially. Those that aren’t are having their lunch eaten by the old-fashioned kinds of entrepreneurs, those in the for-profit sector.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com. Hart will moderate a webinar Nov. 30 for association executives entitled, “4 Easy Ways to Generate Non-Dues Revenue.”

With Globalization Era Ending, U.S. Event Organizers Have Their Work Cut Out

blog-imageIf a politician once famously said, “All politics are local,” 2017 might be the year we start saying, “All tradeshows are local too.”

For more than a decade, smart U.S. tradeshow organizers were forming joint ventures with organizers in Europe, Asia and Latin America. They were investing in exhibitions companies all over the world and the largest trade events in Shanghai, Hannover and Rio de Janeiro had huge U.S. pavilions.

If the globalization of the tradeshow industry has not come to an abrupt halt, it is beginning to fade into the distant past as corporate exhibitors try to make up for declines in their international sales by reintroducing themselves to domestic buyers.

A few things have happened that just about everybody knows about:

  • The World Trade Organization says global trade will grow at its slowest rate this year since 2007.
  • Global Trade Alert counts 338 trade protection actions by governments around the world this year, up from 61 in the same period in 2009.
  • China’s gross domestic product has waned, along with its need for commodities and equipment.
  • Finally, regardless of who is the next U.S. president, it looks like there will be no Trans Pacific Partnership Agreement and, whether the American public understands the implications or not, fewer and fewer trade treaties with other countries.

In other words, global commerce is slowing down, at least for a while. Companies in every country – not just the U.S. – seem to be battening down the hatches for…what?

That’s not clear, but, if you are a tradeshow organizer who serves a market that’s global reach is shrinking, you’ve got to think fast.

Remember what I wrote a few paragraphs earlier: Corporate exhibitors must try to make up for declines in their international sales by reintroducing themselves to their domestic buyers.

Now is the time to remind those exhibitors of how many buyers you can draw within a single day’s drive of your event. Now it the time to reinforce for them via content marketing the value of the domestic industry your show serves. And now is the time to tell the once-regular attendees who haven’t been around for a few years that you want them back.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.

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How Far Have You Extended Your Event Brand?

amazon-imageNow that it looks like Amazon will start opening its own brick-and-mortar convenience stores next year, does anybody remember how it got its start?

As the first online book store in 1994. And for many years, that’s all it was. Even then, it took well over a decade before it became the kind of technology disruptor that would destroy most of the book store chains once in existence.

Today, of course, it offers much more. It was one of the first companies to make cloud computing accessible to large numbers of small companies and now has its own branded apparel labels, snack foods, consumer electronics, television shows and movies.

But, as is clear with the news about the Amazon-branded convenience stores, it is taking another step with this next phase, moving beyond online retailing back – in a way – to an earlier era of retailing that involves personalized, face-to-face customer service with live employees in its own stores.

By the way, in case you missed it, a year ago Amazon opened a … wait for it … brick-and-mortar book store near the University of Washington in Seattle.

So, it has come full circle, from offering an alternative to the traditional book store, to practically destroying that entire business model, to a new version of the old-fashioned book store down the street.

It’s not that Amazon has any deep passion for books either. It’s because Jeff Bezos is always looking for the next opportunity to extend the Amazon brand; this time, it just happens to be back to the past.

Let’s say you started out with a single tradeshow in 1994 and, even though you might not have known what you were talking about, you called it a brand. Twenty-two years later, how far have you extended that event brand?

There are ways to do it, starting today.

Jeff Bezos is no smarter than you and, if he can do it, so can you. Besides, if you don’t extend your event brand, and fast, somebody else will read this and do it for you – and make it their brand.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com.