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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Why 2017 Could Be a Good Year for Events

If you were at IAEE’s Expo! Expo! last month or at PCMA’s Convening Leaders this week in Austin, it’s hard not to notice what everybody was NOT talking about, especially since it’s what they’re talking about everywhere else they go: Donald Trump.

Regardless of whether you’re a Trump fan or not, it’s hard to deny that his sheer unpredictability has everybody in business a bit nervous. At the same time, event organizers talk politics in their work lives at their own peril, nervous that they’ll offend the sensibilities of clients.

So, the president-elect has become the proverbial elephant in the room. Despite the fact his plans for economic policy, deregulation and tax reform remain quite vague, most business leaders seem to be taking some comfort in the fact that something is going to happen – whether it’s good or not.

It is likely that this is the year when corporate America finally does begin to invest again in new products and infrastructure upgrades, which should mean more products and services that need to be introduced to potential buyers at trade shows.

The reality is this was probably going to happen no matter who was elected president.

Companies have taken much longer than anybody anticipated to get over their shyness after the recession of now nearly eight years ago. That is clear from the evidence that capital spending by Fortune 500 companies is increasing despite the fact the Fed raised interest rates and plans to do so at least two or three more times this year.

Dating back to the recovery that began somewhere around 2009, companies have been reluctant to invest much when the economy was rebuilding itself at the slow pace it was. They were more concerned about their hurdle rates – the minimum return on investment – and sought out safer alternatives like stock buybacks.

There is no real evidence that a Trump administration will do anything to spur economic growth. It’s more a case of companies simply tiring of waiting out the economy.

To its credit, the events industry has somehow managed to keep itself moving through all this, sometimes at a rate that is faster than the gross domestic product.

The next challenge for event organizers will be to assure that, even as their best customers look for the most effective marketing channels, their trade shows and conferences remain relevant.

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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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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Is Digital Still the Biggest Threat to the Old-Fashioned Trade Show?

facebook-imageYou event organizers out there, tell me you didn’t gloat a little when you say the news that Facebook had overestimated the time people looked at video ads by as much as 80 percent.

Tell me you didn’t send a link of that story to your anchor exhibitors who told you they were cutting back on your show to devote more of their marketing budget to digital because they could MEASURE THE RESULTS!

When Grant Leech, vice president of brand management for U.S. Cellular talked to the Wall Street Journal, he asked rhetorically, “Are we getting real value for what we are buying?”

Which is exactly what your customers are asking you, right? Remember ROI?

But don’t get too giddy too fast. Digital marketing is a $149 billion business and is not going anywhere.

This, however, is evidence there are chinks in its armor and room for you – if you can demonstrate that you can deliver leads in a way digital can’t.

The lack of promised data on results is what has marketers upset about digital. That means to compete you need to make sure you can provide that data to your customers that tells them your event can deliver the buyers they’re looking for.

Get busy making the case – with facts and figures – that you have what your exhibitors are looking for.

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

Remember the Once Mighty Offshore Technology Conference?

OTC imageAccording to CEIR’s latest quarterly report, the tradeshow industry’s recent sluggish growth rates can be tied to volatility in the larger economy.

Most of the time, I would take a jaundiced view of such a statement and suggest that it’s a lame gesture to find somebody else to blame bad news on. This time, however, it sounds right.

Most metrics and sectors in the CEIR second-quarter report are up, if not as much as we’ve come to expect. Two declines stand out, they’re probably connected, and they point to how vulnerable the events industry can be to external forces.

First, tradeshow attendance is down a bit, 0.2. percent. However, in the raw materials and science sector – aka the oil industry, among others – attendance was down 20.4 percent. In fact, if oil industry shows had just been able to hold their ground and maintain the same attendance as last year, the overall attendance metric would have been up 2.4 percent! The combined metrics for the raw materials and science sector point to a 9.2-percent decline over the same quarter last year.

Remember a few years ago when you’d go to an industry event and the organizers of oil business events were the stars of the show? How the mighty have fallen.

Look at numbers for the annual Offshore Technology Conference (OTC), year in and year out the largest oil industry show. In terms of exhibit sales, they’re not doing so bad yet, even as slumping energy prices have walloped their industry. The number of exhibiting companies has held steady over the last three years and square footage only fell from around 700,000 net square feet in 2015 to 672,000 net square feet this year.

But look at attendance: 108,300 in 2014, 94,700 in 2015 and 68,000 this year!

If the seemingly indefatigable events industry has an Achilles’ heel, it’s attendance. It gets even worse for association shows like OTC, owned by the Society of Petroleum Engineers. Associations aren’t just worried about event attendance; many have problems even holding on to their members.

I know we like to blame millennials for the decline in association participation and whine, “They’re just not joiners.” But it’s more serious than that.

Associations, stuck with a mindset that what worked in the past is just fine for now, are finding it hard to adjust to a new environment where attendee-members expect more than a noisy exhibit hall and a cocktail reception out of their annual event. They want to look back at the three days they invested in and literally count the number of new leads they got, the number of new potential partners they lined up.

And if they can’t do that, not only will they think twice about registering for next year’s show, they won’t even send a check for their association dues when the bill comes at the end of the year.

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

What Events Can Learn from Procter & Gamble’s Marketing Reboot

P&GDefying the conventional wisdom that slicing and dicing your audience is the best form of marketing, Procter & Gamble earlier this month decided to eliminate much of its microtargeting strategies on Facebook and other social media channels.

P&G spends more money on advertising and marketing than any other company in the world – $7.2 billion this year – but, as we see, it doesn’t spend it foolishly.

Here’s the lesson for the rest of us, and one that Warwick Davies suggested in a blog post just yesterday titled “Who Is Going to Take Your Business Away?”: Your customers are people, not personas.

I know event-focused blogs these days are full of advice about speaking of your show or conference in terms of its persona, which is fine. But your customers aren’t personas; they’re real-life people.

P&G found that targeting pet owners and large families with ads for air freshener left sales stagnant at best, but when they expanded their universe to anybody over the age of 18, sales rose. In other words, it wasn’t a particular type of consumer that was interested, it was a wide range of human beings who did or did not have their own reasons for freshening up the air in their houses.

Warwick, in his blog, has a three-point plan for transforming events to reflect today’s new realities. His final point is that organizers need to “build an affinity for people, rather than just targeting personas or groups of people or things.”

He confesses, as well, that it will be hard to do, especially for event organizers who are preternaturally disposed to controlling every part of the event process. But, Warwick concludes – and I agree – if we don’t do it, somebody else will.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhrt3@gmail.com.