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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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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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.