Does Event Size Still Matter?

Cathy Breden of IAEE “took me to the woodshed” because of my recent comments on the accuracy of the CEIR Index.

So be it. I can take criticism, I welcome contrary views, and I ordinarily would not even revisit the issue.

However, I want to reiterate that the ultimate point of that blog post was not the challenges that CEIR faces with its Index, but the reluctance of the events industry to share accurate information…with anybody. The fact that there are perceived problems with the CEIR Index is just one symptom of an industry-wide conundrum.

With the opportunities provided today by data analytics, it is so much easier for show organizers to make the case for themselves with potential attendees, sponsors and exhibitors. And the opportunities have little to do with who has the biggest showfloor, the most attendees or even the most revenue.

They have to do with whether a particular event is the one that will benefit a specific attendee or exhibitor.

Does size matter in the events industry? Is it really important to have more square feet of exhibit space or more attendees than any other trade show in your industry sector?

Probably not.

The events industry has changed drastically in recent years. Those metrics, still in favor by many, were significant in an age when the value of a product was directly proportional to its size. Trade shows were where people went to sell big things – machines, tractors, giant servers, furniture, etc. – and the more space you took up, the more effective you were at selling those things.

Things of value today…not so big. In fact, there are products of great value that have almost no physical presence at all! At best, those trying to pitch them can use their trade show booth to demonstrate something that nobody can see or hold in their hands.

Those old metrics also stem from a time when the trade show floor was – and stop me if you’ve heard this one before – the best place for buyers and sellers to connect.

It is no longer the “best” place in every case. People with stories to tell and products to sell have many, many ways to communicate with potential audiences. The event is just one of many marketing channels available to them.

The opportunities for engagement and community are what makes an event valuable today, not the size of its exhibit hall or the number of people in the aisles.

Michael Hart is an event consultant and conference content professional. He can be reached at michaelhart@michaelgenehart.com, @michaelgenehart or 323-441-9654.

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How Accurate Is the CEIR Index?

A recent press release from UFI, the Global Assn. of the Exhibition Industry, announcing that it now has 2,590 “certified” member exhibitions reminded me of the nearly forgotten debate among American trade show organizers 10 or 15 years ago about auditing shows.

The question that was discussed way too often (in my opinion) was whether shows would have more credibility if they allowed independent third parties to verify the number of attendees who were in attendance.

(UFI has long made this a requirement for membership.)

It seems as if the nays eventually wore out the yeas because it’s not discussed much any more, which is probably just as well.

As we have all learned in the aftermath of the Great Recession of nearly 10 years ago, simply getting a large number of people to a show doesn’t guarantee success for anybody. It’s the quality of the attendee/buyer that now matters most

However, lurking somewhere just out of sight is the reality that this is an industry that doesn’t particularly like to share information. This tendency, of course, flies in the face of the advice writers like me are always giving people about using data to make the case for their events.

Certainly, there is nothing wrong with supplying competitors with as little information as possible about your operations. But what I perceive as an industry-wide aversion to sharing data can lead to inaccurate perceptions that will eventually harm everybody.

Case in point: Shows voluntarily submit information to CEIR in order for it to create its quarterly index reports. Since both the identities and the data on individual shows are kept confidential, there is no way to hold event organizers accountable, i.e., make sure they’re telling the truth.

At the same time, CEIR typically does not reveal how many shows it collects data from each quarter in order to construct the CEIR Index. I have been told by multiple sources who, for obvious reasons, do not want their identities revealed either, that some of the 14 industry sectors represented in the quarterly survey have as few as two shows in them.

That means, in some cases, readers of the Index are drawing conclusions about the health of events in a particular industry sector based on the questionable performance of two unnamed shows.

Apparently, the industry is OK with this, but it should not be surprised if it wakes up one morning and discovers all those consecutive quarters of growth were just phantoms.

Michael Hart is an event consultant and conference content professional. He can be reached at michaelhart@michaelgenehart.com, @michaelgenehart or 323-441-9654.

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Events Done the Nordstrom Way

For years, consultants have asked organizers about their events, “Do exhibitors buy space at your show because they want to take orders from customers, or because they feel “they have to be there”?

Today, many perceptive organizers would say, “Neither.”

Now, the booth on the showfloor is rarely the first point of contact between a buyer and seller. It has never been the last, and that is even more the case recently because of the habits we are picking up as consumers.

Why, attendees are asking, should the experience I have when I buy something for myself be that different from the experience I have when I make a purchase for my company? Consumer retailing is leading the way when it comes to how marketers use events.

Look at what Nordstrom – legendary for its customer service, known as the Nordstrom Way – is doing with the store it opened Oct. 3 in West Hollywood, Calif. Called Nordstrom Local, it takes up about 3,000 square feet, much smaller than more traditional Nordstrom department stores that span closer to 140,000 sq. ft.

It has plenty of dressing rooms, but very little inventory on display. Personal stylists are onsite to help shoppers digitally create their own unique “look.” Orders are delivered to customers’ homes later in the day. They can return them any time to the brick-and-mortar store, or they can come back to meet with tailors who will be available to make alterations.

While at Nordstrom Local, shoppers can enjoy a glass of wine or a cup of espresso at the in-store bar.

A recent study on brand experience by Freeman demonstrates that, just as retailers are changing the ways they connect with customers, companies are looking to events to accomplish different goals as well.

Freeman’s report concludes the events that can offer sponsors and exhibitors brand experiences are more valuable than traditional buyer-meets-seller events.

After interviewing more than 1,000 marketing executives around the world, the study found that 58 percent of chief marketing officers look to events to increase their advocacy. In other words, they’re looking to meet influencers who can spread the word on their brand. Just under half of CMOs (48 percent) said they want to use events to demonstrate thought leadership.

Selling products on a showfloor, it would seem, is so very 1995-ish.

This is not to suggest that the conventional trade show turn itself into the equivalent of a trendy Southern California boutique. But it is clear that exhibitors and attendees expect more than they did 20 years ago.

How much are you prepared to disrupt your event to accommodate them?

Michael Hart is an event consultant and conference content professional. He can be reached at michaelhart@michaelgenehart.com, @michaelgenehart or 323-441-9654.

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What If Your Show Dates Coincided With Hurricane Irma?

As events unfolded ever so slowly in the Caribbean and Florida, who among event organizers didn’t think, “There, but for the grace of God, go…”?

The organizers of the Miami International Auto Show postponed their event. Surf Expo in Orlando closed a day early.

Shortly before Hurricane Sandy a few years ago, I was headed to a long-planned event in New York, only to be stopped just minutes before I was to get on the plane. Most attendees for this particular show were traveling from the Northeast and had not yet left their homes when the decision was made to cancel, but a few dozen who didn’t get the message in time spent several days cooped up in a mid-Manhattan hotel.

What would you do if your show had the unfortunate pleasure of sitting right in the eye of a potential major natural disaster?

First off, don’t pretend — at least to yourself and your team — that it’s not about the money, because it is.

The better angel hovering just beyond your right shoulder is worried about people’s safety. But the realistic business person hovers over your left shoulder fretting about refunds, cancellation fees and busted budgets.

Even though you don’t want to, think about this ahead of time. Have a plan that, if you’re fortunate, you never have to execute regarding what you’ll do if you find yourself a few days out from the event and you — along with your sponsors and attendees — are learning about an impending disaster.

What would or could you do about rescheduling if necessary? What does the fine print in your contracts with vendors say about the financial implications of a sudden cancellation or an “act of God”? How far are the bulk of your attendees traveling and what does that tell you about how much time you have to make a final decision to go forward or cancel?

Thinking about all this in advance means you can save time changing plans on the spot at the last tension-filled minute.

Do your best during the registration process to assure you have reliable contact information for attendees and exhibitors if and when you need to get in touch with them immediately. Start communicating with them even before you’ve made your final decision about what to do.

Then be available when they start calling, texting and e-mailing you in those days when you’ve got a million other things to think about at the same time.

Do these simple things and when you make your decision about which path to take in the face of a potential disaster — cancel, reschedule, fly blind — you’ll do so with the confidence that will compel your event participants to trust you did the right thing for them.

Michael Hart is an event consultant and conference content professional. He can be reached at michaelhart@michaelgenehart.com, @michaelgenehart or 323-441-9654.

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How a Total Eclipse May Have Helped Make Total Store Expo a Success

The National Assn. of Chain Drug Stores shares a few major challenges with other trade associations serving consumer-facing industries: technologies disrupting the traditional brick-and-mortar store model, consolidation and fast-changing consumer preferences.

To say the least, as one trade association executive told me recently, “Our members are grouchy.”

And, when it comes to NACDS’s annual event, apparently getting grouchier. I compared attendance figures reported last year to TSNN on the Total Store Expo with similar figures reported by NACSD to Tradeshow Week eight years earlier: Attendance has declined by two-thirds, from a reported 4,129 in 2008 to 1,336 last year.

Attendance totals for this year’s Total Store Expo, of course, are still to be announced.

Nevertheless, it’s clear that the poor Total Store Expo is suffering the same fate as other association events: The perception it is less and less relevant in meeting the needs of its attendees and members.

One saving grace this year though: NACDS got lucky when it came to the idea that a productive event should create the all-important opportunity for attendees to engage with one another. An unintended (I think) addition to the conference schedule was a total eclipse of the sun, at least some of which could be viewed from San Diego.

Bright and early on the third morning of the annual event, attendees poured out of the San Diego Convention Center in their eclipse-friendly sunglasses to watch the once-in-a-lifetime event unfold in front of them over San Diego Bay.

My guess is there was as much chatter there on the sidewalk by the bay for a few minutes as there had been during all the hours the show floor was opened.

Who knows? Maybe a few new business partnerships were started amidst the chatter.

In a world in which creating opportunities for event attendees to engage with one another is the most important priority, sometimes an event organizer just gets lucky.

Michael Hart is an event consultant and conference content professional. He can be reached at michaelhart@michaelgenehart.com, @michaelgenehart or 323-441-9654.

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Has Comic-Con Jumped the Shark?

For several years now, pundits like me have showered praise on the visionaries who mount events like International Comic-Con and SXSW.

A visit to this year’s Comic-Con in San Diego might introduce the hint of a suggestion that the popular culture extravaganza may have finally outgrown even its own image of itself.

What has always been notable about these events is that they do not just satisfy the attendees who are at the show, but create an environment in which attendees and media spread the message sponsors and exhibitors have throughout the world.

Long ago, studios and game makers started renting space in other non-Comic-Con venues, including hotels and restaurants, to display their products because there simply wasn’t enough room at the San Diego Convention Center.

This year, however, it seemed that some kind of critical mass was reached and the impression of many was that there was so much going on elsewhere that there was little need for rank-and-file attendees to pay the $220 registration fee.

If you wanted to experience a promotion for HBO’s “Westworld,” you had to take a 10-block walk away from the convention center (and plenty of fans did).

The same was true for fans of “Mr. Robot,” “Blade Runner,” “Game of Thrones,” “Pokemon” and dozens of others.

Chuck Rozanski of Mile High Comics told the Wall Street Journal he was abandoning his booth in the convention center exhibit hall after 44 years since his most devoted fans didn’t plan to be there anyway.

To be sure, the programming for the main event went on as always with fans waiting for hours to get into the highest-profile conference sessions. And I’m sure Comic-Con organizers had no problem meeting their financial goals.

However, I also know that each year now studios and game makers take a little longer and think a little harder before they make the decision about how much of their resources to commit to Comic-Con.

At what point do events like Comic-Con and SXSW lose the ability to accomplish the goals their stakeholders originally set out for them — including their financial goals?

What’s next for the events industry after Comic-Con?

Michael Hart is a conference content professional and business consultant who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com, @michaelgenehart  or 323-441-9654.

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What the Clarion Deal Can Teach Association Event Organizers

The lesson may be

that there is plenty of value in events…but it must be tapped.

Private equity player Blackstone recently paid nearly $780 million for UK-based for-profit Clarion Events. Ten years ago, Veronis Suhler Stevenson bought Clarion for $155 million, then Providence Equity Partners paid $260 million for it two years ago.

Granted, competition in the private equity world is driving multiples up as they continue to take on investors who want to see their money put to work, but there’s a reason why Blackstone, with close to half a billion dollars under management, chose an event company.

Clarion

What’s the reason?

The tide may be turning in the digital assault on the marketing world. While CMOs still like to say they “measure” impact, Ad News recently pointed out that a 2-second view of a video on social media counts as a charge in the same way that a 30-second view of a traditional TV commercial does.

So, measure that.

Exhibit sales people – at least in the for-profit world – know this dirty little secret about social media marketing use it as ammunition.

What do exhibit sales people in the association world know?

That their members are unhappy. That their show floors are shrinking.

That their association boards lack the vision necessary to move their business models into the 21st century.

That they can deliver the content and the networking opportunities that their members and industry associates want…if only their leadership was as nimble as that in the for-profit world.

That they could enhance their events’ value to their association members five times over within 10 years, just as Clarion Events did for its investors.

Michael Hart is a conference content professional and business consultant who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com or 323-441-9654.

How Events Can Beat Digital Competitors at Their Own Game

You don’t need me to tell you how frustrating it is to have a potential exhibitor tell you they’re putting more of their marketing budget into digital channels and less into events – therefore, “Check with me next year.”
Nevertheless, we all know even a mediocre event can give marketers a few things they will never be able to get from the Googles, LinkedIns, Facebooks and Amazons of the world. Where we have failed is in communicating that value proposition.
Certainly, the ground has shifted over the last 15 or so years. In his July 15 Wall Street Journal article, Jonathan Taplin traces the path some of the mega-tech companies have taken over the past decade and a half and compares it to the paths our best-known creative industries have taken.
Google’s ad revenue has grown from $1.6 billion in 2000 to $79.4 billion last year.
LinkedIn hasn’t been around as long and is not nearly the monster Google is. But it went at lightning speed from generating $155 million in all of 2011 to $975 million in the first quarter of this year (coincidentally, its first full quarter as a Microsoft property).
Conversely, newspaper ad revenue dropped from $65.8 billion in 2000 to $23.6 billion in 2013, the last year figures were available. Sales of recorded music went from approximately $20 billion a year in 2000 to $8 billion last year.
What is the difference between these rising and falling industries?
Google and LinkedIn are technology platforms that collect and sell data. Newspapers and recording companies provide content. If balance sheets send messages, this one is simple: The platform providers, not the content providers, are making the money.
So what can you do to take advantage of this disruption? Make sure your exhibitors know you can provide the buyers they’re looking for in a way that a data-collecting platform can’t. Then secure those buyers by offering them content so compelling buyers-slash-attendees know your event is the only place this year they are going to get everything they need to run their businesses.
Tell everybody this is where they need to be for the latest information on their industry, the products and services they need right now to innovate their businesses, and the connections they must make to be successful.
Don’t be a platform! Be a community builder and content provider…then watch the rest unfold.
Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com or 323-394-0902.

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This Is What Keeps Trade Show Organizers Up at Night

We know the trade show industry is in great shape because CEIR and the trade show media keeps telling us it is, right?

According to CEIR, the first quarter of 2017 was up 1.6 percent over the same quarter a year ago. Revenue was up even more: 2.3 percent. And almost every week, our industry oracles reprint press releases telling us of another show that broke all previous records.

So why are you so nervous?

Is it because your traditional measurement tools no longer work? Is it because the sponsorship contracts and attendee registrations you used to expect six months out or two months out, or even two weeks out, are no longer there?

Many of you are reaching your attendance or revenue goals – eventually – but why does it seem so much harder than it used to? Why is it that you now only can relax on the last day of your event, take a deep sigh and say, “That was a close one”?

Before I started working with event organizers, I spent many years as a newspaper editor. Whenever we blew a deadline, it was almost always clear to me that it wasn’t because of something that happened in that last hour or two before a paper was supposed to go to press. It was because of something that did NOT happen 24 hours earlier.

Potential sponsors and, especially, potential attendees, have the luxury of time in a way they never have had before. They can wait until the last minute to decide whether they’ll participate in your show.

That doesn’t mean they aren’t paying attention to what you’re doing in the meantime. What you do six months or even 10 months out matters more now than it ever did, even though you don’t have the tangible proof that it does.

Potential attendees are looking at your site to see who your keynote speakers are – so you better have them in place early. They are looking to see who is going to be in the exhibit hall that they want to see.

And, as developments change the focus in their industry, they’re checking back to see if you’ll be there in two months or, sometimes, in two weeks, to explain it all to them.

You know there is an urgent need for your community to be at your event. Now tell your community that – and learn to live with those sleepless nights.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com or 323-394-0902.

 

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Why the Amazon-Whole Foods Hookup Doesn’t Bother the Smartest Event Organizers

News at the end of last week concerning the acquisition of Whole Foods by Amazon struck fear in the hearts of some trade show organizers. At least it did for those who have lived through the pain of industry consolidation before.

The theory is that, as big companies gobble up slightly less big companies, there are fewer and fewer exhibitors on the showfloor.

Indeed, it does seem like there are now two big companies – Amazon and Walmart – who are fighting tooth and nail for the opportunity to sell everything to everybody. What makes it interesting to watch is the fact that, while Walmart has worked hard and made enormous investments to move online, Amazon is now trying just as hard to be an online vendor in search of a piece of the brick-and-mortar market.

The conventional wisdom for obsessive show organizers is that big companies like this don’t need a trade show to look for products and services to sell: The one-time exhibitors will go straight to Walmart or Amazon instead. It is true that plenty of vendors are camped out in Bentonville, Ark., but I have indeed seen attendees at trade shows with the name “Walmart” on their badges.

With just the shows I have personal experience with, I’m thinking of events like Natural Products Expo, American International Toy Fair and ABC Kids Expo. All these are shows that make room on the floor for innovations in their industries and for start-ups with new products.

Go to Natural Products Expo on a regular basis and, with every visit, you’ll see a new trend in natural foods nobody had ever heard of the year before. The same with toys at International Toy Fair. This is where the Walmarts and Amazons of the world go to find out everything they don’t already know.

And what about the entrepreneurs who are constantly sussing out the latest technology or overnight phenomenon and building a show launch out of it, providing a platform for companies nobody knew existed. Remember a couple years ago when you heard about the first trade show focused on drones? Or how about a few years earlier, when International CES introduced the Internet of Things to the world, and I discovered a handful of smart event organizers had been launching conferences on the topic for years?

As global commerce continues to consolidate, there will be less and less room for lazy event organizers, and more and more opportunities for fast-thinking entrepreneurs.

Michael Hart is a business consultant and writer who focuses on the events industry. He can be reached at michaelhart@michaelgenehart.com or 323-394-0902.

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