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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Did You Extend Your Early-Bird Deadline Again?

Putting aside for a moment the symbolism associated with growth in the CEIR Index finally coming to an end after 25 quarters (all good things must pass), the fourth-quarter numbers for tradeshow performance indicate some of the phenomena I have seen with event organizers truly do represent a trend.
Here’s hoping it’s only a blip.
Certainly, over recent years we have all seen exhibitors signing up and attendees registering for events later and later.
It is a serious, sometimes frightening, problem that, I find, is not getting better. Either traditional early-bird programs no longer work, or potential exhibitors and attendees have learned that we will extend them or find some other way to give them discounts when they finally do sign on.
The evidence that this is more than just a here-and-there phenomenon is illustrated by the over-all decline in number of exhibitors (down 0.8 percent) and attendees (0.6 percent) in the fourth quarter of last year.
The reason this matters is also demonstrated in another number in the CEIR fourth-quarter index: a 1.8-percent decline in revenue. Cash flow is becoming an issue as event organizers work their way through event cycles as they always have (with bills coming due at the same time they always did) while the money to pay them comes in later and later.
The fact that net square footage was up in the fourth quarter (1.3 percent) could be because, in the face of exhibitors signing up later, organizers are giving them breaks in the form of additional space on the floor.
It is true that the economy seems to have solidified since the beginning of the year. While some of us remain suspicious about any “Trump bump” explanation to the rise of the stock market, other more substantial measures – GDP, low unemployment, steady inflation rates – indicate the economy is on firmer ground than it has been in 10 years.
If the 2017 first-quarter CEIR Index turns around, we’ll know that’s the case.
If it doesn’t, we must accept that giving away space on the showfloor and extending early-bird deadlines are not going to be enough to salvage our upcoming events. A more thoughtful remedy will be required for a deeper dilemma.
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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