June 2007
8 Consumer Show Trends to Watch

Industry leaders discuss current market conditions impacting consumer events

By Patricia D. Sherman

Consumer show producers are looking to the 2007-2008 show season with frank optimism. The 2005-2006 and 2006-2007 seasons were strong. Overall, according to results released in July 2006 by the National Association of Consumer Shows (NACS, www.publicshows.com), booth sales were up a whopping 64 percent, ticket sales were up 23 percent, despite unusually bad weather, and sponsorships increased by six percent. At the same time, expenses only rose in the single digits (See sidebar on page 64 for more detailed statistics).

For most producers, this year promises to be even better. “I don’t know any shows that aren’t doing well,” says Jim Fricke, NACS President and Executive Director of the Colorado Garden Show Inc. (www.gardeningcolorado.com) “Our attendance was up, and we sold out sponsorships. Exhibitors are happy because attendees are opening their wallets more easily. We’ve already sold 90 percent of our booth space for next February.”

Another factor buoying producer optimism: “We’re seeing a resurgence in sponsorships for all shows,” says Fricke.

“Our U.S. sponsorship manager says she has more business than she can keep up with,” says Tom Baugh, Vice President, Home Interest North America, producer of 40 shows for dmg world media (www.dmgworldmedia.com). “We expect 2008 to be the best year ever for national sponsorships, and we’re doing more sponsorships with local dealers than ever before.”  
EXPO discussed industry trends with six consumer show producers who control about 150 shows across North America. They cater to market interests from custom motorcycles to quilting, and their portfolios range from more than 50 to fewer than 10 shows. They identified eight major trends that are influencing their operating and marketing decisions for the 2007-2008 show season.  
 
Online Everything
The hottest trends are being generated by the Internet, as the consumer show industry tries to catch up with an ever-growing demand for all online services. “The Internet is dramatically changing how we communicate with attendees and exhibitors. Clearly this is an area show
producers must command,” says Baugh.

1. Online ticket sales boom. 
“Electronic ticketing is one of hottest areas in the industry now,” says Fricke.  Although online ticketing, at least in simple forms, has been around for nearly a decade, it has taken off in the past few years. “Two years ago, only one in 40 of dmg shows had online ticketing,” says Baugh. “Now every show has it. In 2005, we sold about 1 percent of our tickets online. Now it’s more than 15 percent, and we’re expecting to hit 20 to 25 percent in the next year.” 
 
Advanstar Communications, the California-based international media company that produces 47 events for the powersports, life sciences, and fashion industries, is expecting similar growth. “Online ticket sales represent about 10 percent of our total ticket sales now. We’re targeting 25 percent in three seasons,” says Skip Johnson, Vice President, Consumer Events for Advanstar (www.advanstar.com).

In 1999, one show organizer asked for an online ticketing function, recalls Terry Howisey, Vice President of Seattle-based Electric Arrow (www.electricarrow.com), a company that provides online ticketing services for more than 300 consumer shows. “He said he’d be satisfied if we sold 500 tickets. We sold 10,000.”

Online ticketing appeals to attendees because it allows them to bypass lines at the box office and pay lower prices. “We used to charge more when tickets were purchased online,” says Johnson. “We saw it as a convenience premium. But given our large volume of online ticketing, it’s now just the opposite. Attendees get the best deal online and pay face value (without coupons or other promotions) at the box office.”
 
For the producer, online ticketing builds revenue weeks or even months before the show, says Howisey. Programs that capture and track data give producers measurements to help them budget more effectively. Some programs even use a formula that cross references ticket sales with hotel occupancy to determine how much the show is contributing to the city.

2. More interactive features on show Web sites. 
Consumer show organizers are adding more and more features to their Web sites. “Interactive sites are critical now,” says Fricke. Advanstar is a good example. “Our show Web sites used to be seasonal, from September to May,” says Johnson. “We’ve changed the sites to all year. We update them with information on new items and show features.” In addition, sponsors and affinity groups are adding links to the show Web site. Harley’s Web site has added a page dedicated to Advanstar’s motorcycle shows, he says.

3. Better online resources for exhibitors.
“We’re moving to a higher level of sophistication with online exhibitor manuals. We’re also moving exhibitor training online. About 85 percent of our exhibitors are smaller companies. They’ve embraced Internet training,” says Baugh.

Show Presentation: More Touch Points
The growth and change in types of show-floor events and displays is as big a trend as online development, says Fricke. Producers have been devoting more space and money to entertainment with educational value for several years, but the pace has picked up momentum.

4. More hands-on, more value for attendees.
“It’s a new mindset: The more hands-on, the more value to the event,” says Baugh. And the more interaction with products, the better attendees like it. A feature that used blue screen technology to produce pictures of attendees on various customized motorcycles was wildly popular at motor sports shows. “It was the stickiest display we’ve ever had,” says Johnson. In October, “Metric Revolution,” the ESPN2 reality program about customizing imported motorcycles, will hold tryouts at Advantar’s Phoenix show. “We’re going to become the ‘American Idol’ venue for the custom motor- cycle industry.”

5. Consumers want education.
Attendees want education and information when they come to our shows,” says Tom Gaither, Vice President, AGI Events, a division of Ventura, CA-based Affinity Group (www.affinitygroup.com), which produces 35 shows for the recreational vehicle market. His shows, some new and some up to 40 years old, are rapidly adding seminars for attendees avidly interested in how to buy, drive, equip and use their RVs. Even cooking classes are a big draw. “It gives attendees something to learn and do when they come,” he says. “It turns the shows into events and is a way to keep older shows new.” 

Dmg is adding technology workshops and seminars to its home shows across North America. “How many people really understand their TiVo?” asks Baugh. “We know that new technology is ahead of consumers’ ability to use it. We think home shows can play a good role in educating consumers to use the technology that is available to them in their homes.”

6. Making shows more attendee-friendly.
Producers are redesigning their shows to be more attendee friendly and interactive. Advanstar, for example, has invested heavily in new show floor displays and features. “We’ve added special welcome centers for new riders. We’ve designed new anchor points for attendees to interact with the products. We have shows within shows for specific interest groups,” says Johnson.

Marketing: Bite-Size Media Snacks
“Marketing is a different ballgame than it was five years ago,” says Baugh. “We’re seeing a fundamental shift in how we approach marketing. It used to be linear, predictable. To attract consumers, we had to buy a certain amount of newspaper, television, radio. Now consumers are info snacking, tasting a lot of media in small bites. Getting the right mix to find consumers where’re they’re ‘snacking’ is
more complex.”

7. Continuing shift from traditional to new media.
As producers strive for the right mix, the focus is shifting from traditional media, where prices are increasing even as outlets multiply, to electronic, specialty and affinity outlets. The big jump in marketing budgets seems to have been in 2006. PCMO Expositions (www.pcmexpo.com) increased its marketing budget by 20 percent last year, says Freddie Ward, Owner of the Reno, NV-based producer of craft shows and fairs. Recent and anticipated increases are flowing to new media. “Our budget increases have gone into non-traditional outlets,” says Baugh.
 
These outlets offer a wide array of targeted marketing contact points. “Everyone is doing Web development, and that’s taking dollars away from traditional media,” says Fricke. “Consumer show organizers are doing more with e-mail newsletters and more list development.” At the same time, more publications catering to specialty and enthusiast markets are attracting a bigger part of the advertising budget. 

While show organizers are taking a more critical look at traditional media, he adds, they’re not cutting back substantially yet. “We still have to rely on traditional media because we haven’t figured out where the point is to take money out and put it into other outlets.”

8. Spending more to mine segments. 
Organizers are spending more to reach and cultivate potential attendees with specific interests. “We’re digging deeper into
enthusiast segments. We’re looking at manufacturers, retailers, clubs and associations. In addition to our national ad campaign, we develop different ad campaigns for each segment,” says Johnson. “We’re also doing more prospecting in local markets. We promote to local owners groups. The Harley Owners Group has more than 1 million members, and we work with local clubs to put together outings to shows. We’ve had more than 30 clubs at some shows.”

Sidebar: Three Reasons to Think Outside the Show
Show producers cited three larger social changes that are driving consumer behavior and shaping show trends.

Regionalism
Producers have always known that one size doesn’t fit all. What is striking is the extent to which regionalism is influencing trends. Dmg has structurally changed its marketing organization to respond to regionalism. “We’ve revamped our marketing based on regions,” says Baugh. “This allows us to address local market volatility and respond to regional challenges.” Each region has its own marketing team. “We can move information quickly between shows in the region. Teams tell each other immediately what’s working and what’s not. We can react by the next show.”

Trading Up
Middle income doesn’t mean middle market any more. Consumers’ making budget trade-offs to buy certain more expensive goods isn’t a new concept, but the practice is so pervasive now that producers have to consider it when they determine their show’s product mix. “In the old days there was a defined middle market. But that market is noticeably shrinking. Producers have to be careful not to be caught in the middle,” says Baugh. Shows should mirror the way consumers are making choices now. “We have to give them both high-end and low-end trade-offs.”

Sustainability
Show producers need to be aware that green products and practices appeal to more than just a niche market. That doesn’t necessarily mean more shows featuring exclusively “green” products, although there are more of those, says Fricke. Green issues matter at every production level. Increasingly, attendees are interested in sustainable and energy-efficient products. Venues are looking for green practices, and many exhibitors have taken the lead in recycling and in re-useable products and booth displays.

More on EXPOweb.com

Guide to Major Consumer Show Organizers, which includes a list of show producers compiled by the National Association of Consumer Shows

Additional statistics from the NACS survey, including a breakdown of show expenses