November/December 2006
EXPO’s 2006 Financial Benchmarking Study: How do your numbers compare?

EXPO’s 2006 financial benchmarking study tracks the performance of exhibitions in terms of income, expenses and profits in a range of categories

By Martha Collins, Contributing Editor



Are you spending enough on attendance promotion? Should you be generating more revenue from sponsorships? To help you compare your numbers, EXPO’s 2006 Financial Benchmarking Study charts industry norms in two key areas — revenue and major expenses, including exhibit sales/sponsorship sales, attendance promotion, exhibit hall expenses and decorating expenses, as well as several other expense categories.

Survey respondents are show organizers, who were asked questions about the revenue sources and line item expenses for their largest show. The mean (average) figures are reported for revenues and expenses both as dollar amounts and as percentages. For the purposes of this survey, gross profit is calculated by subtracting total average show expenses (which includes direct staff salaries, but does not include overhead or general office allocations) from total gross revenues.

The study offers insights into financial practices and results within the exhibition industry — providing a basis for benchmarking your show’s performance against similar shows. You can compare cost and income ratios using a range of factors, including revenue sources, itemized expenses, show characteristics, gross revenue, cost per square foot, and expenses as a percentage of gross revenue.

Financial trends
The survey results reveal some fascinating financial trends in the exhibition industry. Among the findings:
• Association shows earn more. The average gross revenue for association shows is 17 percent higher than for shows produced by independent show producers.
• Expenses take a higher percentage of gross revenue for larger shows. Shows with $500,000 or less gross revenue spend 42 percent of that revenue on expenses (average $104,767). Shows with gross revenue from $500,000–$2 million spend 54 percent (average $600,815). Shows with $2–$5 million gross revenue spend 55 percent (average $1,830,986). And for shows with more than $5 million gross revenue, expenses take 53 percent (average $3,947,823).
• Profit margins are higher for smaller shows. Gross profits average 58 percent for shows with gross revenues of $500,000 or less, 46 percent on gross revenues of $500,001–$2 million, 45 percent on gross revenues of $2–$5 million, and 47 percent for shows with gross revenues of more than $5 million.
• Traditional revenue sources are the mainstay. For shows of nearly all sizes and types, more than two-thirds of revenue comes from booth sales and sponsorships, while less than one percent of revenue comes from the show Web site.
• Associations sell more space, but charge less. Associations sell an average of 22 percent more net paid square feet than independent shows, but they charge less (an average of $23.48 per square foot for associations vs. $29.55 for independent shows).
• Space rate increases were more common for larger shows. Overall, 41.6 percent of shows increased their space rates this year; the average increase is 7.6 percent. The average cost per square foot is $25.74. Increases were more common among larger shows — those with more than $2 million gross revenue, 250,000 net square feet and 5,000 attendees.

Associations and for-profits
A profile of participants shows that the typical association show attracts 8,619 attendees, covers 270,000 net paid square feet and has gross revenues of $2,342,783. The average gross profit for association shows is 54 percent.

The typical independent show attracts 12,141 attendees, covers 221,818 net paid square feet and has gross revenues of $2 million. The average gross profit for independent shows is 38 percent.

Click here to download a PDF of the survey results