September 2006
Marketwatch: Sponsorships
Revenue will increase from 14 percent of total show revenues in 2005 to 17 percent in 2006
By Danica Tormohlen
Show organizers predict sponsorship revenue will increase from 14 percent of total show revenues in 2005 to 17 percent in 2006, according to the 123 show organizers who responded to an online survey conducted by EXPO Magazine and Exhibit Surveys Inc. in July 2006. For most, sponsorship revenue remained flat from 2004 to 2005 — with 53 percent of respondents reporting it’s about the same, 38 percent saying it’s higher, and only 9 percent saying it’s gonedown.
Similar to last year, one of the biggest challenges when it comes to sponsorships is proving ROI, according to the respondents. In addition, many show organizers reported they don’t have enough time, staff or marketing dedicated to sponsorship sales.
Show organizers continue to become more open to allowing non-exhibitors to sponsor. Fifty percent of respondents allow non-exhibitors to sponsor, up from 44 percent last year. For associations, 54 percent of shows allow non-exhibitors to sponsor while only 47 percent of for-profit shows do.
Danica Tormohlen is Editor of EXPO. She can be reached at 913-344-1303 or e-mail: dtormohlen@ascendmedia.com.
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Sponsorship trends by show type, show size and show revenue
Association shows
Types of Sponsorships Offered
Overall title sponsor 23%
Hanging banners in the exhibit hall 42%
Breaks 56%
Registration bags 70%
Lanyards 67%
Registration badges 34%
Online banners 48%
Sessions 45%
Receptions 59%
Breakfast 36%
Lunch 27%
Dinner 28%
Internet cafes 58%
Press rooms 27%
Speaker's lounge 19%
Shuttle service 45%
Spouse programs 8%
Media 17%
Educational sessions 34%
Other Custom 17%
Other 22%
Pricing Metrics Used
Number of attendees/impressions 23%
Flat fee based on value you place on opportunity 58%
Flat fee based on covering a fixed percentage of your expense 34%
Exclusivity of offer 28%
Other 6%
Allow Non-Exhibitor Sponsors
Yes 54%
No 46%
Included in Sponsorship Packages
On-site signage 75%
Booth Space 31%
Logos on promotional materials (including conference brochures, online, e-newsletters, etc.) 70%
Ads in show daily, programs or directories 50%
Attendee mailing lists 41%
Free registrations 39%
Other 8%
Sponsorships as Percentage of Total Revenues
13%
Change from 2004
More 34%
Less 11%
About the same 55%
Sponsorships as Percentage of Revenue in 2006
16%
Sponsorship Sellers
Show manager 41%
Exhibit sales reps 30%
Dedicated sponsorship sales person 27%
No one 0%
Outsourced 16%
Other 3%
For-profit shows
Types of Sponsorships Offered
Overall title sponsor 40%
Hanging banners in the exhibit hall 65%
Breaks 37%
Registration bags 60%
Lanyards 58%
Registration badges 38%
Online banners 37%
Sessions 38%
Receptions 54%
Breakfast 33%
Lunch 27%
Dinner 17%
Internet cafes 44%
Press rooms 29%
Speaker's lounge 25%
Shuttle service 31%
Spouse programs 0%
Media 35%
Educational sessions 33%
Other Custom 12%
Other 12%
Pricing Metrics Used
Number of attendees/impressions 27%
Flat fee based on value you place on opportunity 63%
Flat fee based on covering a fixed percentage of your expense 25%
Exclusivity of offer 33%
Other 0%
Negotiate on Pricing?
Yes 55%
No 24%
Depends (on what?) 21%
Allow Non-Exhibitor Sponsors
Yes 47%
No 53%
Included in Sponsorship Packages
On-site signage 77%
Booth Space 46%
Logos on promotional materials (including conference brochures, online, e-newsletters, etc.) 73%
Ads in show daily, programs or directories 62%
Attendee mailing lists 42%
Free registrations 40%
Other 10%
Sponsorships as Percentage of Total Revenues
16%
Change from 2004
More 44%
Less 7%
About the same 49%
Sponsorships as Percentage of Revenue in 2006
18%
Sponsorship Sellers
Show manager 40%
Exhibit sales reps 40%
Dedicated sponsorship sales person 31%
No one 2%
Outsourced 8%
Other 2%
Shows less than 100,000 NSF
Types of Sponsorships Offered
Overall title sponsor 40%
Hanging banners in the exhibit hall 51%
Breaks 56%
Registration bags 63%
Lanyards 58%
Registration badges 40%
Online banners 35%
Sessions 49%
Receptions 65%
Breakfast 44%
Lunch 32%
Dinner 28%
Internet cafes 47%
Press rooms 16%
Speaker's lounge 21%
Shuttle service 26%
Spouse programs 4%
Media 19%
Educational sessions 40%
Other Custom 14%
Other 12%
Pricing Metrics Used
Number of attendees/impressions 21%
Flat fee based on value you place on opportunity 68%
Flat fee based on covering a fixed percentage of your expense 26%
Exclusivity of offer 25%
Other 0%
Negotiate on Pricing?
Yes 57%
No 27%
Depends (on what?) 16%
Allow Non-Exhibitor Sponsors
Yes 65%
No 35%
Included in Sponsorship Packages
On-site signage 84%
Booth Space 46%
Logos on promotional materials (including conference brochures, online, e-newsletters, etc.) 79%
Ads in show daily, programs or directories 58%
Attendee mailing lists 46%
Free registrations 49%
Other 4%
Sponsorships as Percentage of Total Revenues
19%
Change from 2004
More 33%
Less 9%
About the same 59%
Sponsorships as Percentage of Revenue in 2006
23%
Sponsorship Sellers
Show manager 53%
Exhibit sales reps 40%
Dedicated sponsorship sales person 23%
No one 2%
Outsourced 5%
Other 2%
Shows with more than 100,000 NSF
Types of Sponsorships Offered
Overall title sponsor 24%
Hanging banners in the exhibit hall 60%
Breaks 42%
Registration bags 73%
Lanyards 75%
Registration badges 38%
Online banners 55%
Sessions 42%
Receptions 56%
Breakfast 31%
Lunch 25%
Dinner 24%
Internet cafes 60%
Press rooms 44%
Speaker's lounge 25%
Shuttle service 56%
Spouse programs 5%
Media 35%
Educational sessions 31%
Other Custom 16%
Other 25%
Pricing Metrics Used
Number of attendees/impressions 33%
Flat fee based on value you place on opportunity 58%
Flat fee based on covering a fixed percentage of your expense 35%
Exclusivity of offer 42%
Other 9%
Negotiate on Pricing?
Yes 49%
No 39%
Depends (on what?) 12%
Allow Non-Exhibitor Sponsors
Yes 36%
No 64%
Included in Sponsorship Packages
On-site signage 76%
Booth Space 35%
Logos on promotional materials (including conference brochures, online, e-newsletters, etc.) 71%
Ads in show daily, programs or directories 60%
Attendee mailing lists 44%
Free registrations 35%
Other 16%
Sponsorships as Percentage of Total Revenues
8%
Change from 2004
More 45%
Less 9%
About the same 45%
Sponsorships as Percentage of Revenue in 2006
9%
Sponsorship Sellers
Show manager 33%
Exhibit sales reps 35%
Dedicated sponsorship sales person 36%
No one 2%
Outsourced 18%
Other 4%
Shows that generate less than $2 million in revenue
Types of Sponsorships Offered
Overall title sponsor 45%
Hanging banners in the exhibit hall 48%
Breaks 49%
Registration bags 57%
Lanyards 54%
Registration badges 34%
Online banners 34%
Sessions 43%
Receptions 60%
Breakfast 38%
Lunch 29%
Dinner 25%
Internet cafes 40%
Press rooms 12%
Speaker's lounge 20%
Shuttle service 26%
Spouse programs 3%
Media 20%
Educational sessions 37%
Other Custom 11%
Other 12%
Pricing Metrics Used
Number of attendees/impressions 28%
Flat fee based on value you place on opportunity 62%
Flat fee based on covering a fixed percentage of your expense 23%
Exclusivity of offer 25%
Other 3%
Negotiate on Pricing?
Yes 57%
No 28%
Depends (on what?) 16%
Allow Non-Exhibitor Sponsors
Yes 59%
No 41%
Included in Sponsorship Packages
On-site signage 82%
Booth Space 51%
Logos on promotional materials (including conference brochures, online, e-newsletters, etc.) 78%
Ads in show daily, programs or directories 60%
Attendee mailing lists 46%
Free registrations 51%
Other 9%
Sponsorships as Percentage of Total Revenues
19%
Change from 2004
More 31%
Less 12%
About the same 57%
Sponsorships as Percentage of Revenue in 2006
22%
Sponsorship Sellers
Show manager 54%
Exhibit sales reps 34%
Dedicated sponsorship sales person 28%
No one 3%
Outsourced 8%
Other 2%
Shows that generate more than $2 million in revenue
Types of Sponsorships Offered
Overall title sponsor 15%
Hanging banners in the exhibit hall 62%
Breaks 46%
Registration bags 77%
Lanyards 77%
Registration badges 44%
Online banners 56%
Sessions 44%
Receptions 58%
Breakfast 33%
Lunch 27%
Dinner 25%
Internet cafes 67%
Press rooms 48%
Speaker's lounge 25%
Shuttle service 56%
Spouse programs 6%
Media 33%
Educational sessions 31%
Other Custom 19%
Other 25%
Pricing Metrics Used
Number of attendees/impressions 25%
Flat fee based on value you place on opportunity 60%
Flat fee based on covering a fixed percentage of your expense 38%
Exclusivity of offer 40%
Other 6%
Negotiate on Pricing?
Yes 49%
No 40%
Depends (on what?) 12%
Allow Non-Exhibitor Sponsors
Yes 37%
No 63%
Included in Sponsorship Packages
On-site signage 73%
Booth Space 25%
Logos on promotional materials (including conference brochures, online, e-newsletters, etc.) 65%
Ads in show daily, programs or directories 54%
Attendee mailing lists 40%
Free registrations 27%
Other 10%
Sponsorships as Percentage of Total Revenues
8%
Change from 2004
More 48%
Less 5%
About the same 48%
Sponsorships as Percentage of Revenue in 2006
9%
Sponsorship Sellers
Show manager 25%
Exhibit sales reps 38%
Dedicated sponsorship sales person 29%
No one 0%
Outsourced 17%
Other 4%
A complete list of sponsorships offered
Overall title sponsor -- 30%
Hanging banners in the exhibit hall -- 51%
Breaks -- 46%
Registration bags -- 63%
Lanyards -- 61%
Registration badges -- 37%
Online banners -- 41%
Sessions -- 41%
Receptions -- 56%
Breakfast -- 34%
Lunch -- 27%
Dinner -- 24%
Internet cafes -- 50%
Press rooms -- 27%
Speaker's lounge -- 21%
Shuttle service -- 37%
Spouse programs -- 4%
Media -- 24%
Educational sessions -- 33%
Other Custom -- 14%
Other -- 17%
Reasons shows negotiate on sponsorship pricing
If they're an exhibitor
If unsold close to meeting
Length of support
On multiple sponsorships or purchase of booth space
Package deal or volume
Package with booth space, may add or delete items to lower price
the interested company
Trade offers/cross promotion
Volume
Who the sponsor is
Will reduce price for a compelling trade (ad-space, email blast, etc.)
Profile of suvery respondents
Organization Type
Trade association/society/not-for-profit -- 52%
Independent/For-profit convention/trade show/meeting owner/producer/planner -- 42%
Corporate event management -- 6%
Total Gross Revenue of their largest show
$500,000 or less -- 21%
$500,001 to $1,000,000 -- 21%
$1,000,001 to $2,000,000 -- 14%
$2,000,001 to $3,000,000 -- 8%
$3,000,001 to $5,000,000 -- 8%
More than $5,000,000 -- 29%
Required Exhibit Space (Net Sq. Ft.) of their largest show
Less than 25,000 -- 15%
25,000 to 50,000 -- 21%
50,001 to 100,000 -- 15%
100,001 to 250,000 -- 21%
250,001 to 500,000 -- 10%
More than 500,000 -- 19%
Verbatim responses on show organizers' biggest frustrations with sponsorships
Balancing them all
Closing the deal. Timing
Company budgets
Competition among exhibitors for placement
Competition and limited number of sponsors
Competition with partner/co-located association annual convention sponsorships
Convincing sponsors of intrinsic values of audience demographic
Decline in membership/attendance
Demonstrating the value of the sponsorship -- sponsor's ROI
Demonstrating value
Determining the right pricing for a sponsorship opportunity
Determining value to buyer
Educating them about the value they get out of sponsoring
Finding dedicated time to devote to selling sponsorships over exhibit space
Finding new leads and potential sponsors
Finding new sources rather than going with the same ones year after year
Finding new sponsorships that excite potential sponsors. Getting the exhibitors to see value in contributing to a sponsorship.
Finding vendors/manufacturers with budget to do it
Getting all the internal parties to agree on the program
Getting client to realize the value
Getting commitments early enough to include in all the promotions, making it more valuable
Getting in front of the decision maker
Getting the exhibitors to spend money!
Getting the files from the exhibitors on time to produce the sponsorships
Getting the materials from the sponsors
Getting the vendors' attention
Getting them to see the value for dollars spent
Getting them to think outside the box
Having enough of them to go around
Having exhibitors understand the actual costs involved and the goal of covering our costs; having them understand the ROI w/ sponsorships; having them understand what the attendee thinks is important vs. what they think is important. For example, an attendee would rather have a break or food function covered than have an exhibitors logo on room key card!
Having the sales rep's sell them
Identifying prospects!
Just getting the foot in the door. Once they see the return they can provide, it's much easier.
Letting the exhibitors know about it.
Many exhibitors wish to sponsor the same item but many are exclusive. Costs
Negotiation
New to our customers/exhibitors as we are launching limited sponosrhips. Perception that other exhibitors/their competitors will benefit from sponsorships (not exlusive benefit to attendees only). Quality of items not in-line with company image.
Not a focus item for us
Not being allowed to offer additional sponsorships; Not being able to add other benefits.
Not enough
Our board won't allow certain exhibitors to sponsor activities. The other challenge is that 3/4 of our exhibitors are non-profits or government agencies who can't or don't have the funds to sponsor events.
Our show is fairly young, so we had to prove ourselves before the sponsorships began selling.
Pharmaceutical company regulations
Pinpointing value enough to give them the justification and show absolute ROI
Pricing and what's included and then setting expectations for the customer. Also filfullment can be challenging when sold in-house.
Proving to someone that the opportunity is worthwhile
Proving to them that we are a good value for their investment
Reaching the right people to talk with about sponsorships with the potential sponsorship
Recognizing value for the various sponsorships when companies compete for same sponsorship
Selling high value packages
Selling our keynote speakers and our party sponsorships (generally our mid-priced sponsorships)
selling sponsorships on a new event concept to show ROI
Selling them. Because we're a medical show we run into pharma guidelines/rules. Basically, medical shows can no longer sponsor anything that isn't CE related. This makes it hard to sell oppurtunites such as lanyards, T-shirts, bags, shuttle buses, receptions, etc.
The time it takes to sell them to exhibitors
Tight budgets in our industry
Time to sell
Timeliness of receiving artwork from sponsors
To guarantee more budgets from governments to support other show sponsorships
Too many competitive options - trade publication advertising, private events held at show, ROI justification and shrinking exhibitor trade show marketing budgets
We just started with our program 2 years ago and have doubled our income. It takes time, and without a dedicated sales person for space and sponsorships, it will take a long time to increase the 10 percent I would like it to.
We offer quality (not necessarily quantity) and convincing exhibitors of this value is a challenge.
Working with smaller companies with small budgets, and convincing them of the ROI
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