March 2005 Marketwatch: Organizers spend $160 per exhibitor on promotion By Danica Tormohlen
Show organizers plan to spend an average of $84,000 on sales promotion to gain 525 exhibitors in 2005, according to the 226 show organizers who responded to an online survey conducted by EXPO Magazine and Exhibit Surveys Inc. in January 2005. On average, show organizers spend $160 per exhibitor on sales promotion. In 2005, show organizers plan to spend about the same on exhibitor sales promotion as they did last year, 15.4 percent of their budgets in 2005 vs. 15.3 percent in 2004.
On average, independents spend more on exhibitor sales promotion than associations. Independents plan to spend 18.4 percent of their budgets on exhibitor sales promotion, compared with 12.1 percent for associations. Independents spend $207 per exhibitor on sales promotion, compared with $90 per exhibitor for associations. Does spending more mean more exhibitors? That appears to be the case. Independents average 659 exhibitors for their largest show, compared with 416 for associations.
Not surprisingly, show organizers spend the biggest portion of their exhibit sales promotion budget on direct mail (49 percent). Eleven percent is allocated to e-mail, 10 percent to print advertising and 7 percent to telemarketing. Whether association or independent, most handle exhibitor sales promotion in house. For associations, 96 percent handle exhibitor sales promotion in house. For independents, 85 percent handle it in house.
Note: For the purposes of this survey, exhibit sales promotion includes list rental, direct mail, advertising, printing, postage, research, etc. It does not include exhibitor sales expenses related to travel and entertainment, salaries, commissions, etc. How much did you spend on exhibit sales promotion in 2004?

What percentage of your budget did you spend/will you spend on exhibit sales promotion in 2004/2005?

In 2005, what percentage of your exhibit sales promotion budget will be spent on:
| List rental |
4% |
| Direct mail (brochures, prospectuses, postcards, printing, postage, etc.) |
49% |
| E-mail |
11% |
| Print advertising |
10% |
| Web advertising |
4% |
| TV, Radio, Newspaper advertising |
4% |
| Research |
3% |
| Telemarketing (for list cleanup, lead generation, lead qualification, etc.) |
6% |
| Public Relations |
4% |
| Other |
5% |
| |
100% |
Who handles exhibit sales promotion?

What’s your biggest frustration when it comes to exhibitor marketing? “Changing contacts at prospective companies … Getting to the decision maker … Perceived drop in ROI over the past few years … Lack of urgency in booking … Trying to determine which exhibitors to meet with face to face vs. which ones can have less formal contact such as e-mail, mail, phone … The amount that’s needed to be done for mature events … Locating the right mailing lists and prospects … Educating potential exhibitors on how to truly evaluate an event … Exhibitors are committing later each year, causing extra, last-minute marketing efforts.”
For additional statistics and research from this survey, go to www.expoweb.com. You’ll find exclusive Web-only content, including budgets for exhibit sales promotion broken down by trade associations/not-for-profits and independent/for-profit shows.
Exclusive Web-only content:
Association
| List rental |
3% |
| Direct mail (brochures, prospectuses, postcards, printing, postage, etc.) |
64% |
| E-mail |
9% |
| Print advertising |
9% |
| Web advertising |
2% |
| TV, Radio, Newspaper advertising |
2% |
| Research |
2% |
| Telemarketing (for list cleanup, lead generation, lead qualification, etc.) |
4% |
| Public Relations |
3% |
| Other |
2% |
| |
100% | Independent
| List rental |
5% |
| Direct mail (brochures, prospectuses, postcards, printing, postage, etc.) |
38% |
| E-mail |
12% |
| Print advertising |
12% |
| Web advertising |
4% |
| TV, Radio, Newspaper advertising |
4% |
| Research |
3% |
| Telemarketing (for list cleanup, lead generation, lead qualification, etc.) |
9% |
| Public Relations |
5% |
| Other |
8% |
| |
100% |
Danica Tormohlen is Editor of EXPO. She can be reached at 913-344-1303 or e-mail: dtormohlen@ascendmedia.com.
EXPO Magazine has partnered with Exhibit Surveys Inc. to conduct the Marketwatch surveys and report the results. For more information about Exhibit Surveys, visit www.exhibitsurveys.com or call 800-224-3170.
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