October 2005
Marketwatch: Sponsorships
Revenue will increase slightly from 2005 to 2006
By Danica Tormohlen
Show organizers predict sponsorship revenue will increase slightly from 15 percent of total show revenues in 2005 to 16 percent in 2006, according to the 131 show organizers who responded to an online survey conducted by EXPO Magazine and Exhibit Surveys Inc. in August 2005. For most, sponsorship revenues remained flat from 2004 to 2005 — with 56 percent of respondents reporting it’s about the same, 36 percent saying it’s higher, and only 8 percent saying it’s gone down.
The biggest challenges when it comes to sponsorships are pricing and proving ROI, according to the survey. In addition, many show organizers reported they don’t have enough time, staff or marketing dedicated to sponsorship sales.
As many have speculated over the last couple of years, it appears that show organizers are becoming more open to allowing non-exhibitors to sponsor. For associations, 48 percent of shows allow non-exhibitors to sponsor while only 38 percent of for-profit shows do.
Most shows (52 percent) will negotiate on sponsorship pricing while only 25 percent will not. Twenty-three percent say it depends on a number of factors, including: timing (if it’s late in the show cycle); who’s buying it; if shows can cover their costs, etc.
Danica Tormohlen is Editor of EXPO. She can be reached at 913-344-1303 or e-mail: dtormohlen@ascendmedia.com.
Non-exhibiting sponsors
44% of shows allow non-exhibitors to sponsor
Top 10 sponsorships offered
What type of sponsorships do you offer?
Sponsorship revenue
What percentage of total show revenues will come from sponsorships in 2005/2006?
Pricing
What’s the metric you use to determine pricing for sponsorships?
| Number of attendees/impressions |
38% |
| Flat fee based on value you place on opportunity |
74% |
| Flat fee based on covering a fixed percentage of your expense |
42% |
| Exclusivity of offer |
47% |
| Other |
5% |
Sponsorship packages
What’s included in sponsorship packages?
| On-site signage |
86% |
| Logos on promotional materials (including conference brochures, online, e-newsletters, etc.) |
82% |
| Ads in show daily, programs or directories |
66% |
| Attendee mailing lists |
49% |
| Booth space |
40% |
| Free registrations |
38% |
| Other |
12% |
Sponsorship sales
Who sells sponsorships?
| Show manager |
44% |
| Exhibit sales reps |
43% |
| Dedicated sponsorship sales person |
31% |
| No one |
2% |
| Outsourced |
5% |
| Other |
11% |
Verbatim
What’s your biggest challenge with sponsorships?
“Assigning value … Calculating/explaining ROI to exhibitors … Communicating enough information for sponsor to justify the expense/value …Finding new opportunities to offer … Finding the right person with the right skills to sell sponsorships … Implementation/logistics especially for customized sponsorships … Not enough time to properly promote … Time to sell them.”
You’ll find additional exclusive Web-only content from this study, including:
• Who sells sponsorships? Association vs. for-profit
Association shows
Show manager -- 46%
Exhibit sales reps -- 32%
Dedicated sponsorship sales person -- 27%
Other -- 11%
Outsourced -- 6%
No one -- 4%
For-profit shows
Exhibit sales reps -- 57%
Show manager -- 41%
Dedicated sponsorship sales person -- 38%
Other -- 13%
Outsources -- 4%
No one -- 0%
For-profit shows are more likely to have a dedicated sponsorship sales person than association shows (38% vs. 27%)
• What sponsorship packages include? Association vs. for-profit
Association shows
On-site signage -- 83%
Logos on promotion materials -- 77%
Ads in show daily, programs or directories -- 55%
Attendee mailing lists -- 49%
Free registrations -- 35%
Booth space -- 25%
Other -- 11%
For-profit shows
On-site signage -- 89%
Logos on promotion materials -- 89%
Ads in show daily, programs or directories -- 80%
Booth space -- 55%
Attendee mailing lists -- 46%
Free registrations -- 41%
Other -- 14%
For-profit shows are more likely to package sponsorships with booth space and ads in show daily, programs or directories.
• A complete list of sponsorships offered
In addition to the top 10 list above, other types of sponsorships offered include:
Lunch -- 41%
Sessions -- 38%
Registration badges -- 34%
Dinner -- 33%
Overall title sponsor -- 25%
Media -- 25%
Press rooms -- 24%
Speakers lounge -- 23%
Other -- 12%
• Reasons shows negotiate on sponsorship pricing
Verbatim: "Circumstances surrounding business relationship ... Cost to us, if we need to sell it ... Demand ... Who's buying it ... Value of sponsor ... To keep sponsors happy and gain new ones ... On the timing, if they come in late they won't get everything so we can negotiate ... Level of deal, customer history, revenue needs."
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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