March 2003

The emphasis in show management is now less about operations and more about big-picture concepts like show value and fit

By Donna Sanford

Chris Brown
Senior Vice President, Conventions and Expositions
National Association of Broadcasters

Reviewing his numbers, you wouldn’t think Chris Brown a good cover model for this special issue of EXPO. Net square footage down more than 20 percent, attendance down nearly as much, an industry portal abandoned and no magazine to provide “integrated” marketing. Yet here he is, touted by many in the industry as a player. Why? Because he doggedly follows a plan that’s positioning his event for the eventual economic rebound — and one that reaps rewards even amidst the downturn.

To be sure, Brown does have the advantage of working for a large association, with a show staff of 20 and a budget anyone would envy. But it’s really all a matter of scale. The shows that will prosper in this business environment aren’t necessarily large or small, horizontal or vertical, but those that, among other things, (1) truly understand the changes taking place in their markets and how they affect the buying and selling process, (2) provide real value to their exhibitors and attendees by seriously assessing the fit between the two groups, and (3) have the right level of marketing sophistication.

Brown, who has been Senior Vice President, Conventions and Expositions for the National Association of Broadcasters since only 1999, is quick to point out that those who came before him deserve much of the credit for laying the foundation. In 1995 and 1996, a groundswell of demand opened the scope of the show beyond broadcasting and into the media, entertainment, audio-video, multimedia, production and post-production market segments. “It was great timing,” he says. “The money was flowing. The show went from about 500,000 net square feet (nsf) to 750,000 in just two years.” By 2001, the show was at 955,000 nsf. Then the bubble burst. Brown expects just 750,000 nsf this spring in Las Vegas.

A number of trends occurring both inside and outside the industry in the past five to 10 years have negatively impacted the value attendees and exhibitors have experienced. The robust economy of the ’90s no doubt masked some of the issues the industry now needs to address if it is to prosper in the future.


Impediments to growth
“Most organizers are cognizant of the business environment changes in their specific markets, but many of them aren’t aware of the implications of these changes on their events,” says Skip Cox, President of Exhibit Surveys Inc., who has monitored trends in the industry for more than 30 years. “The changes often have a significant impact on the ability of events to attract qualified attendees and/or exhibitors and, therefore, have the potential for negatively impacting the value of attending and/or exhibiting, which obviously impacts growth.” (See “Business environment changes and their implications for events)

In addition, exhibitors today perceive lower results, partly due to the steady decline in traffic density at exhibitions over the past decade. According to Exhibit Surveys’ results, density at trade shows has declined from 3.0 people per 100 square feet of exhibit space in 1990 to 2.1 in 2001 — a 30 percent drop. Exhibitors, particularly small and medium-size companies, find it much more difficult to compete for the time and attention of visitors in low-density exhibitions.

“Twenty years ago, we sold goods on the show floor,” says Francis Friedman, President of Time & Place Strategies Inc., a New York City-based consultant to the face-to-face marketing industry. “Now professional purchasing has become a science. People buy by committee. The purchases are folded into next year’s budget — though the research and bid process took place at this year’s show. So the farther those purchases take place from the show, the less likely the lead will be recognized as a show lead.” 

We have to more closely examine the fit of a show, Cox says. Exhibitors need to ensure that their investment is in line with the value of a potential audience. Return on investment (ROI) is often out of line because exhibitors are spending too much. Lower ROI is part real (less attendance), part perception (reduced density) and part a problem of the exhibitors themselves (overspending).


Show fit
“We have to dispel the myth that what we’re doing is adequate,” says Steven Hacker, President of the International Association for Exhibition Management. “We need to look at every subset of visitor and exhibitor and tailor solutions for them. A 20,000-square-foot exhibitor has very different needs than someone with 100 square feet — and each must be met.”

For Brown, that’s meant a more focused, consultative sales approach. Fortunately, with buy-in from the NAB President and CEO, Brown was able to increase from two to six salespeople — which freed senior staff for key account focus. “It used to be all about space allocation,” explains Brown. “Now we focus on exhibitors’ priorities and strategies. We get specifics on product development, the R&D cycle and their market segmentations.” Brown is also moving the Exhibitor Advisory Committee away from discussions of food service and more onto strategy.

Attendee research is equally critical. “We really need to step up the research,” says Friedman. “Much of our content and programming would become more clear. We use hunches, without a deep understanding. We are the least researched of all marketing mediums.” Cox concurs, saying at least as much should be invested in researching the industry the show serves as is invested in researching the event itself to ensure a good fit between specific exhibitor and attendee segments.

NAB enjoys the luxury of an in-house research department focused year-round on assessing the industry. Brown is also working with his own marketing department to focus on more non-attendee research. “We need to know why these people don’t come,” he explains. “How are they buying? Where are they getting their information?” 

Also, by dissecting his current attendance databases, Brown uncovered heretofore unknown groups of attendees he can now focus on to develop as niche categories. “We saw some attendees from Taco Bell and couldn’t figure out what they were doing there,” Brown says. Investigation revealed they were looking for corporate training video production, so Brown is now actively recruiting a new market niche — and searching for exhibitors to match.


Marketing sophistication
All these efforts are certainly steps toward positioning NAB for the future, but to bear fruit, these ideas require a high level of marketing expertise. After all, what good is it to get the fit of your show right, if you can’t effectively get that message across? “It’s easy to provide a general road map of what’s required for success,” says Cox. “But without the level of talent needed to execute what’s been described, it’s merely wishful thinking.” He recommends either bringing in people from outside the industry or partnering with those who have the expertise.

Brown counts his four-person marketing department, headed by an experienced trade show marketer, as a “terrific luxury.” Two of the employees were recruited from the corporate world. “We’ve shifted from a shotgun ‘branding’ be-everything-to-everyone approach, to five individually targeted messages,” says Brown. “I would do a dozen if the education was targeted enough to have something real to talk about.” 

He also uses an ad agency for creative design and branding perspective, and this year has hired a public relations firm as well.


Private events
Although there are no statistics on the growth of private events, it appears to have been significant in the past five to 10 years. Once primarily produced by large companies, smaller mid-cap companies are in the game now, too. Typically thought of only as corporate trade shows, competition is coming also from user groups, technical conferences, mobile marketing (truck exhibits, road shows, mall tours, campus tours, etc.), product seminars, symposia, product launches, sports marketing and executive briefing centers. These events take square footage, attendees, marketing and travel budgets and more from traditional exhibitions.

Brown has been extremely proactive in addressing these events within the broadcast industry. He’s convinced several user groups to hold their meetings during his event. And he’s unified what were close to 10 individual exhibitor “press events” (receptions, product demos, etc.) held around the city into one Press Day, organized by his staff. And, perhaps most impressively, he’s gotten some pseudo-private shows back onto his show floor. “Sony’s a good example of a company that, although they exhibited, nearly 80 percent of their activities took place off the show floor,” says Brown. “They took a ballroom at Bally’s.” Now, thanks to Brown’s efforts, Sony is back with 30,000 square feet in the show, and about 8,000 square feet of meeting rooms in the convention center.

Brown is also aggressively pursuing exhibitors who put on private events and offering to partner or manage those events for them.

Future success
“There are three things we must focus on,” says Hacker of IAEM. “The customer, the customer, the customer. We have to be willing to throw out the template and create new concepts of what an exhibition is. Why not make show hours flexible? Or have private hours on the floor for key exhibitors to invite 200 of their best customers?”
Hacker would also like to see more packaged offerings. Package A might be a conference room with food service, and Package B might be booth space with drayage. “We need to redirect costs away from exhibitors and into show management budgets. We’re failing to invest in our future. There’s too much short-term profit thinking,” he says.

“We need to get back to basics,” adds Cox. “Attendees come to a show looking for a start on the purchasing path. Seventy-six percent are there for product awareness, 67 percent to evaluate and compare, 50 percent to narrow their vendor list and 32 percent to make a decision. This confirms that a show is as much a part of the sales process as anything.”

New studies from Exhibit Surveys and the Center for Exhibition Industry Research prove that face-to-face marketing is still highly valued by both exhibitors and attendees. But even as economic hurdles lessen and travel restrictions ease, many in the industry predict fewer shows will reap the rewards. Organizers like Brown who focus on the core issues of show fit and value will be best positioned for real market-share gain.

Donna Sanford, EXPO’s founder, is Group Publisher of EXPO and Vice President of Business Development for Atwood Publishing. She can be reached at 
dsanford@atwood.com.

Sidebar:8 Steps for Positioning your Show for Future Growth

If you only read one thing this week, make it Skip Cox’s white paper: Growing your Event in a Rapidly Changing Business Environment. You may not agree with everything he says, but you’ll find it very forward-thinking and thought-provoking. It’s available on the Exhibit Surveys Web site at www.exhibitsurveys.com.

1. At least as much should be invested in researching the industry the exhibition and 
convention serves as is invested in researching the event itself. 

2. Invest the time and expense it will take to develop and nurture new attendee or exhibitor segments. The key to success is “fit,” i.e., you can’t have an attendee segment without a matching exhibitor segment that has compatible needs or there is no value. 

3. The segmented approach to developing and nurturing new markets also applies to segments of current exhibitors and attendees. Ongoing value, “fit,” and market assessments are essential to maintaining or restoring the health and vitality of traditional attendee and exhibitor segments. 

4. Consider managing growth to control traffic density. Low densities will almost always result in low perceived value to exhibitors (and, to a certain extent, attendees) despite the quality of attendees on the exhibition floor. 

5. Exhibitor cost control needs to be addressed by all exhibition industry segments that rely on the exhibitor for revenue. The decline in perceived value (ROI) is being accelerated by rapidly rising costs.

6. “Audit” is a dirty word to some in the exhibition industry. But the tip of the iceberg is in view in terms of increasing demand for their use. The time is right for organizers to initiate the attendance certification process as standard practice. 

7. Exhibitions are competing more and more with private or corporate-run events for the face-to-face marketing dollars of corporations. As important (if not more so), private events and exhibitions are competing for attendees. This emphasizes the importance of taking a very segmented approach to analyzing, planning, executing and promoting exhibitions. 

8. Last, but not least, much of what has been outlined above (particularly in 1, 2 and 3) requires a level of marketing expertise not currently prevalent in the exhibition industry. There is a need for more organizers to attain this level of marketing expertise either by recruiting from outside the exhibition industry or by partnering with management firms or consultants who can legitimately demonstrate these capabilities.