March 2006
Marketwatch: Exhibitor marketing
Show organizers spend $156 per exhibitor on sales promotion
By Danica Tormohlen

Show organizers spent an average of $156 per exhibitor on sales promotion in 2005, according to the 101 show organizers who responded to an online survey conducted by EXPO Magazine and Exhibit Surveys Inc. in January 2006. Show organizers plan to spend 14 percent of their budgets on exhibitor sales promotion in 2006, compared with 13 percent in 2005.

On average, for-profits spend more on exhibitor sales promotion than associations. For-profits plan to spend 15 percent of their budgets on exhibitor sales promotion in 2006, compared with 9 percent for associations. Independents spend $157 per exhibitor on sales promotion, compared with $147 per exhibitor for associations.

Not surprisingly, show organizers spend the biggest portion of their exhibit sales promotion budgets on direct mail (42 percent). Fifteen percent is allocated to e-mail, 9 percent to print advertising and 8 percent to public relations. Associations rely heavily on direct mail. In fact, 57 percent of their exhibitor promotion budgets are spent on direct mail. For-profits distribute their budgets more evenly — 23 percent is spent on direct mail, 17 percent on e-mail, 14 percent on public relations, and 12 percent on print advertising.

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.

Average spending
How much did you spend on exhibit sales promotion in 2005? 


Promo budgets
What percentage of your budget did you spend/will you spend on exhibit sales promotion in 2006/2005?

How the budget is spent
In 2006, what percentage of your exhibit sales promotion budget will be spent on:

List rental	3%
Direct mail	42%
E-mail	15%
Print advertising	9%
Web advertising	4%
TV, Radio, Newspaper advertising	4%
Research	3%
Telemarketing	6%
Public Relations	8%
Other	6%

In-house promotion
Who handles exhibit sales promotion?

More on expoweb.com
Find additional exclusive Web-only content from this survey, including:
• Exhibit sales promotion by show type (association vs. for-profit)

Association
Allocation of Exhibit Sales Promotion Budget
List rental -- 3%
Direct mail (brochures, prospectuses, postcards, printing, postage, etc.) -- 57%
E-mail -- 11%
Print advertising -- 7%
Web advertising -- 2%
TV, Radio, Newspaper advertising -- 1%
Research -- 2%
Telemarketing (for list cleanup, lead generation, lead qualification, etc.) -- 6%
Public Relations -- 4%
Other -- 6%

In-House or Outsourcing of Exhibit Sales Promotion
In-house -- 100%
Outsource -- 0%

For-profit
Allocation of Exhibit Sales Promotion Budget
List rental -- 4%
Direct mail (brochures, prospectuses, postcards, printing, postage, etc.) -- 23%
E-mail -- 17%
Print advertising -- 12%
Web advertising -- 5%
TV, Radio, Newspaper advertising -- 7%
Research -- 4%
Telemarketing (for list cleanup, lead generation, lead qualification, etc.) -- 9%
Public Relations -- 14%
Other -- 5%

In-House or Outsourcing of Exhibit Sales Promotion
In-house -- 83%
Outsource -- 17%

• Exhibit sales promotion by show size (less than 100,000 NSF vs. more than 100,000 NSF)

Less than 100,000 NSF
Exhibit Sales Promotion Budget
 $35,000

Percent of Budget on Exhibit Sales Promotion
2005 -- 15%
2006 -- 15%

Allocation of Exhibit Sales Promotion Budget
List rental -- 3%
Direct mail (brochures, prospectuses, postcards, printing, postage, etc.) -- 44%
E-mail -- 16%
Print advertising -- 9%
Web advertising -- 3%
TV, Radio, Newspaper advertising -- 6%
Research -- 3%
Telemarketing (for list cleanup, lead generation, lead qualification, etc.) -- 4%
Public Relations -- 6%
Other -- 6%

In-House or Outsourcing of Exhibit Sales Promotion
In-house -- 100%
Outsource -- 0%

More than 100,000 NSF
Exhibit Sales Promotion Budget
$133,000

Percent of Budget on Exhibit Sales Promotion
2005 -- 12%
2006 12%

Allocation of Exhibit Sales Promotion Budget
List rental -- 3%
Direct mail (brochures, prospectuses, postcards, printing, postage, etc.) -- 40%
E-mail -- 14%
Print advertising -- 10%
Web advertising -- 4%
TV, Radio, Newspaper advertising -- 2%
Research -- 3%
Telemarketing (for list cleanup, lead generation, lead qualification, etc.) -- 8%
Public Relations -- 9%
Other -- 5%

In-House or Outsourcing of Exhibit Sales Promotion
In-house -- 88%
Outsource -- 12%


• Exhibit sales promotion by show revenue (less than $2 million in gross revenue vs. more than $2 million)

Less than $2 million in gross revenue
Exhibit Sales Promotion Budget
 $48,900

Percent of Budget on Exhibit Sales Promotion
2005 -- 15%
2006 -- 15%

Allocation of Exhibit Sales Promotion Budget
List rental -- 3%
Direct mail (brochures, prospectuses, postcards, printing, postage, etc.) -- 41%
E-mail -- 18%
Print advertising -- 9%
Web advertising -- 4%
TV, Radio, Newspaper advertising -- 5%
Research -- 2%
Telemarketing (for list cleanup, lead generation, lead qualification, etc.) -- 5%
Public Relations -- 6%
Other -- 6%

In-House or Outsourcing of Exhibit Sales Promotion
In-house -- 92%
Outsource -- 8%

More than $2 million
Exhibit Sales Promotion Budget
$123,500

Percent of Budget on Exhibit Sales Promotion
2005 -- 12%
2006 -- 13%

Allocation of Exhibit Sales Promotion Budget
List rental -- 4%
Direct mail (brochures, prospectuses, postcards, printing, postage, etc.) -- 43%
E-mail -- 13%
Print advertising -- 10%
Web advertising -- 3%
TV, Radio, Newspaper advertising -- 2%
Research -- 4%
Telemarketing (for list cleanup, lead generation, lead qualification, etc.) -- 7%
Public Relations -- 9%
Other -- 5%

In-House or Outsourcing of Exhibit Sales Promotion
In-house -- 91%
Outsource -- 9%


• Verbatim responses from respondents on their biggest challenges with exhibitor marketing
Amount of detail needed in a direct mail piece
Being able to reach the decision maker
Competing shows
Correct data
Declining sponsorship dollars
Difficulty in reaching exhibitors
Early reponse to questonnaires and receiving timely contracts
Educating exhibitors on the importance and benefits of joining an international trade fair as compared to commercial, bazaar type exhibits; it is so frustrating when exhibitors tend to choose exhibits that charge low participation fee (but disregarding the quality of the exhibit/event) 
Enough time to do it
Finding new companies to exhibit with us 
Finding the right person in the company to send the information to 
Getting in touch or front of the decision maker 
Getting it out early enough 
Getting the buzz out 
Getting the information to the correct department/person within a corporation.  Keeping a database current. 
Getting the prospectus to right decision maker 
Getting the vendors to respond to the promotional material 
Getting them to read what we send 
Getting to the right person 
Gettting a qualified sales rep on board who has an updated list he can work on for our show 
glut of media outlets 
Having enough time to contact potiental (new business) exhibitors 
Keeping the database clean 
Keeping the database current 
Keeping up integrity of contact data
Lack of value in the exhibitors eyes. They expect us to do the marketing and get the exhibitors to their booths. We get them to the show, they should take ownership of getting them to their booth. 
Lateness of decision making 
Managing accurate lists 
Most exhibitors rely soley on show producers to market the show and do not do any of their own marketing to enhance what we are already doing. Mailing out a postcard to their "hot prospects" would be a great tool- we even provide the postcard for free- but they do not get sent out. 
New fax laws have made it harder and more expensive to reach the right person. Direct mail costs are now significantly higher. 
Not communicating to all decision makers 
Not enough hours in the day
Not reaching the customer
Obtaining good lists to prospect 
Prospect acquisition
Reaching new clients 
Reaching the right person - the true decision maker 
Slow decision making process of exhibitors 
Slow response
The prospects just put it aside and do not bother reading the information. 
There is never enough money to do it correctly - associations don't always realize the necessity of "dialing" for dollars! 
We are fortunate and don't have to adverstise to fill our hall.  We have too many exhibitors who want to exhibit at our show.  A good problem to have but need to balance the ratio of attendees to exhibitors and that frustrates many of our exhibitors.
When cold calling/prospecting: finding the correct contact within the firm who can make the decision.