After cutting event budgets by over 20 percent in 2009, this year has been a period of stabilization for corporate exhibitors. But corporate marketers are still being cautious about their investment in conventions and exhibitions, according to recent surveys we've conducted via Red 7 Media and EXPO.

Here are statistics that speak to the slow rebound:

• Over 30 percent of exhibitors that cut shows in 2009 added some back to their 2010 schedule. Exhibitors are focusing on shows in their core industry sectors that reach targeted audiences. They are less likely to stay with a show in a secondary or tertiary market that doesn’t deliver quality results.

• Most of the budget cuts this year have been to sponsorships, booth staffing and travel, and exhibit space. In fact, over 50 percent of exhibitors say these are the three areas that have been the most impacted.

• Show producers tell us in surveys that they expect their overall 2010 gross revenue to increase by 2.3 percent and 2011 revenue to grow by 3.2 percent.  This suggests a slow rebound in exhibitor spending as 75 percent of show management revenues come from exhibitors.

Another positive trend is that surveys of exhibitors have found that a majority are getting more leads and better results in 2010 compared to 2009. And only 20 percent of exhibitors think their companies will participate in fewer tradeshows over the next two years.

The rebound is real, but a significant increase in corporate marketing spending at tradeshows is not expected in 2011, which is likely to be another year of a slow recovery. The clear long-term challenge for tradeshows is that about 30 percent of corporations are shifting some of their event budgets to other mediums, with digital marketing and the Internet receiving most of these funds. 

Exhibitor behavior has changed; today’s exhibitors are:

• Requiring more information from show producers on ROI.
• Waiting longer to reserve exhibit space.
• Bringing less staff to events.
• Minimizing spending via better pre-event planning.

Leading companies also require more value from show producers such as “more touch points with attendees versus the traditional exhibit booth format” according to one show producer. Top exhibitors are taking advantage of the downturn and requesting more customized sponsorship and package programs that guarantee face-to-face interaction with targeted groups or via other marketing service

It is possible that corporations have made a mistake by cutting tradeshow spending back so significantly in 2009 and by remaining cautious in 2010. The fact is that attendance quality has held up well at most conventions and tradeshows. Top executives and business owners feel they have to go to shows to stay connected and find out what’s really happening in their industries during this challenging period. 

Michael Hughes is managing director, research & consulting at Red 7 Media, EXPO magazine's parent company.