ASAE Final Rev. - Ducate Tradeshow Solutions

Report
Strategic
Considerations
Associated with Your
Trade Show
Douglas L. Ducate
Brian E. Tully
To improve is to change;
To be perfect is to change often!
Winston Churchill
ASAE University
FHRBO Conference
May 28-29, 2014
 “If we do nothing to reform and re-energize our
industry we shall find like a pond of water we
cannot stay still. We are either growing or
shrinking. And if we don’t embrace change in a
spirit of creative disruption and consider the new
models, new formats and new owners, we risk
being swept to one side by the instabilities of the
age. And our events will be perhaps worth seeing,
but not worth going to see.”
ASAE University
FHRBO Conference
May 28-29, 2014
U.S. History
 Late 1950s – Interstate highway system
completed and commercial introduction of
the jet airplane
 1959 – Las Vegas-Rotunda + 90,000sf exhibit
hall
 1960 – McCormick Place first large facility
 Real expansion in 1970s makes industry 40+
years old
 CEIR 2000 Census identified more than 14,000
meetings with exhibitions held each year
 Total U.S., Mexico & Canada 14,541
 Number of U.S. exhibitions dropped from 11,094
in 2000 to 11,041 in 2010 or -0.5%
 In U.S. 9,000+ business-to-business exhibitions
 67% owned by associations
 Exhibition business in U.S. a cottage industry
 More than 50% of all the exhibitions held in the
entire world
 Average size in U.S. 47,984 NSF
ASAE University
 Average space buy 187 square feet
FHRBO Conference
May 28-29, 2014
The Exhibitions
 Trending toward smaller, “cozier” events
 Precipitous drop in “mega” shows
 2008
 2010
 2012
1 Million + NSF
(100,000 NSM)
8
3
5
500,000 -999,999 NSF
(50,000 NSM)*
30
20
24
*Trade Show Executive
CEIR Index 2000-2007
CEIR Index 2013 Overall Performance
115
110
105
100
95
2013
2012
Total
2011
REV
ATT
2010
EXH
2009
NSF
2008
2007
2006
2005
2004
2003
2002
2001
2000
90
Geometric Averaging
(1)
INSFt , j  INSFt 1, j  [(1  pch(SNSFt , j ) /100]
0.25
0.25
0.25
(2) TINt , j  INSFt ,0.25

IATT

IEXH

IREV
j
t, j
t, j
t, j
(3)
Mi j = f (Oj, FDj, EMj, Zj, RCE, TE)
CEIR Index Trends
8
6
4
6.9
5.0
2.8
2.6
2.2
2.1
1.8
%
2
1.5
1.5
1.0
0
-0.4
-2
-0.7
-0.8
-1.2
-4
-6
-6.1
-8
15
The Reality of Where We Are
 CEIR Index was down a record nine consecutive
quarters through Q2 2010.
 Index turned positive Q3 2010 and has remained
positive thru Q1 2014.
 In 2009 all 14 sectors had negative growth; 2010,
five sectors had turned positive; and in 2013,
9 of 14 positive.
ASAE University
FHRBO Conference
May 28-29, 2014
The Reality…, Cont’d.
 Losses in 2008/2010 combined 15% compared to
2001/2002 loss of 5%
 Overall back to 2000 level
 Hoping for 2% growth but experiencing 1%
 CEIR Index Overall down -0.3% from 2000 through
2013
ASAE University
FHRBO Conference
May 28-29, 2014
The Organizers
 Social Networks - a kayak versus a car
 Wifi/GPS attendee monitoring creating
traffic “heat map”
 Floor map sensors
 QR Code attendee games like scavenger hunts
 Interactive video walls
ASAE University
FHRBO Conference
May 28-29, 2014
Questions
* How does your show compare to these trade event
trends?
* Has your organization made operating adjustments
in response to these trends?
* Have attendees/exhibitors changed their
support of your show?
* Have new formats, competitors, technologies
influenced your growth prospects?
ASAE University
FHRBO Conference
May 28-29, 2014
So what does all this tell us?
 Tradeshows are a RISK business.
 Past performance is no guarantee of future
success.
 Digital is competition for face-to-face.
 Technology advances require organizer
investment.
 For-profit organizers have more resources to
deliver a personalized experience.
… And More
* Attendees and exhibiting company trade
event requirements are more narrowly
defined and come with greater expectations.
* Technology investment and more experienced
marketing staff are required to keep your
event competitive.
ASAE University
FHRBO Conference
May 28-29, 2014
Future Show Requirements
*Database segmentation
*Staff skilled in relationship selling
*Year-round engagement with communities
*Technology-driven personalization tactics and tools
*Measurable-value driven features
ASAE University
FHRBO Conference
May 28-29, 2014
Questions for your Association
 Is the trade show component of your event a core
business?
 Is the leadership willing to invest human and
monetary resources in it to create personalized,
segmented experiences for attendees and exhibitors?
 Would your association organize the trade show if it
weren’t for the money?
 Can your association show be counted upon to be an
ASAE University
industry leading event?
FHRBO Conference
May 28-29, 2014
More Questions
Is your show vulnerable to ……
*
*
*
*
*
*
A competitive event
Regulation/de-regulation
Globalization/regionalization
Proprietary events
Web-based solutions
Generation gaps
ASAE University
FHRBO Conference
May 28-29, 2014
PEC™
 Partner – collocation, merger, hire management
company
 Expand – launch regional or vertical events,
consider international arena, widen scope of current
event (NAICS codes)
 Convert – sell all or a portion of the exhibition
component of your event
ASAE University
FHRBO Conference
May 28-29, 2014
Managing Risk







Identify current market position
Complete a competitive set assessment
Estimate prospect of future growth
Evaluate real financial performance
Estimate required future technology investment
Evaluate international potential
Appraise the event’s market value
ASAE University
FHRBO Conference
May 28-29, 2014
 “We face long years of profound changes …the
only policy likely to succeed is to try to make
the future …to try to make the future is highly
risky. It is less risky, however, than not to try to
make it.”
 Peter Drucker
Management Challenges for the 21st Century
ASAE University
FHRBO Conference
May 28-29, 2014

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