Anecdotal evidence – backed up by the latest statistics – suggests that many face-to-face trade shows and events are thriving, and continue to be as important to businesses as they always have been. So despite the effects of the current economic climate, as well as the ease with which we can now communicate across cyberspace (which in theory should both be propelling face-to-face events on a downward slope towards oblivion), it appears that business brands are still just as keen to exhibit at shows and visitors are still just as keen to attend.
A study carried out by ICCA (The International Congress and Convention Association), the tradeshow organiser IMEX Group and trend analysts Fast Future last year, which surveyed 1125 respondents from 76 countries, released its first set of results in March 2010. Only one per cent said they would not be attending live events in 2020, while 74 per cent said that their organisation would maintain interest in live events. And although the most recent figures from the AEO (Association of Events Organisers) show that attendance for trade shows was down in 2008 compared to 2007, the figure is small with a decline of only 2.4 per cent. Furthermore, when attendance figures are broken down by industry sector it can be seen that trade shows in some industries are, in fact, thriving. For example, the catering industry saw an increase of 44 per cent in attendance to its trade shows; industry and manufacturing saw an increase of 21 per cent and generic business-to-business saw an increase of 9.2 per cent in attendance.
Event success linked to market activity
For some industries, face-to-face events are still going strong, but it seems to very much depend on the market in which the show resides. Scott Bannerman, director of Venture Marketing Group – which organises exhibitions in the franchise, learning and recruitment, and learning and development sectors – agrees that it is impossible to generalise when it comes to face-to-face events. “It’s completely dependent on the market the show operates within,” he explains. “Certain shows have grown and will continue to do so, whilst others may have found it harder to sustain audience levels. It’s all about demand within that market.”
Julian Cave, managing director of Pyramid Design, which designs and builds trade show stands, agrees that the success of an exhibition is very much dependent on the industry it is in. “When I first started 25 years ago, the Which computer show was a massive and very successful event at Earls Court. This was when sales of PCs were going through roof and there was huge expansion in this industry,” he says. “Fifteen years later, the show evaporated. It was because the entire market had moved on and just didn’t have the audience anymore.”
Unfortunately, the recession has also played its part in affecting the fate of some trade shows. Austen Hawkins, who is the chief executive of the AEO, as well as of a newly formed events marketing body, FaceTime, says that like every other type of media, exhibition sales have shrunk. “It’s inevitable because marketing budgets have been cut. However, the exhibitions industry has fared better than most,” he explains. He adds that when the recession first hit, it appeared that visitor numbers actually increased, “People were worried and desperate to meet people, so they rushed to shows. However, for many industries, those figures came down again as managers started looking at budgets and didn’t want staff travelling out of the office. Now, it seems those numbers are going up again though.”
James Drake-Brockman, event director at UBM’s Internet World (UBM also runs TFM&A) agrees that trade shows are not recession-resistant. “The economy has affected everything from mortgages to the cost of holidays so of course we’re not immune to that and we’ve seen a bit of a wobble,” he says. “But we’re lucky because the digital industry is the one form of media that didn’t shrink last year, so we’re in a good market and pre-registration figures for this year’s show are looking good.” He adds that this February’s TFM&A was “really busy with a 10 per cent increase in attendance and rebookings were good.”
Recession shakes up shows
If anything, the recession has only served to push organisers to create better shows to attract exhibitors and attendees. “It seems to have created an even stronger emphasis on ensuring quality and delivering results,” agrees Bannerman. “Those trade shows that have continued to be successful are those that have worked hard on ensuring that everything they do is of a high standard; organisers have to focus on innovating and providing good reasons for staff to take time out; it’s about offering value and quality,” he says.
Lilah Walker, director of events at Marketing Options, a marketing and event management agency, agrees. “There has been a shift in the last six months and trade shows are acknowledging that the recession has had an impact. Previously, they were reluctant to reduce rates and provide enough additional activity in sponsorship packages, for example, but this year, they have become a lot more flexible. They are also offering much better quality content, which is far more focused and relevant.”
The need for good education at trade shows is key, adds Drake-Brockman, who says Internet World’s big pull is its seminar programme, which features 20 keynote speakers and decision-makers from big brands talking about the latest trends and what they’ve been up to. “That is what provides the value and differentiates you from the competition.” He puts strong attendance in the last couple of years down to its great content. “You can’t just hope people will come now – you’ve got to work hard to get people through the door. IMEX Group is another trade show organiser that is working hard to get people through the door. It runs one show in Frankfurt for the international meetings industry and has recently launched another show in Las Vegas. CEO, Carina Bauer, says that because time and money are in short supply, when people visit a show they want it to be tightly focused. “It’s getting tougher out there – for any face-to-face event, attendees are really questioning if it’s worth going – you can’t just cross your fingers and hope they will turn up.” She says IMEX makes sure they do a lot of pre-show marketing, for example, providing exhibitors with a list of buyers coming to the show as well as inviting 3800 of the top relevant buyers from around the world. They pre-qualify them and organise their itinerary, making sure that they spend double the length of time on the show floor, also encouraging them to make appointments with exhibitors in advance through the IMEX system. Bauer adds that buyers are also able to send out requests for proposals to suppliers they are due to have meetings with through the system, so then both parties are able to prepare properly for the meeting. “This means that they have all the basic information they need and the face-to-face meeting is far more effective. It’s all about getting the best ROI for all parties – and then they’ll return to the event the following year.”
Exhibitors must up their game
It’s not just the exhibition organisers that need to up their games, the exhibitors themselves also need to rethink their strategies, says Hawkins. “Exhibitors aren’t making the most of the power of exhibitions when they get there. Most of us use agencies when it comes to PR or media buying, but not for exhibiting at trade shows. This can affect the performance of the brand at a show.” Hawkins recalls that on one occasion, while walking down the aisles at a trade show, he noticed that out of 100 stands only seven exhibitors bothered to say hello. “This is a real issue and there’s much more value to be gained out of exhibiting at a show then is currently being achieved,” he says.
Walker agrees. “It’s not enough just to put up a stand and hope for the best. Exhibitors are beginning to realise that they can’t churn out the same messaging at every trade show they exhibit at,” she says. “It’s about tailoring that message to the audience and providing solutions to their specific pain points as well as ensuring that the sales team are fully briefed on all these issues so they can drill down to the information that delegates really need. Content is king and any exhibitor needs to provide visitors to its stand with relevant, smart solutions.”
Jason Sullock, customer marketing manager at Sage, which recently exhibited at TFM&A, backs this thinking up. He says that he has seen a huge change over the last two to three years in how brands are exhibiting at shows. “Ten years ago, a brand’s objectives would be to gain a number of leads or sales at a show. That has completely changed. Now, people don’t go to events to be sold to – they can be sold to at any time. They go to events to collect information and discover new products, technology, the latest fashions – they go to touch and feel the products, or talk about the service to someone. If you set up a stand now with the aim of getting leads and sales, you’re likely to be disappointed.” He says that now, when Sage exhibits at a show, it has very different objectives. For example, rather than planning to bring in 200 leads and 50 sales, objectives may be to video a certain number of Sage customers providing testimonials, or video them answering questions on how they deal with certain business issues, which can then be used in case studies or on the web.
As more brands understand the value in engaging with their customers on a stand, it seems that the size of the stand has become less important. “Stand sizes are shrinking – gone are the days that IBM and Microsoft take enormous stands. There is far less muscle-flexing and more focus on getting ROI,” says Drake-Brockman. Walker agrees. “At the last four exhibitions I’ve run, all exhibitors have downsized their stands. However, there are more sales people on there than ever before,” she says. “It’s the people on the stand now that are providing the highest value, rather than having an all-singing, all-dancing stand.”
A need for real-world engagment
With the advent of the digital revolution, and the ease with which those sales people could communicate with potential customers virtually, is there really a need for face-to-face events? “There is the assumption – made erroneously – that digital is wiping out the need for face-to-face meetings,” says Drake-Brockman. “In fact, it’s more important now than it ever was because we go out and meet people much less frequently than we used to.” He adds that although Twitter as a virtual communication tool, has really taken off, Tweet Ups – real-world, face-to-face meetings between people who talk on Twitter – are increasingly popular.
“Our stands are still mobbed,” agrees Sullock. “Some products or services just don’t translate well over the web – you have to demonstrate them person to person – and then you can see the lightbulb switch on when they get the idea. You can only do that face-to-face. People still like to see the whites of your eyes when they’re doing business.” Bannerman agrees. “Companies are finding that within the digital age, people still want to actually talk to people about their products and services. Very few people will make an investment without seeing the product or service in the flesh and trade shows allow face-to-face interaction where a lasting, meaningful impression can be left.”
This can be borne out by research undertaken by events marketing body FaceTime. Around 1200 visitors were asked for their opinions before and after attending one of four trade and consumer shows between November 2009 and January of this year. Before a show, 32 per cent of visitors viewed events as the ‘best marketing, as you can interact and compare to others’, however this rose to 74 per cent post-show; 36 per cent of visitors said attendance ‘makes it easier to decide to buy’ – after an event, this doubled to 76 per cent; and 37 per cent of visitors believed a trade event would be the ‘best way to meet new contacts’, which rose to 71 per cent post-event.
So face-to-face events are not being shunned in favour of virtual meetings – in fact, digital technology is increasingly being used to enhance exhibitor and visitor experiences – particularly in helping them to meet new contacts. “It’s all about engagement – not only with a sales team, but also with fellow delegates,” says Walker. “And increasingly, shows are now using social media tools before, during and after events, to help this networking happen. It keeps the conversation flowing and it’s really emerging as a popular use of social media.” She says that the possibilities are endless – from creating groups or communities on LinkedIn for people planning to attend a show so that they can find out who’s attending and when, to using hand-held devises at the show to pinpoint where people are located.
“They want to hear from their peers – that is key now – it enables them to arrange meetings and network amongst each other,” adds Walker. “They don’t only want to go and meet suppliers, they also want to learn from each other and take away multiple things from the day – from the keynote speaker at a seminar, to what a supplier might offer, to learning what fellow delegates may have picked up. There are now more events taking place outside of the core event such as drinks, lunches and even speed dating – all planned using social media.”
An innate human need for face-to-face contact is something that will keep trade shows up and running – without real social interaction, business deals and networking can become faceless, emotionless activities. But as technology advances, and as we climb our way out of the recession, rather than diminishing this key aspect of events and trade shows, it looks like it will throw up new and innovative ways to enhance it. We may marvel at the latest virtual technology, but nothing will replace simple face-to-face contact.
