How Large Show Attendees & How Large Show Attendees & Exhibitors are ChangingExhibitors are Changing

Large Show Roundtable • San Diego 2008

Michael Hughes

Associate Publisher & Director of Research Services

Themes

• AttendeesAttendees

• Exhibitors Exhibitors

• International International

• Growth & OutlookGrowth & Outlook

AttendeesAttendees

How Attendees are Changing at Large Shows

• Committing closer to the show dates. Not staying as long. Better informed before the show.

• More competition for time and resources.

• Demographic changes. Boomers retiring; Generation X and Y emerging.

• “Attendees today are more specialized.”

• Placing increased importance on value and education.

Source: Tradeshow Week Research

Exhibitors on Today’s Attendees

Attendees arefact-finding Attendees are

there foreducation

Attendees aredecision-makersand are ready to

buy

76%

44%

35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Buyers are sizing-up and comparing booth staff “behind the brands”.

How Important is “Extending the Relationship” After the Event? How well is this done?

Extremely important

Done "Very Well"

87%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Source: Tradeshow Week, SISO & JEGI

DISCONNECT

How Show Producers Extend the Relationship with Attendees and Exhibitors Year-Round

Source: Tradeshow Week, SISO & JEGI

E-NewsletterMagazine

Exh-ProductSearch Social Media

Network BlogsRSS

78%

54%

34%

29%

24%

12%0%

10%

20%

30%

40%

50%

60%

70%

80%

Web & Digital Media Challenges & Opportunities

Challenges: • Compelling content• Driving traffic • Determining ROI; revenue/cost model• Sufficient resources: time, people, budget

Opportunities:Opportunities:• Booth sales; registration • Building deeper relationships with community• Effective matchmaking and social networking• New revenue streams and partnerships• Targeting new participants

Source: Tradeshow Week, SISO & JEGI

ExhibitorsExhibitors

80% of exhibitors say:

““The job is The job is getting more getting more

complex.”complex.”

How Exhibitors Select Events Today

DemographicsTradition

Competitorsthere Lead

gathering opp. Attendance#'s ROI-ROO opp.

70%

60%

55%

45%43%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Exhibitors need more attendee data; this is much more important than perceived ROI-ROO

Source: Tradeshow Week Research

Source: Tradeshow Week Research – survey of corporate exhibitors

More Pressureto Track ROI Do You Track

ROI?

73%

35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Is there more pressure to prove ROI? Yes, we track ROI?

DISCONNECT

Source: Tradeshow Week Research

Events % ofTotal

MarketingBudget

Total Sales %Resulting from

Events

31.4%

13.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Event cost as % of total marketing budget? Estimated total sales resulting from events.

• Other TSW surveys have found this % closer to 20%.

DISCONNECT

Source: Tradeshow Week Research

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

8 9 10 = Highest Value

Top 3 Box: Based on a 10 point scale: 10 = Highest Value; 1 = Lowest

87%

72%

63%

41%

36%31%

16%14%

4%

51%

Perceived Value of Marketing Media

DISCONNECTThis is a survey of exhibitors. ABM has surveyed higher-level marketers

and events have scored #1.

Exhibitor Survey Question: Have any event marketing funds

been shifted to other marketing mediums in 2007?

Source: Tradeshow Week Research – survey of exhibitors

The Web is the Primary Competitor

36%

64%

Yes

No/Don't Know

Which mediums received shifted event marketing funds?

1. Web Site and Email Marketing 79%

2. Direct Mail and Catalogs 26%

2. Trade Magazines 26%

4. Sales Force 21%

4. Telemarketing 21%

ExhibitionsHigher ROI Private

EventsHigher ROI

Same ROI

34%

28%

38%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Source: Tradeshow Week Research

Do Exhibitions or Private, Corporate Events Provider Higher ROI?

MoreFewer

Same Number

31%

12%

56%

0%

10%

20%

30%

40%

50%

60%

Source: Tradeshow Week Research

Plans to Participate in Non-Traditional Events in Next Two Years?

Source: Tradeshow Week Research

Increased Tradeshows;

Decreased Corporate, 19%

No Change, 68%

Increased Corporate; Decreased

Tradeshows, 13%

Has Corporate Event vs. Tradeshow Budget Allocation Changed?

Source: Tradeshow Week Research – survey of show managers

Training is"Very

Important" or"Important"

Do YouProvide

Training?

77%

35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Show Producers: How important is exhibitor training? Yes, we provide training?

DISCONNECT

InternationalInternational

Over the Next Five Years, U.S. Show Producers Would Like To…

Source: Tradeshow Week Research

43% 43%

24%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Organize showsoutside the US-

Canada

Include moreoverseas pavilions in

domestic shows

Work as a partnerwith overseas

organizer

Organize pavilion(s)of US exhibitors in

foreign shows

International Markets of Most Interest• China, and other Asia • Dubai• India• Other Middle East• Eastern Europe • Canada, Mexico and Other Latin America

% of Large U.S. Show Organizers with International Events vs. % of U.S. Exhibitors Going Overseas

Large US Shows w/ Intl.

US Exhibitors w/ Intl.

20%

31%

0%

5%

10%

15%

20%

25%

30%

35%

Source: Tradeshow Week Research – U.S. exhibitors that exhibited in at least one show overseas in 2007

DISCONNECTThe average for all show

producers is 15%.

Growth & OutlookGrowth & Outlook

Source: Tradeshow Week 200

3.2%

2.6%

1.5% 1.4%

3.5%3.1%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

NSF ExCos Attend

Tradeshow Week 200 Growth 2005 and 2006

Source: Tradeshow Week Research – 75 large shows held in 2007 with 2006 comparison

3.1%

1.4%

2.9%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

NSF ExCos Attend

2007 Preliminary Growth Rates: Large Shows in Sectors Represented by LSR January 2008 Participants

NSF ExCos AttendAmusement & Entertainment 5.8% 3.8% 8.4%

Automotive & Trucking -3.2% -3.5% 0.4%

Aviation 1.0% 1.7% -5.8%

Beauty & Hair Care 10.6% 13.7% 3.0%

Building & Construction 3.8% -0.8% 0.3%

Graphics and Printing 5.0% 0.1% 1.4%

Hobbies & Crafts -1.7% -6.0% 8.4%

Source: Tradeshow Week Research – 75 large shows held in 2007 with 2006 comparison

2007 Preliminary Growth Rates: Large Shows in Sectors Represented by LSR January 2008 Participants

Slide #1 of 2.

NSF ExCos AttendInformation Technology 5.1% 2.9% -1.9%

Manufacturing & Industrial 1.7% -0.2% 1.8%

Media 3.5% 4.8% 29.9%

Medical & Health Care 1.9% 0.1% 5.6%

Retail 1.8% 3.2% 1.5%

Safety & Security 6.9% 6.5% 3.1%

Source: Tradeshow Week Research – 75 large shows held in 2007 with 2006 comparison

2007 Preliminary Growth Rates: Large Shows in Sectors Represented by LSR January 2008 Participants, cont.

Slide #2 of 2.

Slowdown1 – 2 Years

Expansion3 – 4 Years

Peak

Recovery2 – 3 Years

Where is industry in the cycle today?

Exhibition Industry Growth Cycle

Recovery:• Attendance grows faster than net square footage• Slow merger and acquisitions market• Negative national and local press

Expansion:• First attendance grows faster than net square

footage, then at about the same rate• Strong corporate travel and meeting spending• Hotel rates rise• More business-to-business events launched• Positive press – “events are back”

Peak:• Net square footage grows increasingly faster than

attendance• Strong exhibition and event mergers and

acquisitions• Strong corporate travel and meeting spending• Harder to launch business-to-business events• Strong convention hotel development

Slowdown:• Net square footage demand increases faster than

slowing attendance growth• Marginal new shows cancelled or postponed

Source: Tradeshow Week Research

Key Economic Indicators

• Corporate Profits

• Consumer Spending

• Unemployment

• Hotel Occupancy and RevPar

• Corporate Meetings

• Public Companies in Your Industries; Public Companies in the Exhibition/Events Industry

Today’s Positive Economic Factors

• International Growth and Weak Dollar

• Slowing M&A Environment, Reduces Consolidation

• Show Management Pricing Power

• “Still-buoyant lodging sector” (Financial Times, November 29th)

• Marketers are in Turmoil; Hard to Reach Buyers

• Significant Change Driving Attendance, Education Needs

Q&AQ&A

About Michael Hughes

• Associate Publisher & Director of Research Services, Tradeshow Week

• As head of Tradeshow Week Research, Michael produces proprietary research, consulting and marketing projects for leading exhibition industry organizations around the world. He works closely with exhibition industry leaders, corporate exhibitors, entrepreneurs, investors and real estate developers to provide strategic information, analysis and recommendations. His client’s include nearly all industry leaders in every segment of the industry as well as leaders in the investment and consulting community. Michael is frequently quoted by major newspapers and national magazines such as The Chicago Tribune; The Los Angeles Times; Newsweek; The New York Times; and The Wall Street Journal. In January of 2003, he was selected as a “Person to Watch” by min’s btob newsletter. Since 1999, Michael has been a presenter at over 70 industry conferences and meetings. He is also the research director and editor of Tradeshow Week’s syndicated Executive Outlook research surveys, and he writes Tradeshow Week’s “Industry Analysis” column and blog.

• Tel: (480) 483-4471• Email mhughes@reedbusiness.com

• www.tradeshowweek.com/customresearch

• Associate Publisher & Director of Research Services, Tradeshow Week

• As head of Tradeshow Week Research, Michael produces proprietary research, consulting and marketing projects for leading exhibition industry organizations around the world. He works closely with exhibition industry leaders, corporate exhibitors, entrepreneurs, investors and real estate developers to provide strategic information, analysis and recommendations. His client’s include nearly all industry leaders in every segment of the industry as well as leaders in the investment and consulting community. Michael is frequently quoted by major newspapers and national magazines such as The Chicago Tribune; The Los Angeles Times; Newsweek; The New York Times; and The Wall Street Journal. In January of 2003, he was selected as a “Person to Watch” by min’s btob newsletter. Since 1999, Michael has been a presenter at over 70 industry conferences and meetings. He is also the research director and editor of Tradeshow Week’s syndicated Executive Outlook research surveys, and he writes Tradeshow Week’s “Industry Analysis” column and blog.

• Tel: (480) 483-4471• Email mhughes@reedbusiness.com

• www.tradeshowweek.com/customresearch