The Spend Decision Analyzing How Exhibits Fit into the by ypy11747

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									           The Spend Decision: 
    Analyzing How Exhibits Fit into the 
        Overall Marketing Budget
   How the event universe is spending its limited 
                    resources

    Presented by: Nancy Drapeau, PRC, Principal 
          Drapeau Research Services, LLC




 Presented by:

                                  •   Principal of Drapeau Research Services,
                                      LLC, which launched in September 2008.
                                  •   Has 17+ years of primary market research
                                      for clients spanning a range of industries.
                                  •   Over a decade in the trade media sector –
                                      conducting domestic and global studies as
                                      manager of market research at Diversified
                                      Business Communications.
                                  •   Holds professional research certification
                                      (PRC) with the Marketing Research
Nancy Drapeau, PRC, Principal         Association and is a Nielsen/Burke Institute
Drapeau Research Services, LLC        trained focus group moderator.
       www.drapeauresearch.com




           Overall Information Objectives
• Provide an overview of why companies exhibit, activity from 
  2007 thru 2009 and projections for 2010:
   –    Most important objectives for exhibiting and success metrics;
   –    % of marketing budget allocated to business‐to‐business exhibitions;
   –    # of exhibitions and average booth size;
   –    Reasons for 2009 activity and plans for 2010;
   –    Breakout of exhibition spending by expense category;
   –    Exhibit property plans for 2010.
• Top line findings are discussed in this webinar.  A report is 
  available that provides in‐depth analysis.
                                                                                          Methodology
     •          An online survey was fielded in late July through end of August of 2009.
     •          Sample:
                    – 4,500 randomly selected exhibition executives from Exhibitracs’ national
                      database; and
                    – Select individuals from the databases of National Trade Productions’ TS2
                      Exhibition, Event Marketing Institute (EMI) and GES Expositions.
     •          Qualifications to participate:
                    – Company participated in 1+ b-to-b exhibitions in past 2 years;
                    – Annual revenues of $10 million+;
                    – Executive is involved or a final decision-maker in deciding whether to exhibit
                      as well as for other promotions/advertising decisions.
     •          Results are based on responses of 236 executives, many of whom are in
                marketing or exhibition managerial roles. There is a representative mix by
                company size and business sector.




   Most Important Objectives for Exhibiting
Most prevalently rated objectives for importance indicate a blending of importance placed on
key sales activities and company promotions.


                                                                                        Meeting with existing customers                                                     96%

                                                              Reaching/identifying new customers/sales leads                                                                    94%

                                                                               Building product/company  awareness                                                              93%

                                                               Launching/promoting new products or services                                                                      86%

                                                          Need to be there ‐ have presence in industry event                                                                      83%

                                                              Network with colleagues/industry professionals                                                                          75%

                                                                                     Shortening the cycle to close a sale                                                               60%

                                                                                      Participate in educational offerings                                                                  48%

                                                                                                              …
                                                                   Research and development  (e.g. test market                                                                                45%

                                                                                                        Closing sales at the show                                                              37%

                                                         Identify distributors for company products/services                                                                                    34%

                                                                                                                Recruit employees                                                                     8%

                                                                                                                           Other                                                                      8%

                                                                                                                                     0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

                                                                                     NA            Not at All/Not Important                Neutral              Important/Very Important




Measuring Success – Sales Metrics Rule
   Both sales and general brand promotions metrics are used to evaluate success. However
   the single-most used or important metric to key stakeholders is apt to be sales-related.


                                 Metrics for Evaluating                                                                                          Single-Most Used/Important
                                 Success of Exhibiting                                                                                           Metric to Key Stakeholders
                          One or more of sales metrics                                                            90%

       Number of new, qualified sales leads generated                                                       80%
                                                                                                                                    # of new sales leads                                                         38%
 Number of sales closed after the show from new sales …                                       60%
                                                                                                                            #  of sales closed after the …                                                 28%
               Number of existing customers met with                                          59%
                                                                                                                           Increased brand awareness                        7%
       Number of business cards collected/registration …                       32%
                                                                                                                           # of existing customers met …               6%
                   Number of sales closed at the show                    25%

    One or more of marketing/communications  metrics                                                        81%
                                                                                                                             # of sales closed @ show                 4%

                           Increased brand awareness                                              61%                          Booth staff assessment                 4%

                     Meeting with key opinion leaders                                 43%                                                 # of bus cards …        3%
                               Booth staff assessment                           35%                                         Meeting with  key opinion …          2%
                            Number of press mentions                      28%
                                                                                                                            Number of press mentions             2%
                                                Other         3%
                                                                                                                                We don't measure/NA                        6%
  We do not formally measure the success of exhibiting        6%
                                                                                                                                                  Other          2%
                                                         0%        20%          40%         60%           80%      100%
                                                                                                                                                           0%                   10%           20%          30%   40%
           Timeframe Sale Needs to Close For
                 Exhibition to Get Credit

                    N=142
                                                                                                         For those who use sales closed
                                                                                                         after an event as a success
                                                                                                         metric, nearly three quarters
                                                    21%                                                  (72%) of executives say the sale
                       28%
                                                                             Within 3 months             needs to close within nine
                                                                             Within 6 months             months of the event.
                                                                             Within 9 months

                                                            25%              Later than 9 months

                            26%




              Exhibition Preferences by Distance
                    Traveled by Attendees
           Most executives (75%) do not define their business-to-business exhibition
           preferences by how far an attendee needs to travel to the show.
                                                                                                                            • a company’s
                                                                                                                              regional target
                                We have no preference                                              75%
                                                                                                         Explanations for     markets – whether
                                                                                                            having no         global, national or
                                                                                                            preference        regional;
At least half of attendees come from a 400+ mile radius                                                    suggest that     • the profile of a
                                                                       15%
                       of the venue                                                                          exhibition       ‘qualified target
                                                                                                         preferences are      audience’; and
                                                                                                            driven by:      • the inventory of
 At least half of attendees come from a 200 mile radius 
                                                                  7%                                                          available business-
                        of the venue
                                                                                                                              to-business
                                                                                                                              exhibitions to reach
At least half of attendees come from a 50 mile radius of                                                                      them.
                                                                 3%
                        the venue


                                                            0%         20%    40%      60%         80%




                Overall Marketing Channel Spend
                                                                                            % 
                                                                              2008 2009 Change                Business-to-business
                                                                              N=173 N=155                     exhibitions, on average,
        Business‐to‐business exhibiting                                       35.8% 33.9% ‐1.9%               represent about 35% of a
        Trade online marketing ‐ website, SEO, etc.                           8.3% 10.0% 1.6%
                                                                                                              company’s marketing
        Trade magazine advertising                                            11.1% 9.7% ‐1.4%
        General online marketing ‐ website, SEO, etc.                         6.5% 9.0% 2.5%
                                                                                                              budget.
        Trade e‐mail marketing                                                4.5% 6.0% 1.5%
        Direct Mail                                                           4.7% 4.9% 0.2%                  The only statistically
        General event sponsorships                                            4.9% 4.4% ‐0.6%                 significant change reported
        Corporate event exhibiting                                            3.8% 4.1% 0.3%                  in 2009 compared to 2008
        General print advertising                                             4.9% 3.9% ‐1.0%                 is a slight increase in
        Business‐to‐consumer exhibiting                                       4.1% 3.2% ‐0.8%                 allocations to general online
        Telemarketing                                                         2.3% 2.2% ‐0.2%
                                                                                                              marketing.
        General broadcast/cable advertising                                   2.4% 2.0% ‐0.4%
        Other                                                                 6.7% 6.9% 0.2%

           Yellow shading signifies a statistically significant difference between 2009 and
           2008 at the 95% confidence level. Pink shading indicates an insignificant
           decline and blue shading an insignificant increase.
Marketing Channel Spend Differences by
   % Allocated to B-to-B Exhibitions
                                                   Marketing Budget Dedicated to      Exhibitors spending <50% of
                                                         B‐to‐B Exhibitions
                                                      2008                2009        budget on b-to-b exhibitions: (8 out 10 of
                                                                                      surveyed), register a small decline in
                                                <50%       50%+     <50%       50%+
Business‐to‐business exhibiting                 26.9%     60.6%     21.8%     60.2%
Trade online marketing ‐ website, SEO, etc.     10.2%      5.2%     12.1%      5.4%   2009 in allocation to b-to-b
Trade magazine advertising                      13.1%      7.9%     11.4%      6.0%
General online marketing ‐ website, SEO, etc.   7.8%       3.7%     10.7%      5.2%
                                                                                      exhibitions (21.8% vs. 26.9%).
Trade e‐mail marketing                          4.7%       3.5%      6.6%      4.8%   These exhibitors assign larger
Direct Mail                                     5.6%       3.4%      5.6%      3.4%
General event sponsorships                      4.3%       6.7%      3.9%      5.3%   percentages of funds to digital and
Corporate event exhibiting                      3.7%       2.9%      4.6%      2.9%   other traditional media channels in
General print advertising                       5.2%       2.6%      4.5%      2.6%
Business‐to‐consumer exhibiting                 4.5%       0.9%      4.4%      0.7%   both years.
Telemarketing                                   3.0%       0.7%      2.8%      0.7%
General broadcast/cable advertising             2.9%       0.2%      2.9%      0.4%
Other                                           8.2%       1.9%      8.8%      2.8%   Hard core exhibitors, spending
Yellow shading signifies a statistically significant difference between <50% and      50%+ on b-to-b exhibiting: (2 out 10
50%+ at the 95% confidence level.
                                                                                      surveyed), have maintained their level
                                                                                      of spending for b-to-b exhibitions
                                                                                      both years – 60.6% and 60.2%.




       Estimated Spending Per Business-to-
                 Business Event

                                                                                         2009 Average Spending per
       Average Range                               $29,010 to $37,710
                                                                                         Show is between $29,000 to just
       Median                                           $18,500                          under $38,000 per business- to-
                                                                                         business exhibition event.

                                                                                         The median spending level per
                                                                                         event is $18,500, meaning half of
                                                                                         those surveyed report spending
                                                                                         either above or below this
                                                                                         amount.




             Trends in Number of Business-to-
                   Business Exhibitions
                                                                                                  Average # of B‐to‐B Exhibitions

                                                                                           Year                Average #    Median #
                                                                                           2007     N=234        39.0          14.0
                                                                                           2008     N=235        37.8          14.0
                                                                                           2009     N=236        31.0          13.0
                                                                                           2010     N=232        32.6          12.5




    Over half of surveyed executives (53%) report participating in fewer events in 2009 
    vs. 2008. 

    The forecast for 2010 is a leveling out of the decline, with 39% of executives 
    anticipating to participate in the same number of exhibitions compared to 2009 and 
    29% projecting an increase; although 30% expect further declines.  
             Primary Reasons for 2009 Plans
        Fewer Events                                           Same # of Events                        Doing More Events
       Among 126 Respondents                                        Among 70 Respondents                         Among 39 Respondents
     2009 Plans vs. 2008
•Economic downturn                                         •Having always done                     •Participate at events that
                                                           them/historical activity                deliver value – in leads, ROI,
•Schedule was already set                                                                          accessing the target audience
                                                           •Schedule was already set
•Heightened scrutiny on                                                                            •To support company objective
spending and a desire to                                   •Events have proven ROI,                of expanding marketing efforts
assure that events meet                                    deliver value, reach desired            or launching new products
corporate objectives. Cut                                  target audience or is a key
‘weak’ events                                              industry event to conduct brand
                                                           promotions
•Some shifting of funds to
alternatives, including digital
and other in-person marketing,
such as seminars, corporate
sponsored events, direct sales
efforts, etc.




                    Primary Reasons 2010 Plans
    Doing Fewer                                                            Doing Same                                  Doing More
      Events                                                               # of Events                                   Events
    Among 26 Respondents                                              Among 166 Respondents                           Among 24 Respondents
     2009 Plans vs. 2008
                 •Economy is impacting spending
•Economy is impacting                                                                                              •Expect stable
spending                                                                                                           economy/improved
                                                  •Hope/expect budget increase or economic                         economy
•Directing spending to                            turnaround
events that meet company                                                                                           •Expanding marketing
objectives                                        •Have always done them/historical activity                       efforts

                                                  •Schedule was already set                                        •To support other company
                                                                                                                   objectives
                                                  • Events deliver value or fulfill corporate objectives,
                                                  whether to help in efforts to expand marketing, launch
                                                  new products, general company brand promotions,
                                                  generate leads and to reach target
                                                  customers/prospects.

                                                  •Spending will be ‘focused’ and b-to-b exhibitions
                                                  compete with alternative marketing options for
                                                  funding




                    Trends in Average Booth Size

     Smaller
                     11%                                                                            Average           Median 
                                25%
                                                                                                   Booth Size        Booth Size
      Same
                                                    70%                          Year                (Sq. Ft.)         (Sq. Ft.)
                                              60%
                                                                                 2007      N=222     606.4              300
                                                            2010 vs 2009
     Larger
                     10%                                                         2008      N=224     604.1              300
                    9%                                      2009 vs 2008
                                                                                 2009      N=221     555.6              200
       No            9%                                                          2010      N=218     555.2              200
     answer         7%


               0%         20%         40%   60%      80%




The majority of executives (60%) report 2009 average booth sizes consistent with
2008. Although averages do not indicate a statistically significant change, the median
declined in 2009 to 200 sq. feet from 300 sq. ft in 2008.

Seven out of ten executives anticipate the booth size in 2010 will be consistent with
2009, with an average booth size of 555.2 square feet and a median booth size of 200
sq. ft.
2009 Booth Size Declines: Where & Why
                  Whether Expected Booth Size 
                                                                                                   Types of Exhibitions Where Cutting Booth Size
               Reduction Will Occur At All Exhibitions                                                                                      N=51
                                        N=78

                                                                                                                    In specific sectors                                    41%
                                 No answer
                                    1%                                                         Not important  or "must attend"  events                                     41%
                                                                                         50% or > of attendees come from 400 miles +                    10%
                                                         For all
                                                          33%                            50% or > of attendees come from 200 miles +               6%
                                                                                          50% or > of attendees come from 50 miles +               6%
                                                                                        Where other media channels serve mktg  needs         2%
                                                                                                                           No answer         2%

         Only specific                                                                                                          Other                         20%
            ones
             66%                                                                                                                          0% 5% 10% 15% 20% 25% 30% 35% 40% 45%



    Booth size reduction activities suggest heightened interest in focusing spending on what delivers
    value. Two thirds cut booth sizes at specific events. Among these companies, 41% indicate
    reductions limited to specific sectors or at events deemed as unimportant or not ‘must attend’. The
    most mentioned ‘other’ comment is cutting booth sizes where attendance has declined.

    For three out of four of these exhibitors (73%) funds were not funneled to other uses and were
    cost-saving measures. One out of five moved funds to non-exhibition related expenditures.




         Trends in Exhibition Expenditures
                                                            Average 
                                                         Percentage of           Estimated 2009 Average 
                                                          Exhibition              Range of Spending Per 
                                                           Spending                      Category
                                                                                    Low           High
Booth display/booth space                                          35%            $10,182       $13,195
Booth set up and furnishings                                       23%             $6,650        $8,617
Booth staff travel expenses                                        15%             $4,231        $5,483
Onsite promotional materials                                        6%             $1,830        $2,372
Onsite sponsorship                                                  5%             $1,435        $1,859
Pre‐show promotions                                                 5%             $1,423        $1,844
Off show floor promotional expenses                                 5%             $1,379        $1,787
Post‐event follow‐up efforts                                        3%              $963         $1,248
Other                                                               3%             $1,013        $1,312



On average, nearly three quarters of a company’s spending on exhibitions is
spent on booth display/booth space (35%), booth set up and furnishings (23%)
and booth staff travel and expenses (15%), which translates into an average
expenditure of $21,063 to $27,294 of a companies’ spending per show.




Expected Change in Spending in 2009

                      Post‐event follow‐up efforts                 13%   15%                       65%

                                  Onsite sponsorship          6%         29%                          59%

                               Pre‐show promotions                 14%     22%                        57%

           Off show floor promotional expenses                5%         31%                          57%
                                                                                                                                                    NA
                     Onsite promotional  materials            7%          32%                           54%                                         Increase

                          Booth display/booth space                15%         28%                        49%                                       Decrease
                                                                                                                                                    Stay Same
                      Booth set up and furnishings                 15%          31%                         46%

                          Booth staff travel expenses          9%              41%                           43%

                                               Other                                   3% 6%                    37%

                                                        0%   10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Spending is apt to hold to 2008 levels or be cut.
     Exhibition Property Plans for 2010

               Will use current exhibit(s), as is                                         59%



               Will refurbish current exhibit(s)                                 42%



                Will contract to rent exhibit(s)               15%



                  Will purchase new exhibit(s)                 13%



                                             NA           8%


                                                    0%   10%   20%   30%   40%    50%   60%   70%


Six out of 10 executives anticipate that their companies will use their current
exhibits, as is, for the 2010 show cycle, while nearly four out of 10 anticipate
refurbishing current exhibits.




                                 Conclusions
•   Business-to-business exhibiting endures, despite the recent economic
    downturn and fierce competition for marketing dollars in a fast-changing
    media landscape.
•   Marketers value exhibiting at business-to-business events, especially to
    drive the sales process. Brand promotions are of secondary importance.
    Exhibitions are a choice vehicle for expanding into new markets and for new
    product launches/promotions.
•   Moving forward into 2010, the industry anticipates the economy will stabilize
    and register modest gains in some sectors and exhibition activity will follow
    suit.
•   Even as the economy rebounds, perhaps the landscape is changing for the
    long-term:
     – Exhibitors are more discriminating in where they exhibit and how they spend.
       There is increased focus on ‘core’ events, those that deliver value/meet corporate
       objectives.
     – More options are available – digital and other face-to-face alternatives.




                                 Conclusions
•   Exhibitions that are reputed for being ‘must attend’ or important industry
    gatherings are best positioned to survive and thrive in this climate.
•   Exhibition organizers that have demonstrated the value proposition for their
    event will fare better than those who do not.
•   It is essential that exhibition organizers keep a pulse on exhibitor and
    attendee needs, to stay ahead of the competition from all marketing
    channels.
•   Results suggest that the appetite for exhibitions in the business world is alive
    and well for those events that deliver.
                 Thank You!
If you wish to send questions or comments
    after the Webinar, you are invited to
         email today’s presenter at:

        Nancy Drapeau, PRC
      nancy@drapeauresearch.com




         Thank you for your 
           participation!

  Please take a moment to fill out the 
          Program Evaluation
     located in the links box on the
        left side of your screen.

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