ASAE Final Rev. - Ducate Tradeshow Solutions

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