To Exhibit or Not to Exhibit in a Trade Show

In doing some tradeshow research this past weekend, I came across The Center for Exhibition Industry Research’s Annual CEIR Index information that showed an unprecedented decline that is four times greater than any other decrease in our recorded history of tradeshows.

Most people felt the sky fell in 2008 and the stars rained down with painful heat in 2009. Well, this is what has been reported in the most recent report issued by the Center for Exhibition Industry Research (also known as CEIR). Within the 2010 CEIR Index that has recently been released, it reports that business-to-business trade shows held in 2009 marked the exhibition industry’s second consecutive year of decline. Data is reported over the course of the year and the data indicates shortfalls in four metrics:

1. Net square footage
2. Revenue
3. Attendees
4. Exhibitors

These four metrics were used to measure the industry’s overall performance. We are not only seeing a slight dip in attendance or net square footage, but we are seeing the largest year-to-year decline in recorded history.

Looking back at tradeshow history, the recent Great Recession of 2008 and 2009 has been described as the most significant economic downturn since the Great Depression that began in 1929 (as reported by Carrie Freeman Parsons, vice chair of Dallas-based Freeman and 2010 CEIR chairperson). Parsons also reported that “Although the exhibition industry as we know it today did not exist some 80 years ago in the United States, it is hard to imagine that it would have experienced worse declines than those of the past two years.” Prior to this past year 2009, it was the largest single-year decline ever recorded.  According to the U.S. Exhibition Industry there was a drop of 3.1 percent in 2008. In 2009, it was worse and plunged 12.5 percent — more than four times worse than 2008.

Now that you have heard all the disturbing growth news from 2008 – third quarter 2009, let’s focus on the positive.  Following seven consecutive quarters of decline, the trade show industry managed to have a re-growth in the fourth quarter of 2009. It was not significant enough to offset the decreases experienced in the first nine months of the year, but it is a positive mention.
The outlook for 2010 is cautiously optimistic. In summary, CEIR claims the industry is poised to launch a recovery, but anticipates that overall performance will remain vulnerable by the Great Recession for the bulk of this year. However, expectations are that spending from the American Recovery and Reinvestment Act (ARRA) will keep increasing in 2010, and as the government responds with additional stimulus packages, several key sectors will be positively impacted. For example, it has been reported that billions of dollars are earmarked for in the sectors of education, renewable energy, construction, infrastructure, and technology.

Additional optimism is offered up in the form of a historical precedence with the Exhibition Industry rebounding well following previous recessions in the past. According to CEIR, “It took approximately three quarters for the exhibition industry to start growing again following the end of the 2001 recession. However, the 2001 recession was significantly shallower and briefer. With economic forecasters predicting slow growth in 2010, the exhibition industry may not see year-over-year growth until the fourth quarter of 2010.”

With the doom and gloom from the past two years and showing history from 2001 and rebound, we can have some faith in the trade show industry. As we continue to look to the future, CEIR offers some insights based on 10 years of accumulated data. According to the data, there are three key trends that are worth watching as potential predictors of what lies ahead –

1. The number of professional attendees at trade shows and exhibitions is a leading indicator of recovery and decline
2. Net square feet (of exhibit space sold) and revenue are parallel lagging indicators
3. Industry sectors (Professional Business Services, Consumer Goods and Retail Trade, and Building, Construction, Home, and Repair) have historically acted as “guideposts” for the overall  trade show industry

Since 2000, the tradeshow industry has followed the same pattern as these sectors with regard to year-over-year performance. See here for reported data.  http://www.exhibitoronline.com/exhibitormagazine/june10/research-state-of-the-industry.asp
Based on the CEIR Index’s most recent results, it would appear the trade show industry has reached a bottom and should show marginal improvement over the next 12 to 24 months, as stated by Galen Poss, partner at G2 & Associates LLC, a Washington, DC-based opinion- and market-research firm.

With all the above information over the past two years, I still recommend exhibiting in trade showsand here are my personal reasons why:

• Many companies are struggling with time management in downsizing staff but yet still trying to effectively and efficiently deliver the products and services to the customer.  We receive hundreds of emails on a given day, along with many of using interactive social media and trying to keep up with communications through various avenues – email, Facebook, LinkedIn, Twitter, Blogs, social groups, telephone calls, meetings, and the like. Wow!  No wonder we are so exhausted!
• It would take much more time to arrange and make the needed telephone calls and meetings than it would to use Social Media and Search Engine Optimization efforts to create awareness for the tradeshow you are exhibiting at.  Take the time to invite those attendees to visit you at the show floor and when on the show floor, blog about the show or what you are doing and especially take the video camera and capture some positive moments.  This combination can be powerful if done right.
• With the four generations in the work place, I am seeing less and less face-to-face meetings to create a personal relationship. Exhibiting in trade shows allows a company to create relationships quickly and maintain their branding in the presence of the attendees if pre show, at show and post show marketing are done effectively.

Again Face-to-face is still the best way to capture the attention of your audience and what better avenue than a trade show to maintain your presence in the industry you are representing for products or services demonstrated at the show and having the right staff to build those relationships.

Having just released my new book Full Brain Marketing, Chapter 17 discusses in detail how to best prepare for a trade show from show selection to budgeting, selecting the right booth space, working the show, and how to best follow up after the show.  See:  www.fullbrainmarketing.com or email me personally with any questions you may have regarding tradeshows at djheckes@fullbrainmarketing.com.

I wish you a successful trade show experience.

DJ Heckes, Author & CEO
EXHIB-IT! Tradeshow Marketing Experts
www.exhib-it.com

Full BRAIN Marketing
www.fullbrainmarketing.com