The exhibition industry hasn’t changed much over the past
few decades. The business model was simple; plan the show, sell exhibition
space, rely on mass marketing strategies to build the visitor audience and
expect through some form of magic by getting the right people into the room
that business will be conducted, contracts signed and at the end it will be a
success all round. This was the established way.
However when a three-day event happens once a year, it
leaves 362 days to forget about it, forget who you met and forget what benefit
there was in attending in the first place. And if you miss a trade show by a
week or month, you aren’t going to wait for another year to get a second
opportunity. Today it’s too easy to reach out to a potential customer or
supplier on LinkedIn, email, or even Twitter. If you are sourcing information
on supply chain, market entry, or import regulations you no longer need to
speak with a manufacturer or distributor at a trade show, you simply just
Google it.
So where does this
leave trade show organizers who have spent so much energy and time in the past
establishing themselves as the meeting place for entire industries once a year?
Trade show organizations traditionally relied on a sales
driven model when building their business. By being focused on selling
exhibition space they provided a platform for companies to display their new
products, technologies and innovations to a broad audience while at the same
creating a profitable business model. Marketing supported the sales team with
traditional forms of mass marketing like direct mailing, email campaigns and so
forth.
This clearly worked well in the past, but the problem with
this model now is its resistant to change when it finds a process works, and
does not lend well to keeping up with changing market trends. For example, a
sales person acting as a show manager may be happy to produce the same
infographic, video, white paper or direct mailing they think helped them
generate business last time. Their main priority is their own product, their
own sale.
Even marketing funds spent with the best of intentions on
creating printed and downloadable e-invites, and email signatures for
exhibitors to invite their clients to an event is no longer beneficial. Eighty
percent of exhibitors do little to no pre-show marketing according to The
Center for Exhibition Industry Research. More importantly, if SME’s with
precious financial resources, knew exactly who they wanted to target
specifically, would they gamble thousands of dollars attending a trade show in
the hope they meet the right people, or instead spend the money canvassing
their prospects directly in a more targeted way. The reliance for creating real
connections in order to keep their business relevant needs to rest with the
trade show organizer.
Times have changed dramatically and marketing needs to be at
the core of the whole organization. Look at many of the major companies that have
been built in the last 15 years, Facebook, Instagram, Snapchat, Google/Gmail,
all are in the business of connecting people. Even established traditional
brands like Burberry, with their ‘Burberry Kisses campaign’ or Topshop’s
partnership with Google for an ‘Interactive Catwalk’ in 2013, are looking to
build their future by engaging with their audience and helping their audience
engage with each other.
Trade
show organizers are now more than ever in the business of connection and
content, and the future will require trade show organizers to create new
business models and new revenue streams. It’s not a matter of embracing technology
and keeping pace with the digital age in an attempt to add value to trade show attendance.
Companies like Presdo Match may specialize
in creating a networking platform for trade shows, but simply laying new
technology on top of old thinking won’t generate new revenue or retain visitor
or exhibitor loyalty. What is clear however is that the value proposition of a
trade show needs to be constantly redefined and expanded, and new formats
created that capture the ever demanding audience.
How are others
innovating?
A unique twist on the traditional trade show model has been
created by an Irish government body, Bord Bia. Originally set-up to work with
the Irish food industry for the market development and promotion of Irish food
and drink at home and abroad, the government body in 2004 decided to capitalize
on its network and connections by creating Marketplace International.
The event allows hundreds of Irish food and drink exporters,
and trade buyers from every continent to meet under one roof in Dublin once a
year. What makes this event a real success for all participants is the follow
up that happens after the initial meetings. Bord Bia offices in international
markets lend ongoing year-round support to the manufacturers and retailers on
topics like international distribution channels, customs clearance and
localized marketing strategies. The model seems to be working, and according to
marketplaceinternational.eu over €31m worth of new business was written by
exhibitors as a result of Marketplace 2012 meetings.
What next?
Trade show organizers are ideally placed to make themselves
indispensable to the industries they are engaging in what is a constantly a changing
climate. The big opportunity in the future, is if trade show organizers can
become an on-going year round resource for their audience to tap into, not just
connecting individuals but also becoming knowledge centre for the industry the
trade show supports. To a large extent this will require a rethink of the depth
the relationship organizers have existing knowledge and data partners, and the
relationships with visitors and exhibitors.
People still need powerful personal interactions to build
successful long-term relationships. If a trade show organizer continues to have
the most innovative and creative companies at their show then there will always
be a reason to attend, and keep in touch with current industry trends and
advancements in technology and product design.