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1 Research Roundup By Carol Andrews, e d i to r-at-l a r g e Trade Show Executive s Research Roundup includes valuable data from prominent industry associations and research organizations that you can use in presentations, strategic planning, reports to management and sales efforts to exhibitors. These factoids range from the power of expositions to growth trends. Accurate statistics are particularly valuable in a rapidly changing business environment. This easy-to-use and insightful information will prove to be a valuable resource in day-to-day decision-making and the development of long-term strategies.
2 67 67 Convention & Event Venues 1 Number Number To Call BOOK.SMG Shopping for almost anything is either one click or one call away. In the world of conventions, exhibitions and special events, how can you effectively shop for convention centers and destinations with only one click or call? The answer is simple. The answer is SMG. With exhibition venues in the United States, Canada, and the Caribbean we can shorten the site selection process from months to days, or even hours. One click. One Call. SMG Where do you want to show today? To inquire about any or all SMG managed Convention Centers contact: Gregg Caren at BOOK-SMG ( ) gcaren@smgworld.com Montego Bay Convention Centre Now Taking Bookings for 2011 and Beyond! Worldwide Entertainment and Convention Venue Management
3 Continued from page 53 Power of: Expositions/Face-to-Face Conventions and trade shows accounted for nearly half of the $263 billion in direct spending on business meetings in the U.S. during The trade show sector alone generated more than $33.7 billion in direct spending. Source: The Economic Significance of Meetings to the U.S. Economy, Convention Industry Council (CIC), 2011 The meetings industry generated 1.7 million jobs, plus billions in tax revenues and a $907 billion ripple throughout the entire economy in Source: The Economic Significance of Meetings to the U.S. Economy, Convention Industry Council (CIC), 2011 Trade shows accounted for 22.5 million hotel room nights in 2009, or about 9% of the total for all business meetings. Source: The Economic Significance of Meetings to the U.S. Economy, Convention Industry Council (CIC), 2011 Projected show revenues for shows held in the Third Quarter of 2010 increased 5.6%. Source: 2010 CEIR Exhibition Industry Census, Center for Exhibition Industry Research (CEIR), 2011 Face-to-face meetings are the best option for capturing attention, inspiring a positive emotional climate, and networking and relationship building. Source: The Future of Meetings: The Case for Face to Face, Center for Hospitality Research at Cornell University, 2010 Executive decision-makers consistently rank exhibitions as their number one choice for obtaining purchasing information. Source: The Economic Impact of International Non-Participation in the Exhibition Industry Due to U.S. Visa Issues, Oxford Economics, 2010 Trade show spending will reach $15.63 billion by 2014, based on a CAGR of 4.2%. Source: Veronis Suhler Stevenson Communications Industry Forecast, Continued on page 56 Trade Show Executive April
4 Continued from page 55 Visa barriers preclude 2.5% of potential international attendees from participating in trade shows and exhibitions. Source: The Economic Impact of International Non-Participation in the Exhibition Industry Due to U.S. Visa Issues, Oxford Economics, 2010 Average spending by each international attendee at an exhibition was $13,600, and average spending by an international exhibitor was $36,100. Source: The Economic Impact of International Non-Participation in the Exhibition Industry Due to U.S Visa Issues, Oxford Economics, 2010 For every dollar invested in business travel, businesses experience an average $12.50 in increased revenue and $3.80 in new profits. Source: Oxford Economics Business Travel Study, Oxford Economics, 2009 Without visa barriers, the U.S. exhibition industry would generate an additional $2.6 billion in business sales, with $2.4 billion accruing to U.S. businesses. The $2.4 billion includes $1.5 billion in increased business-to-business trade, $540 million in registration fees and exhibit space spending, and a $295 million boost in visitor spending. Source: The Economic Impact of International Non-Participation in the Exhibition Industry Due to U.S. Visa Issues, Oxford Economics, 2010 Executives and business travelers estimate that 28% of current business would be lost without in-person meetings. Nearly 40% of prospective customers become new customers with an in-person meeting, and just 16% without such a meeting. Source: Oxford Economics Business Travel Study, Oxford Economics, 2009 Executives cited conference and trade show participation returns ranging from $4.00 to $5.99 per dollar invested. Source: Oxford Economics Business Travel Study, Oxford Economics, 2009 = 56 April 2011 Trade Show Executive
5 95% of executives agreed that inperson meetings are key to building and maintaining strong relationships. 89% agreed that face-to-face meetings are essential to sealing the deal. Source: Managing Across Distance in Today s Economic Climate: The Value of Face-to-Face Communication, Harvard Business Review, 2009 Business travel in the U.S. is responsible for $246 billion in spending and 2.3 million American jobs; $100 billion of this spending and 1 million American jobs are linked directly to meetings and events. Source: Oxford Economics Business Travel Study, Oxford Economics, 2009 Power of: EXhibiting It takes an average of 3.5 sales calls to close a sale with a lead from an exhibition, compared to 4.5 sales calls without a lead from an exhibition. Source: The Cost-Effectiveness of Exhibition Participation: Part II, Center for Exhibition Industry Research (CEIR), 2009 Overall, 77% of qualified attendees at events are potential new customers for exhibiting companies. Source: 2010 CEIR Exhibition Industry Census, Center for Exhibition Industry Research (CEIR), 2011 The average cost to close a sale with an exhibition lead in 2010 was $2,224 (including costs to identify a potential customer and 3.5 sales calls to the prospect). To close a sale without an exhibition lead costs $3,153. Source: The Cost-Effectiveness of Exhibition Participation: Part II, Center for Exhibition Industry Research (CEIR), 2009 (Adjusted for inflation in 2010 using the Bureau of Labor Statistics CPI Inflation Calculator) To identify a potential customer at an exhibition, the average cost is $98; to identify a prospect by means other than a trade show, the average cost is $450. Source: The Cost-Effectiveness of Exhibition Participation: Part I, Center for Exhibition Industry Research (CEIR), 2009 (Adjusted for inflation in 2010 using the Bureau of Labor Statistics CPI Inflation Calculator) 63% of sales and marketing managers agree or strongly agree that exhibitions assist in gaining/ retaining market share. Source: The Cost Effectiveness of Exhibition Participation: Part I, Center for Exhibition Industry Research (CEIR), 2009 Continued on page 58 Trade Show Executive April
6 Continued from page 57 Nine in ten attendees who previously attended an exhibition say that they are very or somewhat likely to attend an exhibition in the next two years. Source: Power of Exhibitions in the 21st Century, Center for Exhibition Industry Research (CEIR), 2009 The average trade show in 2011 is expected to grow 5.1% in net square feet, 3.2% in number of exhibiting companies, 3.4% in attendance and 5.6% in revenue. Source: Trade Show Executive s 20-member Exposition Forecasting Board, April 2011 STATS, FACTS & FORECASTS The average trade show in 2010 spanned 174,364 net square feet of exhibit space, featured 554 exhibitors and drew 16,023 attendees. Source: Trade Show Executive s Dashboard of Monthly Trade Show Metrics, January to December The number of events has remained relatively unchanged since the 2000 CEIR Exhibition Industry Census, reinforcing the belief that the exhibition industry is resilient even during times of uncertainty and downturn. Source: 2010 CEIR Exhibition Industry Census, Center for Exhibition Industry Research (CEIR), 2011 The average Fastest 50 trade show grew 33.2% in 2010 while the average trade show in general declined (2.7)% in net square feet of exhibit space in Source: Trade Show Executive Fastest 50 directory, March 2010 In an analysis of the 100 largest trade shows held in the U.S. in 2009, the average mega show spanned 416,712 net square feet, hosted 1,136 exhibitors and was attended by 33,828 professionals. Source: Trade Show Executive Gold 100 directory of the 100 largest shows in the U.S., September % of large show producers are spending 10% or more of their event budgets on attendee acquisition. Among those, 27% are spending 20% or more on attracting attendees. Source: Attendee Acquisition Challenges of Large Shows, Jacobs, Jenner & Kent, April 2011 Trade Show Executive
7 Six of ten large show producers report social media marketing is among their top attendee acquisition challenges. Source: Attendee Acquisition Challenges of Large Shows, Jacobs, Jenner & Kent, % of large show producers have changed promotional strategies and tactics in the last two years. Source: Attendee Acquisition Challenges of Large Shows, Jacobs, Jenner & Kent, % of large show producers say marketing research is a top attendee acquisition challenge. Source: Attendee Acquisition Challenges of Large Shows, Jacobs, Jenner & Kent, 2011 A majority of exhibition industry companies in the Americas, Asia/ Pacific and Middle East/Africa reported an increase in annual profits of more than 10% in 2010 compared to Source: Global Exhibition Barometer, UFI, 2010 $26.02 per square foot: the average space rate for Gold 100 shows held in Source: Trade Show Executive Gold 100 directory of the 100 largest shows in the U.S., September 2010 The U.S. hotel industry reported increases in all three key performance metrics for Q4 of 2010 in year-over-year measurements. Hotel industry occupancy increased 7.1% to 53.5%, the average daily rate rose 1.9% to $98.25, and Rev Par (revenue per available room) was up 9.1% to $ Source: Smith Travel Research, % of the major convention centers in North America feature a hotel that is attached, adjacent or across the street from the building; only 26% do not have a hotel as such; and 2% have a hotel proposed or under construction. Source: Trade Show Executive Research on Hotel/Convention Center Complexes, September 2010 Research Roundup is published semi-annually by Trade Show Executive. A PDF version of this report is available for $49 by contacting Leticia Cotton at lcotton@tradeshowexecutive.com Trade Show Executive April
8 SMG has the easiest way to shop for new venues and markets. Send It To Every Peer At Where else can you shop for 67 convention and exhibition venues with one phone call or ? Need first tier cities? Got em. Need resort destinations? Got those, too. Need affordable drive markets? Right up the road. What s that? International markets? No problema. Imagine RFP responses on two dozen venues in just two days. The new SITE-PAS electronic lead system from SMG makes it possible. Convention & Exposition Venues Have you got your SITE-PAS? One click. One call. SMG Where do you want to show today? SMG Worldwide Convention and Exposition Venue Management. To get your SITE-PAS, call your SMG account executive or 866.BOOK.SMG.
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