Some companies are getting more bang for the buck by cutting back on exhibiting expenses and starting their own shows.
“We’ve seen growth in the number of corporate events, and we’ve seen growth with current customers in the size of their events,” says Dan Hoffend, vice president, corporate sales, Freeman Cos., Dallas. His company recently bolstered its corporate events division by hiring former Starwood Hotels sales executive Bob Moore as executive vice president, corporate sales.
Industry expert Skip Cox, president, Exhibit Surveys Inc., Red Bank, N.J., also has seen an increase in proprietary corporate events. In a study released last year, Exhibit Surveys found that 47 percent of companies that exhibit at industry trade shows also hold their own private events (a trade show or event for customers, clients, or partners). Also, 78 percent of trade show attendees go to at least one private corporate event per year, he says. “There’s certainly been growth in that area, so there has been some competition for attendees and for exhibitors’ budgets.”
Overall, companies are spending less on industry trade shows, says Michael Bandy, president, Trade Show Exhibitors Association, Chicago. According to TSEA’s 2003 Industry Trends Report, 50 percent of the companies surveyed decreased their trade show budgets compared to two years prior, while just 21 percent increased funding.
Why? According to industry observers such as Susan Friedmann, a Lake Placid, N.Y.-based trade show consultant, many companies feel that they are not getting enough value out of traditional trade shows, where they exhibit beside competitors to a large, unknown quantity — and quality — of attendees. With private shows, companies have complete control of the event, from the hand-picked audience to the message they would like to convey.
“Association and industry shows can be overwhelming in the volume of exhibitors and the types of products and services on display,” says George Aguel, senior vice president, Walt Disney Parks and Resorts, Orlando, Fla., “while corporate shows tend to be tailored to the needs of a specific audience.”
That’s not to say that companies that run their own events are pulling out of trade shows altogether. While most of the “hard-core” business and relationship-building may be done at private shows, says Friedmann, companies are still flying the corporate flag at industry events to attract new prospects.
Different Types of Shows Corporate trade shows generally fall into three categories. The first is for owner/operators or retailers to show off the latest products and services and deliver the corporate message. Ace Hardware holds two such trade shows a year for retailers, investors, and prospects. “The purpose of our shows is to create opportunities for our retailers to buy at … pricing they usually don’t get throughout the year,” explains Ron Gregg, national conventions, meetings and travel manager at the Oak Brook, Ill.-based corporation. Ace’s spring and fall shows each attract about 16,000 people, making them some of the largest corporate trade shows in the country. With approximately 2,000 booths, the show takes up about 500,000 square feet of exhibit space, plus uses meeting space for some 200 educational sessions.
Another type of corporate trade show is one put on by the company for its employees or dealer/distributors. Washington Mutual Inc., Seattle, attached a trade show to its annual State of the Group managers’ meeting for the first time this year and attracted 15 external and 13 internal exhibitors. While the event made about $20,000, that wasn’t the goal, says Rob Hallam, senior vice president for internal communication at WaMu. “It wasn’t even designed to be a profit center for us,” he says. “We wanted it to be an experience that was enjoyable for our attendees.” There are plans to expand next year’s show.
A third type of corporate show highlights new products or services to a select group of buyers. IBM, Somers, N.Y., runs a customer show each year prior to the BAI Transpay Conference. IBM exhibits with its strategic business partners — companies that provide complementary services — to show customers an end-to-end solution for check processing. “We’re doing a lot more of that — going to market with our partners to show that complete solution,” says Randy Lee, senior events program manager.
Shows like this have been growing, but industry trade shows are also starting to regain their footing, says Cox. “We’ve seen the pendulum swing toward the corporate event side, but I think we’ll see some balance coming back. In fact, we’re already seeing it.”
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