June/July 2013 22 Trade Show Biz disappointing buyer attendance, uncooperative market organizers, and so on. To get a good picture of the changing nature and the state of trade shows in general, VideoAge contacted Joe Federbush, vice president of Sales and Marketing for Exhibit Surveys Inc., a Red Bank, New Jersey-based provider of research, measurement and consulting services for trade show exhibitors. VideoAge: What is the future of trade shows? Joe Federbush: Face-to-face will continue to be the most beneficial way to do business. With the advent of social media, mobile apps and matchmaking tools — that allow buyers and sellers to connect pre-show, at-show, and postshow — additional value is provided for both parties. Based on post-show surveys fromexhibits and events conducted by Exhibit Surveys, Inc. between 2011 and 2012, 33 percent of trade show attendees aremore favorably inclined to purchase products from specific companies after they visit their exhibit. With attendees spending a total average of 9.1 hours over an average of 2.3 days on the trade show floor, exhibitors are competing for buyers’ time. However, many attendees go to a show with a pre-set agenda of specific companies they want to see. VA: What are the parameters for a buyer? JF: Nine times out of 10, product interest is what makes exhibits most memorable and what attracts the right people into a booth, along with the right mix of products displayed in an exhibit. Over 53 percent of trade show attendees go to shows to learnmore about specific products, and/ or brands (29 percent actually attend to compare products for future purchase). Plus, exhibitors should focus on what attendees are interested in and want to see as opposed to just what they want to promote or push. VA: How important are factors such as easy travel, low costs and length of a show? JF: Travel costs and length of show are factors that play a role in show attendance or participation decisions. However, considering 70 percent of U.S. trade show attendees travel over 400 miles [644 km] each way to attend shows, that does indicate that location/travel isn’t a critical factor (on average 13 percent of attendees [at U.S. events] are international). VA: How can sellers evaluate the importance of a show? JF: Attendee quality (not quantity) should be the first deciding factor. Show producers can capture this type of information during the attendee registration process by asking required questions like role in purchasing. For example, if there are 10,000 attendees at a convention and 50 percent have interest in an exhibitor’s types of products — that exhibitor then knows that there will be 5,000 prospects and customers at that show. Where else and how else can a few people see 5,000 customers and prospects in three to four days? [Editor’s note: Assuming that an exhibitor has five sales people at the booth and each one sees 18 buyers a day, at the most the sellers can meet with 360 buyers in four days. In this case, according to Federbush, the exhibitor is “underinvesting because they can’t reach “Almost half of marketers to boost budgets this year.” VA: What attracts buyers’ curiosity: A flashy stand or great products? JF: Unquestionably great products are what attract buyers. The stand’s design is secondary. Having the right product mix based on understanding the audience is the first step and is what attracts buyers. A flashy stand may attract crowds but not necessarily buyers. But a booth design should represent your company’s image and personality. A cutting-edge technology company shouldn’t show up with pipe and drape and conversely, a conservative company shouldn’t show up with too much color and lighting. VA: At trade shows, what elements indicate that a seller needs the sale very badly and is willing to lower the price? JF: Because many exhibitors at trade shows don’t actually have sales taking place on the show floor or in thebooth, it’s tough to tell exactly. Some transparent factors that could mean a company is not in great financial shape are if the company really seems underinvested in the show (i.e., very small or old booth). With information so readily available, the tradeshow floor isn’t a good source to use to identify a company’s health. VA: What is the best way to increase walk-ins? JF: In addition to having a relevant product exhibited, do in-booth promotions (not gimmicky ones unless your goal is to just draw big crowds). Tweeting and embracing social media is a great way to draw a crowd. Booth staff and reps can tweet that someone important will be at the exhibit speaking at a certain time, they could be holding a hospitality event in the booth, etc. Make it fun, make it relevant, make it educational, but make sure it’s worth the visitor’s time. VA:How can trade publications help improve the value of a trade show? JF: Ironically, many show producers are also publishers. Since trade publications have specific industry-focused engaged readers, they represent a great opportunity for exhibitors to advertise in the “show issue.” PR and event marketers should coordinate efforts to ensure content that could drive traffic is included in the publication. their target audience with only five staff.”] Additionally, exhibitors can use registration information to determine not only the importance of being at a show, but also their investment level. Continuing with the previous example where an exhibitor has 50 percent interest among 10,000 attendees, this company is justified in making a substantial investment in the event in terms of booth size, number of staff working the exhibit, and even possible sponsorship opportunities. On the flip side, if a company is niche and has a small target market at a show, it doesn’t necessarily mean “don’t go” but instead “go — but at an investment level that is relative to the size of the market and with very highly targeted relevant messages that will selectively attract the right buyers.” There are free online tools available to calculate the optimal booth size, number of staff, and even number of leads that should be obtained to generate a ROI from exhibiting. VA: How can an exhibitor calculate his/her ROI? JF: The ROI Toolkit is a good start at (www. exhibitsurveys.com). But even before that, companies must: a) first define ROI and, b) set realistic and measureable goals. If you ask 20 sales executives how they calculate ROI, you’re likely to get 20 different answers. Of course they’ll all have one thing in common — sales resulting from marketing activities. More importantly, companies should look at ROO, or Return On Objectives. ROO focuses first on the aspects that lead to ROI. ROO are things like increasing brand awareness, effectiveness of communicating key messages, creating a buzz around a new product launch and competitor differentiators. Think about it: How can a company measure ROI if they don’t first reverse-engineer those factors that lead to sales? VA: What percentage of a trade show budget should go to marketing? JF: Unfortunately, there is no concise answer for this question because it varies by industry and company. Even within companies it varies by new product launch years. However, a recent article that BtoB did might be helpful. The headline: Joe Federbush, vice president of Sales and Marketing, Exhibit Surveys Inc. 33 percent of trade show attendees are more favorably inclined to purchase products from specific companies after they visit their exhibit.
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