January 2004
Focus on attendance in 2004

2003 was filled with challenges. We began the year with most of the major integrated media companies reporting revenue declines in year-over-year numbers, a trend that continued throughout the year. Within months, Key3Media filed for Chapter 11 bankruptcy protection, but later emerged from bankruptcy with new management and a new company name, Medialive.

In the spring, show managers continued to be tested with SARS and the War in Iraq wreaking havoc on attendance and registration. M&A activity was slow. Corporate events were on the rise. Auditing moved to the front burner for IT shows. And the industry battled the FCC to postpone fax regulations.

But there were a few bright spots, as well. In this month’s cover story, “Cream of the Crop” (see page 30), we provide an inside look at five new shows that together attracted nearly 80,000 attendees, covered 2 million square feet and drew more than 1,300 exhibitors in their first year.

As we begin 2004, the economy is reporting significant gains — a whopping 8.2 percent in the third quarter of 2003. Corporate profits are up, business spending is up, and consumer spending remains strong. Exhibitor budgets are expected to increase from $552,039 in 2003 to $596,995 in 2004 — the first increase since 2001, according to a survey by the Trade Show Exhibitors Association. And more than half of shows are experiencing either steady or growing attendance, according to “Surviving the Storm,” a report conducted by the Frost Miller Group and Jacobs Jenner Kent.

Despite the good news in this recent report, attendance will continue to be the No. 1 issue for most show managers in 2004. From 2001 to 2003, attendance overall has plummeted nearly 25 percent, according to the “EXPO Industry Profile” (see page 36). And until businesses start hiring, we’ll continue to deal with a smaller attendee base and it will continue to be a challenge for those who are employed to find the time to get out of the office.

The top two attendance challenges are increasing overall response rate and attracting VIPs and power buyers, according to Surviving the Storm.

To improve response rates, we need to spend more (or spend smarter) on marketing and promotions. In general, shows have lacked sophisticated marketing expertise. To attain a higher level, we need to recruit from outside the industry or hire agencies or consultants. In addition, response rates to e-mail have slowed to a trickle, as it gets more and more difficult to stand out from the spam clutter. Show managers will turn back to direct mail in 2004.

Attracting VIPs and high-level buyers won’t come cheap either. These buyers expect white-glove treatment and special services to make the trip worthwhile. Target decision makers, personalize the invitation and customize the message. Find out which vendors your buyers want to see and make sure they’re there.

So after more than two years of dealing with attendance issues, plan on more of the same in 2004. But at least we should be getting good at it by now.

Danica Vasos
Editor
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