ECEF PULSE 2011

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ECEF PULSE 2011

Introduction

P.O. Box 44047

Baltimore, Maryland 21236

(410) 256-2206

ECEF PULSE 2011

May 2011

Jacobs Jenner & Kent Market Research (JJ&K) conducted an Internet study among association

and independent event producers registered to attend the Exhibition and Convention Executives

Forum (ECEF) on Wednesday June 1, 2011, and previous attendees of ECEF. Two hundred and

six (206) responded to the survey. The questionnaire, developed by JJ&K and ECEF, was posted

on JJ&K’s Internet research Website and qualified individuals were e-mailed an invitation to

participate. The resulting data set includes:

. Draft 3: 5/21/11

Independent Event

Producers

Association Event

Producers

38%

62%

Jacobs Jenner & Kent is a full-service marketing research and consulting firm with

offices in Baltimore and Atlanta, offering both national and international capabilities.

Serving the exhibition industry since 1980, JJ&K believes that in-depth market research

and analysis are the keys to understanding your audience and assuring the success of any

marketing effort.


ECEF Pulse 2011 _________

Study Results

●Industry Profile

A snapshot of the event industry indicates overall growth in the number of exhibiting

companies, net square feet, attendees and sponsorship sales. The greatest growth over

last year is in the number of exhibiting companies. The greatest decline is in the number

of attendees.

60%

50%

40%

30%

20%

10%

0%

-10%

-20%

-30%

58%

-14%

Jacobs Jenner Kent

28%

Exhibiting

Companies

Exhibit 1

Size of Event Compared

To Past Year

48%

-21%

31%

39%

32%

-29%

54%

-18%

28%

Net Sq. Ft. Attendees Sponsorship

Sales

Growing

Same

Decreasing

2


ECEF Pulse 2011 _________

If you compare ECEF Pulse finding for three years in a row, the extent of the event

industry’s recovery becomes evident.

Exhibit 2

Changes In Size Of Event

Three Year Comparison

(All Respondents)

2009 2010 2011

Total Total Total

Number of

exhibiting

companies

Growing 23% 44% 58%

Staying the same 29% 29% 28%

Declining

Net square feet

sold

48% 27% 14%

Growing 21% 35% 48%

Staying the same 25% 40% 31%

Declining

Number of

attendees

54% 25% 21%

Growing 31% 49% 39%

Staying the same 23% 35% 32%

Declining

Sponsorship

sales

46% 16% 29%

Growing 28% 49% 54%

Staying the same 22% 33% 28%

Decline 50% 18% 18%

Jacobs Jenner Kent

3


ECEF Pulse 2011 _________

●Marketing and Promotion Spending

Thirty-six percent (36%) of organizers have increased their attendee marketing and

promotion “spend” in the past 12 months. While that increase was considerable, growth

in attendance during the same 12 months didn’t keep pace with growth in attendance

during the previous year (see Exhibit 2). You can conclude that (1) the spending increase

was intended to prevent deeper declines in attendance and (2) the spending increase was

not sufficient (58% of organizers increased spending by 10% or less).

Exhibit 3a

Attendee Marketing And Promotion Spending

Three Year Comparison

(All Respondents)

2009 2010 2011

Total Total Total

Spending

changes since

last event

Increased - 9% 36%

Stayed the same 31% 36% 43%

Declined

Amount of

decrease

69% 55% 21%

5% or less 26% 34% 32%

6%-10% 30% 35% 50%

11%- 15% 7% 11% -

More than 15% 6% 20% 18%

No answer

Amount of

increase

- - -

Less than 5% - 82% 19%

6 – 10% - 18% 39%

11%- 15% - - 11%

More than 15% - - 31%

No answer - - -

Jacobs Jenner Kent

4


ECEF Pulse 2011 _________

Thirty-one percent (31%) of organizers report increasing their spending for exhibit space

and sponsorship sales in the past year. This in part may be responsible for the growth in

the number of exhibiting companies, net square feet sold and sponsorship sales (see

Exhibit 2).

Exhibit 3b

Spending For Exhibit and Sponsorship Sales

Three Year Comparison Reported

(All Respondents)

2009 2010 2011

Total Total Total

Spending

changes since

last event

Increased - 11% 31%

Stayed the same 63% 42% 59%

Declined

Amount of

decrease

37% 47% 10%

5% or less 20% 34% 70%

5%-10% 9% 48% -

11%- 15% - 5% 30%

More than 15% 8% 13% -

No answer

Amount of

increase

- - -

Less than 5% - 73% 34%

5% – 10% - 24% 33%

11%- 15% - 3% 23%

More than 15% - - 10%

No answer - - -

Jacobs Jenner Kent

5


ECEF Pulse 2011 _________

●Profitability

Fifty-four percent (54%) of organizers report a profit increase for their largest event this

year. (This figure was only 7% in the 2010 ECEF Pulse.) Twenty-five percent (25%)

report a profit decline. Optimistic about the future, 79% of organizers project a profit

increase next year. (This figure was only 9% in the 2010 ECEF Pulse.) Only 7% of

organizers project another year of profit decline.

Jacobs Jenner Kent

Exhibit 4

Profitability of Your Largest Event

Current Year and Projected Year

(All Respondents)

Current

Year

Projected For

NEXT Year

Total Total

Profitability

Increase 54% 79%

Stay the same 21% 14%

Decline

Amount of

decrease

25% 7%

5% or less 28% 44%

5%-10% 44% 39%

11%- 15% 28% 13%

More than 15% - 4%

No answer

Amount of

increase

- -

Less than 5% 47% 100%

5% – 10% 33% -

11%- 15% 7% -

More than 15% 13% -

No answer - -

6


ECEF Pulse 2011 _________

●Perceived Threats to Event

Exhibitors’ diversion of their marketing budgets to social media poses the greatest threat

to events this year. This is followed by exhibitors canceling sponsorships. Of note, in

2009 the greatest threat was perceived to be global recession. In 2011, that is no longer

the case (although concern about recession did rise slightly over 2010).

Exhibit 5

Perceived Threats or Challenges To Your Event

(Means Calculations: 5 high - All Respondents)

2009 2010 2011

Marketing budgets being diverting to

social media

- - 4.07

Exhibitors canceling sponsorships 3.08 3.19 3.52

Exhibitors having their own private

events

2.79 3.25 3.48

Exhibitors downsizing sponsorships 3.53 2.86 3.24

International attendees/exhibitors

unable to get into the U.S.

2.47 3.67 3.18

Competing events 2.80 3.14 3.07

Exhibitors cancel booths in event 3.46 3.11 3.00

Attendees spending less time at event 2.87 3.35 2.83

Most important attendees not attending 2.89 3.11 2.82

Perceived reduced value of exhibitions

and conventions by attendees

3.15 2.86 2.79

Exhibitors downsizing exhibit space 3.92 2.56 2.72

Global economic recession 4.06 2.36 2.66

Mergers & acquisitions reducing

attendee and exhibitor base

2.98 3.47 2.48

Jacobs Jenner Kent

7


ECEF Pulse 2011 _________

●Staffing

To accelerate their capabilities, many organizers (59%) continue to augment their staff

with highly qualified experts.

Exhibit 6

Adding Expert Staff

2010 2011

Senior level sales people 30% 41%

Individuals with recognized industry

experience and knowledge

28% 28%

Senior level marketing people 16% 28%

Conference session development experts 11% 24%

Social media experts 21% 14%

Senior level communications people 8% 14%

None 43% 41%

●Diversifying Exhibitor Revenue Stream

Eighty-six percent (86%) of organizers are open to new and different pricing models for

exhibitors.

Exhibit 7

Exploring Ways to Diversify

Your Exhibitor Revenue Stream

(To include changing the traditional per net-square-foot charge)

Yes 86%

No 14%

Strategies

41% Multi-year contracts

36% Priority location placement (near attractions, the “boulevard”, etc.)

32% Charge based on different sections of the exhibit floor

5% Charge based on performance

46% Other

Jacobs Jenner Kent

8


ECEF Pulse 2011 _________

Organizers are actively working with exhibitors to ensure their continued participation.

Interacting on the exhibitors’ behalf with hotels and service contractors and conducting

ROI-improvement seminars are among the top ways they are working with exhibitors.

Exhibit 8

Working With Exhibitors

Strategies to Reduce Exhibitor Costs

2010 2011

Interacting with hotels 67% 58%

Interacting with the GSC such as subsidizing

drayage

45% 45%

Interacting with building exclusives (electrical,

catering, etc.)

37% 42%

Offering multi-year contracts at a reduced cost to

your exhibitors

16% 31%

Other - 23%

Strategies to Help Exhibitors Improve Their ROI

Exhibitor Training Seminars – online and face to

face

68% 59%

Providing tools to help exhibitors measure ROI 54% 41%

Exhibit marketing training/consulting offered to

individual exhibitors at no charge

54% 38%

Provide customized research for key exhibitors 37% 38%

Audit exhibitor invoices to offer savings ideas 18% 24%

Nothing 12% 7%

Other - 10%

Jacobs Jenner Kent

9


ECEF Pulse 2011 _________

●Co-location

The likelihood of events continuing to co-locate is significantly less than it was a year

ago. Only 13% of organizers plan to continue their co-location efforts during the next

three years; and only 15% are very likely to initiate new co-location efforts during that

period.

.

Exhibit 9

Intent To Co-Locate

Three Year Comparison

(All Respondents)

2009 2010 2011

Total Total Total

Likelihood to

continue current

co-locating over

the next 3 years

Very 45% 52% 13%

Somewhat 18% 14% 13%

Undecided 3% 11% 13%

Not very 3% 7% 4%

Not at all 31% 16% 57%

Likelihood to

institute (new) colocating

in next 3

years

Very 14% 34% 15%

Somewhat 24% 18% 19%

Undecided 20% 14% 15%

Not very 14% 13% 22%

Not at all 28% 21% 29%

Jacobs Jenner Kent

10


ECEF Pulse 2011 _________

●International Expansion and Promotion

Forty-one percent of organizers are currently holding events outside the United States.

The locations hosting most of these events are Germany, Dubai and China. Exhibition

and convention centers are the venues most often used.

Jacobs Jenner Kent

Exhibit 10

Currently Hold Events Outside the US

(All Respondents)

Yes 41%

No 59%

Europe

Germany 55%

UK 46%

France 46%

Netherlands 9%

Other 18%

Middle East

Dubai 36%

Abu Dhabi 9%

Saudi Arabia -

Other 36%

Asia

China 82%

Japan 36%

Singapore 36%

Korea 27%

Other 46%

Venue Used For Overseas Events

Exhibition and

100%

convention centers

Hotels with exhibition 33%

and meeting space

Conference centers -

11


ECEF Pulse 2011 _________

Thirty-eight percent of organizers are planning to take their events global. The UK,

Dubai, China and South America are considered the most likely destinations.

Jacobs Jenner Kent

Exhibit 11

Planning To Take Your Event

Outside The U.S.

(All Respondents)

Yes 38%

No 62%

Europe

UK 18%

Germany 9%

France -

Netherlands -

Other 18%

Middle East

Dubai 18%

Abu Dhabi 9%

Saudi Arabia -

Other 18%

Asia

China 46%

Singapore 18%

Korea -

Japan -

Other 18%

South America 55%

India 36%

Russia 27%

Africa 9%

Australia / New

Zealand

9%

12


ECEF Pulse 2011 _________

Organizers continue to seek ways to attract offshore audiences to their US events.

Thirty-one percent (31%) are exhibiting in overseas events to do so. Most are

spending the same amount of money on these efforts they did last year.

Jacobs Jenner Kent

Exhibit 12

Currently Exhibit at Overseas Events

to Market Your U.S. Event

Yes 31%

No 69%

Annual Spend on Marketing to Overseas Attendees

(2010 compared to 2011)

25% more -

10% more 27%

Same as last 2010 65%

10% less 4%

25% less 4%

Europe leads the way as the most productive source for both attendees and

exhibitors.

Exhibit 13

Regions Providing the Greatest Amount of

Overseas Participation at Your Events

(Combined 1 st , 2 nd and 3 rd Mentions)

Attendees Exhibitors

Europe 88% 94%

India - 11%

South America 72% 22%

Russia - -

China 64% 78%

Africa - -

Asia 44% 66%

Australia / New Zealand 11% -

Middle East - -

13


ECEF Pulse 2011 _________

●Technology

Organizers’ efforts to track ROI from social media (e.g., Facebook, Twitter,

LinkedIn, Flickr and YouTube) vary. The majority (41%) are tracking social media

only somewhat frequently. Twenty-six percent are tracking it frequently or always.

Not able to

track at all

Jacobs Jenner Kent

Exhibit 14

Your Organizations’ Effectiveness in Tracking

Track

infrequently

ROI of Social Media Efforts

Track

somewhat

frequently

Track very

frequently

Always

track

11% 22% 41% 15% 11%

Matchmaking/scheduling programs are being used by 36% of organizers. Twenty-seven

percent (27%) of those organizers find the programs very effective for exhibitors; and

36% find them very effective for attendees.

Exhibit 15

Use of Match-Making/Scheduling Program to Connect

Attendees and Exhibitor at Your Event

36% - Yes 64% - No

Effectiveness of These Programs For Exhibitors

Not at all Not very Undecided Somewhat Very

effective effective

effective effective

- 27% 28% 18% 27%

Effectiveness of These Programs For Attendees

Not at all Not very Undecided Somewhat Very

effective effective

effective effective

- 9% 37% 18% 36%

14


ECEF Pulse 2011 _________

Twenty-one percent (21%) of organizers are currently providing a virtual event in

conjunction with their physical event and 17% are considering them. Their objectives in

providing virtual events vary widely.

Jacobs Jenner Kent

Exhibit 16

Use of Virtual Event in Conjunction

With Physical Event

Yes 21%

No 79%

Plan to Use a Virtual Event in Conjunction

With Physical Event

Yes 17%

No 83%

Objectives in Adding / Considering Adding a

Virtual Extension to Your Physical Event

(Mean Scale 5 Important – 1 Not Important)

Increase booth sales at

3.23

future physical events

New revenue from

virtual booths and

sponsorships

Strengthen your event’s

brand

Offer your event’s

content to prospects that

can’t attend your

physical event

Increase the number of

attendees at future

physical events

3.15

3.08

3.08

2.65

15


ECEF Pulse 2011 _________

●Study Firmographics

Jacobs Jenner Kent

ECEF Pulse 2011

Net Square Feet of Largest Event

Under 50,000 50,000 + but 100,000 + but 250,000 + but 400,000 and

under 100,000 under 250,000 under 400,000 over

14% 11% 21% 18% 36%

Total Attendance of Largest Event (Attendees & Exhibitors)

Under 5,000 5,000 + but 10,000 + but 20,000 + but 40,000 and over

under 10,000 under 20,000 under 40,000

24% 14% 17% 24% 21%

Study Highlights

1. The event industry continues to show growth, specifically in the areas of

exhibiting companies, exhibit space sold and sponsorship sales.

2. Thirty-six percent (36%) of organizers increased their attendee marketing and

promotion budgets in the past year.

3. Thirty-one percent (31%) of organizers increased their spending for exhibit space

and sponsorship sales in the past year.

4. Fifty-four percent (54%) of organizers saw increased profitability for their largest

event during the current year. Only 7% report a decline in profitability.

5. Optimistic about the future, 79% of organizers project an increase in profitability

next year.

6. Exhibitors’ diversion of marketing budgets to social media represents the greatest

threat to events in 2011.

7. Many organizers continue to augment their staff with highly qualified experts to

accelerate their capabilities. Senior-level sales people are at the top of the list.

8. Eighty-six percent (86%) of organizers are open to or currently exploring ways to

diversify their exhibitor revenue stream.

16


ECEF Pulse 2011 _________

9. Organizers have made interacting with their current and prospective exhibitors a

primary objective. They are assisting exhibitors by working with hotels and

service contractors on their behalf.

10. The likelihood of events continuing to co-locate is considerably less than it was

12 months ago. Only 13% of organizers plan to continue relationships with colocation

partners and only 5% plan to explore new partnerships.

11. Forty-one percent (41%) of organizers currently produce events outside the US;

38% plan to do so.

12. Thirty-one percent (31%) of organizers are currently exhibiting in overseas

events to attract offshore audiences to their US events.

13. Organizers are making effective use of technology to:

Jacobs Jenner Kent

• Track the ROI of their social media efforts (26% at least frequently)

• Provide matchmaking/scheduling programs for exhibitors and attendees

(36%)

• Conduct virtual events in conjunction with their physical events (21%)

17

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