ECEF PULSE 2011
ECEF PULSE 2011
ECEF PULSE 2011
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Introduction<br />
P.O. Box 44047<br />
Baltimore, Maryland 21236<br />
(410) 256-2206<br />
<strong>ECEF</strong> <strong>PULSE</strong> <strong>2011</strong><br />
May <strong>2011</strong><br />
Jacobs Jenner & Kent Market Research (JJ&K) conducted an Internet study among association<br />
and independent event producers registered to attend the Exhibition and Convention Executives<br />
Forum (<strong>ECEF</strong>) on Wednesday June 1, <strong>2011</strong>, and previous attendees of <strong>ECEF</strong>. Two hundred and<br />
six (206) responded to the survey. The questionnaire, developed by JJ&K and <strong>ECEF</strong>, was posted<br />
on JJ&K’s Internet research Website and qualified individuals were e-mailed an invitation to<br />
participate. The resulting data set includes:<br />
. Draft 3: 5/21/11<br />
Independent Event<br />
Producers<br />
Association Event<br />
Producers<br />
38%<br />
62%<br />
Jacobs Jenner & Kent is a full-service marketing research and consulting firm with<br />
offices in Baltimore and Atlanta, offering both national and international capabilities.<br />
Serving the exhibition industry since 1980, JJ&K believes that in-depth market research<br />
and analysis are the keys to understanding your audience and assuring the success of any<br />
marketing effort.
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
Study Results<br />
●Industry Profile<br />
A snapshot of the event industry indicates overall growth in the number of exhibiting<br />
companies, net square feet, attendees and sponsorship sales. The greatest growth over<br />
last year is in the number of exhibiting companies. The greatest decline is in the number<br />
of attendees.<br />
60%<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
-10%<br />
-20%<br />
-30%<br />
58%<br />
-14%<br />
Jacobs Jenner Kent<br />
28%<br />
Exhibiting<br />
Companies<br />
Exhibit 1<br />
Size of Event Compared<br />
To Past Year<br />
48%<br />
-21%<br />
31%<br />
39%<br />
32%<br />
-29%<br />
54%<br />
-18%<br />
28%<br />
Net Sq. Ft. Attendees Sponsorship<br />
Sales<br />
Growing<br />
Same<br />
Decreasing<br />
2
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
If you compare <strong>ECEF</strong> Pulse finding for three years in a row, the extent of the event<br />
industry’s recovery becomes evident.<br />
Exhibit 2<br />
Changes In Size Of Event<br />
Three Year Comparison<br />
(All Respondents)<br />
2009 2010 <strong>2011</strong><br />
Total Total Total<br />
Number of<br />
exhibiting<br />
companies<br />
Growing 23% 44% 58%<br />
Staying the same 29% 29% 28%<br />
Declining<br />
Net square feet<br />
sold<br />
48% 27% 14%<br />
Growing 21% 35% 48%<br />
Staying the same 25% 40% 31%<br />
Declining<br />
Number of<br />
attendees<br />
54% 25% 21%<br />
Growing 31% 49% 39%<br />
Staying the same 23% 35% 32%<br />
Declining<br />
Sponsorship<br />
sales<br />
46% 16% 29%<br />
Growing 28% 49% 54%<br />
Staying the same 22% 33% 28%<br />
Decline 50% 18% 18%<br />
Jacobs Jenner Kent<br />
3
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
●Marketing and Promotion Spending<br />
Thirty-six percent (36%) of organizers have increased their attendee marketing and<br />
promotion “spend” in the past 12 months. While that increase was considerable, growth<br />
in attendance during the same 12 months didn’t keep pace with growth in attendance<br />
during the previous year (see Exhibit 2). You can conclude that (1) the spending increase<br />
was intended to prevent deeper declines in attendance and (2) the spending increase was<br />
not sufficient (58% of organizers increased spending by 10% or less).<br />
Exhibit 3a<br />
Attendee Marketing And Promotion Spending<br />
Three Year Comparison<br />
(All Respondents)<br />
2009 2010 <strong>2011</strong><br />
Total Total Total<br />
Spending<br />
changes since<br />
last event<br />
Increased - 9% 36%<br />
Stayed the same 31% 36% 43%<br />
Declined<br />
Amount of<br />
decrease<br />
69% 55% 21%<br />
5% or less 26% 34% 32%<br />
6%-10% 30% 35% 50%<br />
11%- 15% 7% 11% -<br />
More than 15% 6% 20% 18%<br />
No answer<br />
Amount of<br />
increase<br />
- - -<br />
Less than 5% - 82% 19%<br />
6 – 10% - 18% 39%<br />
11%- 15% - - 11%<br />
More than 15% - - 31%<br />
No answer - - -<br />
Jacobs Jenner Kent<br />
4
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
Thirty-one percent (31%) of organizers report increasing their spending for exhibit space<br />
and sponsorship sales in the past year. This in part may be responsible for the growth in<br />
the number of exhibiting companies, net square feet sold and sponsorship sales (see<br />
Exhibit 2).<br />
Exhibit 3b<br />
Spending For Exhibit and Sponsorship Sales<br />
Three Year Comparison Reported<br />
(All Respondents)<br />
2009 2010 <strong>2011</strong><br />
Total Total Total<br />
Spending<br />
changes since<br />
last event<br />
Increased - 11% 31%<br />
Stayed the same 63% 42% 59%<br />
Declined<br />
Amount of<br />
decrease<br />
37% 47% 10%<br />
5% or less 20% 34% 70%<br />
5%-10% 9% 48% -<br />
11%- 15% - 5% 30%<br />
More than 15% 8% 13% -<br />
No answer<br />
Amount of<br />
increase<br />
- - -<br />
Less than 5% - 73% 34%<br />
5% – 10% - 24% 33%<br />
11%- 15% - 3% 23%<br />
More than 15% - - 10%<br />
No answer - - -<br />
Jacobs Jenner Kent<br />
5
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
●Profitability<br />
Fifty-four percent (54%) of organizers report a profit increase for their largest event this<br />
year. (This figure was only 7% in the 2010 <strong>ECEF</strong> Pulse.) Twenty-five percent (25%)<br />
report a profit decline. Optimistic about the future, 79% of organizers project a profit<br />
increase next year. (This figure was only 9% in the 2010 <strong>ECEF</strong> Pulse.) Only 7% of<br />
organizers project another year of profit decline.<br />
Jacobs Jenner Kent<br />
Exhibit 4<br />
Profitability of Your Largest Event<br />
Current Year and Projected Year<br />
(All Respondents)<br />
Current<br />
Year<br />
Projected For<br />
NEXT Year<br />
Total Total<br />
Profitability<br />
Increase 54% 79%<br />
Stay the same 21% 14%<br />
Decline<br />
Amount of<br />
decrease<br />
25% 7%<br />
5% or less 28% 44%<br />
5%-10% 44% 39%<br />
11%- 15% 28% 13%<br />
More than 15% - 4%<br />
No answer<br />
Amount of<br />
increase<br />
- -<br />
Less than 5% 47% 100%<br />
5% – 10% 33% -<br />
11%- 15% 7% -<br />
More than 15% 13% -<br />
No answer - -<br />
6
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
●Perceived Threats to Event<br />
Exhibitors’ diversion of their marketing budgets to social media poses the greatest threat<br />
to events this year. This is followed by exhibitors canceling sponsorships. Of note, in<br />
2009 the greatest threat was perceived to be global recession. In <strong>2011</strong>, that is no longer<br />
the case (although concern about recession did rise slightly over 2010).<br />
Exhibit 5<br />
Perceived Threats or Challenges To Your Event<br />
(Means Calculations: 5 high - All Respondents)<br />
2009 2010 <strong>2011</strong><br />
Marketing budgets being diverting to<br />
social media<br />
- - 4.07<br />
Exhibitors canceling sponsorships 3.08 3.19 3.52<br />
Exhibitors having their own private<br />
events<br />
2.79 3.25 3.48<br />
Exhibitors downsizing sponsorships 3.53 2.86 3.24<br />
International attendees/exhibitors<br />
unable to get into the U.S.<br />
2.47 3.67 3.18<br />
Competing events 2.80 3.14 3.07<br />
Exhibitors cancel booths in event 3.46 3.11 3.00<br />
Attendees spending less time at event 2.87 3.35 2.83<br />
Most important attendees not attending 2.89 3.11 2.82<br />
Perceived reduced value of exhibitions<br />
and conventions by attendees<br />
3.15 2.86 2.79<br />
Exhibitors downsizing exhibit space 3.92 2.56 2.72<br />
Global economic recession 4.06 2.36 2.66<br />
Mergers & acquisitions reducing<br />
attendee and exhibitor base<br />
2.98 3.47 2.48<br />
Jacobs Jenner Kent<br />
7
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
●Staffing<br />
To accelerate their capabilities, many organizers (59%) continue to augment their staff<br />
with highly qualified experts.<br />
Exhibit 6<br />
Adding Expert Staff<br />
2010 <strong>2011</strong><br />
Senior level sales people 30% 41%<br />
Individuals with recognized industry<br />
experience and knowledge<br />
28% 28%<br />
Senior level marketing people 16% 28%<br />
Conference session development experts 11% 24%<br />
Social media experts 21% 14%<br />
Senior level communications people 8% 14%<br />
None 43% 41%<br />
●Diversifying Exhibitor Revenue Stream<br />
Eighty-six percent (86%) of organizers are open to new and different pricing models for<br />
exhibitors.<br />
Exhibit 7<br />
Exploring Ways to Diversify<br />
Your Exhibitor Revenue Stream<br />
(To include changing the traditional per net-square-foot charge)<br />
Yes 86%<br />
No 14%<br />
Strategies<br />
41% Multi-year contracts<br />
36% Priority location placement (near attractions, the “boulevard”, etc.)<br />
32% Charge based on different sections of the exhibit floor<br />
5% Charge based on performance<br />
46% Other<br />
Jacobs Jenner Kent<br />
8
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
Organizers are actively working with exhibitors to ensure their continued participation.<br />
Interacting on the exhibitors’ behalf with hotels and service contractors and conducting<br />
ROI-improvement seminars are among the top ways they are working with exhibitors.<br />
Exhibit 8<br />
Working With Exhibitors<br />
Strategies to Reduce Exhibitor Costs<br />
2010 <strong>2011</strong><br />
Interacting with hotels 67% 58%<br />
Interacting with the GSC such as subsidizing<br />
drayage<br />
45% 45%<br />
Interacting with building exclusives (electrical,<br />
catering, etc.)<br />
37% 42%<br />
Offering multi-year contracts at a reduced cost to<br />
your exhibitors<br />
16% 31%<br />
Other - 23%<br />
Strategies to Help Exhibitors Improve Their ROI<br />
Exhibitor Training Seminars – online and face to<br />
face<br />
68% 59%<br />
Providing tools to help exhibitors measure ROI 54% 41%<br />
Exhibit marketing training/consulting offered to<br />
individual exhibitors at no charge<br />
54% 38%<br />
Provide customized research for key exhibitors 37% 38%<br />
Audit exhibitor invoices to offer savings ideas 18% 24%<br />
Nothing 12% 7%<br />
Other - 10%<br />
Jacobs Jenner Kent<br />
9
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
●Co-location<br />
The likelihood of events continuing to co-locate is significantly less than it was a year<br />
ago. Only 13% of organizers plan to continue their co-location efforts during the next<br />
three years; and only 15% are very likely to initiate new co-location efforts during that<br />
period.<br />
.<br />
Exhibit 9<br />
Intent To Co-Locate<br />
Three Year Comparison<br />
(All Respondents)<br />
2009 2010 <strong>2011</strong><br />
Total Total Total<br />
Likelihood to<br />
continue current<br />
co-locating over<br />
the next 3 years<br />
Very 45% 52% 13%<br />
Somewhat 18% 14% 13%<br />
Undecided 3% 11% 13%<br />
Not very 3% 7% 4%<br />
Not at all 31% 16% 57%<br />
Likelihood to<br />
institute (new) colocating<br />
in next 3<br />
years<br />
Very 14% 34% 15%<br />
Somewhat 24% 18% 19%<br />
Undecided 20% 14% 15%<br />
Not very 14% 13% 22%<br />
Not at all 28% 21% 29%<br />
Jacobs Jenner Kent<br />
10
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
●International Expansion and Promotion<br />
Forty-one percent of organizers are currently holding events outside the United States.<br />
The locations hosting most of these events are Germany, Dubai and China. Exhibition<br />
and convention centers are the venues most often used.<br />
Jacobs Jenner Kent<br />
Exhibit 10<br />
Currently Hold Events Outside the US<br />
(All Respondents)<br />
Yes 41%<br />
No 59%<br />
Europe<br />
Germany 55%<br />
UK 46%<br />
France 46%<br />
Netherlands 9%<br />
Other 18%<br />
Middle East<br />
Dubai 36%<br />
Abu Dhabi 9%<br />
Saudi Arabia -<br />
Other 36%<br />
Asia<br />
China 82%<br />
Japan 36%<br />
Singapore 36%<br />
Korea 27%<br />
Other 46%<br />
Venue Used For Overseas Events<br />
Exhibition and<br />
100%<br />
convention centers<br />
Hotels with exhibition 33%<br />
and meeting space<br />
Conference centers -<br />
11
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
Thirty-eight percent of organizers are planning to take their events global. The UK,<br />
Dubai, China and South America are considered the most likely destinations.<br />
Jacobs Jenner Kent<br />
Exhibit 11<br />
Planning To Take Your Event<br />
Outside The U.S.<br />
(All Respondents)<br />
Yes 38%<br />
No 62%<br />
Europe<br />
UK 18%<br />
Germany 9%<br />
France -<br />
Netherlands -<br />
Other 18%<br />
Middle East<br />
Dubai 18%<br />
Abu Dhabi 9%<br />
Saudi Arabia -<br />
Other 18%<br />
Asia<br />
China 46%<br />
Singapore 18%<br />
Korea -<br />
Japan -<br />
Other 18%<br />
South America 55%<br />
India 36%<br />
Russia 27%<br />
Africa 9%<br />
Australia / New<br />
Zealand<br />
9%<br />
12
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
Organizers continue to seek ways to attract offshore audiences to their US events.<br />
Thirty-one percent (31%) are exhibiting in overseas events to do so. Most are<br />
spending the same amount of money on these efforts they did last year.<br />
Jacobs Jenner Kent<br />
Exhibit 12<br />
Currently Exhibit at Overseas Events<br />
to Market Your U.S. Event<br />
Yes 31%<br />
No 69%<br />
Annual Spend on Marketing to Overseas Attendees<br />
(2010 compared to <strong>2011</strong>)<br />
25% more -<br />
10% more 27%<br />
Same as last 2010 65%<br />
10% less 4%<br />
25% less 4%<br />
Europe leads the way as the most productive source for both attendees and<br />
exhibitors.<br />
Exhibit 13<br />
Regions Providing the Greatest Amount of<br />
Overseas Participation at Your Events<br />
(Combined 1 st , 2 nd and 3 rd Mentions)<br />
Attendees Exhibitors<br />
Europe 88% 94%<br />
India - 11%<br />
South America 72% 22%<br />
Russia - -<br />
China 64% 78%<br />
Africa - -<br />
Asia 44% 66%<br />
Australia / New Zealand 11% -<br />
Middle East - -<br />
13
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
●Technology<br />
Organizers’ efforts to track ROI from social media (e.g., Facebook, Twitter,<br />
LinkedIn, Flickr and YouTube) vary. The majority (41%) are tracking social media<br />
only somewhat frequently. Twenty-six percent are tracking it frequently or always.<br />
Not able to<br />
track at all<br />
Jacobs Jenner Kent<br />
Exhibit 14<br />
Your Organizations’ Effectiveness in Tracking<br />
Track<br />
infrequently<br />
ROI of Social Media Efforts<br />
Track<br />
somewhat<br />
frequently<br />
Track very<br />
frequently<br />
Always<br />
track<br />
11% 22% 41% 15% 11%<br />
Matchmaking/scheduling programs are being used by 36% of organizers. Twenty-seven<br />
percent (27%) of those organizers find the programs very effective for exhibitors; and<br />
36% find them very effective for attendees.<br />
Exhibit 15<br />
Use of Match-Making/Scheduling Program to Connect<br />
Attendees and Exhibitor at Your Event<br />
36% - Yes 64% - No<br />
Effectiveness of These Programs For Exhibitors<br />
Not at all Not very Undecided Somewhat Very<br />
effective effective<br />
effective effective<br />
- 27% 28% 18% 27%<br />
Effectiveness of These Programs For Attendees<br />
Not at all Not very Undecided Somewhat Very<br />
effective effective<br />
effective effective<br />
- 9% 37% 18% 36%<br />
14
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
Twenty-one percent (21%) of organizers are currently providing a virtual event in<br />
conjunction with their physical event and 17% are considering them. Their objectives in<br />
providing virtual events vary widely.<br />
Jacobs Jenner Kent<br />
Exhibit 16<br />
Use of Virtual Event in Conjunction<br />
With Physical Event<br />
Yes 21%<br />
No 79%<br />
Plan to Use a Virtual Event in Conjunction<br />
With Physical Event<br />
Yes 17%<br />
No 83%<br />
Objectives in Adding / Considering Adding a<br />
Virtual Extension to Your Physical Event<br />
(Mean Scale 5 Important – 1 Not Important)<br />
Increase booth sales at<br />
3.23<br />
future physical events<br />
New revenue from<br />
virtual booths and<br />
sponsorships<br />
Strengthen your event’s<br />
brand<br />
Offer your event’s<br />
content to prospects that<br />
can’t attend your<br />
physical event<br />
Increase the number of<br />
attendees at future<br />
physical events<br />
3.15<br />
3.08<br />
3.08<br />
2.65<br />
15
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
●Study Firmographics<br />
Jacobs Jenner Kent<br />
<strong>ECEF</strong> Pulse <strong>2011</strong><br />
Net Square Feet of Largest Event<br />
Under 50,000 50,000 + but 100,000 + but 250,000 + but 400,000 and<br />
under 100,000 under 250,000 under 400,000 over<br />
14% 11% 21% 18% 36%<br />
Total Attendance of Largest Event (Attendees & Exhibitors)<br />
Under 5,000 5,000 + but 10,000 + but 20,000 + but 40,000 and over<br />
under 10,000 under 20,000 under 40,000<br />
24% 14% 17% 24% 21%<br />
Study Highlights<br />
1. The event industry continues to show growth, specifically in the areas of<br />
exhibiting companies, exhibit space sold and sponsorship sales.<br />
2. Thirty-six percent (36%) of organizers increased their attendee marketing and<br />
promotion budgets in the past year.<br />
3. Thirty-one percent (31%) of organizers increased their spending for exhibit space<br />
and sponsorship sales in the past year.<br />
4. Fifty-four percent (54%) of organizers saw increased profitability for their largest<br />
event during the current year. Only 7% report a decline in profitability.<br />
5. Optimistic about the future, 79% of organizers project an increase in profitability<br />
next year.<br />
6. Exhibitors’ diversion of marketing budgets to social media represents the greatest<br />
threat to events in <strong>2011</strong>.<br />
7. Many organizers continue to augment their staff with highly qualified experts to<br />
accelerate their capabilities. Senior-level sales people are at the top of the list.<br />
8. Eighty-six percent (86%) of organizers are open to or currently exploring ways to<br />
diversify their exhibitor revenue stream.<br />
16
<strong>ECEF</strong> Pulse <strong>2011</strong> _________<br />
9. Organizers have made interacting with their current and prospective exhibitors a<br />
primary objective. They are assisting exhibitors by working with hotels and<br />
service contractors on their behalf.<br />
10. The likelihood of events continuing to co-locate is considerably less than it was<br />
12 months ago. Only 13% of organizers plan to continue relationships with colocation<br />
partners and only 5% plan to explore new partnerships.<br />
11. Forty-one percent (41%) of organizers currently produce events outside the US;<br />
38% plan to do so.<br />
12. Thirty-one percent (31%) of organizers are currently exhibiting in overseas<br />
events to attract offshore audiences to their US events.<br />
13. Organizers are making effective use of technology to:<br />
Jacobs Jenner Kent<br />
• Track the ROI of their social media efforts (26% at least frequently)<br />
• Provide matchmaking/scheduling programs for exhibitors and attendees<br />
(36%)<br />
• Conduct virtual events in conjunction with their physical events (21%)<br />
17