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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

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