Harnessing trade show power By Traci Matt Associate Editor Wis the National Convention of the Automotive Distribution Network begins at the end of this month in Nashville, it will bring more than 1,300 attendees to the city. Their headquarter hotel was sold out far in advance, prompt- ing the organization president to assure pre-registered attendees, as well as last- minute drop-ins, they would have a place to stay. According to Genevieve Nelson, research project coordinator for the Center for Exhibition Industry Research (CEIR), final results for 2008 trade show trends are still being tabulated. However, one industry forecast targeted 2008 trade show spending by exhibitors alone at over $11.5 billion, up almost 6 percent from the year before. CEIR places the exhibi- tion industry at $24.1 billion a year entity. No one can predict the damage the faltering economy and rising fuel prices will have on the convention and meeting industry, but most still swear by the value of face-to-face marketing and on-site edu- cation opportunities. So where does this leave you? Is the trade show still a worthwhile investment for buyer or seller? Does the Internet eliminate the need for travel and a hand- shake? And what can you do to maximize each dollar spent as you travel to distant locales to meet with your peers? Nelson said CEIR’s studies over the past few years reveal some common show trends: ¢ 77 percent of qualified attendees at events are potential new customers for exhibiting companies; ¢ 39 percent have final say in purchas- ing decisions; ¢ 51 percent recommend the purchase of exhibited products; * one-third of exhibition visitors have not previously attended a show; * average attendees spend 8.3 hours over 2.3 days visiting exhibits on the floor; and, ¢ 34 percent of visitors are likely to recommend a product or particular brand showcased at an exhibition. CEIR’s research consistently reaffirms the power of face-to-face as the “premier” marketing medium. Approximately two- thirds of visitors place a “high level of importance” on personal interaction during the pre-purchasing stages of the customer’s buying process. Customers also require face-to-face interaction in the later stages of the purchasing process to maintain the ongoing relationship with their vendors. Although some predicted the death of the face-to-face exhibition due to virtual trade shows, little progress has been made in convincing the public to stay put. Much as the birth of the home VCR did not put movie theaters out of business, getting out and being with people seems to have an intrinsic value of its own. “For all the money they save, virtual trade shows don’t work for the same reason e-mail won’t suffice when a con- ference call is needed,’ said ERA Show Promoter Polly Shea. “Electronic misun- derstandings can abound.” “Expressions and tone play a vital part of the networking process. Questions can be answered, but much of the give and take during a face-to-face conversation never takes place. And what about hob- nobbing? You can’t put a price on that,” she said. One specific threat exhibition industry insiders are watching with trepidation is the reduction in the airline industry. Fewer seats, fewer flights, reconfigured hubs and uncertain fuel costs are keeping show organizers wondering how to ensure their exhibitors and attendees will be able to get where they need to go. Donna Sanford, editor and publisher of EXPO magazine wrote: “What happens to our attendance when ticket prices jump 50 percent? What happens to our exhibits when shipping fuel surcharges exceed all other costs of exhibiting? What happens to our destinations when direct flights only exist between a handful of major cities? …1n 25 years in this industry, nothing, in my opinion, has had the propensity to bring us to our knees like the current air- line crisis. ” Others are not so pessimistic. David Brull, senior director of the Trade Show Exhibitors Association (TSEA), said he sees “no threat” to the current trade show format. “Shows are not going away. Face-to- face marketing is still the most efficient way to make a sale, and trade shows are the easiest way for customers to evaluate a large number of products at the same time,” he said. Even though his latest numbers indicate 40 percent of their members are seeing less booth traffic, he said those with pur- chasing authority are still attending. “Decision-makers are still coming to shows, but not necessarily the tagalongs,” he said, ‘‘and exhibitors want to build rela- tionships and expand business with those people. There are a lot of exhibitors out there that don’t realize the potential if they do it right.” Brull said their members are indicating an uptick in popularity of the regional show, such as the Electrical Rebuilder’s Association (ERA) Trade Show sched- uled for this April in Kansas City. “Regional shows are more of a trend these days, partly because of the ease of travel?’ he said. “Exhibitors like small re