Research
Time for a new toolbox?
Strong US revenues are masking opportunities for disruption,
says Sam Lippman, President, Lippman Connects
xhibit sales are up.
Sponsorship sales are up.
That’s what US organisers
reported in the 2018
Benchmarks and Trends in Exhibit and
Sponsorship Sales. It is a trend that
has been strengthening over the past
several years.
It almost makes us feel just a little
guilty to point out signs of weakness
in data this positive. However,
weakness for some is often an
opportunity for someone else.
Reading the data closely, it becomes
clear that all this good news is
primarily a function of expanding
markets and rising demand.
America’s exhibition sales revenues
are strong and growing because the
markets they serve are thriving.
Respondents who reported
increases in exhibit space sales
reached a four-year high of 72%.
On the sponsorship sales side,
respondents who reported revenue
increases reached a three-year high
of 66%. The research was conducted
by Freeman and Lippman Connects
and released at the Exhibit Sales
Roundtable (ESR) in February in
Washington, DC.
If strong market demand is doing
the heavy lifting, the flip side is that
some of America’s sales professionals
are not finding ways to resolve
persistent challenges.
A case in point is the long-standing
challenge of proving an exhibition’s
value to the customer. It tops the list
of sales challenges year after year.
Likewise, year after year, respondents
claim that attendee demographic data
is the most effective tool to address
this challenge.
Let’s face it, attendee demographics
cannot prove return on investment
50
Issue 1 2019
“Customers are
Right:
Sam
unwavering in
Lippman
demanding proof of
ROI. And rather than
respond aggressively
with better solutions,
sales professionals
keep using a tool that
does not meet those
demands”
“40% of
respondents
report that
over the past
few years they
have seen an
increase in
customers
that use
agencies to
purchase
space or
sponsorships.
Should those
increases
build to a
critical mass,
the exhibition
industry will
be forced to
adapt to a
different kind
of customer”
(ROI). Yet, year after year this
remains the status quo.
Nevertheless, US respondents
consistently say it is their most
effective sales tool. The reason is
obvious: attendee demographics is
the one tool everyone has at their
disposal. There are better tools
available to help fill the void, like
data on attendee actions. The study
suggests, however, that such tools
have not yet achieved widespread
adoption.
Let that sink in for a minute.
Customers are unwavering in
demanding proof of ROI. And rather
than respond aggressively with better
solutions, sales professionals keep
using a tool that does not meet those
demands. That sounds to us like an
invitation to disruption, or at least
competition.
The data also showed signs of
other possible disruptions that
we will continue to monitor. Most
significantly, 40% of respondents
report that over the past few years
they have seen an increase in
customers that use agencies to
purchase space or sponsorships.
Should those increases build to a
critical mass, the exhibition industry
will be forced to adapt to a different
kind of customer.
Another area deserving further
observation is the growth of
sponsorship at the expense of
exhibit space. Although revenues
from both sources are currently
strong and growing, cannibalising
one to feed the other would be a
game-changer. In the 2018 study,
22% reported more customers
downsising exhibit space to increase
sponsorship spending.
A two-page Executive Summary
of the 2018 study is available
for complimentary download at
lippmanconnects.com/resources.
The complete study is available to
clients of the Exhibit Sales Roundtable.
The 2019 study is in the field now and
will debut at ESR on 14 February in
Washington, DC.
w w w.exhibitionworld.co.uk