The Value of Attending Conventions & Tradeshows in a Recession June 2009 Attendee & Buyer Survey

Contents Objectives and Key Findings The Value of Attending Events Today Not Attending Key Events May Hurt Performance The Critical Role Events Play in the Corporate Buying Process Attendee and Buyer Quotes on Why They Attend Events When Attendees and Buyers Make Purchases as a Result of Attending Travel Budget Rebound Outlook The Key Reasons for Attending Shows in a Downturn Actions Taken at Shows by Attendees and Buyers this Year Conference and Education Requirements Today Conclusion & Outlook Appendix I: Survey Responses Broken-Out by Job Title Appendix II: 1991 and 2001 Post-Recession Attendance Growth Rates

Methodology This special report by Tradeshow Week covers the Value of Attending Conventions and Tradeshows in a Recession. The primary data source is a June 2009 survey of attendees and buyers in a range of industry sectors and job titles. A total of 323 attendees and buyers responded to the survey. About the Respondents -- Job Titles: Owners/CEOs/Presidents and Other C-Levels: 45% EVP, SVP and VP: 3% Director: 11% Manager: 21% Other Professional: 13% Other: 6% Industries Represented: Manufacturing & Industrial: 29%; Apparel, Home Furnishings, Gifts & Retail: 14%; Food & Beverage: 14%; Transportation & Shipping: 9%; Information Technology: 5%; Medical: 5%; Sporting Goods & Recreation: 5%; Education: 2%; Other: 18%

Key Findings Attendees and buyers representing a wide range of companies, industries and job titles are clear that conventions and tradeshows are a critical part of their product sourcing and buying process. A significant 89% of the survey respondents said that this year they are going to the shows their organization considers the most important in their industry. When making purchases, 49% of attendees or their companies take less than three months to place an order with an exhibitor or sponsor they saw at a show. Owners, CEOs and Presidents make faster purchase decisions, as 61% buy within three months of the show, according to the survey. 42% of attendees say their company’s travel budgets will increase within six months after seeing signs of an economic or sales turnaround. 50% of attendees feel that missing key events may negatively impact their future personal or organizational performance.

Key Findings, continued The top three actions taken at leading shows this year by attendees are: (1.) “See a product demonstration”; (2.) “Talk to technical employees”; and (3.) “Talk to sales employees”. 54% of attendees agree that smaller crowds at events this year have enabled them to be more efficient when on-site. The top three most popular educational and session topics today are (1.) “Specific industry trends”; (2.) “Sales and marketing”; and (3.) “Specific technical education”. Overall, the survey findings suggest that attendees and buyers are “bullish” on events. In fact, they have a better outlook on the events industry than exhibitors which have been impacted by budget cuts and their companies holding back on spending.

The Value of Attending Events Today Below are some of the reasons why attending events in a recession is valuable: The ability to keep up-to-date with changing industry trends. See new products, equipment, technology and services. See or participate in product demonstrations. See products first reviewed online. Maintain and build relationships, network. Meet exhibitors’ senior management and staff. Make purchases. Acquire new ideas. Education and training. Save money, with the efficiency of seeing many suppliers in one place. Compare competing products and company teams. Access competitive intelligence. Maintain a presence – “see and be seen”.

Attendee and Buyer Quotes on Why They Attend Events “If you don’t keep up with what is going on in your business, a recession can keep you going down.” “It is even more important to actually see the products so as not to make buying mistakes.” “To see if there are new perspectives or product lines that may bring in different revenue streams.” “To see new products that are available, and they are usually available first at these conventions.” “Regardless of the economy, one must preview all new products and decide which to carry.” “It’s actually a savings in travel costs. All my suppliers and potential suppliers are available at one venue.”

Attendee and Buyer Quotes on Why They Attend Events, Continued “Even during a weak economy there is a need to replace outdated hardware.” “Interface with like-minded people. Also looking for preferential pricing on items during downturns.” “Because travel is limited for the manufacturers, they might only show the new products at the shows.” “To make sure I’m keeping up with the competition and continuing to offer the best products.” “I like to meet the people behind the products. I like to discuss what makes their product unique and evaluate the integrity of the company.” “Even with the slowdown, I need to know what's new and industry trends.”

“Networking, meeting with old friends to keep my name out in the market. Out of sight is out of mind.” “Most importantly, you can find new vendors in a tough economy.” “You have to see product in person and let vendors know you are still in a competitive business.” “Spot trends, new items, changing packaging, life goes on and you cannot sit still during a downturn.” “It seems that there is less advertising during economic downturns. It makes finding out about the latest products harder.” Attendee and Buyer Quotes on Why They Attend Events, Continued

“Still a very good way to see a lot of potential suppliers and customers in one place in a short time. Highly efficient.” “Too look for new market opportunities even in a down cycle.” “We still have to keep up with changes in the industry and be prepared for the upswing.” “We still need to see the new products available and there are usually good deals at tradeshows, or possibilities of making contacts for future business.” “When the economy is good there may not be time to look for new technologies that will help us improve the way we do business.” Attendee and Buyer Quotes on Why They Attend Events, Continued

Source: Tradeshow Week Research Attendee Survey June 2009 (318 responses) Survey Question: “Do you consider conventions, tradeshows and conferences an important part of your product sourcing and buying process?” A Significant Majority – 88% – of Attendees and Buyers Consider Conventions and Tradeshows Important

Source: Tradeshow Week Research Attendee Survey June 2009 (318 responses) Survey Question: “Do you agree with this statement: Conventions, tradeshows and conferences are essential for comparing products and meeting suppliers in person?” Conventions and Tradeshows are Essential for Comparing Products and Meeting Suppliers

Source: Tradeshow Week Research Attendee Survey June 2009 (317 responses) Survey Question: “This year, during the economic downturn, are you going to the conventions, tradeshows and conferences your organization considers the most important in your industry or sector?” Buyers are Attending Their Most Important Shows this Year

Smaller Crowds = More Efficient Attendees Source: Tradeshow Week Research Attendee Survey June 2009 (303 responses) Survey Question: “Have smaller crowds at conventions, tradeshows and conferences this year enabled you to be more efficient when you attend?”

Source: Tradeshow Week Research Attendee Survey June 2009 (319 responses) Survey Question: “Do you feel that not attending key events may negatively impact future personal or organizational performance?” Not Attending Key Events May Hurt Performance

Why Not Attending Key Events Can Hurt Future Company Performance Not seeing all suppliers and products can cause “buying mistakes”. Missing out on “show deals” and discounts. Not being up-to-date on industry trends. Not being able to compare staff quality at different supplier and vendor companies. Being “out of sight, out of mind” with key industry players.

The Critical Role Events Play in the Corporate Buying Process Conventions and tradeshows are becoming more closely tied to web sites – the two primary business-to-business marketing and information mediums are expected to become the web and events. The role of events in the corporate buying process – information gathering and research increasingly starts on the internet and ends with the final purchase transacted online. Events are becoming more important in the middle of the buying process as buyers need to “touch and feel” products on show floors and assess people behind the brands.

49% of attendees or their companies take less than three months to make a major purchase with an exhibitor or sponsor they saw at a show – and a total of 73% require less than nine months. Source: Tradeshow Week Research Attendee Survey June 2009 (306 responses) Survey Question: “About how long after attending a convention, tradeshow or conference do you or a colleague, or buying team, typically make a major purchase or finalize an important deal with an exhibitor or sponsor you visited?” Most Purchases with Exhibitors are Made within Three Months After Attending Shows

42% of attendees say their travel budgets will increase within six months of an economic or sales turnaround. 59% of attendees say the travel increases will take one year. Source: Tradeshow Week Research Attendee Survey June 2009 (309 responses) Survey Question: “If the North American economy rebounds and/or your organization’s sales increase in 2009 how long will it take for your travel budgets to rebound and increase by a similar rate?” Travel Budgets are Expected to Rebound Following Signs of an Economic Recovery

Source: Tradeshow Week Research Attendee Survey June 2009 (306 responses) Survey Question: “What are your reasons for attending conventions, tradeshows and conferences this year?” The Key Reasons for Attending Shows in a Downturn – “Keep up to Date on Trends” and “See New Products”

Source: Tradeshow Week Research Attendee Survey June 2009 (306 responses) Survey Question: “Which of the following actions are you likely to take from an exhibitor or sponsor while at one of your most important conventions, tradeshows or conferences this year?” Actions Taken at Shows This Year by Attendees and Buyers

Source: Tradeshow Week Research Attendee Survey June 2009 (303 responses) Survey Question: “What are your conference and educational session interests or requirements currently? That is, which of the following issues and topics are of most interest to you for session topics?” Conference Session and Educational Requirements Today

Conclusion and Outlook Attendees and buyers highly value conventions and tradeshows and are supporting these events during this recession. Attendees and buyers highly value conventions and tradeshows and are supporting these events during this recession. Owners, CEOs and Presidents in particular maintain a very positive outlook for events. In fact, 96% of these senior executives say they are attending their most important shows this year. Owners, CEOs and Presidents in particular maintain a very positive outlook for events. In fact, 96% of these senior executives say they are attending their most important shows this year. 59% of attendees believe their companies’ travel budgets will rebound within a year after seeing an economic or sales turnaround. 59% of attendees believe their companies’ travel budgets will rebound within a year after seeing an economic or sales turnaround. Not attending key events may pose a competitive disadvantage. Not attending key events may pose a competitive disadvantage. Seeing products and assessing people behind brands at shows are essential in both strong and weak economies. Seeing products and assessing people behind brands at shows are essential in both strong and weak economies.

Source: Tradeshow Week Research Attendee Survey June 2009 (309 responses) Survey Question: “Do you expect to participate in more, fewer or the same number of conventions, tradeshows and conferences in the next two years?” Outlook: 84% of Attendees will Participate in More or the Same Number of Events Over the Next Two Years

Source: Tradeshow Week Research Attendee Survey June 2009 (319 responses) Survey Question: “Do you agree that conventions, tradeshows and conferences will continue to be a critical part of the business-to-business product sourcing and buying process over the next five years?” Outlook: 88% of Attendees and Buyers Believe Events will Continue to Be Critical for Product Sourcing and Buying Over the Next Five Years

Based on Tradeshow Week research, today, attendees are actually more positive on events than exhibitors. It is expected that attendees will continue to value and participate in key events. In fact, a majority travel budgets are expected to rebound within six to twelve months following the start of an economic recovery. It is getting harder for marketers to reach new buyers and prospects. Conventions and tradeshows provide this access very efficiently. Exhibitors will follow where buyers go. And buyers, during the worst economic downturn in decades, are continuing to see the need and value of participating in conventions and tradeshows. The Best News Possible for the Events Industry – Attendees and Buyers are Very “Bullish” on Conventions and Tradeshows

Appendix I: Survey Responses Broken-Out by Job Title The following slides provide the overall survey averages compared to breakouts by job type with a focus on Owners/CEOs/Presidents, Directors, Managers and Other Professionals.

Source: Tradeshow Week Research Attendee Survey June 2009 Survey Question: “Do you feel that not attending key events may negatively impact future personal or organizational performance?” Breakout by Job Title

Source: Tradeshow Week Research Attendee Survey June 2009 Survey Question: “What are your reasons for attending conventions, tradeshows and conferences this year?” Total Owner /CEO/ Pres.DirectorManager Other Profess. Keep up to date on industry trends/issues 84%85% 87%80% See new products81%87%79%78%72% Network with colleagues and/or vendors 71%67%70%81%72% See many companies at one time71% 73% 69% Create and/or strengthen industry relationships or partnerships69%68%76%70%62% See existing suppliers 59%65%55%60%54% Get technical information/specifications 57%60%39%57%72% See specific company(s) or products(s)53%55% 51% See products “in-person” that were first reviewed online 53%52%58%51%59% Primary and Secondary Motivators Breakout by Job Title

Source: Tradeshow Week Research Attendee Survey June 2009 Total Owner/ CEO/ Pres.DirectorManager Other Profess. Immediate12%21%6%3% Less than 3 months36%40%39%40%28% Less than 6 months21%17%27%21%23% Less than 9 months3% 5%3% Less than 12 months8%3%12%16%5% More than 12 months4%3%0%6%3% Don’t know16%13%12%10%36% Survey Question: “About how long after attending a convention, tradeshow or conference do you or a colleague, or buying team, typically make a major purchase or finalize an important deal with an exhibitor or sponsor you visited?” Breakout by Job Title

Total Owner/ CEO/ Pres.DirectorManager Other Profess. See a product demonstration66%65%58%71%67% Talk to technical employees58%54%55%57%80% Talk to sales employees52%54%49%54%49% Talk to senior management employees50%48%61%54%44% Ask for a price quote44%51%36%43%31% Attend an exhibitor’s special event43%40%39%59%44% Attend their educational session(s)33%27%36%43%36% Participate in meetings33%30%36%41%26% Request a sales visit31%27%49%35%26% Place an order22%34%15%10% Other1%2%3%0% Survey Question: “Which of the following actions are you likely to take from an exhibitor or sponsor while at one of your most important conventions, tradeshows or conferences this year?” Source: Tradeshow Week Research Attendee Survey June 2009 Breakout by Job Title

Survey Question: “Do you consider conventions, tradeshows and conferences an important part of your product sourcing and buying process?” Source: Tradeshow Week Research Attendee Survey June 2009 Breakout by Job Title

Survey Question: “This year, during the economic downturn, are you going to the conventions, tradeshows and conferences your organization considers the most important in your industry or sector?” Source: Tradeshow Week Research Attendee Survey June 2009 Breakout by Job Title

Survey Question: “Do you agree with this statement: Conventions, tradeshows and conferences are essential for comparing products and meeting suppliers in person?” Source: Tradeshow Week Research Attendee Survey June 2009 Breakout by Job Title

Source: Tradeshow Week Research Attendee Survey June 2009 Survey Question: “What are your conference and educational session interests or requirements currently? That is, which of the following issues and topics are of most interest to you for session topics?” Total Owner/ CEO/ Pres.DirectorManager Other Profess. Specific industry trends60%53%78%61%66% Sales and Marketing58%68%69%53%32% Specific technical education37%38%34%36%42% Customer service36%33%25%52%32% Pricing35%39%47%32%26% Strategies for success (or survival) during the downturn31% 41%40%21% Breakout by Job Title

Survey Question: “Have smaller crowds at conventions, tradeshows and conferences this year enabled you to be more efficient when you attend?” Source: Tradeshow Week Research Attendee Survey June 2009 Breakout by Job Title

Source: Tradeshow Week Research Attendee Survey June 2009 Survey Question: “Do you agree that conventions, tradeshows and conferences will continue to be a critical part of the business-to- business product sourcing and buying process over the next five years?” Breakout by Job Title

Appendix II: 1991 and Post-Recession Attendance Growth Rates

Convention and Tradeshow Annual Attendance Growth 1990 to 1993 Source: Tradeshow Week Research Attendance rebounded quickly following the 1991 recession.

Convention and Tradeshow Annual Attendance Growth 2000 to 2003 Source: Tradeshow Week Research

U.S. Hotels Rebounded Steadily After 9/11 Source: Merrill Lynch – U.S. Hotels Hotel demand and business event attendance have a close correlation.

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