How Large Show Attendees & Exhibitors are Changing

1. How Large Show Attendees & Exhibitors are Changing Large Show Roundtable • San Diego 2008 Michael HughesAssociate Publisher & Director of Research Services

2. Themes • Attendees • Exhibitors • International • Growth & Outlook

3. Attendees

4. How Attendees are Changing at Large Shows • Committing closer to the show dates. Not staying as long. Better informed before the show. • More competition for time and resources. • Demographic changes. Boomers retiring; Generation X and Y emerging. • “Attendees today are more specialized.” • Placing increased importance on value and education.

5. Exhibitors on Today’s Attendees Buyers are sizing-up and comparing booth staff “behind the brands”. Source: Tradeshow Week Research

6. How Important is “Extending the Relationship” After the Event? How well is this done? DISCONNECT Source: Tradeshow Week, SISO & JEGI

7. How Show Producers Extend the Relationship with Attendees and Exhibitors Year-Round Source: Tradeshow Week, SISO & JEGI

8. Web & Digital Media Challenges & Opportunities • Challenges: • Compelling content • Driving traffic • Determining ROI; revenue/cost model • Sufficient resources: time, people, budget • Opportunities: • Booth sales; registration • Building deeper relationships with community • Effective matchmaking and social networking • New revenue streams and partnerships • Targeting new participants Source: Tradeshow Week, SISO & JEGI

9. Exhibitors

10. 80% of exhibitors say: “The job is getting more complex.”

11. How Exhibitors Select Events Today Exhibitors need more attendee data; this is much more important than perceived ROI-ROO Source: Tradeshow Week Research

12. Is there more pressure to prove ROI? Yes, we track ROI? DISCONNECT Source: Tradeshow Week Research – survey of corporate exhibitors

13. Event cost as % of total marketing budget? Estimated total sales resulting from events. DISCONNECT • Other TSW surveys have found this % closer to 20%. Source: Tradeshow Week Research

14. Perceived Value of Marketing Media Top 3 Box: Based on a 10 point scale: 10 = Highest Value; 1 = Lowest DISCONNECT 87% This is a survey of exhibitors. ABM has surveyed higher-level marketers and events have scored #1. 72% 63% 51% 41% 36% 31% 16% 14% 4% Source: Tradeshow Week Research

15. The Web is the Primary Competitor Exhibitor Survey Question: Have any event marketing funds been shifted to other marketing mediums in 2007? Which mediums received shifted event marketing funds? 1. Web Site and Email Marketing 79% 2. Direct Mail and Catalogs 26% 2. Trade Magazines 26% 4. Sales Force 21% 4. Telemarketing 21% Source: Tradeshow Week Research – survey of exhibitors

16. Do Exhibitions or Private, Corporate Events Provider Higher ROI? Source: Tradeshow Week Research

17. Plans to Participate in Non-Traditional Events in Next Two Years? Source: Tradeshow Week Research

18. Has Corporate Event vs. Tradeshow Budget Allocation Changed? Source: Tradeshow Week Research

19. Show Producers: How important is exhibitor training? Yes, we provide training? DISCONNECT Source: Tradeshow Week Research – survey of show managers

20. International

21. Over the Next Five Years, U.S. Show Producers Would Like To… • International Markets of Most Interest • China, and other Asia • Dubai • India • Other Middle East • Eastern Europe • Canada, Mexico and Other Latin America Source: Tradeshow Week Research

22. % of Large U.S. Show Organizers with International Events vs. % of U.S. Exhibitors Going Overseas DISCONNECT The average for all show producers is 15%. Source: Tradeshow Week Research – U.S. exhibitors that exhibited in at least one show overseas in 2007

23. Growth & Outlook

24. Tradeshow Week 200 Growth 2005 and 2006 Source: Tradeshow Week200

25. 2007 Preliminary Growth Rates: Large Shows in Sectors Represented by LSR January 2008 Participants Source: Tradeshow WeekResearch – 75 large shows held in 2007 with 2006 comparison

26. 2007 Preliminary Growth Rates: Large Shows in Sectors Represented by LSR January 2008 Participants Slide #1 of 2. NSFExCosAttend Amusement & Entertainment 5.8% 3.8% 8.4% Automotive & Trucking -3.2% -3.5% 0.4% Aviation 1.0% 1.7% -5.8% Beauty & Hair Care 10.6% 13.7% 3.0% Building & Construction 3.8% -0.8% 0.3% Graphics and Printing 5.0% 0.1% 1.4% Hobbies & Crafts -1.7% -6.0% 8.4% Source: Tradeshow WeekResearch – 75 large shows held in 2007 with 2006 comparison

27. 2007 Preliminary Growth Rates: Large Shows in Sectors Represented by LSR January 2008 Participants, cont. Slide #2 of 2. NSFExCosAttend Information Technology 5.1% 2.9% -1.9% Manufacturing & Industrial 1.7% -0.2% 1.8% Media 3.5% 4.8% 29.9% Medical & Health Care 1.9% 0.1% 5.6% Retail 1.8% 3.2% 1.5% Safety & Security 6.9% 6.5% 3.1% Source: Tradeshow WeekResearch – 75 large shows held in 2007 with 2006 comparison

28. Exhibition Industry Growth Cycle • Recovery: • Attendance grows faster than net square footage • Slow merger and acquisitions market • Negative national and local press • Expansion: • First attendance grows faster than net square footage, then at about the same rate • Strong corporate travel and meeting spending • Hotel rates rise • More business-to-business events launched • Positive press – “events are back” • Peak: • Net square footage grows increasingly faster than attendance • Strong exhibition and event mergers and acquisitions • Strong corporate travel and meeting spending • Harder to launch business-to-business events • Strong convention hotel development • Slowdown: • Net square footage demand increases faster than slowing attendance growth • Marginal new shows cancelled or postponed Source: Tradeshow Week Research

29. Key Economic Indicators • Corporate Profits • Consumer Spending • Unemployment • Hotel Occupancy and RevPar • Corporate Meetings • Public Companies in Your Industries; Public Companies in the Exhibition/Events Industry

30. Today’s Positive Economic Factors • International Growth and Weak Dollar • Slowing M&A Environment, Reduces Consolidation • Show Management Pricing Power • “Still-buoyant lodging sector” (Financial Times, November 29th) • Marketers are in Turmoil; Hard to Reach Buyers • Significant Change Driving Attendance, Education Needs

31. Q&A

32. About Michael Hughes • Associate Publisher & Director of Research Services, Tradeshow Week • As head of Tradeshow Week Research, Michael produces proprietary research, consulting and marketing projects for leading exhibition industry organizations around the world. He works closely with exhibition industry leaders, corporate exhibitors, entrepreneurs, investors and real estate developers to provide strategic information, analysis and recommendations. His client’s include nearly all industry leaders in every segment of the industry as well as leaders in the investment and consulting community. Michael is frequently quoted by major newspapers and national magazines such as The Chicago Tribune; The Los Angeles Times; Newsweek; The New York Times; and The Wall Street Journal. In January of 2003, he was selected as a “Person to Watch” by min’s btob newsletter. Since 1999, Michael has been a presenter at over 70 industry conferences and meetings. He is also the research director and editor of Tradeshow Week’s syndicated Executive Outlook research surveys, and he writes Tradeshow Week’s “Industry Analysis” column and blog. • Tel: (480) 483-4471 • Email mhughes@reedbusiness.com • www.tradeshowweek.com/customresearch