By Mary Tucker | Senior Communications and Content Manager | IAEE
The business-to-business (B2B) exhibitions and events industry continues to evolve at a rapid pace, and few people understand these changes better than Center for Exhibition Industry Research (CEIR) Vice President of Research Nancy Drapeau, IPC and Tourism Economics President Adam Sacks.
In their CEIR Webinar: B2B Exhibition Industry Update – Thriving Amidst Uncertainty on 25 March, they will be analyzing Q4 2024’s economic indicators as well as exploring innovative approaches in attendee engagement. They will also be sharing a sneak peek at insights from CEIR’s upcoming organizer benchmarking study and what they mean for the industry’s future.
In this exclusive interview, we explore their assessment of current economic factors affecting the B2B exhibition landscape, proven strategies for maximizing engagement on the show floor and key findings from CEIR’s latest research along with their practical implications.
In analyzing Q4 2024’s economic data, what is the most significant trend that emerged in the B2B exhibition space, and how might this impact event organizers in the coming year?
Adam: The exhibition industry finished off the year strong: The CEIR Total Index hit its highest mark in more than five years. The recovery in exhibitor participation and real revenues drove fourth quarter performance, registering just 0.1% and 1.1% below 2019 values. At a time of uncertainty, the strength of those two metrics and the strong performance of exhibition space (as measured by NSF) throughout 2024 points to a resilient industry. It’s both encouraging and a little surprising to see these measures strengthening even as attendance remains more than 10% below pre-pandemic levels.
You will explore both positive and negative economic factors. Could you give us a preview of one significant challenge and one promising opportunity that you will be discussing in more detail?
Adam: Lagging attendance continues to be a challenge. The attendance index registered 12.9% below 2019 in Q4 and 10.2% behind pre-pandemic levels for all of 2024. Economic policy poses potential headwinds for the U.S. exhibition industry as tariffs would be inflationary and cut down on international trade. This would lead directly to lower corporate profits and higher travel costs.
On the positive side, consumer spending is expected to remain the main growth driver in 2025, buoyed by a sturdy job market, rising wages and rising household wealth.
You will be discussing best practices for show floor engagement. What is the most common mistake exhibition organizers are making when trying to facilitate meaningful connections between attendees and exhibitors?
Nancy: The biggest mistake is not having enough show services or engagement options on the show floor that will support exhibitor overall goals for exhibiting. CEIR research reflects that 96% of exhibitors report attendee engagement tactics aim to influence their overall goals for exhibiting, whether it is to generate leads, achieve branding objectives or something else.
A majority of exhibitors that aim to achieve specific performance metrics say their attendee engagement tactics are highly effective in influencing them. For example, those aiming to hit a target for generating qualified leads or media impressions rate attendee engagement as highly effective in helping influence a successful outcome. Consultative selling and/or helping exhibitors invest appropriately to achieve their overall goals for exhibiting is key.
Based on CEIR’s findings from its most recent organizer benchmarking study, what is one counterintuitive finding that challenged your previous assumptions about successful B2B exhibitions?
Nancy: At the time of this interview, this survey is still in the field. Therefore, any insights are preliminary. One discovery is that how organizers assess attendee and exhibitor sentiment and/or satisfaction with a participating is not necessarily based on capturing NPS (Net Promoter Scores). That sentiment metric is more popular and used by large trade shows.
ROI (return on investment) measurement remains a top priority for all stakeholders. What is one key metric from your research that suggests B2B exhibitions are becoming more valuable for companies?
Nancy: In my opinion, the word ‘ROI’ is overused, particularly when discussing value for investing as an exhibitor. ROO (Return on Objective) might be a more appropriate measure for assessing the outcome of exhibiting.
If an exhibitor is launching a new product or aiming to boost/reinforce brand awareness, the better measure is ROO. The ROI metric implying sales generation really depends on the sales cycle for a given product being promoted. An immediate discernment of whether sales revenue generation has been achieved is more likely to happen for shows that are showcasing/selling products immediately available for purchase, such as consumer goods shows or even in industrial manufacturing shows selling supplies to intermediary manufacturers, etc.
So, the answer isn’t that one measurement is top priority for all stakeholders. Instead, the metrics depend on what an exhibitor aims to achieve. CEIR’s latest engagement report series indicates that exhibitor engagement on the exhibition floor is highly effective in influencing a number of specific performance metrics to evaluate outcomes relating to ROI or ROO.
