Red diamondcongress2010

ExEcutivE summary

taBLE OF cONtENts:Key industry trends ..............................2

congress Findings and commentary..................................... .......3

third Party audits: a Necessary Evolution......................... 4-5

convention Housing: adopt a Partnership approach........6-7

Labor Practices: standardize services and costs to Drive Efficiencies...................8

call to action: change requires Leadership.............9

Leading this effort, members of the trade show Exhibitors association (tsEa), comprised of the world’s leading exhibit marketers—and the exhibit builders, agencies, show producers and other suppliers that have long supported them—are collaborating openly and at a level never before seen in order to create new efficiencies that will ultimately serve and benefit the exhibit ecosystem as a whole.

With that goal in mind, the tsEa convened its inaugural red Diamond congress event, a three-day leadership summit held in Orlando, FL, april 25-27, 2010, that brought together many leading figures in the industry to directly address key issues, including third-Party audits; Housing Practices; and Labor Practices. the result: consensus on the issues, potential solutions and a roadmap forward.

cONsENsus ON tHE issuEsall stakeholders acknowledge the need for greater transparency on long-standing practices in the industry ranging from handling drayage to managing room blocks. sharing information in regard to where costs lie and how risk is managed throughout the supply chain provides greater opportunity to improve productivity and efficiency.

in the face of a slowly recovering global economy and increasing pressure to deliver results, the global exhibition community is exploring new ways to streamline its processes, improve financial transparency and optimize its supply chain in order to unlock greater value from within.

Shaping the New Exhibition Model: Exhibitors advocate for effective change to drive

the future of the exhibition industryTSEA Red Diamond Congress 2010

a FOcus ON sOLutiONsDeveloping universal standards that can be applied across numerous markets, more specific definitions around how labor is defined and the impact that credible, third-party audits can have on exhibit budgets were just a few of the solutions proposed during the course of the event. the takeaway: much can be achieved by improving communication between all the stakeholders in the exhibition industry.

tHE rOaDmaP tO cHaNgEmost important of all, a course of action is being crafted in order to create the change everyone at the table feels is necessary. through a clear and sustained plan of action, the ideas expressed through this effort will take hold and generate specific results.

the following data and insights are based on a survey of key leaders within the exhibition industry leading up to the congress as well as the ideas and recommendations gathered from speakers and attendees at the event. collected here for the first time, the aim of “shaping the New Exhibition model” is to generate ongoing conversation industry-wide and momentum for change.

KEy iNDustry trENDsthe following macro-forces are creating an exhibit marketing environment open to re-visiting traditional practices such as third-party show audits, housing practices and labor management.

at the same time, these trends mirror an undercurrent of conversation at the congress centered on an embrace of strategy—not just more efficient logistical execution—as a powerful means to elevate events within the integrated marketing mix and to compete more effectively in the marketplace.

#1 stratEgic EvENt marKEtiNg Economic pressure is driving a move from event management to event marketing

#2 cONsOLiDatiON aND saviNgs Doing more with less, creating innovative solutions and consolidating investments

#3 targEtED iNtimacy more depth of engagement, less breadth of contact…more digital integration

#4 iNtEractivE a shift from monologue to omni-directional participation

#5 virtuaL Physical trade show extension and, in some cases, elimination

#6 sOciaL adopting dialog as a strategic initiative and using new platforms to activat

#7 Data stratEgy Professionals use data: capture; mine; deploy; and improve

2 of 9 | red Diamond congress 2010 | tsea.org

#1 stratEgic EvENt marKEtiNg Economic pressure is driving a move from event management to event marketing

#2 cONsOLiDatiON aND saviNgs Doing more with less, creating innovative solutions and consolidating investments

#3 targEtED iNtimacy more depth of engagement, less breadth of contact…more digital integration

#4 iNtEractivE a shift from monologue to omni-directional participation

#5 virtuaL Physical trade show extension and, in some cases, elimination

#6 sOciaL adopting dialog as a strategic initiative and using new platforms to activat

#7 Data stratEgy Professionals use data: capture; mine; deploy; and improve

samPLE rED DiamOND cONgrEss cOmmENtary “Every show should have an advisory committee.”

“Financial rewards for beginning the process early will drive better results for all stakeholders.”

“reliable audits remove any doubt about continued investment in a show.”

“audit process has to be standardized and general enough for all exhibitors, no custom analysis.”

“more visibility and transparency into what the true costs are will lead to better cooperation.”

“standardization of housing process across markets and year-to-year is the optimal scenario.”

“standardization of processes is the key to improving role of labor: fragmented market increases risk.”

“[Exhibitors] actually have a lot in common with the unions. unions were started to protect the down trodden worker—those that were being taken advantage of. From an exhibitor perspective, we need protection and transparency.”

”Post a list of what exhibitors can or cannot do in the exhibit hall, an Exhibitor Bill of rights.”

samPLE rED DiamOND cONgrEss FiNDiNgs 95% of respondents believe that certified, independent, third-party attendance and demographic data would help validate continued investment in a show.

choice and risk mitigation are the main concerns of exhibitors in regard to housing policies.

Need better communication between exhibitors and labor. “Exhibitors are the customers.”


tHirD Party auDits: a NEcEssary EvOLutiON OBsErvatiON in an era of fewer attendees and smaller exhibition footprints, third-party audits, a relatively low-cost strategy organizers can employ, provide corporate marketers with the tools they need to make the case for continued investment. under pressure to show measurable return on investment (rOi) and compete for shrinking budget with other channels, audits proving that exhibitions engage high-value customers can mean the difference between committing to a show or reducing or eliminating that investment. show producers at the red Diamond congress stated that if tradeshow managers and exhibitors ask, they will provide this independent third-party data.

imPLicatiON Both corporate marketers and show producers stand to benefit by making third-party audits a required part of doing business. audit standards are already in place, created by and for the industry at large. Pushing for the wide adoption of audits can have an immediate impact on the industry as a whole since currently less than 1% of all B-to-B tradeshows in North america are audited.

rEcOmmENDED actiON corporate marketers need to request independent, third-party audited trade show attendance and demographics from their show producer partners by:

requesting third-party audited tradeshow data from all current and prospective show organizer partners if none exists.

asking your trade show producer if the audit they are providing is EEiac certified.

creating critical mass within the different show exhibitor communities and then sending signed letters to current show organizer partners requesting they begin performing independent third-party audits.

Exhibitor advisory committees are the voice for requesting third-party, audited data. if an exhibitor advisory committee exists for a show, employ them to advocate on behalf of the exhibiting community, requesting/ requiring the show producer to provide this type of data. if no committee exists, ask the show producer if one can be created. get involved and become a change agent.

tradeshow producers need to proactively invest in the future success of their shows by freely providing independently validated third-party tradeshow attendance and demographic data to their current and prospective customers.

Producers will immediately raise the level of communication between their sales staff and exhibitor clients by providing accurate and credible data that has been validated by a third-party.

“reliable audits remove any doubt about continued investment in a show.”


Producers will create a partnership with their exhibitor clients by being transparent with their demographic and attendance figures. Exhibitors feel that the value of a show is based on the quality of the people attending. if they know who is attending and have the additional security of knowing the information has been vetted by a third party, their trust in the show producer will grow and the sales cycle is more likely to shorten with a positive result.

Producers who provide third-party audited tradeshow data will bring vital accountability to the industry as a whole. Other competing marketing channels are already providing this information to their buyers. integrity through audited data helps keep the face-to-face investment in the budgets of corporate marketers rather than allowing those investment dollars to migrate towards other channels proactively providing investment justification.


cONvENtiON HOusiNg: aDOPt a PartNErsHiP aPPrOacH OBsErvatiON the rationale for show producers’ housing policies and corporate marketers approach to dealing with those policies boils down to one key idea: risk management. show producers, often through housing bureaus who aren’t in the business of understanding marketers’ needs, manage the commitments they make to hotels with the idea of minimizing exposure to unfilled capacity.

corporate marketers, on the other hand, are managing risk associated with making commitments based on uncertain projections. time (advance notice) and flexibility on the part of show producers are key issues. Penalties are seemingly out of proportion to the costs/risk incurred. requirements of names for room blocks are required earlier then can reasonably be provided by exhibitors thus false names are commonly used as fillers until the list can be finalized. the current format for deposits creates post-show accounting problems for exhibitors.

imPLicatiON

communication—or rather the historical lack of it—between marketers and show producers is the common thread and the consistent challenge in the area of housing. a shift towards a partnership approach based on open communication between these two groups can yield great improvements.

rEcOmmENDED actiON Housing bureaus should adopt a customer service orientation when dealing with corporate marketers, more in line with a true understanding of who is creating value. Exhibiting companies’ needs have to be considered at all times.

Housing bureaus need to send confirmation numbers for each hotel room along with internal housing bureau confirmation numbers.

greater flexibility on the part of show producers in terms of timing, incentives and penalties including:

allow exhibitors more flexibility for deposits: Optimal policy would be to provide one credit card to secure reserved rooms which is only to be billed for unused rooms—no more than one night per room reserved. Each room would be paid by individual staying in room.

Late arrivals should be guaranteed for all rooms. Optimal policy would be if first night deposit has been secured, the room should be held until check-out time of following day so individuals are not “walked” to another hotel due to late evening arrivals.

Extended time for providing individual names for room blocks. Optimal time would be at time of check in at hotel.

Extended time for providing final room counts. Optimal time would be thirty (30) days prior to show.

Positive incentives for staying within the housing block.

allow exhibitors to share unused room nights reserved with other exhibitors who need additional room nights.


“more visibility and transparency into what the true costs are we lead to better cooperatoin.”

Organizers need to be advocates for their exhibitors including but not limited to:

all hotels included in show housing blocks should be evaluated and inspected on a regular basis—no more than two (2) years prior to event—to ensure quality of facility and ease of accessibility to convention center.

rates within show housing block need to be competitive with other options available to exhibitors.

Fair process for issuing of hotel rooms—tiered system to allow opportunity for a guaranteed minimum percentage of rooms to be available at preferred hotels.

twenty-four hour help line during show to assist individuals staying within the show’s hotel block.


LaBOr PracticEs: staNDarDizE sErvicEs aND cOsts tO DrivE EFFiciENciEs OBsErvatiON

Lack of standardization is one of the key issues related to improving labor practices, as well as lack of understanding as to true costs related to such activities as drayage. the variance in labor practices across different markets makes it difficult for corporate marketers to simplify budgeting, manage efficiently and gain clarity into the value being created. Both show producers and corporate marketers agree that more transparency and definition in this area is a desirable goal.

in addition, the fewer products exhibitors are able to bring on to the show floor due to costs causes a trickle-down effect, lowering the value exhibitors provide to prospective customers which, in turn, lessens the value of the trade show to attendees. .

imPLicatiON

more efficiencies in managing labor can free up budget and resources that can be re-invested in activities that (1) improve the performance of the exhibit marketing investment for corporate marketers and (2) create greater profit for show producers.

the cost to bring product onto the show floor needs to be lowered to increase the value of trade shows to both corporate marketing professionals and attendees.

rEcOmmENDED actiON

create an industry-wide labor standardization initiative bringing together corporate marketers, show producers, venues, labor and other stakeholders.

greater transparency on what costs are included in drayage/material handling fees and benefits show producers receive from these fees.

clarity on what defines “special handling” with documentation provided to exhibitors when fees are applied.

there is a lot of finger pointing on who can lower these rates. there are long-term contracts between stakeholders which limits the ability to go out to bid to reevaluate and/or replace current vendors. short-term contracts would keep all parties honest.

Forced overtime rates need to be eliminated and blended rates should be used whenever possible to ensure fairness to all exhibitors.

revamp the current “drayage/material handling” model. Optimal policy would base rates on per package model and not based on weight.


“Post a list of what exhibitors can or cannot do in the exhibit hall, an Exhibitor Bill of rights.”

caLL tO actiON: cHaNgE rEquirEs LEaDErsHiP increased competition for a share of shrinking marketing budgets and the need to be more effective and efficient in the exhibit marketing arena are opening the opportunity to bring corporate marketers, show producers and other stakeholders to the same table like never before. there is a level of open conversation and a willingness to break from tradition that has enormous potential to move the industry forward.

Based on this momentum and validated by the tsEa research, as well as feedback from industry leaders in attendance at the inaugural red Diamond congress, much can be accomplished through continued dialog.

However, sustained change will elude the industry without the commitment of time and resources from industry groups such as the tsEa and its counterparts throughout the exhibition ecosystem. as macro-level forces continue to bring change to the industry, it will be up to these groups and individual leaders to advance a more strategic and efficient model.

attendees agreed that exhibitors must work together as one group in order to facilitate change and the tsEa red Diamond congress was a necessary first step in a long-term process.

Please send your comments and suggestions on the topics covered in this whitepaper to the tsEa advocacy committee at [email protected].

the trade show Exhibitors association would like to offer a special thank you to all the supporters of the first tsEa red Diamond congress who made this event possible:


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Red diamondcongress2010