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This Just In

New Events Industry Study Emphasizes the Need for Outcome-Based Sales Approach

MADDY RYLEY, MANAGING EDITOR
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CHICAGO — A new events industry study focused on exhibit and sponsorship sales strategies reports that growth in exhibit and sponsorship revenue is real but conditional as budget scrutiny increases and customers look for more engagement and ROI evidence around business outcomes. 

The study, which was jointly conducted by Trade Show Executive, Lippman Connects and EVOLIO Marketing, analyzes the insights shared by more than 125 exhibit and sponsorship sales leaders in the industry. With 59% of respondents having 20-plus years of experience in the industry and 75% representing those in Manager positions and above, the findings of the report share high-level insights and reflect the real-life observations being made about the sales model evolving.

Key Findings 

The study, titled “Beyond the Booth: The New Rules of Exhibit & Sponsorship Engagement,” outlines eight high-level key takeaways for organizers to explore: 

Exhibit Revenue is Growing Due to Price Increases, Not Expansion 

The Data Says: 64% of organizers reported increased exhibit revenue on their most recent event and the same number reported increasing their average cost per square foot, but only 50% said they increased the net square feet of space sold, and 53% said they increased the number of exhibitors.  

Sponsorship Growth is More Balanced 

The Data Says: 58% of respondents said total sponsorship revenue increased on their most recent event, while 52% said they raised sponsorship prices and 48% said they increased the number of sponsors. 

Exhibitors/Sponsors are Buying Outcomes, Not Just Booths 

The Data Says: Organizers shared what sponsorship types are in increasing demand, led by thought leadership and speaking opportunities (78%), exclusive sponsorships (48%), custom sponsorships (43%), and networking events and receptions (41%). As 38% of organizers said they often receive custom sponsorship requests, 78% said they’re accommodating those requests while remaining operationally profitable.

“It should come as no surprise that organizers who respond to exhibitor and sponsor demands for value and accountability are seeing revenue gains. It’s the same refrain we hear from forward-looking organizers at our events year after year,” said Sam Lippman, President of Lippman Connects. 

Organizers’ Confidence in Proving Value Outruns Evidence 

Key insights about where organizers are seeing dollars shift to can be broken down by show size, highlighting different trends among different sized shows.

The Data Says: Organizers are relying on attendee demographics (81%), numbers (79%) and lead retrieval data (66%) to prove value to exhibitors, but fewer can provide proof of value through sponsor impression metrics (30%), customized activity reports (20%), buyer/seller matching data (18%) and booth traffic data (18%). 

Exhibit and Sponsor Dollars are Relocating 

The Data Says: 85% of organizers are seeing exhibitors’ and sponsors’ dollars shifting. Forty-three percent say they see a shift from standard packages to custom opportunities, while 31% report a shift from exhibit space to sponsorships and 30% see shifts from large packages to lower-cost options. Notably, 26% report a shift from event-specific to year-round opportunities, and 31% say they see a shift from industry events to their own customer events. 

Budgets are the Dominant Pressure Point

Organizers also shared how they’re responding to private activity happening around their events. Those who lean into finding ways to bring these activities into their event will be well-positioned to turn surrounding activity into revenue gains.

The Data Says: More than three-quarters of organizers say they are feeling pressures from exhibitors’ and sponsors’ budget cuts, as 56% say they feel the squeeze as budget shifts to non-event marketing channels, 54% see pressure from competing industry events in the U.S., and 39% feel pressure from the exhibitors’/sponsors’ own proprietary events.  

Prospecting is Where Sales Teams Need the Most Support 

The Data Says: While 68% of organizers say they are confident in converting prospects once they are found, only 60% of leaders feel confident in sourcing new business, which was the lowest score of any skill measured in the study. 

AI is in the Workflow, Not the Strategy 

The Data Says: The study found that 78% of organizers are now using AI in their event efforts, with usage concentrated in areas like prospecting and lead gen (60%), proposals and sales materials (51%), marketing and demand gen (49%), communications (48%) and sales outreach (48%). Only 23% report using AI for pricing, forecasting and revenue strategy. 

Find the full report here.

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