 Sponsorship
Sponsorship sales have become increasingly important to organizers, who
now offer more sophisticated tiered programs, with a range of benefits for
platinum, gold, silver, bronze etc. Organizers can offer key sponsors category
exclusivity, special access to VIP attendees and other sophisticated
programs.
Some CME events have developed an interesting hybrid model, with delegate
fees subsidized by sponsoring pharmaceutical companies. However, they
must ensure that the events remain educational rather than marketing in their
focus.
 Content revenues
In the training segment of the conference market, e-learning is a major factor.
It provides some new revenue opportunities as delegates are offered
enhanced content, and they can be accessed in wider geographies. Delegate
revenues can be cannibalized, however, as buyers use electronic substitutes
in the place of physical attendance.
 Cost subsidies
The bottom line can be enhanced as conference organizers typically strike a
hard deal with venues, seeking not to pay for the space but guaranteeing the
number of hotel nights that delegates will buy.
The growth challenge
The growth basics
To achieve growth in the exhibition sector, the basics are clear:
 Well-defined set of buyers and sellers (attendees and exhibitors).
A successful event requires a coherent set of buyers and sellers who want to
do business with each other. Some organizers are tempted to allow events to
increase in size by selling more booths at the risk of diluting a coherent
attendee base.
 Attractive dynamics in the underlying attendee and exhibitor markets (that is,
the “served markets”). They require:
Growth – For the most part, events reflect the health of the industry segment
they serve. It is hard to grow an exhibition when the underlying markets are
retracting. It is possible, however, when the organizer is highly attuned to the
needs of both exhibitors and attendees, and accordingly offers content that
addresses all of their needs. On the other hand, rapid growth and
transformation in an industry can be as much of a challenge to an event
organizer as decline.
Fragmentation – Consolidation is the enemy of an event organizer. For
example, consolidation in the manufacturing sector means fewer
organizations to buy booths at industrial fairs. Consolidation among
pharmaceutical companies means fewer buyers of equipment to attend
events.
Continuing change or innovation – If there is nothing new to see or learn
about, then there is little point in attending an event. While the fashion
industry has two major seasons (and several more sub-seasons) each year,
leading to spring and fall events, the corrugated (carton) sector has an
exhibition every four years as there is little more to innovate.
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