Friday, August 8, 2008

Inside Meetings

Marketing in the world of virtual trade shows

The trade show has been around for as long as people have had products to sell. They have long been a key marketing tool, allowing companies to showcase their products to a target consumer base and allowing consumers hands-on access to products. With trade shows widely considered to be one of the most cost-effective methods for generating sales leads, many mid- to large-size American companies traditionally have allocated a significant portion of their annual marketing budget to trade show expenses.

But this mindset is changing. Advances in technology, coupled with higher expectations of employee productivity, have led to dramatic decreases in attendance over the last two years at traditional trade shows across the country. With the emergence of virtual trade shows, web conferencing, webinars, and web demonstrations, companies have begun to question the cost effectiveness of spending hundreds of thousands of dollars on resources and manpower.

This steady decline in attendance has sent shockwaves across this multi-billion dollar industry, forcing more than 7,000 trade show and conference companies across the country scrambling to remain relevant.

As a result, trade shows have begun using technology in unique ways to keep attendees interested, capture their attention and drive them to their booths. Companies are using Bluetooth technology to deliver short videos to remote sources such as PDAs, and computer screens to invite people to meetings or to view their displays. Show hosts are using the same technology to deliver video content, sponsor advertisements, and post event schedules. Further, trade shows have started using both passive and active radio frequency identification (RFID) technologies that allow companies and attendees to see who is within a few feet of them, sometimes including pictures and full descriptions of the type of people they are looking to meet with and the kinds of products an attendee is interested in.

Even the free handouts are becoming more technologically advanced. Companies are moving away from the standard pen, key chain and magnets and are now offering more interesting products with computer chip technology, typically used in higher end electronics. Freebie items such as memory sticks, robotic calculators, LCD clocks, and optical mini-mouses, each stamped with the company logo, are all the rage.

At the end of the day however, all of these bells and whistles will not be enough to save a dying industry. For some industries like the building and boating sectors, where attendees find it especially helpful to have hands-on access to new products and see things work in person, the traditional trade show and exhibition will continue to exist. However, the sheer volume of these shows will be cut back significantly. For most industries like the tech industry — whose advancements have created this discussion — the traditional trade show is on the fast track to extinction.

Virtual trade shows are slowly taking over and their prevalence, like the technology that drives them, will expand rapidly over the next few years. They function in the same ways as conventional shows — including pre-show planning, vendor sponsored booths, name badges, press rooms, literature, sales representatives, speakers and demonstrations, etc. — but require much less time and money. The shows currently cost as little as $25 a month for the sponsor, and even less for exhibitors and attendees. They can be run for months, are more flexible, and their reach is endless. All people need to attend is a computer and Internet access. No flight or hotel reservations are required, allowing attendees to spend less time on logistics and more energy on quality. Most importantly, results can be measured. All virtual trade show companies offer data-reporting options. This information brings in existing and potential customer lead generation, covering information on the videos they watched to how much time was spent at each booth; supplying companies with a clear result of the shows success.

One of the major providers of platforms for virtual events in this booming industry is Unisfair, which has powered more than 400 events. Other popular virtual providers are Design Reactor Inc. with its Virtual Experience Platform, which offers events in over 30 languages across the globe, GoExhibit Corp. and ClickExpo Ltd.

The lower costs and convenience of these online shows will only continue to improve. As companies become familiar with the features of virtual trade shows, and technology continues to evolve, the shows will reach more consumers and lead companies to a more profitable return on their trade show investments, ultimately bringing about the demise of an antiquated marketing technique.

Thomas E. Lee is director of public relations at 451 Marketing in Boston. He can be reached at tlee@451marketing.com.