budgeting
Mindful Purchasing
Mindfulness can help you awaken to not only life but also unnecessary exhibit marketing expenditures. Here are 10
areas where mindless decision-making might lead to mechanical misspending. By Linda Armstrong
Humans are generally averse to change. After all, it's much easier to maintain the status quo than it is to shake things up and start from scratch. But when it comes to exhibit marketing, remaining stubbornly steadfast can sometimes bite you in the budget. Just because you've always rented in-booth monitors or purchased staff uniforms, for example, doesn't mean you should continue to do so. Times – and tactics – change, and altering your course could put a little more change in your pocket.
To help open your eyes to cost-saving possibilities, EXHIBITOR talked with multiple marketing experts who identified 10 areas where stand managers often get stuck in a rut and proposed some "road less traveled" considerations. Use their advice to assess your program and ensure you're making mindful, not passive, purchasing decisions. 1. Visibility-Only Sponsorships Sponsorships can add value, but they should directly align with your exhibit-marketing goals. In particular, sources caution you to carefully examine the potential deliverables of visibility-only sponsorships as they relate to your objectives. That is, some sponsorships allow you to brand everything from cocktail napkins and water coolers to entire events such as catered lunches and receptions. Such endeavors likely deliver a bevy of brand awareness, and if that's your No. 1 goal, you've probably found a good investment. The trouble is that many companies that sponsor these activities are already well known in their respective industries, yet they feel compelled to "own the show." But according to sources, if everyone knows who you are and what you sell, you probably don't need to empty your piggybank to plaster your logo across the event's welcome reception, an endeavor that according to Judy Volker, owner of Volker Marketing Services LLC, can cost anywhere from $5,000 to north of $50,000 depending on the size of the event. Volker says sponsorships that only deliver high-visibility dividends are money down the drain unless your sole objective is to generate awareness. "Think back to the last trade show you visited as an attendee," she says. "Now name the company that sponsored the reception. Chances are you've long forgotten, but even if the company name springs to mind, did the experience produce enough goodwill to make you rush out and buy the product – or even put the company on your must-call list for an upcoming purchase?" Additionally, these visibility-only investments rarely have an afterlife, and they often attract the unwashed masses rather than dense segments of your target market. Unless you're an unknown in your industry or you have a new brand or product to promote, ponder pouring your dollars into smaller, more targeted activities that are limited to your specific customers and prospects. And look for activities that afford some way to collect leads or contact information so that you have a means to follow up with participants after the show. 2. Outsourcing Creative Sometimes it makes sense to outsource various exhibit-marketing tasks. For example, you'll rarely find anyone at your firm that's skilled in stand installation or exhibit transport, so it's likely well worth your wad to hire a professional. But when it comes to creative talent, don't always assume that the best authorities are beyond your doors. "In-house creative departments, many of which rival the quality of high-priced independent ad and creative firms, have become more common," says Frank Jones, vice president of marketing at Package Solutions Inc. "A strong internal creative team presents a tremendous cost savings, particularly since simple graphic-design charges can easily run more than $100 per hour." What's more, internal employees often have a better understanding of your products and brand than any outside firm ever could. When your next creative project rolls around, examine the talent within your walls. And remember that while some organizations have full departments that handle graphics, digital projects, 3-D designs, and more, other businesses scatter talent among various departments. As you begin your internal search, probe your firm's web, advertising, content, or even sales teams to identify the creatives that already roam your hallways. 3. Monitor Rental Often, it's easier to rent (as opposed to buy) in-exhibit monitors simply because doing so decreases some related headaches. For example, renting eliminates transportation and drayage costs, and if a device breaks, the rental firm is responsible, not you. Still, given the decreasing costs of flatscreens and the often-exorbitant fees to rent them over time, buying can be the more economical option. "Unless you need highly customized monitors or you're running sophisticated video walls or interconnected screens," Volker says, "you're better off buying monitors than renting them." Christine Sionne, CTSM, trade show manager at Hunter Industries International Inc., concurs. "Rather than renting 10 monitors at a cost of roughly $3,000 per show, I purchased them for $3,800 and reused them multiple times," she says. "I simply repack them in their original boxes and ship them from show to show." Even if one is damaged, replacing it is a pittance compared to the cost of renting.
Plenty of exhibitors use in-booth hospitality to lure attendees to their spaces. But before you ante up for that coffee and pastries cart, ensure you have the right marketing strategy to accompany it.
Also, don't assume you have to pay ongoing shipping and drayage charges for purchased equipment. "Particularly if you only need a couple of smaller monitors, consider buying them in the show locale before each event and walking them onto the show floor," Volker says. "Then, raffle them off to attendees and ship them to the winners before you head back home. Even with the added cost of getting them to recipients, you will likely save some coin compared to renting monitors again and again."4. Standard Staff Uniforms Traditional polo shirts and button-downs might have their place in certain industries. But if you choose this route, make sure it fits your objective and isn't just a default selection. Because according to sources, nontraditional uniforms can decrease a recurring expense and help you stand out on the show floor. "Staff uniforms should be a thing of the past in most industries," says industry veteran Pat Friedlander, owner of Word Up. "People look their best in their own clothes, not a button-down shirt and khakis. And let's face it, exhibitors that purchase traditional uniforms almost never buy high-quality clothing, which means staffers come off looking cheap, out of style, or both." And while you'll cut costs by ordering in bulk, you'll need to buy literally hundreds of shirts at a time to secure a significant savings. In lieu of this ongoing and sometimes ill-advised purchase, sources offered several uniform alternatives. Since the same outfit doesn't look good on everyone, consider selecting a color scheme and then letting staffers chose pieces that look best on them. Exhibit-marketing consultant Susan Shuttleworth takes this route and then adds a tie or scarf (for roughly $8 each) in the company's corporate hue. Or instead of an accessory, consider some type of colorful or inventive staff name badge (available for about $6 each) to unify the group and allow attendees to easily spot company employees. 5. Rigged Elements Rigged overhead structures serve multiple purposes. Particularly on a massive show floor, they can help you stand out among competitors and add a sense of prominence to your entire space. Likewise, they can assist attendees in finding your booth, especially when you're stuck with a less-than-ideal locale. But at almost $110 per hour on average, rigging labor is expensive. So sources recommend you carefully consider whether the benefits of these elevated elements truly necessitate their expense. "In many instances, rigging acres of truss is downright dumb, particularly when there are floor-based design options that can provide the same benefits without the added fees," Friedlander says. "Especially at relatively small regional shows, rigged elements are overkill." Also consider rigging fees as you plan new builds, as many designers can exchange proposed suspended components for floor-supported signage and lighting. "And don't forget that you can add visual impact by simply backlighting graphics," says Jeannine Swan, president and owner of Global Exhibit Management. "Especially with fabrics, ground-supported lighting can dramatically change the look of your space just as effectively as rigged fixtures." Sources propose you perform an impact versus cost analysis for every show and venue. Variables, including everything from location-based labor charges and ceiling heights to booth configurations and show sizes, can have a sizable impact on costs and deliverables. 6. In-Booth Food and Beverage Plenty of exhibitors use in-booth hospitality to lure attendees to their spaces, and tasty treats and drinks – not to mention a comfy place to take a load off – also can be an effective way to increase attendee dwell time. However, before you ante up for that coffee and pastries cart, which can cost upwards of $5,000 per show, ensure you have the right marketing strategy to accompany it. "Let's say your snacks and beverages draw in hordes of people," Volker says. "While you may have succeeded in increasing traffic, the onslaught is nothing but a soup line unless you have enough staff on hand to talk with those standing in line and enjoying your nibbles. Food and beverage offerings are supposed to get people into your booth so staff can talk to them and drive sales-related discussions; this isn't about simply doling out snacks." Before you invest in hospitality, identify how you will interact with people in line, create an impression with those consuming your snacks, and qualify and funnel attendees toward the rest of your booth. "And for goodness sake, train your staff," Volker says. "Teach them how and when to mingle with attendees, and ensure they're not butting in line to score their share of the grub." If you don't have a marketing and staffing strategy to accompany your food and beverage, the additional expense creates a food court, not an effective marketing medium. There's no denying that people love free stuff. But multiple sources warn that indiscriminately distributing inexpensive giveaways (e.g., candies, pens, stress balls, etc.) can be a needless expenditure and can inadvertently tarnish your brand or irritate your VIPs. "Do attendees really need another tote bag, water bottle, or T-shirt?" says Victor Torregroza, events program manager of global event marketing at Intel Corp. "And even if they do, will the fact that you delivered it actually encourage them to buy your product?" Granted, some low-cost yet highly visible giveaways such as branded tote bags might generate show-wide awareness, which is great if this is one of your fundamental goals. But sources purport that you think carefully about each item's deliverables before placing another bulk order for second-rate swag. Similarly, Shuttleworth says that giving nothing is far better than distributing shoddy promotional products. "Substandard gifts handed out willy-nilly can negatively impact your brand," she says. "A qualified buyer doesn't feel special receiving the same tasteless chocolates as every casual passerby. Plus, this 'cheap' perception can easily bleed over and onto your company's offerings."
Show selection is another way exhibitors tend to stagnate, as many select the same-old shows to maintain the status quo rather than choosing them based on their ability to meet marketing objectives.
If you feel like you must distribute swag, a tiered strategy that rewards a few of your top prospects and customers with quality items is usually a better way to go. With a coordinating pre-show marketing effort, you're more prone to draw in VIPs and make them feel special, and you won't invest in crap that'll likely end up in the garbage can. Yes, high-quality items will cost more than bargain-basement stress balls, but the point is to carefully consider the cost of the giveaways (both to your pocketbook and your brand) and to assess whether the benefits warrant the outlay. After all, you can purchase 20,000 cheap pens for about $800, or you can spend half that and give each of your top 10 VIPs a properly sized, branded microfleece jacket. Which do you think will have the most impact on leads and sales?8. Habitual Show Selection Show selection is yet another way exhibitors tend to stagnate, as many select the same-old shows in an effort to maintain the status quo rather than choosing them based on their ability to meet marketing objectives. This behavior is often driven by internal pressure, as stakeholders sometimes fear that dropping out of a show sends a message that your company is losing footing. And while that assumption may be true to some extent, you still have to keep your ultimate goals top of mind and to continually weigh the value each show offers versus its costs, Friedlander says. "No matter how long you've exhibited at a show, you can't keep doing so just because attendees would notice your absence," she says. Rather, you need to continually evaluate the nature and size of the audience as well as the overall quality of the show to determine if it meets your needs. "Buying space to fill a perceived void isn't a viable marketing objective," she says. If stakeholders are driving your show selection, a quick cost analysis may change their tune. Compare the cost per lead at your least-effective shows versus some of your top performers. (If you don't have all of the data for comparison, consider that the average cost per lead is $165.91, per EXHIBITOR Magazine's Sales Lead Survey.) Also point out how you could reinvest dollars from underperforming shows into new events or into more effective shows already on your calendar to procure a higher return on investment. Technology has countless applications within an exhibit. It can be used to craft whiz-bang multimedia presentations that attract thousands to your space, and augmented- and virtual-reality experiences can transport attendees inside your products. You can even encapsulate your entire product catalog within an app. But according to Ming Chew, exhibit designer at Condit Exhibits LLC, technology is also an easy way to empty your bank account with little return. "I often witness exhibitors who fail to establish how much tech they really need and why they're using it," she says. "They buy LEDs, holograms, interactives, and more because they believe these components are trendy or cool without ever establishing how these high-cost add-ons actually help them meet objectives like increasing lead scans and building brand awareness." And when a typical VR activation can cost between $25,000 and $250,000, you need some serious ROI to justify the expense. "Keep in mind," Chew says, "you can usually accomplish your marketing goals via low-tech alternatives, such as 2-D graphics, a tactile element, or gamification." Several sources advocate for no- or low-tech interactives instead of high-tech engagements, the latter of which often eliminates or decreases staffer/attendee interactions, which is what face-to-face marketing is all about. Bottom line: Make sure your tech offers far more than a level up on your cool factor. 10. Rigid Graphics Are you still using rigid graphics in the majority of your exhibits? Given the recent advancements and ongoing affordability of alternative options, it might be time to change mediums. "Rigid graphics are expensive and wasteful," Torregroza says. "While they typically lie flat, they take up considerable room in storage and within your crates." In addition, inflexible panels are prone to cracks and chipping that render them unsightly or unusable, and they afford little room for change. If your messaging morphs even a little bit, you'll likely need to recreate all your panels. Torregroza says digital graphics are a more effective choice. "You can enlist everything from large monitors to laptops to display digital messaging, and you can change it any time you want without incurring production costs." In fact, you'll probably save thousands of dollars per year by not having to print, ship, dray, and install graphics time and time again, and you'll always have vibrant and potentially dynamic text and images to draw the eye. "Even digital picture frames from stores such as Target and Michael's can convey your messages and add a bit of color, energy, and interest," Torregroza says. Another budget-friendly alternative is fabric. Most varieties can be easily folded or rolled, and their weight is minimal. Compared to rigid selections, they're far less likely to be damaged in transit as long as they are packed and maintained according to manufacturers' instructions.E
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