Wednesday, April 06, 2005
Big Trade Shows: Relevant?
E3 Spotlight: Examining The Expo's Relevancy
The good folks at GameDaily Biz weigh in on the relevancy of E3, the mega-trade show for the video and computer gaming industry.
The link above is worth hitting if you run any size trade show. The following quote grabbed my eye: "You may have overheard people within the industry, at one time or another, say something like, 'E3 just isn't what it used to be. I don't know why we even bother.'"
I've heard similar things for 25 years about trade shows I've attended or run. And it's the challenge for the future of any trade show.
Here's another grab: "I've heard many [game] publishers say that it's not worth it, while I've never heard a publisher say that E3 is a great event for them. In fact we heard rumors last year that EA [Electronic Arts] might be pulling out and because of those rumors I've heard other publishers kind of quietly wishing that that would happen because it would give them an excuse to pull out too—their thinking is "If the biggest game publisher out there doesn't find E3 valuable, we don't need to be there either." But the nature of the show has created this situation where you kind of have to be there because everyone else is there," said Shoe.
Witness what happened to Comdex when big exhibitors decided they didn't need it anymore. Or to RepliTech, a series of shows I had a hand in buying for Phillips Business Information (now Access Intelligence). These events were a huge financial success, but a heavy burden on exhibitors, who carted giant disc and tape duplicating plants to each show at great cost, and who begged show management for relief--fewer events every year. When such relief didn't come, the exhibitors decided to pull out and create their own show, on their own terms. RepliTech is dead.
Mark Rayner, the chief executive of Richmond Events, a former client and a good friend, has long observed that many trade shows simply aren't sustainable, especially if they're built on the model of huge booths and huge crowds, but little business actually being written onsite. Of course Mark, who's built a successful company which offers face-to-face business conferences held on board cruise ships--with no booths, but with prescheduled meetings between qualified buyers and sellers--has a bias here. But he's been proven right a number of times.
Here's another grab from the GameDailyBiz article: In fact, Shoe believes the money poured into E3 each year could be put to better use for the game industry. "If the industry decided that we don't really need this show, which I don't think they really do, then you could see everything changing in no time flat because obviously that money could be used for better things, even if you took that money and used it for more direct marketing, commercials or whatever, it would benefit the products more than the press they're getting from the show itself," he added.
I think E3 show management needs to listen to this commentary carefully, and take action now, before they find themself 'Comdexed.' But it's difficult to make dramatic changes to a business model when those changes can only reduce short-term profitability. Which is why shows like this will probably die, too.
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The good folks at GameDaily Biz weigh in on the relevancy of E3, the mega-trade show for the video and computer gaming industry.The link above is worth hitting if you run any size trade show. The following quote grabbed my eye: "You may have overheard people within the industry, at one time or another, say something like, 'E3 just isn't what it used to be. I don't know why we even bother.'"
I've heard similar things for 25 years about trade shows I've attended or run. And it's the challenge for the future of any trade show.
Here's another grab: "I've heard many [game] publishers say that it's not worth it, while I've never heard a publisher say that E3 is a great event for them. In fact we heard rumors last year that EA [Electronic Arts] might be pulling out and because of those rumors I've heard other publishers kind of quietly wishing that that would happen because it would give them an excuse to pull out too—their thinking is "If the biggest game publisher out there doesn't find E3 valuable, we don't need to be there either." But the nature of the show has created this situation where you kind of have to be there because everyone else is there," said Shoe.
Witness what happened to Comdex when big exhibitors decided they didn't need it anymore. Or to RepliTech, a series of shows I had a hand in buying for Phillips Business Information (now Access Intelligence). These events were a huge financial success, but a heavy burden on exhibitors, who carted giant disc and tape duplicating plants to each show at great cost, and who begged show management for relief--fewer events every year. When such relief didn't come, the exhibitors decided to pull out and create their own show, on their own terms. RepliTech is dead.
Mark Rayner, the chief executive of Richmond Events, a former client and a good friend, has long observed that many trade shows simply aren't sustainable, especially if they're built on the model of huge booths and huge crowds, but little business actually being written onsite. Of course Mark, who's built a successful company which offers face-to-face business conferences held on board cruise ships--with no booths, but with prescheduled meetings between qualified buyers and sellers--has a bias here. But he's been proven right a number of times.
Here's another grab from the GameDailyBiz article: In fact, Shoe believes the money poured into E3 each year could be put to better use for the game industry. "If the industry decided that we don't really need this show, which I don't think they really do, then you could see everything changing in no time flat because obviously that money could be used for better things, even if you took that money and used it for more direct marketing, commercials or whatever, it would benefit the products more than the press they're getting from the show itself," he added.
I think E3 show management needs to listen to this commentary carefully, and take action now, before they find themself 'Comdexed.' But it's difficult to make dramatic changes to a business model when those changes can only reduce short-term profitability. Which is why shows like this will probably die, too.
