Introduction
By any measure, the global events organizing industry – which largely encompasses exhibitions and conferences – represents a significant and highly attractive business pportunity:
- It is large – approximately $100 billion total revenue across the globe in 2007.
- It is growing – at an average of 6.2% globally since 2003 – and is forecasted
to grow through 2011 at a nominal CAGR of 5.5%. Some international growth ates will touch 20%.
- The industry can provide sustained growth. The world’s leading exhibition
organizer, Reed Exhibitions, reported a H1 2008 revenue improvement of 9%
while operating profit grew 16%.
- The industry remains highly fragmented. The world leader, Reed Exhibitions,
holds no more than 7% share of the global market.
- By its face-to-face nature, the event “medium” is highly defendable, and it has a high inherent resistance to lower-margin Internet versions such as
webinars.
- Events can be highly profitable – with pre-tax margins often in the 20-30%
range, and sometimes more than 40%.
- Exhibitions have excellent cash flow characteristics, with booth space
deposits often paid up to a year in advance.
- There is a high degree of revenue integrity as exhibitor renewal rates typically re in the 65% to 85% range and sponsorship opportunities can sell out.
In summary, events and their associated conferences are an integral part of any ntegrated media company’s overall strategy – in print, online and in person. Events an also be the foundation for a highly successful dedicated platform, as, for xample, is the case with Reed Exhibitions and the major German organizers.
This paper explores the industry in three sections:
- Summary and outlook
- Industry trends
- How the industry works
Print
Comments