The Events Industry - The Opportunity for Sustained Growth

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:

1. Summary and outlook
2. Industry trends
3. How the industry works

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