EventView 2009: North America David M. Rich Senior Vice President, Strategic Marketing/Worldwide...

EventView 2009:North America

David M. RichSenior Vice President, Strategic Marketing/WorldwideGeorge P. JohnsonExperience Marketing

Katie Callahan-GiobbiExecutive Vice President, MPI FoundationChief Business Architect,Meeting Professionals International

Session Overview

• EventView Background

• Status KPI’s Summary

• Discussion Subjects

– Budget

– ROI

– Measurement

– Green

– Event-to-Experience Transition

• What this all means to you

Study Overview

• Annual, global and first-of-its-kind study of event marketing trends across industries and geographic regions

• Launched in 2002 by George P. Johnson (GPJ), EventView is the longest –running study of the event marketing industry

• Co-sponsored by MPI Foundation since 2003

• Co-sponsored by the Event Marketing Institute since 2007

• Currently in it’s 7th year reporting on the perceptions senior level executives have of event marketing

• US respondents surveyed earn upwards of $200 million in annual revenue with over 41% of US based respondents representing companies that generate over 1 billion in revenue

• Aligns with MPI Strategic Plan

Survey Demographics - Title

CxO7%

Director17%

LoB Manager12%

Advertising Mgmt4%

Consultant1%

Other12%

Sales/Marketing Mgmt28%

VP19%

Survey Demographics - Revenue

$1B - $4.9B27%

Under $250M1%

$500M - $999M32%

$10B+14%

$5B - $9.9B.3%

$250M - $499M25%

Key Take Away: 41% of respondents represent large enterprise companies.

Marketing Budget

Under $500K36%

$1M - $4.9M29%

$5M - $9.9M5%

$50M - $99M1%

$100M - $199M2%

$200M - $499M1% $500M+

1%

$10M - $49M28%

$500K - $999K19%

67% of respondents have marketing budgets over $1M

Marketing Concerns

Thinking about your current marketplace, what would you say is your primary marketing concern today?

a) Measurement of return on marketing investments

b) Re-engineering the marketing mix to improve performance

c) Reaching new customers

d) Keeping loyal, profitable customers

e) Growing market share profitably

f) Maximizing sales in emerging markets

g) Building brand awareness

Key Take Away: Reaching new customers has been the primary concern among respondents for the past three years. Not surprisingly, concerns about the economy ranked second (12%) this year.

North America

Measurement of return onmarketing investments

5%

Reaching new customers15%

Economy12%

Maximizing sales in emerging markets

4%

Re-engineering the marketing mix to improve

performance1%

Building brand awareness9%

Keeping loyal, profitable customers

9% Growing market shareprofitably

5%

Other30%

Companies’ Primary Marketing Concern

Question: Thinking about your current marketplace,what would you say is your primary marketing concern today?

North America Trends in Event Marketing Status KPI’s

North America Trendsin Event Marketing Status KPI’s

-20%

-15%

-10%

-5%

0%

5%

10%

15%

2003 2004 2005 2006 2007 2008

Maintaining / Increasing Importance Maintaining / Increasing Budget Proportion of Overall Marketing Budget

Key Take Away: Despite the challenging economic landscape, event’s proportion of the marketing ` budget has remained relatively stable but with the percentage of marketers

expecting budget increases predictably on the decline. While historically the future importance of events has been optimistic, the number of respondents ranking it’s future importance as increasing declined somewhat this past year.

2003 - 2008

42% 49% 50%28%

42%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 2008

Increasing

Remaining Constant

Future Importance of Event Marketing

Key Take Away: The future importance of event marketing has remained optimistic over the past several years. In what could be a sign of industry maturation, those that rank the future importance of events as remaining constant has remained steady over the past couple of years while those that rank it’s future importance has declined as events rise to prominence among marketing disciplines.

North America 2004 – 2008

Question: How do you estimate the future importance of event marketing for your organization?

North America Trendsin Event Marketing Status KPI’s

Events’ proportion of the overall marketing budget is a clear indicator of an industry that is maturing and whose function as a sales driver is becoming more well known throughout the enterprise.

Although over a third of respondents (39%) expect budget decreases, budget fluctuations are most likely related to tightening marketing budgets due to the economic downturn, not necessarily a decline in the perception of event marketing’s value to the organization.

Respondents have historically been optimistic about the future importance of events and the number of those ranking it’s future importance as remaining constant in 2008 is on par with previous years. The slight decline in the number of respondents who rank the future importance of events as increasing could be interpreted as another sign of event’s rise to prominence in the organization and the stabilizing of it’s ranking among marketing channels.

Implications

Key North America Findings

Key North America Findings: Budget Trends

Budget Trends

• What percentage of your company's total marketing budget is currently spent on event marketing?

• How is your marketing budget split among disciplines?

• Would you say your overall marketing budget has increased or decreased?

• By what percentage do you anticipate your event marketing budget allocation will increase or decrease?

• If you have experienced a budget increase, where will the dollars go to?

• If you have experienced a budget decrease, where will the dollars come from?

North America - 2004 – 2008

Question: What percentage of your company's total marketing budget is currently spent on event marketing?

Event Marketing’s Share of the Marketing Budget

15%

20%

25%

30%

2004 2005 2006 2007 2008

Key Take Away: Event marketing’s share of the marketing budget in North America has declined slightly to 25%.

North America - 2004 – 2008

Question: What percentage of your company's total marketing budget is currently spent on event marketing?

Event Marketing’s Share of the Marketing Budget

Marketing Budget Allocation

Question: How is your marketing budget split among disciplines?

a) Event marketing

b) Print advertising

c) Broadcast advertising

d) Sales promotions

e) Public relations

f) Web marketing

g) Direct mail

h) Other

North America – 2008

0% 5% 10% 15% 20% 25% 30%

Other

Direct mail

Web marketing

Public relations

Broadcast advertising

Print advertising

Event marketing

Marketing Budget Allocation

Key Take Away: Event marketing (26%) and print advertising (24%) spend make up for half of respondents’ marketing budgets


Question: How is your marketing budget split among disciplines?

Marketing Budget Fluctuation


Question: Would you say your overall marketing budget has increased or decreased?

Increased

Remained Constant

Decrease

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Decreased

Remained constant

Increased

Marketing Budget Fluctuation

Key Take Away: Over half of respondents expect their budgets to increase or remain constant.


Question: Would you say your overall marketing budget has increased or decreased?

0% 5% 10% 15% 20% 25% 30%

Decrease

Increase

Event Marketing Budget Fluctuation

Key Take Away: Respondents expecting additional budget expect a 15% increase. Those expecting cuts expect a 25% decrease in their spend.


Question: By what percentage do you anticipate your event marketing budget allocation will increase or decrease?

Marketing Budget Flows - Increase

a) Event marketing



d) Sales promotions

e) Public relations

f) Web marketing

g) Direct mail

North America – 2007 - 2008

Question: If you have experienced a budget increase, where will the dollars go to?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Direct mail

Web marketing

Public relations


Print advertising

Event marketing

20082007

Marketing Budget Increase

Key Take Away: Event marketing and Web marketing gain equally from shifting marketing dollars.


Question: If you have experienced a budget increase, where will the dollars go to?

Marketing Budget Flows - Decrease

a) Event marketing



d) Sales promotions

e) Public relations

f) Web marketing

g) Direct mail

h) I have not experienced a budget increase

North America – 2007 - 2008Question: If you have experienced a budget decrease, where will the dollars come from?

0% 10% 20% 30% 40% 50% 60%

Direct mail

Web marketing

Public relations


Print advertising

Event marketing

2008

2007

Marketing Budget Decrease

Key Take Away: Event marketing (53%) and print advertising (48%) are first affected by budget cuts.

North America – 2007 - 2008Question: If you have experienced a budget decrease, where will the dollars come from?

Key North America Findings: ROI Trends

ROI Trends

• Of the following marketing elements, which would you say provides the greatest return on investment?

The Greatest ROI in Marketing

• Direct Mail

• Web Marketing

• Public Relations

• Sales Promotions

• Broadcast Advertising

• Print Advertising

• Event Marketing


Question: Of the following marketing elements, which would you say provides the greatest return on investment?

The Greatest ROI in Marketing

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Direct Mail

Web Marketing

Public Relations

Broadcast Advertising

Print Advertising

Event Marketing

2008

2007

2006

2005

2004

Key Take Away: Marketers have ranked events as the discipline that provides the greatest ROI for 5 years and provide a higher ROI than broadcast by x 5.


Question: Of the following marketing elements, which would you say provides the greatest return on investment?

ROI Trends


• Why does Event Marketing provide the greatest ROI?

Why Event Marketing Provides Greatest ROI

a) It can be measured

b) Minimal investment for highest exposure?

c) Wide exposure?

d) In person contact?

e) Reaches a targeted audience?

f) Builds new contacts?

g) Primary source of information?

h) Number of people reached?

North America – 2007 - 2008Question: Why does Event Marketing provide the greatest ROI?

0% 20% 40% 60% 80% 100%

It Can Be Measured

Minimal Investment For Highest Exposure

Wide Exposure

Primary Source of Information

Builds New Contacts

Number of People Reached

Reaches a Targeted Audience

In-Person Contact (face-to-face)

20082007

Key Take Away: 81% of North American respondents consider event marketing to provide the greatest ROI because it includes opportunities for in-person (face to face) contact.


Why Event Marketing Provides Greatest ROI

Question: Why does Event Marketing provide the greatest ROI?

ROI Trends


• Why does Event Marketing provide the greatest ROI?

• Of all the marketing disciplines, which would you say is best for accelerating and deepening relationships?

1. Event marketing

2. Print advertising

3. Broadcast advertising

4. Public relations

5. Web marketing

6. Direct mail

Accelerating and Deepening Relationships

0% 10% 20% 30% 40% 50% 60%

Direct Mail

Web Marketing

Public Relations

Broadcast Advertising

Print Advertising

Event Marketing

Key Take Away: Event marketing is the overwhelming choice as the discipline that best accelerates and deepens relationships.


Question: Of these marketing elements, which would you say is best for accelerating and deepening relationships?

Key North America Findings: Metrics Trends

Metrics Trends

• Do you do any event measurement?

• What percentage of the event marketing budget is allocated to measurement?

• Why do you measure?

• What do you measure?

• What is the impact of measurement on budgets?

Measurement in Event MarketingNorth America - 2005 - 2008

Do you do any event measurement?

Measurement in Event Marketing

40%

45%

50%

55%

60%

65%

70%

2005 2006 2007 2008

Key Take Away: The percentage of respondents who report measurement has rebounded 9 percentage points since 2007.

North America - 2005 - 2008

Question: Do you do any event measurement?

Budget Allocations for Measurement

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2004 2005 2006 2007 2008

Sample: Companies who measureKey Take Away: Despite a renewed interest in measurement, budget allocations for the activity are at an all time low.

North America – 2004 - 2008Question: What percentage of the event marketing budget is allocated to measurement?

Measurement Motivation

a) Procurement influence

b) Marketing best practice

c) To justify expenditure

d) To protect or increase budget

e) To demonstrate marketing ROI

f) To improve attendee experience

North America - 2008Question: Why do you measure?

Measurement Motivation

0% 10% 20% 30% 40% 50%

To improve attendee experience

To demonstrate marketing ROI

To protect or increase budget

To justify expenditure

Marketing best practice

Procurement influence

Key Take Away: The majority of respondents measure to justify expenditure (43%).

North America - 2008Question: Why do you measure?

Measurement Topics

a) Number of qualified leads

b) Learning impact

c) Media impressions

d) Overall experience satisfaction

e) Attendance

f) Quality of leads

g) Sales increase

h) Overall communication effectiveness

i) Change in brand perception

j) Other

North America 2006 - 2008Question: What do you measure?

Measurement Topics

0% 10% 20% 30% 40% 50%

Media Impressions

Learning Impact

Change in Brand Perception / Preference

Overall Experience / Satisfaction

Traffic at event

Quality of Leads Provided

Overall Communication Effectiveness

Sales Increases

Number of Qualified Leads

200820072006

Key Take Away: The leading categories of event measurement are the number of qualified leads generated (36%) closely followed by sales increases (33%).

North America 2006 - 2008Question: What do you measure?

Measurement Impacts Event Marketing Budgets

0% 10% 20% 30% 40% 50% 60% 70% 80%

Companies That Don'tMeasure

Companies ThatMeasure

Sample: Those who answered "Increase"

20082007

Key Take Away: Companies that measure are over 2 times more likely to expect increases in their event marketing budgets than those who don’t measure.


Question: How do you anticipate your marketing budget allocations will change relative to event marketing?

Key North America Findings: Green Trends

Green Trends

• When do you plan on implementing green initiatives within the event function?

• Why is your company implementing a green initiative?

• What percentage of your event budget is dedicated to green initiatives?

Green Initiatives Implementation

a) Already implemented

b) No current plans

c) Do not know

d) In the next three months

e) In the next six months

f) In the next twelve months

North America – 2007 - 2008Question: When do you plan on implementing green initiatives within the event function?

Green Initiatives Implementation

53%

16%

3%

10%

3%

34%

20%

19%

7%

8%

10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2007

2008

2008

Already implemented

In the next three months

In the next six months

In the next 12 months

No current plans

Do not know

Key Take Away: Enthusiasm for green remains strong with 13% of respondents implementing eco friendly initiatives within the next 12 months and 53% reporting that they are already integrating green into their event programs.

North America – 2007 - 2008Question: When do you plan on implementing green initiatives within the event function?

Motivations for Green

a) Corporate responsibility mandate

b) Cost savings

c) Gain a competitive advantage

d) Win or maintain customer loyalty

e) Don’t know


Question: Why is your company implementing a green initiative?

Motivations for Green

0% 10% 20% 30% 40% 50% 60%

Don't know

Win or maintain customerloyalty

Gain a competitive advantage

Cost savings

Corporate responsibilitymandate

20082007

Key Take Away: Abiding by a corporate responsibility mandate continues to be respondents’ primary motivation for going green.


Question: Why is your company implementing a green initiative?

Green Initiatives

0%

5%

10%

15%

20%

Key Take Away: Respondents that implement green initiatives dedicate 13% of their event budgets to related activities.


Question: What percentage of your event budget is dedicated to green initiatives?

Key North America Findings: Event-to-Experience Trends

Event-to-Experience Trends

• Which of the following statements best describes for you the term Experience Marketing?

– An event where an audience has the opportunity to interact with a company's product/service

– An event where an audience has the opportunity to interact with a company's product/service and its brand

– An integrated interaction with a company's product/service and its brand before, during and after event(s) through the combination of media

– Other

• What primary marketing objectives do you currently use experience marketing for?

– Awareness

– Consideration

– Preference

– Purchase

– Loyalty

– Do not use experience marketing

Perception of Experience Marketing

Question: Which of the following statements best describes for you the term Experience Marketing?

– An event where an audience has the opportunity to interact with a company's product/service

– An event where an audience has the opportunity to interact with a company's product/service and its brand

– An integrated interaction with a company's product/service and its brand before, during and after event(s) through the combination of media

– Other

North America 2006 - 2008

Perception of Experience Marketing

15%

14%

27%

14%

16%

15%

64%

57%

51%

1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2006

2007

2008

An event where customers physically interact with the product or service

An event where customers have a brand experience through application of a product or service

An integrated campaign with numerous customer touchpoints before, during and after the event

Other

North America 2006 - 2008Question: Which of the following statements best describes for you the

term Experience Marketing?

Experience Marketing at Work

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Do not use experiential marketing

Loyalty

Purchase

Preference

Consideration

Awareness

Key Take Away: Building awareness is most frequently sited as the primary marketing objective experience marketing is used to support.

North America 2007Question: What primary marketing objectives do you currently use experience marketing for?

The Transition to Experience Marketing

How quickly are you transitioning?

a) Not at all

b) Don’t know

c) In the next three months

d) In the next six months

e) In the next twelve months

The Transition to Experience Marketing

33%

19%

18%

6%

18%

14%

9% 14%

22%

21%

23%

11%

12%

22%

30%

22%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2006

2007

2008

2008

Already transitioned

In the next three months

In the next six months

In the next 12 months

Not at all

Do not know

Key Take Away: Swift transition of event marketing into experience marketing efforts. 33% are already there.


Question: How quickly are you transitioning your event marketing initiatives into experience marketing?

Key Take Aways

Key Take Aways

• Since 2004, event marketing has been considered by respondents to provide the greatest ROI among marketing channels and is perceived to provide a higher ROI than broadcast advertising, by a factor of five.

• Further confirming the power of events, event marketing is the overwhelming choice of marketers as the discipline that best accelerates and deepens relationships.

• Although budgets have been somewhat affected by the economic climate, event marketing’s share of the marketing budget remains stable.

• As budgets tighten, interest in measurement is renewed. The percentage of respondents who conduct post event measurement has increased 9 percentage points since 2007.

Key Take Aways

• Companies who measure are nearly 2 times more likely to expect increases in their event marketing budgets than those who don’t measure.

• When budgets increase, event marketing and Web marketing gain the most in the marketing mix. Events and print advertising are first affected when budgets decrease.

• Event marketers’ enthusiasm for green remains strong with 13% of North American respondents implementing eco friendly initiatives within the next 12 months and 53% reporting that they are already integrating green into their event programs.

How does this affect you?

• As the role of event marketing increases in prominence it will likely be increasingly used to anchor integrated communications campaigns. Event marketers and meetings managers that can expand their knowledge outside of the event function and grow will increase the avenues to career growth and enhance their role as a strategic contributor.

• One important leverage point will be in knowing how meetings and events accelerate and deepen relationships so that you can better build this capability into your events and be the person responsible for driving outcome.

• No longer moments in time, meetings and event experiences live on through digital media. Your success will depend on how well you integrate the power of face to face marketing with the reach and speed of the Web.

How does this affect you?

• With budgets expected to continue contracting the need for measurement will only increase. How will you incorporate qualitative and quantitative data to fully articulate the value of the events in your portfolio?

• The job market is always looking for even higher ROI and competition during this recession is high. In addition to logistical innovation, what strategic vision can you bring to the table?

Katie Callahan-GiobbiExeuctive Vice President, MPI Foundation

Chief Business Architect, Meeting Professionals International

[email protected]

David M. RichSenior Vice President, Strategic Marketing/Worldwide

George P. Johnson

Experience Marketing

[email protected]

Addendum

The Role of Event Marketing

In planning a marketing campaign, what best describes the role ofevent marketing?

a) A Lead Tactic

b) A Vital Component Of The Plan

c) Taken Under Consideration With Other Mediums

d) Usually An After Thought

The Role of Event Marketing

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Other

Usually An After Thought

Taken Under ConsiderationWith Other Mediums

A Vital Component Of The Plan

A Lead Tactic

2008

2007

2006

2005

Key Take Away: Over time, consideration of event marketing as part of the marketing campaign has steadily increased, indicating broader awareness and acceptance of it’s significance in the marketing mix.


Question: In planning a marketing campaign, what best describes the role of event marketing?

External Event Budget Distribution

What types of external events currently account for the majority of your event budget?

a) Mall Marketing

b) Guerilla Marketing

c) Sports / Entertainment Sponsorships

d) Road Shows & Mobile Marketing

e) Conferences & Seminars

f) Trade Shows

g) Grassroots Campaigns

h) College Marketing

i) Nightlife Campaigns

0% 10% 20% 30% 40% 50% 60% 70%

Nightlife

College

Grassroots

Mall Marketing

Guerilla Marketing

Sports / Entertainment Sponsorships

Road Shows & Mobile Marketing

Conferences & Seminars

Trade Shows

20082007200620052004

External Event Budget Distribution

Key Take Away: Trade shows and conferences have accounted for the majority of the event budget for the past 4 years.


Question: What types of external events currently account for the majority of your event budget?

30%

30%

13%

8%

23%

27%

19%

16%

13%

28%

0% 10% 20% 30% 40% 50% 60%

Loyalty

Purchase

Preference

Consideration

Awareness

Rank 1Rank 2

Key Take Away: Respondents use experience marketing primarily to motivate purchases and build brand loyalty. Loyalty was also a leading secondary purpose for using experience marketing (27%) in addition to driving awareness (28%)

North America 2008

Experience Marketing at Work

Question: Thinking about why you currently use experience marketing, how would you prioritize the following objectives?

Procurement Influence

To what degree does your procurement or purchasing department influence

the selection of an event marketing provider (1=low, 5=high)?

Procurement Influence

0% 10% 20% 30% 40% 50% 60%

5 - High

4

3

2

Low - 1

200820072005

Key Take Away: Respondents continue to perceive procurement’s influence on the selection ofevent marketing providers as low.

North America - 2005, 2007 - 2008

Question: To what degree does your procurement or purchasing department influence the selection of an event marketing provider? (1=low, 5=high)

Future of Procurement Influence

Would you say the influence of procurement or purchasing in the selection of

a provider is:

a) Increasing Strongly

b) Increasing

c) Constant

d) Decreasing

Future of Procurement Influence

4%

11%

3%

11%

11%

14% 51%

13%

12%

13%

54%

49%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2005

2007

2008

Increasing strongly

Increasing

Constant

Decreasing

Key Take Away: The percentage of respondents that perceive procurement’s influence to be increasing has declined slightly since last year and is on par with 2005 findings.

North America – 2005, 2007 - 2008

Question: Would you say the influence of procurement or purchasing in the selection of a provider is:

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