Why do people resist auditing? In this competitive industry, anyone will earnestly declare themselves an advocate of transparency – in others. But how about their own events? There is still a strong resistance to official audits.
But nevertheless, auditing is key if you want to be taken seriously by potential exhibitors. As of this summer, global exhibition industry association UFI requires that all members provide audited confirmation of at least one of their international exhibitions.
According to Glenn Hansen, president and CEO of exhibition auditor BPA Worldwide, an innate fear of auditing exists among organisers and associations round the world. “Without the strong demand from exhibitors and no requirements, organisers are not proactive about auditing,” he said. “The result is very slow growth.”
Hansen claims the lack of demand for transparency and the lack of proactive audited statistics providers are two major challenges facing the exhibition industry. Organisers, he believes, haven’t yet realised the benefits of being able to prove the quality of their visitors to potential new clients, especially when trying to attract business from abroad.
The value of an audited show to a financial officer looking for demonstrable ROI can not be overstated. The old organiser adage of quality over quantity couldn’t be more apt. Audited numbers will provide concrete demographics data, not simply registration figures. After all, a light-pen rarely distinguishes between a handful of high-powered buyers and a single stressed-out salesman who takes frequent cigarette breaks.
Ultimately, embracing the practice of auditing will lead to the growth and cultivation of the medium of exhibitions wholesale. The more believable the results, the more demonstrable the efficacy of the medium as an alternative to other marketing methods. Financial controllers would then make decisions on employee attendance based entirely on a provable return.
Audit anxiety
The fact remains, organisers are reluctant to audit a show in case the figures they have been quoting to their exhibitors prove exaggerated.
“We refer to this as the organisers’ fear factor, and it definitely exists,” says Hansen. “It’s not limited to a specific region of the world. The problem even exists within exhibition organisations and associations who may be providing registration numbers instead of verified data.”
Unaudited shows will often use their registration numbers to promote themselves, even though the variation between the number of visitors who pre-register and those who actually turn up usually varies between 10 and 25 per cent and sometimes even as high as 50 per cent. If the advertised pre-registration numbers are that much higher than actual attendee figures, it’s bad for the exhibitors. If they are lower, it’s bad for the organiser. Either way, the lack of transparency can lead to distrust and dissatisfaction in the exhibitor/organiser relationship.
“The common perception is that all unaudited exhibitions inflate their numbers. Registration data is often used as a final figure by organisers who have no verification methodology set up on-site to actually prove pre-registrants did attend. Registration figures are often used by organisers who do not wish to provide the verified numbers even when a robust verification methodology exists.”
Organisers who are afraid to have their registration data verified should remember exhibiting companies that rebook must have a reason for returning to the show every year.
“Clearly the exhibitors in this category feel the show is providing them with value which engenders a certain sense of loyalty to the organiser,” says Hansen. But loyalty alone is not enough to bring an exhibitor back if he’s offered alternative tradeshow options. Organisers should realise that they can immediately raise the level of conversation with renewing companies, as well as with new prospects, by focusing on verified visitor demographics.
“The exhibitors already know how many people are visiting the event, through their own booth traffic,” Hansen says. “This is all that really matters to them. Organisers would make their shows invaluable to their already loyal exhibitors with the audited data because, on top of loyalty, a deeper trust will form through the act of being transparent.”
Case study
Hansen uses BPA’s recent audit of the American Thoracic Society’s (ATS) 2010 International Conference in New Orleans as one example of why this ‘fear factor’ is misplaced.
“The way the event came to audit was a textbook example of the industry best-practice system working properly,” says Hansen. At the behest of the Exhibitor Advisory Board, the event managers approached BPA at the 2009 edition of the International Association of Exhibitions and Events’ (IAEE) Expo! Expo! and asked for audited data for its 2010 conference and exhibition participants.
“This was a great educational opportunity for everyone, and showed the ATS’ commitment to its exhibition clients. There were press releases in the on-site show office declaring ATS’ commitment to audit the event, and the association did a great job in being transparent throughout the process.”
According to Hansen, stakeholders involved in the event were pleased with the results, and ATS didn’t see much drop-off between unaudited and audited figures. “This is the best example to date of the process by which audited data can be provided to the entire exhibitor population,” he says.
The future
All show organiser members of UFI must provide regular updated audits of tradeshow attendance and exhibition space data for at least one international exhibition as a requirement of membership. Today over 866 exhibitions around the globe have earned the “UFI Approved Event” label.
“The business climate is constantly changing. It’s very important to stay ahead of the curve,” says Hansen. “By listening to the membership and colleagues in the industry regarding their own business challenges, we create more effective services to meet and exceed those challenges and needs.
“The Trade Show Exhibitors Association is being proactive on the exhibitor side and other American associations including the IAEE, SISO and ESCA are operating from the show organiser and supplier side. All associations have initiated forums and meetings to extend open, constructive dialogue between exhibitors, show organisers and suppliers for change.
“When exhibitors create critical mass and ask in a unified voice, organisers will have no choice but to provide the information. Organisers who provide this data to their clients on a proactive basis will be creating longer-lasting and trusting partnerships for years to come.”
Auditing is key to the growth of our industry. As a tool to win over finance officers debating whether or not to attend your event, the benefit of transparency can be surprisingly easy to see.
