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Bye-Bye Macworld, Brainshare, CES

Back in pre-history when I started writing about technology, that is to say the 1980s, trade shows were the place to find out what going on. My how things have changed. Brainshare, Novell's big show, has been canned. Steve Jobs isn't showing up for Macworld, and Apple is pulling out of the show next year.

Well, they say they won't be there, but without Apple I'd be amazed if there was a Macworld for Apple not to attend.

I've seen this coming from years down the road. In 1999 and 2000, Comdex, which was the techie trade show had more than 200,000 attendees. It was a city within the city of Las Vegas. The Comdex shows were where Bill Gates introduced Windows 95, 98, 2000, and XP. It was the show where Microsoft Windows became Windows the force. And, in spring 1999, when Linus Torvalds and Bill Gates virtually faced off with each other at Comdex, it was, in many ways, Linux's coming of age. By 2004, Comdex was dead.

Some say that Comdex died because it was overshadowed by CES. I don't think so. They were always different shows, appealing to different audiences. Comdex was for techies and for the business people who made their living from tech. CES was, and is, about tech. toys. I think Comdex died because it had outlived its usefulness and the sour economy.

Only a handful of tradeshows survived for long into the 21st century. PC Expo? History, after several name changes. The Seybold trade shows? Gone for years now. Brainshare has just been declared KIA and Macworld will be DOA.

You think CES will make it? Nope. It won't. CES attendance has been declining and, it was never as high as Comdex's in its salad days anyway. I predict a crippled CES for 2010 and after that, The End.

What's doing it? Well one heck of a sour economy for starters. Given a choice between putting up an exhibit at a trade show or keeping a couple of employees, I think I'd keep the staffers myself. The return on investment is likely to be a lot better. Besides if things really go south, I could always fire more staffers, once I've spent the money on a trade show, it's gone.

If I'm just thinking about going to a trade show, well, why should I? Since I'm press, I don't pay a thing to actually get into a show, but most of you need to pay anywhere from a few hundred to a few thousand dollars to get to all a show's goodies. And, press or not, we all have to pay airfare, taxi fees, hotel bills. I've managed to do some shows for under a grand, but not many.

Of course, it used to be that I had to be at trade shows. It was, after all, where the news was. It was, for example, why Macworld was, until the other day, a must-go show for anyone who really cared about what Apple and Steve Jobs would come up with next. Now, there's little I can't pick up from the Internet.

While I won't go as far as Robert Scoble, who thinks blogs and social networking are killing trade shows, they are playing a role. After all, since I'm always Twittering - you can find me at sjvn on Twitter - or Facebooking or whatever with other people in Linux, open-source, and other technology circles how much I could really learn by traveling a thousand miles to see them in person?

The answer, by the way, is a lot. Social networking, e-mail lists, blogging are all well and gone, but they don't replace actually meeting with someone. There's a reason, after all, why it's so much easier to have fights, flame-wars, on line than it is in person. When you're someone, you can get a much better feel for who they really are and what they're really thinking.

So, I think smaller and more focused tradeshows, like Interop, SCALE (Souther Calif. Linux Expo) and, I hope, the forthcoming OpenSource World, which I have a hand in, will continue to be successful. But, the big, mega-shows? They're dinosaurs. Their day is done.

What People Are Saying

Trade Shows Do Not Scale

There are many reasons to present and to attend trade shows:
*social networking
*the possibility to meet new customers/suppliers/products/trends
*doing more business

For each attendee there are costs:
*transportation
*accomodation
*fees
*disruption of productivity

When the costs increase more rapidly than the benefits, individuals and organizations may find less expensive means of achieving the benefits. sjvn is right, the web is hard to beat for cost/benefit. Servers work 24x7 with fairly static costs. One can visit social sites/do e-mail in off hours to avoid disruption of other productive efforts. Flash/video/html/scripts can put on a fancy presentation and the "attendee" can copy-and-paste URLs/e-mail addresses at his leasure while seated. Things do not get lost/stolen/delayed in shipment. There is no additional labour to reach different groups at different times and places.

In my own situation, employers used to pay teachers to go to conferences for professional development. Now, many put on in-house sessions because the costs are far too high. It can cost $10k to fly in a consultant to address the troops but $50k to fly the troops out to attend a conference. Also, the troops feed and shelter themselves while at home base.

When the Internet was new and e-mail was labour-intensive and bandwidth very expensive, while oil was inexpensive, trade shows made a lot of sense. Now the web can bring a lot of multi-media anywhere on the planet for peanuts and the "attendee" pays for his end of the bandwidth so the incremental cost of reaching one more is tiny compared to going to yet another show. Over the years I have attended many conferences but all were either in my home town or expenses were paid by the employer. If it were my choice, trade shows would be an endangered species, reserved for very special occasions or about some revolutionary approach. Nothing less can justify the costs.

I will attend my last conference soon. It will cost many hundreds of dollars per teacher but it will be worth my effort because I will get to show off a mini-lab running GNU/Linux on thin clients which is revolutionary here. When I retire and will have to pay the whole shot myself, there is no way I would attend a conference. It will be far cheaper to send a presentation file to a potential consultee than to visit in person.

Trade Shows and the Missing Points

There are many reasons why a trade show declines and often disappears from an industry. For those who don’t understand the value of trade shows or how to maximize their involvement, they end up with similar opinions to the one you have posted and many of your readers support.

Regardless of the ability to research countless bits of information on the web or the endless social networking sites that are available, the bottom line is that nothing will truly replace face-to-face marketing. As for value, unless your product can generate 100% of its revenue purely through internet sales and does not require any human intervention, you will need to meet your customers at some point.

The value of trade shows for an exhibitor who maximizes their involvement from start to finish is that the cost to present your products and/or services to a large group of potential customers in a single location will always be cheaper than traveling to a territory and visiting each of them one at a time.

If your experience with trade shows has been less than stellar, chances are you were partly to blame for the failure. Here are some good examples as to what might have gone wrong:
• You chose not to participate in any of the pre-event marketing to the point you even failed to update the exhibitor listing within the show directory (more than 60% of today’s exhibitors fail to take advantage of this free promotional service)
• Your display has graphics from a previous show where the attendee demographics were completely different and therefore this new group doesn’t get your message (more than 40% fail to target their message for the specific show audience)
• To cut expenses you were the only booth staff person and while exhibiting you eat your lunch, drank your beverages, answered your cell phone and sat on a chair all while potential customers walked by ( 3 of the biggest exhibitor errors on the books)
• You collected leads either through a lead retrieval device or simple business cards but it took you more than 2 months to follow-up on the requests (the industry average is 35 days following the close of a US show, and 20% fail to follow-up at all)
• You did absolutely nothing to commit to marketing yourself to your existing customer base or any advertising prior to the event to tell people you would be there. You simply assumed that because you were an exhibitor, they would come.
• You sent another staff member from the office who had no vested interest in the success of the event and they spent more time out of the booth space selling themselves to other companies.

As for the media, as a show producer, I can tell you from firsthand experience, they show up minutes before the show opens, run through the press room collecting everything they can find, attend the initial show press conference and then disappear. From then on, they show up at the corporate functions only if there is food and booze and the few hours they wander the floor they are in search of the ultimate swag “Free Samples.”

Rarely do we see them seriously interviewing the regular exhibitor or for that matter the attendee. They scrape the press releases and enjoy the expense report and get as much out of the show as they put in.

As for Comdex it died because it became horizontal in nature. The shear size of the show meant that it was trying to address too many markets at once. As for CES, it has taken on the post Comdex role as computers have become more integrated into virtually every aspect of consumer electronics. As you suggest, if not careful it too could fail by trying to address to broad a market. You are right in saying that the attendance at CES is on the decline but it is not because of the show but rather the new vertical off-shoots where competitive market niches will address buyer’s needs with more focus. E3 is a perfect example of a successful off-shoot for gaming. NAB is another show that has benefitted tremendously from the fall of Comdex. The rise of computer based video production and editing has opened a whole new world and doubled that show's size.

Regardless of how animated a website or social portal is, nothing beats being able to touch the product, hear from the creator firsthand or do live comparisons between competitive products like you can at a trade show. Next time you plan to attend a show really prepare and maximize your objectives, whether it be to get new products, more technical information on products you already use or for the media, more food from a corporate party…

Typos

In the first sentence, I think you want to say, "what was going on." In the last sentence of the next-to-last paragraph, you probably mean, "when you're with someone."

Thanks for the blog, I really enjoy it.

Other Factors: Air Travel Post 911

Each time you check-in at an airport you run the risk of being subjected to a humiliating papers-please, strip-and-body-cavity-search, or confiscation of your laptop/property on the whim of some mindless, ego driven, double digit IQ'd, jack-booted thug with education and security training equivalent to that of a GED and McDonald's hamburger college(not to mention a plethora of other needless, ineffectual security foolishness). There are even some notable tech personalities who now refuse to travel to the USA because of it.

Considering the hassles and complexities involved in post 911 travel, do you really think that face-time with someone is worth all that anymore, Steven? Maybe on very special occasions, but some have severely limited their air travel due, in part, to these hassles, and road trips take too long. Air travel used to be fun!

Naysayer Jerk

Is this all you can do? Have you ever run a business