EM: David, good to chat. Let’s talk about where the money is in the business, what’s your opinion about what’s happening with recent acquisitions?
DA: There’s been a dearth of acquisitions in the past few years. We’re seeing some now, but there has been quite a backlog until recently.
There’s been some interesting ones recently-like NAB’s acquisition of Content and Communications World and Satellite Communications Conference and Expo from JD Events. SEMA’s acquisition of the PRI events was worth eight figures. Hanley-Wood (now Informa Exhibitions USA) has built a terrific portfolio over the last decade, buying a number of association events. Certainly not the traditional model.
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EM: Companies have an imperative to start growing and launching their own profitable events. What’s been your experience with that?
DA: In 6 years at Messe Frankfurt North America, we launched 6 events, half of which were clones in new regions or niche events created from existing ones. 90% of the new revenues came from cloned events like Texworld in New York, and Automechanika in Mexico.
I think that most US launched events would most likely be niche events, given the risk factors of doing things completely new. When private equity is involved, their preference is to buy rather than launch, as they typically are looking for a quicker return. Associations are a lot more willing to launch and focus on a longer term and lower return.
If I was to launch something completely new outside of my own market knowledge or connections, I would definitely hire a product champion to provide the core of the event’s value, with connections to that market’s community.
Others are doing shows on new things, such as drones and Pop Culture stuff, which I expect to succeed because the people behind them are smart and have done their homework.
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EM: I am not sure there is enough creativity in the business that you and I know, given the lack of ‘new’ things being launched. Do you agree?
DA: No, there’s a lot there, people like Joel Davis at JD Events are doing some very creative things. I also see a lot of new consumer events, which are certainly doing innovative things as well.
Britton Jones at Business Journals is an example of someone coming out of the straight publishing business and who has re-invented his organization. He is probably the ‘poster child’ of success in that area as far as I am concerned.
As past Chairman of SISO, I am proud that we have developed the best forum for those small operation entrepreneurs to mix with the decision-makers from the world’s most influential trade show companies. SISO CEO Summit has to be the most powerful meeting in the world at the moment just for that reason. So no, I have been exposed to the creative guys and we have channels for them to succeed in our eco-system in the future.
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EM: What role does technology have to play and how has it helped the business in the last 10 years?
DA: It’s certainly helped with our efficiency. We have tools that allow us better communication with our audiences than ever before. We can personalize and segment how we communicate and the analytics we have at our fingertips are incredible.
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EM: What about the fuss regarding Millennials?
DA: It’s a little overblown. For every new generation we hear the same thing – that the game has changed and the sky will fall in. It hasn’t and it won’t. Each generation looks at the world differently, sure, and when this generation becomes the decision makers they will be at our events because that’s where the action is. I think you need to involve every new generation in what you are doing and make them feel important. And, as an industry, we will.
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EM: That’s heartening to hear. Do you think the state of the business is good?
DA: It’s very good. The recession was very bad for most of us and culled out the weaker shows, creating new opportunities for many of us. We’ve all had to become more efficient and valuable to our sponsor/exhibitor and delegate constituencies. The CEIR Index says that we are finally above the 2008 levels this year. So we’ve all got some growth to make up!
David Audrain, is President & CEO of Exposition Development Company, Inc. Previously, Audrain was President & CEO of Messe Frankfurt North America, where he spent more than six years managing a team of 40 staff spread across the USA, Mexico and Canada. .
Audrain has managed eight Tradeshow Week 200 shows including the annual SEMA Show. Audrain was COO of private show management firm ConvExx from 2001 through 2005, having come from his position as General Manager for the Men’s Apparel Division of MAGIC with Advanstar Communications.
Audrain is a Past Chairman of the International Association for Exhibitions and Events (IAEE), and currently serves on the Boards of Directors of the Society of Independent Show Organizers (SISO) and the Center for Exhibition Industry Research (CEIR). He earned his Certified in Exhibition Management (CEM) designation in 1995.