Shrinking trade shows reflect weak tech industry
By Jon Swartz, USA TODAY
URL:http://www.usatoday.com/money/industries/technology/2003-01-06-trade-showd_x.htm
SAN FRANCISCO — Computer trade shows, like Internet stocks, aren't what they used to be.
Tech show attendance last year slumped 10% from the year before, twice as much as other shows. Key3Media, the producer of Comdex, the granddaddy of North American tech shows, says it may file for bankruptcy protection because of dwindling crowds. And Macworld Expo in Tokyo, a big Apple Computer-related show, was canceled this year because not enough major exhibitors signed up. Even the Consumer Electronics Show (CES), one of the industry's healthiest, expects only slightly more visitors this year than last. It starts Thursday in Las Vegas.
"Trade shows mirror the health of a sector, and the tech industry is in disarray," says Douglas Ducate, CEO of the Center for Exhibition Industry Research. He expects some tech shows to consolidate and more companies to copy eBay and Oracle, who do smaller conventions targeted at customers and developers.
Tech show attendance is shrinking because of:
Costs. During the halcyon days of tech spending a few years ago, The Internet Summit show, for one, charged attendees several thousand dollars to schmooze with fellow digerati. Now, belt-tightening companies say they can't afford extravagant travel costs in a languid economy. "It's hard to find a good return on investment at the big shows," says Judy Sim, Oracle's vice president of corporate marketing. The software giant has cut its trade show participation in half the past three years. Meanwhile, The Internet Summit's sponsor, The Industry Standard magazine, ceased publication in 2001.
Growing appeal of smaller shows. Tech companies and consumers are eschewing large, general-interest conferences for smaller, more specialized events. Sun Microsystems' first SunNetwork conference in September, for example, attracted 8,000 visitors — twice as many as expected. Oracle is attending more financial services and science shows to meet current and potential customers. By comparison, Comdex's attendance has dropped almost in half since 2000. "Smaller shows give companies a better opportunity to identify and follow up on business leads," says Adam Schaffer, publisher of Tradeshow Week.
Industry consolidation. Closures and mergers in the tech and telecom industries erased hundreds of companies and about 470,000 jobs last year. Many were habitual attendees of trade shows.
Webcasts. More companies are viewing speeches and select trade show events via computer Webcasts. Although 25,000 people attended OracleWorld in November, about 130,000 viewed it over the Internet. Last year, more than 200 of the nation's 4,300 major trade shows were Webcast in some capacity, Tradeshow Week says. |
