Budget forecasters are predicting that spending on large events will be down this year. But that's not an umbrella forecast for all types of events. Instead, marketers intend to increase financing for smaller, more targeted meetings such as executive breakfasts and roundtables.

According to a recent study, "B2B Marketers' 2008 Budget Trends," by Forrester Research, which surveyed 369 marketing professionals online during September and October 2007, almost 50% of those surveyed said they would increase spending on executive seminars and events. That represents the largest projected increase among all marketing and advertising budget categories, including public relations, print advertising, direct mail and sponsorships.

Assessing intangibles

"These marketers understand that business decision-makers rely on peer testimonial, face-to-face gatherings and outside authorities to help them assess intangibles like legitimacy, credibility and trustworthiness—factors difficult to convey in both online and traditional activities," according to the report.

Although 27% said they would increase spending on trade shows while 22% said they would decrease trade show spending, survey respondents did admit to spending more on large, trade-sponsored events then any other budget category.

However, according to the study, "Client conversations and other anecdotal stories show that b-to-b marketers waste money when they scurry around last minute to staff the booth and expect show-related traffic, or a favorable booth placement, to produce leads. B-to-b marketers who fail to build interactive campaigns that preview show-specific offers, invite attendees to on-site executive briefings and continue booth conversations via e-mail should look to spend their money elsewhere."

Analyst Laura Ramos, a VP at Forrester and the principal author of the report, explained that marketers are moving away from large events, but added, "they told us that one-to-one contact is still very important in the negotiated sales process that [is going on] in b-to-b marketing and selling." Read the complete article on BtoBOnline.

Large events not extinct

The shift away from large events, however, does not mean those events will go away or lose their usefulness. If anything, as marketers make more targeted decisions in choosing which events to attend and also hold events for niche audiences, those kinds of events may become more successful than in the past.

"The successful shows will become more successful over time," Smith said. "The unsuccessful ones will just keep doing the same old, same old and not be able to grow. … [Marketers] are still doing events; they're just doing them in different places. It's going to put pressure on trade show organizers to give attendees and exhibitors a reason to come back. It's not about the annual show anymore. Those arguments are gone. Marketers are waking up. If I'm spending $10 million to have a presence and I can't measure the results, there are other places I can invest money where I can get ROI." Read the complete article on BtoBOnline.