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| Wednesday, May 07, 2003
Microsoft Chooses COMDEX
It's now official. Microsoft chose the 2003 COMDEX over Alan Meckler's COMDIX, and Sheldon Adelson's whatever.
Having been involved in the discussions at Microsoft about these three as well as how they should approach private events, I was privy to the decision in advance. Frankly, IMHO, it was a no-brainer. Sheldon hasn't really announced anything so that was immediately eliminated. Mecklermedia, oops, I mean Jupitermedia didn't offer anything of SUBSTANCE that really gave a compelling reason for choosing them. Sorry, Alan, but ranting and insulting COMDEX did NOT help your cause.
The sad part of all this is that, in reality, choosing COMDEX was like voting in a lot of elections. They chose the lesser of evils, the known versus the unknown. This does NOT mean that Microsoft thinks COMDEX will survive, either. That is still a wait and see.
Speaking of COMDEX. IMHO, their new branding campaign is nothing more than putting lipstick on a pig. Let's be sure we understand what a brand is. First, it's not something you can convince people to think about your company. It is what people THINK about your organization based on the PROMISE you made to them. Did you live up to your promise, or did you fall short, or did you miss it completely? Whatever your customers think about your company is your brand. Period. And there's not a darn thing you can do to change somebody's opinion or perspective about you through a loud advertising campaign.
The mistake I think COMDEX is making is they should be putting a lot of those advertising dollars into creating a great VALUE experience for their exhibitors and attendees. The Experience IS the Marketing, Mr. Rosen. You create a high ROI for your exhibitors, they will follow you to Hell.
BTW, that's a good piece of advice for the rest of you exhibitions and conventions.
posted by Steve Miller on 8:41 AM -------------------- Monday, March 31, 2003
WWMD? (What Will Microsoft Do?)
Everybody, it seems, is watching the high-tech trade show world with great interest these days. COMDEX says they will survive. Alan Meckler's COMDIX (Computer Digital Expo) says they will kill the old beast. Alan has shown basically zero class in his weblog continually blasting Fred Rosen as the reason why Key3 Media is in bankruptcy.
And then there's Sheldon Adelson. Does he have a show? Will he have a show? Only Sheldon knows for sure.
It occurred to me the other day, though, that by watching these three duke it out that we may be looking in the wrong direction. What is Microsoft thinking about all this? Granted they aren't the mega-gorilla they used to be, but Bill still carries some pretty big weight. What's he thinking about all this? Does Microsoft plan to support all three, if they do exist at the same time? Will they pick one and throw their weight behind that event? Would it be Alan's new, unproven COMDIX? A quick look at their website today didn't show any confirmed exhibitors anywhere. Do they even HAVE any confirmed exhibitors? Or will Bill stick with his old hangout at COMDEX? It seems to me Microsoft will think very hard about where they go this year.
And where they go may have a lot to do with who succeeds.
posted by Steve Miller on 12:02 PM -------------------- Monday, March 03, 2003
And Yet Another Battle of Titans
The National Hardware Show, as we know it, is no more. The two owners, the American Hardware Manufacturers Association and Reed Exhibitions, have parted ways after a stormy relationship. Both have announced their own new events. Reed is keeping the show name and moving to Las Vegas In May, 2004. The AHMA Hardware Show will be held in April, 2004 in Chicago. Reed keeps the name. AHMA keeps the city.
What happened? It could certainly be argued that a simple difference in culture caused the rift, but IMHO, the true crack-in-the-armor happened when McCormick Place opened the South Building in December 1996. Reed and AHMA saw the opportunity to expand the National Hardware Show from 900,000 nsf to 1.2 million in one felled swoop! Overnight, they were able to pocket an additional million bucks without breaking a sweat.
Unfortunately, by adding that 300,000 through expanded current exhibitors space and new exhibitors, they also diluted their traffic density by 33% overnight. It could certainly be argued that exhibitors didn't have to buy that extra space. But 16-year-olds want to drink, too. Someone has to be the adult in the relationship and make the right decision that is best for an event. Exhibitors tend to look at exhibiting from a more emotional perspective than logical. Show producers, on the other hand, fall into the trap of easy money. Then when something goes wrong, everybody points fingers at everybody else.
I'm all for making a great profit. But the demise of the National Hardware Show and the current soap opera surrounding COMDEX, Jupitermedia, Sheldon Adelson, and CeBIT should teach our industry a valuable lesson. Has anybody heard of the goose that laid golden eggs? (Speaking of Jupitermedia, Alan Meckler is making a total idiot of himself in his sophomoric attacks on Fred Rosen. Questioning Rosen's ignoring reality is one thing, labeling him with stupid names is another).
So will anybody learn from this lesson? Maybe a handful. I'm not optimistic.
posted by Steve Miller on 12:22 PM -------------------- Saturday, February 15, 2003
Oops, the Battle is On
Reminiscent of the Electronic Entertainment Expo's taking on Summer CES a few years back, Jupitermedia announced a new computer show on almost the exact same dates as this year's COMDEX. Jupitermedia has clearly stated they are here to replace COMDEX, not coexist with it. They believe the new Computer Digital Expo Fall 2003 will bring a better product to the battered hi-tech world. That remains to be seen, but you've got to love two big for-profits banging heads! (Hey, since COMDEX used to be the Computer Dealers Expo, do you think Computer Digital Expo will become COMDIX?)
Fred Rosen, Chairman and CEO of Key3Media, still insists there's nothing wrong with COMDEX, that a great brand will always succeed, that life will go on, orange is the new offical color of the U.S., dogs are from Mars and cats are from Venus, and the bogeyman is really Santa Claus moonlighting in his off time. Sheesh.
I'm sorry, Fred, but you are surrounded. Besides COMDIX, you've got the original 800 pound gorilla, Sheldon Adelson, setting up computer camp again at The Sands, and CeBIT America opening in June. (BTW Fred, the next time you want to compare COMDEX to another company, don't pick one (Callaway) in an industry that's ALSO getting it's butt kicked (PGA America)).
I think it's going to get REAL interesting in the hi-tech exposition world. Stay tuned.
posted by Steve Miller on 3:31 PM -------------------- Monday, February 03, 2003
Key3Media Files for Bankruptcy Protection
As I predicted several months agao, the following was reported today by the New York Times:
"Under the plan, which is to be filed today in Federal Bankruptcy Court in Delaware, the Weisel unit, Thomas Weisel Capital Partners, will take control of the company and provide $30 million in debtor-in-possession financing, allowing Key3Media to continue operating while it reorganizes. The plan is subject to approval by the bankruptcy court.
Key3Media, which began as Comdex 24 years ago, was founded by Sheldon G. Adelson, who owns a hotel and casino in Las Vegas. Comdex was bought by Softbank in 1995 and later became a part of the Ziff-Davis events business. In 2000 it was spun off to shareholders and has struggled since the September 2001 attacks.
Attendance at the Comdex show in Las Vegas, once one of the biggest trade shows in the world with more than 200,000 visitors and some 2,000 exhibitors, has dropped by nearly half.
Profitability has also plunged. For the nine months ended Sept. 30, 2002, the company lost $299.6 million on revenue of $111.6 million before interest, taxes depreciation and amortization.
Key3 Media — built up in the late 1990's as the technology boom was reaching its crest — around the same time accumulated substantial debt, making it especially difficult to operate when the downturn in technology became sustained.
Crucial exhibitors began dropping out, some going out of business themselves, and others scaled back the elaborate booths that had been a staple of the dot-com era. And as Key3Media's business began looking tenuous this fall, some exhibitors became reluctant to commit to shows even six months away."
While it can certainly be said that Key3 was the victim of a massive downtown in the technology sector, there is still a valuable lesson that can be learned from this. From the beginning, the Interface Group made a point of charging the highest per square foot fees in the trade show industry (by a LONG shot). They grabbed pieces of every revenue-generating pie available. And despite what shows owners said, exhibitors felt for a long time that Comdex milked them for everything thsy could. As a result, when the downturn came, there was no emotional attachment. So when times got rough, exhibitors bailed.
This is important to remember in any organization. The pendulum swings. It always swings. When times are good, they will inevitably turn bad. When times are bad, they will eventually turn around. Those suppliers who treat their customers fairly and squarely will be the ones who customers stick with during tough times.
Karma is for real, especially in the business world. What goes around, comes around.
posted by Steve Miller on 8:48 AM -------------------- Monday, January 20, 2003
NEWS FLASH: MEASURABLE RESULTS ARE IMPORTANT!
A front page story in the January 13 issue of BtoB declared the shocking news that, "The economic downtourn has forced b-to-b marketers to focus on ROI, lead generation and direct marketing, according to an exclusive, just-completed survey by BtoB and Patrick Marketing Group."
Survey respondents were asked to rate the importance, on a scale of 1-10, of seven goals usually associated with marketing. "The clear winner was 'generating leads,' at 8.6 ..." The other areas listed were:
Launching products - 7.5
Niche markets - 6.8
Reducing costs - 6.5
Recruiting - 5.3
Re-branding - 5.2
CRM - 5.0
The survey went on to rate the top marketing tools for generating leads. Direct marketing came in first, Events rated second, and the Internet third. Top tools for effective branding were Direct marketing first, Print second, and Events third.
On the surface, I suppose this survey gave us all hope about the near future. Events (trade shows) are still important!
The only problem I do have with it is the obviousness of the results. MY understanding has always been that marketing's primary job is to influence sales. PERIOD. And I've always had the attitude that marketing had better be able to show with unquestionable and measurable evidence how they impacted those sales. Any marketer or marketing department that cannot prove a connection between their efforts and ultimate sales is simply not worth their paycheck. And if they are spending money on soft, difficult to prove efforts ... well, that's God's way of saying you have too much money.
Spend to sell. That's should be the primary goal of any and all marketing dollars. Look at how your company is spending money to measurably attract and maintain relationships. If you cannot connect the dots, then maybe you should look at spending your marketing dollars somewhere else.
posted by Steve Miller on 10:06 AM -------------------- Monday, January 13, 2003
IF WE BUILD IT, THEY WILL COME! (yeah, right)
I just read an article in the St. Louis Dispatch that voters in St. Charles, MO will be voting on whether to build their own convention center. According to sources at America's Center, this smaller center would complement the St. Louis facility - not compete with it. I'm not too sure about this.
According to the October 2002 issue of Convene magazine, there are nearly 100 exhibit hall projects currently at some stage of development. Mega centers are growing larger - McCormick Place in Chicago, Moscone in San Francisco, George R. Brown in Houston, and Orange County CC in Orlando are adding a combined 2.4 million square feet of exhibit space! In the same issue, I was quoted as flatly stating the market is way overbuilt. Of course, I'm not known for my diplomacy. Both Sam Lippman and Steve Hacker were much more diplomatic in their comments. Sam said: "There is too much exhibition space and meeting space in some cities for most of the year ... and in most cities for part of the year." A nice turn of the phrase, Sam! Steve H. said, "It's difficult to say whether there's too much available space. While this is a time when there seems to be a contraction in some events, others are doing well." He also pointed out that between the years 2000 and 2005, exhibition space will grow 26%.
I am no smarter than anybody else, and I certainly hope the exhibition and meetings industry gets back on the growth track soon. But there seem to be a few things we need to think about:
First, if our industry isn't currently using all the exhibit space, then it just stands to reason that we are going to have a difficult time using MORE.
Second, too many cities seem to think there is this really huge pot of gold out there. I personally saw three business plans for new convention centers that all started with the phrase, "If we build it, they will come." (You know who you are.)
Third, a lot of other cities have found out the hard way that a loss leader, like so many convention centers are, is a very difficult sale during election time.
Fourth, private shows are really growing fast. Corporations typically look for attractive locations for these showcases, and we still don't have a handle on how these events are going to impact the industry overall.
Fifth, the big guys are going for the same markets that the second tier cities are going for. In the same article in Convene, James Reilly, President and CEO of Chicago's CTB, said, "Chicago is definitely not overbuilt. We still have a backlog of small to mid-sized events (my italics) that we cannot accommodate ... ."
I would suggest that these small and mid-sized events are currently going somewhere. If they start to go to Chicago, that takes away from the smaller city - like maybe St. Louis's America's Center, for example? And then what will St. Louis do? Um, maybe go for more of their smaller targets - like the ones St. Charles will be going for? That's why I'm very concerned about the Tier Two and Three convention centers.
All we have to do is look at what companies, like Walmart, have done to other industries. The big get bigger - at the cost of the smaller. To be sure, there are those who have carved out specialty niches to fight the Walmarts, but there are a lot of dead bodies laying around, too. What makes our industry any different?
posted by Steve Miller on 11:20 AM -------------------- Wednesday, January 08, 2003
A GOOD START TO THE YEAR FOR TRADE SHOWS?
I just returned from speaking at the AQUA RETAIL CONFERENCE & EXPO in Las Vegas and it's a big success. The event is over 40% larger in size AND preregistrations! If CES has any kind of decent turnout this week, we may be seeing a very good start to 2003!
posted by Steve Miller on 2:25 PM -------------------- Monday, December 30, 2002
NON-Testimonial for Sparklist
I manage a small listserve for a group of clients that I've set up through Sparklist for a while now. Before Sparklist was acquired by Lyris, I was billed quarterly. Unfortunately, I thought I was being billed semiannually, so I didn't catch the overbilling until Lyris went to a monthly billing cycle. My own fault, of course. But I sent an email to Sparklist's billing department asking them to change me to the correct monthly amount. The response I got from JAN HANFORD was:
"Our records from before the acquisition of Sparklist indicate that you were charged $150/quarter which is $50 per month. Since this is what you had been charged previously by Sparklist before the acquisition then your monthly charge will continue to be $50."
I was a little surprised by this rather blunt response. According to the Sparklist website, the listserve fees are:
*50,000 10kb messages per month
*5,000 members (maximum)
*$25 per month
*$25 one-time setup
I have 55 members, sending less than 200 messages per month. I may be wrong about this, but according to my calculations, I am smaller than the description above. I sent an email explaining this to JAN, requesting they change me to the $25 per month rate (I did not ask for refunds on past billings). I then stated that if he/she didn't help me out to please cancel my account. His/her response?
"I will cancel your account on Monday per your request."
Nice job, JAN! Great customer service, don't you think? I wonder if this is how they train people at Sparklist? It's when I see attitutdes like this, that I know a company may be peaking at its success. Arrogance is always the first sign.
posted by Steve Miller on 7:08 AM -------------------- Tuesday, December 10, 2002
Welcome to my WebBlog! This is my little place on the web where I will post periodic comments and thoughts about business and life. That means it might be about strategy, innovation (favorite topics of mine), customer service, happenings in the meetings/convention/business worlds, personal experiences, articles and books I've read, movies I've seen --- generally anything I feel like talking about. I expect to up date this regularly, so come back often.
I encourage feedback - good, bad, and ugly. I don't expect you to agree with everything I say, and vice versa. But dialogue is a good thing.
My first comment is regarding Marriott's decision to put WiFi in their hotels. This is VERY big news. I held a meeting of current clients immediately before the recent IAEM Winter Conference and our topic was - WiFi! We spent a full day with noted expert Alan Reiter learning about the good and bad stuff regarding 802.11. Our conclusion? While there are certainly huge concerns about WiFi (not the least of which is SECURITY), we all agreed IT'S COMING.
My recommendations:
• EVERYBODY needs to take a hard look at this right now. Learn everything you can about it and brainstorm how you think this will impact business overal and the meetings/convention world. Think about the difference it made in your life to be able to carry a cell phone wherever you wanted! Now imagine real access to the Internet, full email, and computer networks the same way. The potential change is pretty huge.
• CORPORATIONS need to think about how you will be able to take advantage of this new technology faster and better than your competition. It's not simply a better way to communicate at the office. Think about McCormick Place or the Orlando Convention Center and being able to get email, send marketing messages, IM people in the same seminar room, interact with attendees, etc., etc. Make sure you have FIREWALLS set up! When sending email via WiFi, you are potentially exposing your PASSWORDS to anybody who has the right software. Think of the havoc it cause your company if your CEO accidentally exposed his/her password and a corporate spy got a hold of it.
• SHOW MANGERS better start working on this, too. Are you going to offer WiFi? How will you manage exhibitors who decide to set up a WiFi Access Point (AP) in their booth off the T1 line they have? The recent COMDEX had over 100 exhibitors trying to set up their own AP's. It didn't work. Imagine 100 radio stations all broadcasting on the same channel and you get the idea of what happened. And what about liability? Think about it.
As I said, WiFi is here and it's coming fast. You'd better get ready!
posted by Steve Miller on 11:44 AM -------------------- Monday, June 10, 2002
Failure is not an option. It's just a nagging possibility that helps me stay focused.
posted by Steve Miller on 4:32 PM -------------------- 
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