How to Calculate ROI for a Trade Show or Event: Is It Worth the Money?

Unless you still live in a cave, you have already realized that the 4Ps of Philip Kotler , the father of modern marketing, are already outdated. Calculating the ROI of a trade show and comparing it with other channels is of fundamental importance.Fairs_in_marketing.jpg

The rapid technological changes in today’s world have led to a basic question: Will advertising during soap opera breaks, billboards on access roads to major cities, flyers and stands at major trade fairs work for your business in 2016?

And should exporting companies continue to use the old marketing methods?

Trade fairs and events have been a great Austria Mobile Number List source of success for marketing professionals for many years. The return and dismantling of the stand is usually marked by extreme fatigue among company employees due to all the contacts and activities in “always-on” mode.

The number of cards and leads has also helped to justify the budget year after year, mainly because everything is very tangible. So, if you have a stand at a trade show that generates results, why stop?

Let’s make one thing very clear before we go any further – I am in no way trying to say that trade shows and events are a bad idea . What I am going to do is look at ways to calculate the ROI of a trade show and compare it to other marketing channels .

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What are the Objectives of Exhibiting at a Trade Fair?

You have made your trade Original Review show plan . Assuming that all business is done at the trade show, your ROI will vary because it depends mainly on what you are trying to achieve at the trade show booth. Let’s look at two objectives that, although different, are potentially important for your company:

A goal might be to return to the company with X leads generated at the trade show. This is something tangible and easy for someone who is even slightly observant.
Another goal might be to raise awareness of a new product or service . This goal can be a little more difficult to measure.
There are many factors that can affect the outcome of this objective:

Stand location
Number of days of the exhibition
Stand design
Number of people at the stand
Registration fees
Marketing, sponsorships and promotional costs
Equipment rental and stand storage
Shipping and related expenses
Travel expenses
Staff and training
Entertainment costs at the Stand

Let’s develop the first case.

Trade Show ROI When the Goal is the Number of Leads
Many exporting companies decide to go to trade fairs in Europe or around the world to generate business opportunities – in other words, leads. Calculating ROI in this case is much more black and white than for many other objectives. Let’s look at the cost-per-lead. After all, this all comes down to a very basic math exercise.

What number represents your total expenses and how many leads did you walk away with? When you add up your expenses and enter the numbers into your spreadsheet, don’t forget about certain trade show costs. Some people take the price of the booth and call it the trade show cost. There are other costs to consider when calculating this number, such as:

Trips
Hotels
Meals
Taxis and telecommunications
There are many costs that are ignored and not accounted for, when in reality they are costs directly linked to the trade show or event. After calculating the expenses, take that number and divide it by the total number of leads. Magic… you have your cost per lead.

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