The overwhelming majority of more than 600 marketing executives said the importance of event marketing is on the rise or at least constant, suggesting the future for event marketing is "rich with potential," according to the MPI Foundation, which released its 2004 Global Event Trends Survey on Sept. 22. Meanwhile, David DuBois, the Foundation's executive vice president, said the organization will continue providing research and education to the meetings industry, thanks partly to a recently completed capital project that secured its financial health for the next few years.
MPI Foundation, the research and development arm of Meeting Professionals International, for the third year partnered with Auburn Hills, Mich.-based event marketing agency George P. Johnson to present the study, which surveyed decision-making marketing executives of U.S., European and Asia/Pacific corporations The results support the prior years' findings that the perceived value of face-to-face marketing is growing.
"What's really encouraging is the lead trend that 91 percent of the 600 respondents—mostly corporate marketing executives responsible for marketing, branding and budgeting decisions—felt that event marketing continues to be important in the overall marketing mix of a corporation," DuBois said.
"We've now tracked this three years in a row, and each year that percentage goes up just a little bit," DuBois said. "It's encouraging, especially considering the absolute microscope environment we have today, where every dollar is scrutinized."
Thirty-seven percent of respondents said event marketing is the discipline that delivers the greatest return on investment, while 19 percent chose direct marketing and 14 percent selected sales promotion. About 33 percent of respondents said trade shows offer greater ROI than other event marketing strategies, while another 24 percent selected conferences and 20 percent opted for seminars.
DuBois said the survey results illustrate that corporations again are spending money on event marketing strategies, albeit with renewed emphasis on ROI. During the recent economic recession, "Everybody locked the wallets down," DuBois said. "If somebody came in and wanted to do a meeting or event, they were escorted out of the CFO's office because there just wasn't money available."
Now, with the economy showing some signs of improvement and, for example, occupancy levels at major hotel chains returning to pre-Sept. 11, 2001, levels
(BTN, Sept. 20), "more companies are loosening their pocketbooks to have meetings and events," DuBois said.
"But there will continue to be increased pressure on ROI," DuBois said. "If I'm going to spend $5 million on an event, I want to know before, during and after what the written plan is for tracking the effectiveness of that event against pre-approved objectives."
Dubois said the survey results were timed to be released at the start of the fall, "as people are planning their budgets and marketing plans" for next year. In addition to the annual Global Event Trends Survey, each year MPI conducts a survey of its 19,000 members. Set to begin shortly, that study partners MPI with American Express. Results typically are announced in January
(Meetings Today, Feb. 9)."The difference between the two research projects is that in one we talk to corporate marketing executives who are not typically MPI members, and the other is with our membership," DuBois said.
The Foundation—funded by contributions from suppliers, association chapters and individuals—experienced a fundraising drop due to the economic downturn, but is taking steps to ensure its financial future.
"Individual donors—members who tick off a $50 donation—have indeed been down the past three years, but are starting to grow again," DuBois said. "Individual donors, though, represent less than 5 percent of our donations per year. We just completed a $5.2 million capital campaign, with money payable over the next three to five years. Financially, we're very healthy."
DuBois said the Foundation is in the process of finalizing the creation of MPI Foundation Canada
(Meetings Today, June 7) and MPI Foundation Europe. "We are going to have two new entities that in 2005 will be involved with fundraising and with project development and management. All money raised in Europe and Canada will stay in Europe or Canada and be reinvested in projects and programs there.
"We're not sitting on our money," DuBois added, pointing to the $200,000 price tag for the Global Event Trends Survey, which was split evenly between the Foundation and George P. Johnson. "We're investing $1.2 million this year on projects that support good initiatives on behalf of our membership. As the money comes in, we're pushing it out in support of good projects."
Among the the Foundation's projects in development is a training program set to be launched in January through the association's chapters. "It's something that will allow us to bring very good, cutting-edge, pragmatic tools to our membership," DuBois said.
In an upcoming meeting, the Foundation's board of directors plans to "reassess the landscape of the industry, and out of a day-and-a-half of conversations we will probably come up with two to four new projects that support the MPI strategic plan," DuBois said. "We will continue our good work in the areas of return on investment and measurement systems."