DIGITAL MARKETPLACE 2: Time to embrace the opportunity not run from the challenge

In the second part of his investigation into virtual events in the exhibitions space, Pete Roythorne searches some key case studies and asks why organisers should be embracing the technology rather than viewing it as a threat?

Many perceive the big question with virtual events to be will they or won’t they replace face-to-face activity. As the industry faces up to the challenges and threats that the next decade will bring, the better question might be: how can we use this technology to enhance traditional events?
 
“Virtual events will multiply the demand for the live event, not the other way around,” believes Charlie Pyper, chief technical officer at Decisive Media. He cites an example from his own company, where telecommunications webchannel Telecom TV is in the process of launching a digital market called ICT World Congress that will converge the communities of its own, and its association and event partners.

“ICT World Congress is a digital marketplace that will connect these communities and ICT brand owners, creating a 365/24/7 meeting and trading point on the web, which will very likely heighten demand for the launch of the live brand experience itself,” continues Pyper. “In other words, a community that had never been formed before the launch of Telecom TV in 2002, let alone the digital community that results from ICT World Congress, will likely be meeting in its thousands, face to face, in a year or so, and we are already in the process of discussing tenancies with venue owners to this effect.”

Virtual leader: Cisco's GSX is probably one of the most
powerful case studies for virtual events

Pyper believes that the more people communicate digitally, the thirstier they will be to convene face to face, and vice versa, which is why so many enlightened live event brand owners are seeing the benefit of digital hybrids.

Most effect marketing tool
Reverting to exitsing analysis, George P Johnson’s (GPJ) director of client services Lesley Mason, points to the wealth of data on the power of face to face as to why it is unlikely to be usurped. “The MPI Eventview report produced in collaboration with GPJ reports that 40% of respondents rated event marketing as the most effective tool for accelerating and deepening relationships, putting it ahead of all other marketing channels.”

So where is the real value add for live event organisers?
 
“First, and most importantly, in their bank accounts,” says Pyper. “Reed, the world’s largest exhibition company, prides itself on providing the data from its live events to enable buyers and sellers to connect either face to face or through any other branded medium that it owns. Reed Elsevier has committed itself to multiplying the revenue derivation from its data services and this includes the extension of the web hybrids of its live brands. This means that it is facilitating commerce between its buying and selling communities all year round and where better to do this than digitally. The more it connects, the more the tills and the data gathering servers should be ringing for the event owner and its stakeholders.”  

Miguel Arias Bermúdez, director of IMASTE, breaks it down further. “The obvious benefits for organisers would be: more monetisation opportunities; increased reach; transcending time and time-zone boundaries; adding an extra service for their exhibitors; receiving more information and stats about the event; and reducing carbon emissions.”

He continues: “For the exhibitor, virtual events: generate more leads (with a higher conversion rate); they reduce participation costs; increase reach; they are less resource-hungry, not taking staff out for many days as in a physical event; and they allow companies to gather more information about attendees – not just contact details, but affinity, interests, etc.

Flexibility and costs savings
“For visitors, there are no queues; they have the flexibility to contact more exhibitors directly from the comfort of their desks; there are no transportation or entrance fee costs; and they remove the issues associated with time and distance.”

So, in the experts’ opinion, what are some of the best examples of virtual events in practice?
 
“Our own platform integrates a trading floor, online conferencing, networking lounge and media centre and has been exceptionally well received by the clients and the end users,” says Pyper. “It is exceptional in its design, simplicity and in connecting brands and their products with their distributors and resellers. Compared to other providers of digital market platforms that still carry the aura of trying to replicate the live experience online, I think it hits the mark. The lead generation is astounding and the return on investment more so.”

Dennis Shiao, director of product marketing for virtual events provider InXpo, also draws from his company’s own experience. “We have powered many virtual events that have demonstrated the true value of this technology to deliver real business results,” he says. “For example, Cisco held a Global Sales Experience (GSX) for the company’s 19,000 sales operation. The virtual sales experience incorporated an alternate reality game, inventive user interface and other interactive content to engage attendees in the event. We also completed an event for a Dutch auto insurance and travel agency in January 2010. The event was held entirely in Dutch with over 18,000 consumers attending during the virtual travel show.”
 
He adds that what these events have in common is a clear strategy, key objectives and set of metrics to measure success.

Mason also hails the Cisco event as a stand out case study. “Cisco is at the cutting edge of virtual events and continues to blaze a trail,” she says. “The Cisco GSX (global sales experience) was a first of its kind – a multi-facetted virtual event that drew over 19,000 attendees with 88 hours of consecutive sessions crossing 24 time zones.”

Global outreach
She also offers a nod to Shiao’s company. “I recently participated in a major client's global virtual event spanning several days – created by InXpo," Mason explains. "There were several product zones featured within a virtual exhibit space, and each zone had compelling content in a variety of media, combined with chat rooms facilitated by zone/product experts. The event had a truly global attendance and enabled the client to capture ideas from a wide variety of sources outside of the organisation, as well as linking internal divisions that typically don't connect in this manner.”
 
For Bermúdez, the best virtual events are the ones where the actual transaction between client and customer can be easily digitised, such as virtual career, post-graduate and entrepreneur/BP fairs.

“We have produced successful virtual and hybrid events for Monster UK, APEC Booster Tour and Planete Mode de Emploi, but equally we have developed successful environmental fairs, wedding services fairs and gourmet fairs,” he adds.

It would be easy to think that virtual events are just for large companies, but the reality points elsewhere.

“Anyone can use virtual events and we are working with mid-size and small organisations, as well as large multinational companies to create unique opportunities in this area of varying sizes, from small virtual meetings to large scale sales conferences and trade shows,” says Mason. “One common attribute organisations all share is that they are forward-thinking and not frightened to adopt new technologies and methodologies to achieve results.”

Bermúdez agrees, saying: “Today, virtual events can be delivered at competitive prices under €10,000, and even small event managers could organise virtual trade shows with under 20 companies, and generate enough margins to make their business plan stand,” he says. “Of course, if you think of big trade shows like CeBIT with 4,000 stands, a virtual version would generate large income and relevant margins for the event manager.”

So, far from being seen as a threat, organisers should be viewing virtual events as a potential new revenue stream and something to drive potential new business. Maybe the question at the beginning should actually be: are event organisers’ forward-thinking enough to capitalise on this new opportunity and drive their businesses into the 21st century and beyond?