Assessing Trade Show Sponsorships: Smart Move or Waste of Money?
Trade shows are a great way to get your brand and products in front of potential customers, but the costs of participating can be prohibitive. Do you know what you're getting for your money? And do you know when it's time to pull out?
This post will break down the various trade show sponsorship types, from bronze to platinum, so that you can find out which level is best for your goals. We'll also discuss how companies decide on trade show sponsorship tiers and how much these levels generally cost. Finally, we'll go over some common red flags that point towards pulling out before wasting any more time or money: it's just not worth it anymore.
Let's get started!
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What are Trade Show Sponsorships?
Formally known as exhibiting, trade shows give all sorts of companies the chance to meet their potential customers face-to-face. Some shows will focus on a particular industry or product while others will welcome anyone who wants to set up a booth. No matter what, trade shows are a great place to get your company and products in front of prospects and make sales. Companies that want to show off their services or products attend trade shows because they understand the benefits they bring. Trade shows also provide attendees with the opportunity to network and learn more about what other people are doing within their niche or industry.
In general, a trade show is a large event where companies get to display their brand in order to promote their products and services. Potential customers attend the event in order to check out what's new and potentially find a new supplier or vendor. Usually, exhibiting companies are on the lookout for leads and opportunities, while visitors are on the hunt for quality product and service providers.
So how does this working relationship with exhibitors benefit show organizers? Well, exhibitors pay the bulk of these events' expenses. While not an exact science, this usually translates into paying anywhere from 30-50% of the total cost of putting on an event! The rest is made up by sponsorships (aka advertising) and ticket sales.
The most common form of trade show sponsorship is the exhibit space, which includes a booth, some chairs and tables, and a lot of promotion to go with it. Exhibit-only sponsorships are the most basic trade show sponsorship and they're typically offered in three tiers, or levels: bronze, silver and gold. Other sponsorship packages include everything from dinners with big-name speakers to concierge services to advertising packages that include TV spots on the event's livestream.
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3 Common Trade Show Sponsorship Types: Bronze–Platinum
Bronze-Level Trade Show Sponsorships: Basic but Still Great for B2B Companies Bronze sponsorships are the most basic level of trade show sponsorship. Sponsors get a booth, a modest amount of promotion, and a few other giveaways. But the main thing about bronze-level trade show sponsorship is that you're not likely to find any of the big names in the B2B industry. These companies are usually more focused on helping other corporations grow instead of promoting their own products and services. Most of these companies know that they have good products or services, but they just don't think it's worth it to spend money on advertising unless they can make some money back in return.
The idea behind this is that they can offer a discounted price or something else of value that will be attractive to companies looking for these services. Plus, since these companies are B2B and do favors for other businesses, they have built up their reputation and know that when a client calls they will get the job done instead of leaving them hanging.
Silver-Level Trade Show Sponsorships: Good for Small B2B or Consumer Companies Silver sponsorships are great if you're a small B2B or consumer company looking to connect with other related businesses. These companies usually focus on doing one thing really well; for example, product sourcing, manufacturing, vendor management, etc. Their business is focused so they can provide the best service to their clients. They also sponsor trade shows to find new clients and make sales in order to continue growing their business.
Silver sponsorships are typically where you're going to find B2B companies that have been around for a while, but have not yet reached their full potential. These companies don't usually spend money on marketing or advertising unless it's worth it for them. Most of these companies just outsource all the work and then wait for customers to come to them. But sponsoring a trade show can be an excellent way to get more foot traffic without having to spend too much money; especially if they are focused on getting leads instead of making direct sales right off the bat.
Gold-Level Trade Show Sponsorships: Good for Start-Ups and Established Consumer Companies Gold sponsorships are great for start-ups or companies who are already established in their niche. These companies have been around for about a decade or more, but they're looking for new clients and opportunities. They've spent years building up their brand and think it's time to step up their game! Now that they have enough of a name to keep going on their own, they want to get more clients with the help of trade shows. Setting up a booth at a trade show gives them the chance to market their services and products, reach new customers, and in turn make more sales.
Gold-level sponsorships are typically where you're going to find US-based companies that have been around for quite some time. They've developed their brand image and have become known for the quality of their products or services. They want to keep their brand name on top by promoting themselves rather than relying on other people. These companies use their trade show sponsorship as a way to gain new customers at a discounted rate. Plus, as time goes on, they will put more money into advertising and branding so that other companies see them as the quality vendor or company they are.
There's More To Trade Show Sponsorship Than Just Space
Now that you know about trade shows, it's time to learn about what to expect from each level of sponsorship. We'll be talking about gold-level sponsorships in this article because these companies have been around for a while and have established themselves in their industry through quality service and products. Therefore, they keep marketing to their existing clients by providing more value than just free space.
Gold-level sponsors get the biggest discounts during the early bird ordering period. Typically, there will be a standard trade show pricing structure with the first tier being the most expensive and then discounts given in 25% increments. Therefore, gold-level sponsors get a huge 50% discount off on their standard booth space or sponsorship packages. Their booth space is usually located in prime locations, near entrances or exits to get more foot traffic. They also have larger booths and more brand visibility than other levels of sponsorship because they have a higher level of commitment to make it worth it for both parties.
Conclusion: Trade Show Sponsorship Provides More Than Just Booth Space
If your B2B company hasn't been able to break into a new industry or you're looking to connect with potential clients, trade shows are one of the best ways to do it. They are large and provide plenty of opportunities for people in your industry who are looking for the best service possible. The goal is to find a trade show that will have a high number of attendees and exhibitors in your niche, so that you can get more draws for both companies.
Sponsorship may seem like a complicated process, but it can be simple! Depending on the company you're interested in working with as well as the type of sponsorship you're interested in.