Trade shows are gaining momentum this year. With each show, companies are engaging their customers in positive ways that build a community and solidify relationships. And, making in-booth sales has become so much easier with cloud-based technologies. So why is it that measuring ROI from your trade show is often misunderstood? Because we often forget to add the value of each impression made at the show.
Meeting Your Goals
Each show you appear at should have several main goals. Sales and branding are typically the big ones. These goals are determined prior to the show because they need to align with your organization’s goals. There are numbers-based goals that focus on sales and costs. These are easy to quantify, as well as the ROI for the event. But, the value associated with communication related objectives, such as rebranding, will come from your current advertising costs, which makes it possible to calculate ROI related to your communication efforts.
Exposure and Impressions
You can calculate the value of each impression made at a trade show based on the average cost per impression from your advertising. If you spend $100,000 on advertising each year and reach 10,000 people, then your cost per impression is $10. Now, if there were 15,000 trade show attendees, then your value of those impressions is $150,000, or $15 per impression.
Calculating ROI
To determine the return on the show, you need to the actual and potential revenue from the show. Many of those leads are still in the sales funnel, so don’t forget about them. Then, add the value of total impressions made. The investment in the show can be calculated when the final trade show expenses come in:
ROI = (RETURN – INVESTMENT)
INVESTMENT
Remember, your return also has the total value of those impressions. So, when you include them, you’ll quickly see how your ROI can increase substantially.
If you’re looking to make some great impressions with potential customers, the ADM Two staff are experts on display design and fabrication, so give us a call at (813) 887-1960. No matter where your event takes place, one of our knowledgeable staff can assist you with your trade show needs. Also, check out some of our other articles to get more information on trade show booth layout and trade show graphics.