Ephemera: 3 Business Lessons from the UFI European Conference

"In-person events are like an ephemeral bubble." - UFI European Conference, Zurich (June 2024)

I recently had the privilege of attending the annual European Conference organised by UFI, The Global Association of the Exhibition Industry, where a speaker described in-person event experiences as "ephemeral" and "bubble-like".

No, he was not talking about Comic Con or Coachella. In fact, this was a B2B event about B2B events - a gathering of event organisers, venue operator, service providers, tech vendors, and advisors across the exhibition industry.

In an age where AI is increasingly blurring the lines between reality and fantasy, we increasingly crave authenticity, even within a B2B context. Business events, such as tradeshows, are carefully curated environments meant to maximise networking opportunities, facilitate lead generation, and showcase industry trends in an engaging manner. Event formats are highly creative - from algorithm-powered 'speed matchmaking' to next-generation product demos. Sponsors and attendees perfect their 30-second elevator pitch of whatever they are selling or seeking, numerous business cards are exchanged, and invaluable conversations are had. A few days later, the event ends, participants return home, and everything is literally dismantled. A bubble.

In this article, I share my top 3 lessons from the UFI European Conference that can be applied to broader business contexts, within and beyond the events industry.

Lesson #1: AI is a dumb colleague

If AI designs an exhibition booth and the booth falls on someone, of course the organiser will get sued. They can't just tell the courts "It's ChatGPT's fault" - Industry Expert (paraphrased)

Over the past 12 months, the hype of AI has taken over the world. From predictive capabilities to leveraging Generative AI for content production, the business applications appear to be endless.

Yet, hype =/= action.

Regardless of industry, the focus of AI-related conversation often relates to its potential more so than use cases today. What is the missing puzzle piece for unlocking greater immediate leverage?

It's not the capabilities. Nor access. It's accountability.

As with anything else within an organisation, the buck stops with the CEO. If a human colleague makes a costly error, they may be fired or reprimanded; but that does not stop the CEO from having to be answerable to shareholders.

In Zurich, it was fascinating to hear from senior figures in the exhibition industry - an industry well-known to be late adopters of technology - speak about AI with skepticism and a sense of wary. Not because they don't believe in AI's potential, but because they have not figured out a way to incorporate it with adequate accountability.

There was consensus, however, that usage will skyrocket once accountability can be assured in an industry-specific manner (what happens if the AI-designed booth collapses?).

• Lesson: AI is a dumb colleague, so we should treat it as one. We do so by setting up guardrails and safety nets when delegating to ensure accountability.

Lesson #2: The business case for ESG

In-person events are good for sustainability. Travelling once a year to an exhibition results in far lower carbon emissions than dozens of individual business trips to meet industry stakeholders.

Given the 'ESG malaise' which has set in over the past couple years, making a coherent business case is necessary for businesses to spend money on ESG initiatives.

The exhibition industry argues that organisers can strengthen their value proposition to participants by highlighting the ESG-related benefits of a reduction in overall annual travel. For some companies, particularly large public corporates who have made public commitments to sustainability targets, this can make participation in a given event an easier sell internally.

• Lesson: Far beyond the exhibition industry, the need for an ESG business case holds true. From avoiding litigation risk through ensuring good Governance, to achieving supply chain optimisation through considering Environmental and Social risk factors, ESG can be good for business.

Lesson #3: Customers don't always generate revenue

When your largest exhibitors [customers] start organising their own side events around your exhibition, that is the beginning of your death. - Industry Expert

Think about it - why would an exhibition's largest customers (in this case, exhibitors) pay hundreds of thousands for a 500 square metre booth just to spend even more money to organise their own side events?

Imagine this hypothetical situation:

You are the organiser of the largest IT exhibition in your country. 50,000 people nationally and internationally attend every year, because this is the place for be for everybody in the IT industry. Microsoft is your biggest exhibitor by spend and brand prominence.

Attendees have long complained that the show floor is overly confusing and poorly laid out. But they continue to come in droves, because this is the most complete gathering of suppliers. So what? Attendees come for free; as long as you keep the exhibitors happy you'll be fine.

This year, you noticed that while Microsoft continues to have the biggest booth at your exhibition, they also started booking out function rooms in the adjacent venue and diverting attendees to their proprietary event. You don't give it too much thought, since your largest account continues to spend as much as they always have.

5 years from now, other top exhibitors have followed suit and you're down to 30,000 attendees. More importantly, you've lost the CTOs and CIOs who represented the most qualified leads among the attendee base. Exhibitors start dropping out, and it's the beginning of the end.

You question what went wrong. The event is well-planned and well-executed.

The answer: You forgot to listen to the customers of your customers.

• Lesson: While the exhibitors generate 80-90% of revenue, their behaviour is governed by the needs of their customers - the attendees. While the attendees are not revenue-generating, they are the 'essence' of the event. By forgetting to listen to the customers of your customers, you lost revenue from direct customers.