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 ccording to the results of our 2009 Corporate EVENT Budget Report, U.S. event professionals are making do with far less cash than they had to work with in 2008. That drop in event budgets marks the single largest year-to-year decrease since Exhibitor Media Group began tracking event budgets in 2003.
Despite the somewhat sobering reality, event professionals’ budgets have weathered the economic storm better than many originally expected. When we surveyed event professionals at the end of 2008, 55 percent reported that their annual event-marketing budgets would be lower in 2009 than they had been in 2008, with several expecting cuts of 50 percent or more. But midway into the year, our survey data indicates that only 42 percent of event managers have actually been tasked with cutting costs, while the remaining 58 percent are enjoying the same — or slightly larger — event-marketing coffers.
A lucky 13 percent of respondents indicate they have increased their event-related spending over 2008 levels. Some report the increase is simply a reaction to rising costs, while others report expanding their event programs in hopes of identifying new markets and acquiring new customers. But their minimal increases were unable to offset the sizeable decreases reported by less fortunate event professionals.
As a result, the average event-marketing budget for U.S. companies fell a whopping 28 percent from $894,567 in 2008 to just $644,490 in 2009. That figure excludes the 3 percent of outlier respondents who reported annual budgets of $50 million or more. When added into the aggregate mix, their sky-high budgets bring the annual average for 2009 to $733,213.
The majority (60 percent) of respondents are primarily coping with budget cuts by decreasing the scope and quantity of their events. Others report decreasing their investment in pre-event marketing in an attempt to decrease their programs’ total expenditures.
Thankfully, while event-marketing budgets are down, event professionals report heightened support of their programs, indicating that budgets are being nipped and tucked in response to the economic realities of 2009, and not as a result of diminishing faith in the power of face-to-face marketing efforts. In fact, 42 percent of respondents state that their management teams give corporate events “strong” support, while 40 percent claim “average” support from upper management. E
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About the Survey
Corporate EVENT’s 2009 Budget Report was completed by TriMax Direct, a research firm based in St. Paul, MN. A total of 901 event professionals, with direct involvement in their companies’ event-marketing efforts, completed an online survey after receiving an e-mail invitation to participate. Event professionals were offered a chance to win one of three $200 cash prizes as an incentive to complete the survey. Results are reliable and statistically valid at +/- 1.88 percent at the 95-percent confidence interval.
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