Monday, March 15, 2010

Going Vertical Or Horizontal

Shows over the years have grown differently depending on the cycle. Some are very horizontal serving multiple sectors within their event. Others have had success in concentrating on vertical segment with more concentrated products, education, and networking programs.

Both have grown and some tend to do better during different economic swings. Now both vertical and horizontal are faced with some new competition online for marketing dollars. Now another question enters the online world is is better to horizontal or vertical. Can a tradeshow that has been very horizontal get more vertical in a f2f event. Also can they get more vertical in their online offerings? This all remains to be seen.

What's also interesting is the number of niche/vertical events that are trying to survive via co-location or horizontal expansion. So you have the horizontal and the vertical events heading to the railroad crossing at the same time. Now the question is who can better serve the marketplace? There is no easy answer to that question as it comes down to who is delivering the most effective ROI opportunity to engage the correct attendee customers.

Vertical is like pursuing your advanced degree in IT for example. Now you are no longer in the mix with the liberal arts people but you are networking with your advanced peers. So does the horizontal program deliver the advanced professionals. If you believe this to be correct. Let's assume the vertical is event that delivers the customer program, the earned credit program, the collegial feeling of higher education and networking. The horizontal is more mainstream connecting the nuts and bolts of the complete buying chain. But not quite a boutique feel. The vertical program give them the feeling they are not an after thought and this is the place where they belong, and they can just focus on their part of the puzzle. But in reality the puzzle requires hundreds of parts and a variety of people to deliver the attendees product to their buying chain.

Obviously vertical events do their job but in a economy pressed for justification for travel dollars will the decision-makers get a approval to attend a vertical event that is not in their backyard. Yes and No. The question than becomes can the horizontal program become vertical enough and develop vertical touch-points to serve these niche sectors, or decision-makers that are part of their overall concepts. Yes and No. They can if the buy into the necessity that these sectors needs to be addressed and enough ROI can be generated to justify the investment in energy, resources and allocation of facilities.

Obviously both vertical an horizontal can grow organically to the sector of their choice in my opinion. The question is how many of them want to do it and how many of them know how to do it? Also how many of them are willing to not-re-invent the wheel and find partners to service this sector in conjunction with their events. Next will they stay committed to it as things continue to move forward and not lose sight of the end goal which is attendee and exhibitor satisfaction.

This is what makes it all interesting. I don't want to take a side on this question as it isn't me that would be the one that determines which way is best however your customer base will make a decision for you depending on what decisions you make in reference to the pendulum swing of niche, horizontal vertical organic growth.

Both schools of thought will bring value and both have their place in the event business. However when times are challenged by economic decisions. Sometimes the plan is altered and where you didn't see a competitor you know have one. Now this is in reality is just not for the event business if you think about it your customers meaning exhibitors and attendees could be facing the vertical horizontal question as well for their business plan.
Thanks for reading and I hope you will encourage others to do so as well.

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