Regional B2B media growth of 13% is double worldwide average

To position themselves for sustainable growth now and when the economic climate improves, B2B media companies should build their brands by taking advantage of the natural synergies between trade magazines and exhibitions.

Gabriel Chahine, a partner at Booz & Company, explained:

"They can then use these synergies as a platform to build the sustainable communities and deep relationships that are at the heart of long-term B2B media survival."

B2B media growth in the GCC:

Dubai's Middle East Business Aviation (MEBA) three-day expo in November 2008 welcomed 5,500 trade visitors from 30 countries - resulting in $1.5bn worth of deals. B2B media - which includes trade events like MEBA, publishing, and business information - is rapidly expanding in the GCC: growing at 13% from 2005 to 2007 - outpacing worldwide B2B media growth of 6.7%. The growth potential of the trade show and exhibitions market in the GCC is among the highest in the world.

Although the current economic situ¬ation will have an impact on B2B media, its long-term prospects remain strong. To achieve success, B2B media companies will need to link publications to trade show sites and vice versa to create cross-selling and up-selling opportunities, build brand awareness, and ultimately drive the growth of the market. "The growing number of publications, high-quality exhibition spaces in the GCC, and the need for trade shows offer a notable opportunity to begin a model of integration," said Adel Belcaid, an associate at Booz & Company.

Natural B2B synergies:

B2B media varies, but all bring buyers and sellers together in a forum for businesses to deliver targeted information to other businesses and industries, through face-to-face channels; B2B publications do so in print or online. Information services such as Bloomberg provide economic and industry data, includ¬ing price trends and credit information.

Main revenue sources from B2B trade shows and exhibitions are sales of stand space, sponsorships, and entry fees; B2B publishing and busi¬ness information services raise revenue through subscription and advertising sales. The regional B2B magazine market currently attracts just 6% of total magazine advertising spend, compared with 46% in the U.S. and 32% in Europe.

"Integrated media offerings will help achieve growth by enhancing the value propo¬sition to both advertisers and their audiences, and B2B companies with integrated offerings pos¬sess diverse revenue streams that will help them weather the current economic turbulence," commented Chahine.

Integration provides financial rewards and the foundation for long-term survival. A 2008 study by Booz & Company and American Business Media (ABM) found long-lasting relationships and community building key to marketers' success. Complementary offerings increase a media company's visibility and bolster its brand name and identity. By drawing on their partners' strengths, marketers increase the credibility of their own products and services. By promoting a brand as part of a larger community, B2B media companies position themselves as valuable resources, laying the foundation for long-term relationships with customers.

Trade Shows in the GCC:

Exhibition space across the region is largely underutilized. In the UAE space is in use less than 50% of the time. In Saudi Arabia, existing exhibition space sits empty 70% of the time. Exhibition organizers in the GCC, most of which are in the UAE, focus on the industrial and medical sectors and operate solely within their respective national borders.

"International organizers such as Reed, DMG World, and IIR Exhibitions currently operate only in the UAE, primarily in Dubai and Abu Dhabi, which have the highest rate of international travel in the region," Belcaid stated.

Currently, specific industries and markets are strikingly underserved across the GCC. Transportation, financial, and education publications are widely read categories yet there are very few trade events serving this audience; instead they focus mainly on marketing, health¬care, and resources and utilities. Only one of the region's publishers - Bahrain's Al Hilal Group - currently produces trade shows and magazines in the same sectors. Opportunity also exists to produce trade shows for government and public policy.

"The underuti¬lization of the GCC's high-quality exhibition spaces, and the need for more trade shows in high-growth industries—such as education, transportation, and technology—offer opportunities to begin to integrate the region's media with trade shows," Chahine said.