NEW YORK, June 1, 2004 (PRIMEZONE) -- The following is an article written by Maria Esposito, a freelance journalist:
It's Showtime!
Marketing has become a six-letter word, and that word is "events". More and more companies are realizing that if they want to capture the public's attention, it means making a splash. PROMO, one of the leading event industry trade journals, in an April 1st article titled "Street Smarts" quoted the following statistics about U.S. marketers: They spent an estimated $152 billion on event marketing in 2003, up about 15% from the year before. Spending will rise another 15% to 20% in 2004, according to the Event Marketing survey published in the January edition of the magazine.
They earmarked an average of 10.6% of their total marketing dollars for events. Event-marketing budgets averaged $827,911 according to their October 2003 survey of 305 marketing executives.
Event marketing provides a platform for the marriage of branding with entertainment. Any event company that can provide all of the services required to take that marriage from inception to execution has the business model that is poised to capture the lion's share of all those budget dollars.
Enter The Experiential Agency (OTCBB:EXAG), known in the industry as XA. It is a comprehensive event marketing, design and production firm with full-service offices in Chicago, New York and Los Angeles. Its competitive edge comes from two major features. XA is a vertically integrated agency, meaning it provides a single-source solution to its clients' business communications and event management needs. The company's core competencies include:
-- Event Marketing -- Design & Production -- Meetings, Conferences & Tradeshows -- Entertainment and Show Production -- Business Theatre and General Sessions -- Premiere Destination Management Excellence -- Mobile Marketing -- Audio/Visual Production
There are some significant factors in using this type of vertically integrated business model. For the most part, the event marketing industry is highly fragmented, with Mom and Pop type operations. These smaller shops provide a limited amount of services, forcing their clients to use several agencies to mount one event. Given the fact that most corporate event planning departments have been dramatically scaled back, producing an event while coordinating a number of event planning agencies can prove daunting.
The ability to offer competitive pricing is another important outcome of the company's structure. Because XA is a larger, vertically integrated agency, it deals with a variety of vendors throughout the country. When it sources production supplies, XA can get the best price, which in turn makes it a cost effective alternative for its clients.
Its strength also comes from the level of experience among the company's top management. CEO Frank Goldstin has spent 15 years working with the nation's corporate elite as an event marketer. President Marcy Manley brings more than 10 years of experience in meetings and event production and CFO Jean Wilson numbers 20 years in the industry. COO Joseph Wagner has advised numerous public and private companies in the areas of strategic planning, international project development, international finance, project management, logistics, and business development. Together, this team of seasoned professionals has guided the company through a successful 2003 with revenues totaling $5.4 million. Event Marketer Magazine recognized XA as one of the top event agencies in its April 2004 issue. This is the only editorial listing of top 100+ event agencies. Known throughout the event marketing trade as "The List," this is the second year in a row that XA has been recognized as one of the "who's who" in the event marketing field. Not content to rest on their laurels, XA's management team plans to improve the revenue per employee ratio by over 140%. They also aim to increase revenues to $38.5 million and EBITDA to $5.6 million by 2007.
Even these goals are not enough for this forward-looking team. Realizing that strength truly is in numbers, they have embarked on an acquisition program of like-minded and synergistic companies. Their acquisitions will build both revenues and market share. It's this kind of strategic planning that has taken this company out of the bush league and well-positioned it to give a $100 million company like Jack Morton Productions a real run for its money.
The article can be seen in its entirety at http://www.mediasights.com, a Marketshare Recovery, Inc. website.
About MarketShare Recovery, Inc.
MarketShare Recovery, Inc. is marketing and media firm providing solutions which assist marketers reach their target consumers and drive sales. The company offers manufacturers, resellers and service providers a reliable, high-quality resource for business development. The firm provides strategic as well as tactical marketing solutions. MarketShare Recovery is a member of the Direct Marketing Association. For additional information, visit http://www.MarketShareRecovery.com
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