Apple & The Age of Peer Influence

Once revered as a must-attend event, tech industry shows are on the decline.

The latest evidence is Apple Inc.’s decision to cease attendance at Macworld come 2010.

The Web, of course, has made it easier, some might even say a necessity, for consumer-oriented companies such as Cupertino, Calif.-based Apple to advertise and sell its wares.

This is a trend that’s been a long time in the making. It has made the “one to many” trade show, where people gather to see the latest wares of companies such as Apple, a relic of yesteryear.

The truth of the matter is recommendations from other users have always been the most effective way to influence prospective buyers. Trade shows are a limited way to reach the 100-million users Apple considers its market. The Web’s a far cheaper and more effective sales and marketing channel.

Social networks and blogs, for example, are more effective channels for Apple when trying to influence peers. Apple can fan the product flames to more people at a lower cost to the company which helps Apple and Steve Jobs generate a better top line for the Street.

“Apple is reaching more people in more ways than ever before, so like many companies, trade shows have become a very minor part of how Apple reaches its customers,” the company said in a statement posted to its Web site.

Nonetheless, Macworld will be remembered by many a gadget geek as it has been the venue where the company launched some of its most popular products (the iPhone launch in January 2007 comes to mind).

Now I’d expect to see the company amp up its Web 2.0 efforts (e.g. social networks, e-commerce engines and peer-to-peer technology).

The return on investment argument for a show like Macworld was probably never a solid one. It’s just not worth people’s time and money to travel thousands of kilometres to obtain the same information that could otherwise be obtained in a myriad other ways. Nor is the networking argument in support of trade shows a strong enough one anymore.

UPDATE: Macworld organizer IDG said the annual show will be held as per usual: “While we are obviously disappointed by Apple’s decision not to participate in Macworld 2010, we are on track for a terrific show this year, with strong attendance numbers and nearly 500 exhibitors showcasing their products at the January event. Macworld Conference & Expo has thrived for 25 years due to the strong support of tens of thousands of members of the Mac community worldwide who use Macworld as way to find great products, partake in professional development training, and cultivate their personal and professional networks. We are committed to continuing to serve their interests at Moscone Center, January 4 – 8, 2010.”

[tags] Apple, social networks, trade shows, e-commerce [/tags]