Events sector has registered 52% growth in 3 years reports E&Y
The second day of the EEMAGINE 2015 began with one of the most awaited highlights of EEMA’s annual convention as Ernst and Young released the EY White Paper on Event and Experiential Industry. The paper is a detailed statistical report of the overall development and key findings about the events and experiential domain and was launched by AshishPherwani, Partner Advisory Services, Ernst & Young, Sabbas Joseph, President EEMA and Dr A Didar Singh.
[caption id="attachment_16508" align="alignnone" width="1024"] Ashish Pherwani, Sabbas Joseph, Dr. A Didar Singh[/caption]
Being a follow-up to a similar survey carried out in 2012 by EY, the EY White Paper 2015 was based on a survey EY conducted of 35 events and activation companies and 10 marketers and the was developed in a record time of only 60 days. AshishPherwani, explained the key findings of the report in form of a unique presentation by sand artist Rahul Arya.
The key findings of the report exemplified that the growth factor in the events and experiential industry continues to be strong as the organized events industry has grown from INR 2,800 crore in 2011-2012 to a staggering INR 4,258 crore in 2014-2015,this jump signifies a 15% growth rate for the industry over the last 3 years against 10-12% achieved for other media and entertainment industries. Events and Experiential industry is further expected to grow another 16%-17% in the upcoming years to reach INR 5,779 crore IN 2016-2017.
Speakingupon the factors responsible for this growth AshishPherwani said, “the increase in spends on Below the Line segment have crossed 21% and 35% of the respondents agreed to integrate digital as an integral part of their activations. Another interesting fact highlighted in the report is the prediction of additional regional sports league being set up aside from the 10 National and more than 50 state levels that we already have. In terms of personal events a significant growth is visible as India has 4800 Millionaires and out of them the top 100 are Billionaires.
Another interesting finding of the report reflected upon the fact that while IP events only constituted of 2% of the total managed events in the country. However they contributed to more than 20% of the overall revenue generated from events. Also, activations contribute to 30% of the total revenue now in comparison to a mere 14% three years back. Addition of Digital aspect to events in expected to grow from 2% now to 9% by 2020.
Speaking on the challenges being faced by the events and experiential industry today, AshishPherwani said, “Vendor quality is one of the biggest challenges that we face today as currently there exists no system to credit or grade them. A lot of events are based on them and hence we need to solve this issue. Another challenge is the complete lack of client industry knowledge in the industry.” Ashish explained how event agencies have failed to realize what the latest trends and demands for the radio and television channels are. The third and the most significant challenge faced by the industry today as per the report is finding the right amount of talent and developing the right kind of skills in synch with the demands of the industry.
Carving the path for a bright future ahead the report reflected immense opportunities of growth in the industry. Pherwani stated, “The industry today has an inherent growth of over 10% as the event costs go up and there are more opportunities that need to be capitalized upon. We need to build more IPs in the future and the return on investment factor has to be demonstrated to the advertisers betters as they are willing to spend more on digital events and activations.”
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