We need to create IPs that not only benefit us but the entire event community- Deepak Choudhary, Event Capital
A consistent level of disruption in the media and entertainment industry has necessitated an out of the box way of thinking, execution and operation. The industry is facing rapid change driven by technological advancements, fundamentally changing the media supply chain as consumers demand higher quality content delivered instantly.
Despite the relative business downturn due to the surprise announcement of demonetisation by our PM, I think everyone will agree that 2016 was a mixed bag for the event management industry — with an increase in events and activation spends by corporates as well as government bodies to the recent Delhi High Court order injunction against music licensing bodies with EEMA's efforts.
According to the EEMAX Global report released in 2016, the total size of the event and experiential marketing industry for the last audited year stands at INR 6250 Cr of which the organised sector represents INR 3750 Cr. Quite interestingly, the top 25 agencies of the total organised sector account for INR 2183 Cr, which means 59% of the organised market is split between these companies.
This is set to change now. As the industry matures to accommodate the change to a less cash economy, I feel that the increase in cheque transactions will benefit the medium and large sized event managers across India, resulting in an overall growth of organised events in India by over 20%.
Adding to it, the report predicts that spends towards experiential marketing are greater than spends towards digital, albeit marginally at 13.6% and 11.9% respectively. The report also predicts the total spends towards experiential to increase to INR 7281 Cr in the current fiscal year as a result of an estimated industry growth rate of 16% to 17%.
Event IPs Set for a Surge
Event - Intellectual property has definitely grown its importance in the event and experiential space particularly over the last couple of years. The EEMAX Global report had predicted a positive growth for the event IP industry in India, even though the contribution of the live event IP business to an event management company’s revenues were quite minimal compared to their overall revenues. With the growing festival scene in India, this is set to change in 2017-18.
In 2016, large global live event IPs like Global Citizen Festival, Electric Daisy Carnival, Sensations, Amsterdam Dance Events made a mark in India and many more are expected to debut in India in 2017. Moreover, Indian live event music IPs like Sunburn, NH7 Weekender, Enchanted Valley Carnival, Bollywood Music Project had a successful run in 2016, and almost all of them are expected to grow their geographic presence in the coming year.
Glocal trends disrupting the events industry
The US Bureau of Labour Statistics estimates that the events are becoming a powerful tool around the world to create brand loyalty, introduce products, and generate revenue for organizations. Insomniac's wild success with EDC style events around the United States demonstrates how influential events can be. Additionally, 79% of surveyed marketers in the US said they use events to generate increased sales.
They also estimates that the event industry is likely to grow 44% by 2020, which is significant in an economy that is becoming more digital and, consequently, more virtual. Part of the reason is that Millennials on the whole look for authenticity in the brands they select, and events are a great way to create authentic experiences with a brand.
Trends to watch out for:
Ticketing Receiving Much Needed Upgrades
As the first generation of digital natives becomes a more important consumer group, the need for seamless online ticketing experiences has become critical for venues and event organizers. The trouble is the limited number of options and quality ticketing vendors has made for minimal innovation. Mobile is just one aspect of ticketing that needed an upgrade. Until recently ticketing was a cost center for events that did little more than allow access. New technologies are enabling ticketing providers to be revenue generators instead of expense centers.
The notion of “big data” has entered the hearts, minds and buzzword spouting souls of the tech masses. Consumer data has been collected for ages, but it is only recently that this data has been sophistically used to drive consumer insights and in turn provided businesses with the opportunity to convert interest into revenue.
The event industry is no exception to this and is in no way late to the data party. Event data collection is becoming more advanced through the increased use of event management platforms, and cloud based registration tools that help organizers understand their attendees. Intelligence and insights collected by these platforms help organizers to market their events better while creating an ongoing source of communication and engagement.
Experimental Marketing- A Tactic to Connect With Consumers
Experimental marketing was a big trend last year and is still the most preferred one. Experimental marketing’s main objective is to find new and innovative ways to connect and communicate with consumers. The best way to connect with consumers is to give them an experience of a brand through all senses. Some of the techniques used in the experimental marketing include Virtual Reality, Projection Mapping, Molecular Catering, Gesture Recognition Gaming and 360-degree Photo Experiences. The trend of experimental marketing has already been adopted by small and large event management enterprises and many companies will continue to do so.
A growing number of start-ups and event organizers are working to upgrade the industry and develop solutions that help marketers more effectively leverage events while improving the overall consumer experience. We need to create IPs that will benefit not just us but the entire event community.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house
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