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The first ever white paper detailing the size, scope, growth, challenges, opportunities and the future of Events and Activation Industry in India. The white paper has been developed by Ernst & Young and commissioned by Event and Entertainment Management Association. Copyright - EEMA,
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The business of experiences: The Indian events and activation industryJuly 2012
The business of experiencesPage 2
Thank you, events industry!
The business of experiencesPage 3
The Indian events and activation industry – what are we?
Events and activation company
Events
Media amplified
Corporate
Activations
Personal
IP
Owned
JV
Managed
Others
Exhibitions
Celebrity management
Etc
• TV / Film production
• In-house event divisions of advertisers
• MICE from pure-play travel companies
• Sports leagues, unless IP is owned
• Value of IP not owned
• Media value of others’ events
What we are not…
The business of experiencesPage 4
The organised events industry – where we are and where we will be
Rs crore
2009-10 2010-11 2011-12 (E)
2012-13 (E)
2013-14 (E)
1,850
2,267
2,800
3,500
4,375
1,420 1,570
1,840 2,061
2,308
840 1,050
1,240 1,500
1,815
Organized Events OOHRadio
The business of experiencesPage 5
Growth drivers – Increased BTL spends
2011-12 2013-14
82.2% 80.4%
17.8% 19.6%
Increase in events and activation spends by adver-tisers
BTL
ATL
Drivers
More IP
Production cost inflation
Regional growthSports
Increase in BTL
The business of experiencesPage 6
Growth drivers – IP
Drivers
More IP
(~2 each)
Production cost inflation
Regional growthSports
Increase in BTLManaged Events
Activations
IP
93%
66%
55%
Services Provided
Managed Events
Activations
IP
65%
34%
1%
70%
16%
14%
Company revenues vis-à-vis events or-ganized
Percentage of total revenuePercentage of total events
The business of experiencesPage 7
The “missed” IP opportunity
Event company
Magazine
TV channel
Newspaper
1.75
2.2
11
9
Number of IP
The business of experiencesPage 8
Events and activation companies must build communities for their clients
Mar Apr May Jun Jul Aug Sep Oct Nov Dec
AwardsB2B Newsletter 3
White paperB2B Newsletter 2
B2B Newsletter 1
Round table 1 – customer experience
Round table 3 - Procurement
Round table 2 – Meet the regulator
Article written by a CEO, published in the business paper
The business of experiencesPage 9
Growth drivers – Regional growth
Drivers
More IP
(~2 each)
Production cost inflation
Regional growthSports
Increase in BTL
2007 2011
7055
20
30
10 15
Movement of marketing spends to non-metro locations
ROUIKUTMetros
The business of experiencesPage 10
Growth drivers – Sports
Drivers
More IP
(~2 each)
Production cost inflation
Regional growthSports
Increase in BTL
The business of experiencesPage 11
The space for sports
Cost of rights
Cos
t of m
edia
BCCLIPLWimbledonAsian Games
Costly rights, mass media
Niche, subscription based sports channelsEg, Golf
Costly rights, narrow media
Existing space for most event
companies
Inexpensive rights, narrow or no media
Inexpensive rights, mass
media
Low High
High
Opportunity for event
companies
The business of experiencesPage 12
Growth drivers – Costs
Drivers
More IP
(~2 each)
Production cost inflation
Regional growthSports
Increase in BTL
Admin12%
Payroll13%
Direct variable
costs75%
Cost breakup
Profit margin Debtors days
19% 59
The business of experiencesPage 13
Challenges which haunt the industry now and in the future
Cumbersome tax structure
Inability to demonstrate ROI
Talent acquisition and retention
Inadequate event infrastructure
17%
11%
15%
13%
11%
11%
12%
14%
FutureNow
Percentage of respondents
The business of experiencesPage 14
Voice of your clients
One-stop shop
National reach
Transparency
Proactive ideation
RoI
50%
50%
60%
70%
80%
Wish list from your existing events agency
The business of experiencesPage 15
Proposed approach to demonstrate RoI
Define objectives
• Awareness• Sales• Trial• Database
creation• Share of
wallet / preference
Set targets
• Define numeric targets for the event's objectives
Measure performance
• Implement processes to collect relevant data
Report and course correct
• Analyse performance against objectives
Agreed objectives Standard methodology Open to audit Increased trust
The business of experiencesPage 16
Better infrastructure tops the EEMA wishlist
Others
Availability of credit
Service tax waiver
Rationalisation of entertainment tax
Easing out permissions
Infrastructure
1%
15%
20%
21%
21%
22%
Key issues requiring regulatory support
The business of experiencesPage 17
If you fail to plan, you plan to fail
Onerous regulations (permissions, taxes, etc)
Inadequate infrastrucuture
Quality control over large events
Procurement efficiency / rising costs
Safety
0% 20% 40% 60% 80%
47%
63%
70%
70%
70%
Key operating challenges faced by event & activation companies
The business of experiencesPage 18
EY’s event risk management frameworkSM
Awareness / Sales / Viewership / Trial / etc
Objective
Celebrity participation
Benefit of viewership / participation
Relevance
Attraction points(Enable achievement
of objectives)
Entertainment value /
knowledge
Hype / peer acceptance
Timing
Contestant / jury
acceptability
Processes & credibility
Venue and decor
Hygiene
Hygiene factors(repel achievement of objectives if not
managed properly)Rules and regulations
Participation effort
Thank you!
The views presented are based on research and interviews, and analysis of the same. The presentation does not carry any warranties, and any use made of the same is at the risk of the person making the same © EYPL. No tax or other advice is provided.
Panel discussion questions
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