Indian Events Industry Growing at 16% CAGR; Overtakes Media & Entertainment Industry at 11-13% CAGR
by EVENTFAQS Bureau Industry Watch | September 11, 2017 | News
India’s apex body for events and experiential industry EEMA kicked off its annual convention EEMAgine 2017 on September 8, 2017, with the launch of Ernst and Young and EEMA Whitepaper.
The key reveals of Whitepaper were later explained by Ashish Pherwani, Partner, Ernst and Young through an insightful presentation at the event. The findings of the report divulge that the events and activations industry in India is expected to cross INR 10,000 crore mark by 2020-21. Also, the industry, which was valued at INR 5,631 crore in 2016-17 overall, has been growing at a 16% CAGR, even overtaking the Indian media and entertainment (M&E) industry, which is growing at 11-13% CAGR.
It is believed that the key growth drivers for this growth are digital activation, sports leagues, rural expansion and government initiatives followed by IPs, personal events, product launches, expansion of mini metros and BTL spends. The digital events and activations garnered an 8% revenue share in 2016-2017 up from 1% in 2014.
Speaking about it Ashish Pherwani, Partner and Media & Entertainment Advisory Leader, EY India says, “The Events & Activation industry is growing at a fast pace and is expected to further grow exponentially due to its ability to adapt and grow with innovative technology. With focus on newer avenues such as sports leagues, rural expansion, digital activations, increased Government marketing initiatives etc., we see events industry surpassing overall growth rate of M&E industry.”
Sabbas Joseph, President, Event and Entertainment Management Association commented, “Event management has now transformed into experience creation with amalgamation of technology, innovative ideas and creative content. The Indian economy has undergone a lot of changes in the recent past and the Events and Activation industry has come out unscathed. This demonstrates the industry’s strength and ability to get things done under any circumstances.”
The report is based on a survey of 64 event management companies and 31 marketers and also discloses that 73% of marketers surveyed believed that their (BTL) spends are set to increase during the next two years enabling the industry to reach the valuation of USD 1 Billion by 2017-18.
Some of the other key findings of the report are:
1- Managed events is still the largest segment, with around 90% of respondents providing these events.
2- Average IPs and activations per respondent have doubled since 2013-14, while average digital events per respondent have shown a 9x growth since 2013-14
3- There is a fall in proportionate revenue generated by activations from 31% in 2015 to 22% in 2017, showing that there is a distinct move to digital activations
4- More respondents are providing services internationally – up sharply from 8% in 2011 to 56% in 2017
5- Around 75% of all respondents’ clients were corporates
6- Technology, FMCG, auto, media and entertainment and telecom are the largest users of the Events & Activations industry
7- An average of 26% of the total employees of the respondents consist of women employees
8- Digital is driving growth, as respondents felt that marketers spends on digital events would grow at 20% over the next two years.
9- Most respondents felt that sports would significantly grow at 18%.
10- Most respondents expected ticketed events to witness a moderate level of growth in the next 2-3 years.
11- 95% of the survey respondents agreed that rural events and activations would gain increased importance over next 2-3 years.
12- Over 85% of respondents plan to launch new products or properties in the next two years, and almost a fifth of respondents will launch 3 or more products.
13- Digital integration was either important or very important for the events of 90% of marketers.
The digital events and activations garnered an 8% revenue share in 2016-2017 up from 1% in 2014.