Events and activation industry to cross 10k crore mark by 2021: EY Report
The key drivers for this robust 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
According to a latest white paper released by Ernst & Young (EY,) the events and entertainment industry continues to grow at a faster rate than expected.
The report, which is based on a survey of 64 event management companies and 31 marketers, suggests that the events and activations industry is expected to grow from Rs. 5,631 cr in 2016-17 to more than Rs. 10,000 cr in 2020-21. The organised events industry is growing faster than the 11-13 per cent CAGR of the Indian M&E industry. The key growth drivers for the same 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 report further points that digital events are poised to grow at 20 per cent over the next few years, given that 90 per cent of marketers believe this to be important to them. It also states that industries like auto, mobile handsets, media and entertainment, FMCG and durables will drive the growth through new product launches.
When it comes to rural marketing, 95 per cent of the survey respondents agreed that rural events and activations would gain increased importance over next couple of years, given that the next 300 million consumers are expected to come from non-urban areas.
Commenting on the findings of the report, Ashish Pherwani, Partner and Media & Entertainment Advisory Leader, EY India, said, “The good news in the industry white paper is that the industry growth rate has gone up since we did the last study. Earlier, it took three years for the industry to get a growth of 1,400 crore and now another 1,400 crore have been added in just two years. If it continues to grow at a similar rate, there is no doubt that it will soon be a billion-dollar industry.”
As the sports industry in India evolves, the associated sectors, primarily the entertainment, events and activation industries, will also witness phenomenal growth. According to the findings of the EY report, “With technologies such as augmented and virtual reality spearheading the digital evolution in sports, along with the rise of online gaming, the events industry can expect more digital events opportunities. These innovations with in-stadia experience will also provide more avenues for event agencies to enhance their knowledge and execution capabilities.”
The report also indicates a growing shift in the role that industry players are expected to play. According to it, the events and activation industry players are now expected to offer a complete 360-degree and multi-platform service experience to their clients. It will range right from ideation, promotion, marketing and on-ground execution backed by data driven consumer insights, analytics with new age technologies such as AI and augmented reality embedded into their offerings.
“The events and 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 the events industry surpassing the overall growth rate of M&E industry,” added Pherwani.
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