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Events industry to be worth Rs 4,375 cr by 2014: E&Y report

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Events industry to be worth Rs 4,375 cr by 2014: E&Y report

EEMA (Events and Entertainment Management Association), in association with Ernst & Young, has launched the first ever white paper on the events and activation industry in India. The study, commissioned by EEMA, was unveiled by Union Minister of Information and Broadcasting Ambika Soni at the concluding ceremony of EEMAGINE 2012, the fifth annual convention of the industry body.

The study, presented by Ashish Pherwani, Partner, Ernst & Young, took five and a half months to be completed. 32 CEOs of event and activation agencies, 11 CMOs representing different sectors and several media owners and publishers have been interviewed as part of the study.

As per the report, the events industry is estimated to double in the next two years from Rs 2,800 crore today to Rs 4,375 crore by 2014. This number is representative of only the organised players in the domain and is based on the response received from the 32 participants. The estimated size of the industry, including both organised and unorganised sectors, stands at approximately Rs 6,000 crore, though the numbers haven’t been included formally as part of the study since it talks only about the organised side of the industry. The numbers reflect agencies that are pure play event and activation agencies and not TV/production houses, in-house event divisions of advertisers, media owned exhibitions, MICE from pure-play amplified travel companies, sports leagues unless corporate JV management IP is owned, and media value of others’ events.

Pherwani highlighted the fact that the industry size is apparently twice that of radio and larger than out of home, though the industry is still not discussed as part of the FICCI industry reports. “The white paper is a first step towards showcasing that there is size and stature of this industry and to establish its growing importance as a marketing tool,” he said.

BTL will grow
The report pegs BTL spends at 17.8 per cent currently and predicts it to grow by 10 per cent in coming years, given increasing interest of marketers in activations. The other growth driver would be through agencies owning more intellectual properties in the coming years, whether entirely owned by the event company or joint venture with a media company or with a client. Pherwani advised agencies to make their IPs more inclusive by involving the TG around the clock. Another growth factor for the events industry would the regional boom of media in the rural spaces. This boom would make media channels need more content from awards, events, activations, thus creating opportunities for activation and event agencies. Sports will also be a major contributor to the growth of the medium in coming years.

Areas of Improvement
The report also clearly defines the challenges that the industry faces today. Pherwani’s conversation with marketers gives a perspective on the expectation of clients from agencies in India. “Return on Investment (RoI), proactive ideation, transparency, national reach and providing one shop services are the top concerns for marketers,” revealed Pherwani.

The report also proposes an RoI approach that agencies can adopt in order to provide better results to clients. Ernst & Young has also devised an event management framework that can be followed by agencies in order to be more risk ready and impactful in project executions.

Listen to what Ashish Pherwani, Partner, Ernst & Young, has to say on the launch of the white paper and how it will benefit the events industry at large.


Take a look at the research findings here: 


Tags Ashish Pherwani Ernst & Young EEMA India EEMAGINE 2012 Deepika Bhardwaj

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