Organized live events recovered 129% in 2022: FICCI-EY report

FICCI and Ernst & Young LLP recently launched the FICCI-EY report, an annual publication that provides comprehensive analysis and insights on the Indian media and entertainment industry. The report covers various segments of the industry, including television, print, digital media, films, music, animation, live events, gaming and more.

The 2023 report ‘Windows of opportunity’ provides an overview of the industry’s current state, key trends and future outlook which is based on extensive research, industry surveys, and interviews with industry experts.

Let’s dive into the report’s finding on Live events!

This section of the report is based on the findings of primary research conducted across 49 Indian events companies, 100+ marketers and industry discussions. 

Organized live events revenues:

► There was an increase of 45% in number of events conducted in 2022 over 2021, noted across large-scale events, government events, high net-worth weddings and large format sports and music concerts 

► Managed events (both corporate and personal) were the backbone of the segment, comprising over 65% of events conducted by our survey respondents 

► M&E, technology and FMCG were the top categories spending on events in 2022 

► The core difference between the pre- and postCOVID-19 events segment is the increase in share of ticketed event revenues vis-à-vis sponsorship 

► The focus over the next few years will be a considerable investment in event tech to manage increased demand for events as well as to build higher-quality and monetizable engagement and accountability for sponsors and brands 

► Survey respondents expect the industry to exceed its pre-COVID-19 levels in 2023 

► The live events segment is expected to grow at a CAGR of 22% over the next three years to reach INR134 billion by 2025

Sizing:

► The live events segment revenue represents the revenue of “organized” events and activation agencies and does not include the multitude of “unorganized” event companies spread across the country, as it is not possible for us to size them; survey respondents felt on an average that around half the Indian events and activation segment was organized 

► The size estimate also does not include: 

• The value of media spends on and telecast rights of events (unless event IP was owned by an event and activation management company) 

• The value of meetings, incentives, conferences, and exhibitions (MICE) conducted by pure travel companies 

• Monetization of IPs not owned by event companies, e.g., sports media rights 

• The value of properties managed by in-house teams of advertisers, print, radio, and other M&E segments, which are included in the sizing of those segments 

• Weddings and other events which are paid for in cash in the unorganized segment. A recent report by ICICI Direct estimated the size of the wedding industry, including affiliated segments like cards, mehendi, venue decoration, matrimonial sites, etc. to be over INR2 trillion in 2022

Revenue by category:

► The M&E category rose to the top of the index due to multiple new OTT channels and show launches, a revival in large-budget theatrical releases, sports events, increasing popularity of reality shows, etc. 

► The technology category stayed strong, although generated relatively lower revenues due to the pressures felt by the sector post the pandemic

► The high net-worth individuals (parties and weddings) category was introduced in our 2022 survey, and immediately entered the top five categories 

► The “government” category was key in supporting the events industry during the pandemic, and continues to grow on account of awareness programs, sports, election rallies, marquee international events and summits

Number of projects conducted by respondents: 

► Pure digital events declined significantly to 13% in 2022 compared to over 64% in 2021, reflecting the relaxation of curbs implemented on account of COVID-19 and the need to physically meet and interact 

► A corresponding growth was witnessed in the share of managed events

► Government spends are increasing on events as it creates large properties e.g., Pravasi Diwas, G20 events, International Yoga Day, various state investor meets, Youth Games, etc. 

► Industry body EEMA estimated that the Government issued around 3,000 tenders for events since the pandemic, with an estimated total value (including media and non-experiential elements) of INR320 billion 

► Events tenders are now being issued by government buyers in a multi-year format, to enable consistency, build the brand of the event/ IP, and deliver higher impact and better measurement

Revenues at pre-COVID-19 levels again:

► 95% of respondents believed the events segment recovery had begun 

► 88% of respondents expected the segment to exceed pre-COVID-19 levels by December 2023

Expectation on the events and activations industry to grow over the next 2-3 years:

► Sentiment across survey respondents remained high, with 85% expecting a growth over 10% annually 

► Factors mentioned in support of this included: 

• Complete relaxation of curbs on physical meets 

• Marquee sporting events Cricket World Cup 2023, Hockey World Cup 2023, Khelo India Youth Games, Asian Wrestling Championships 

• National and international events conducted by the Government of India, including International Day of Yoga, the G20 Summit, etc. 

• Elections across nine states in India and the subsequent general elections 

► Organized to unorganized events ratio is expected to change from its current ratio of 45:55 to a ratio of 57:43 by 2025

Regulatory wish list:

► Respondents most required an easing out of permission processes, and hoped for a single-window clearance mechanism to conduct events 

► T ax rationalization was also on their wish list, given the growing ticketing business 

► Venue shortages, already acute in the peak season, are expected to get worse, and hence respondents desired incentives for venue development

AI is transforming events and experiences:

► Sourcing and budgeting Identification of line items, organization of quotes, assessment of suppliers, rate benchmarking and contracting 

► 24/7 support for vendors and presenters, including on contracting, invoice processing, payment, etc. 

► Identify potential customers 

► Retargeting 

► Assist in developing pre-event messaging and ads to promote the events 

► Analyse successful promotions of other events, draw insights and create marketing strategies 

► AI can send tailored e-mails for promotion including next-best/ last-minute offers 

► Push messaging post registration