New Delhi: The Indian events and activations industry is expected to cross Rs10,000 crore by 2020-21, up from Rs5,631 crore in 2016-17, recording a compounded annual growth rate (CAGR) of 16%, a report said.
The report ‘Experience Next’, published by consulting firm EY and Event and Entertainment Management Association (EEMA) is based on a survey of 64 event management companies and 31 marketers across categories.
According to its findings, the organized events industry is growing faster than the 11-13% CAGR of the Indian media and entertainment industry. The key growth drivers are digital activation, sports leagues, rural expansion and government initiatives followed by intellectual properties (IPs), personal events, product launches, expansion of mini-metros and increasing below-the-line (BTL) spends.
In terms of brand categories, technology, fast moving consumers goods (FMCG), auto, media and entertainment, and telecom are the largest users of the events and activations industry. The average number of events, stated the report, is increasing across all formats with government spending expected to grow at 14% and sports spending expected to grow at 18% over the next five years.
“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, we see the events industry surpassing overall growth rate of media and entertainment industry," said Ashish Pherwani, partner and media and entertainment advisory leader, EY India in a statement.
The findings highlighted that the digital medium has played a crucial role in the growth of the industry.
The average digital events per respondent have shown a nine times growth since 2013-14. There has been a fall in proportionate revenue generated by activations from 31% in 2015 to 22% in 2017, indicating that there is a shift towards digital activation. The report further stated that marketers’ spends on digital events would grow at 20% over the next two years.
“I believe the combination of physical and digital mediums present a host of opportunities for brands. Digital is able to extend a physical experience beyond the traditional boundaries through social, online and mobile communications. While the physical experience moves consumers to action through a sustained conversation encouraging brand loyalty; experiential marketing is the last mile to connect with the consumers and this medium has undergone a metamorphosis in India. Government spending has further added to its robust growth in the country," said V.G. Jairam, co-founder, Fountainhead MKTG, an events and activation agency owned by Dentsu Aegis Network.