It used to be that companies planned their events way in advance. Budgets were allocated, money was spent, events took place and the whole process often evolved over a significant period of time.
Then came Covid-19 and everything ground to a halt. Events were cancelled but payments had been made. Financial commitments were honoured – or not. The events world was turned upside down as events were planned and paid for, then didn’t take place. From planners, suppliers, producers, incentive providers to travel management, companies faced potentially ruinous costs due to lost revenue.
Many flexible, agile organisations have adapted and survived – on both the client and supplier side – but the joint legacies of a pandemic and a challenging geopolitical environment, combined with an uncertain economic outlook means that tight purse strings and risk aversion now play a significant part in event planning.
There’s no doubt that events are back. Conferences, conventions, concerts, theatre, trade shows – all back. And companies have adapted to what is now a rich blend of digital, hybrid, and live platforms successfully taking their place in the market and providing outstanding virtual and physical experiences.
But the event environment has changed. Nobody wants to plan events too far ahead. They don’t want to pay for things that might not happen. Events are still key, but the budget is frozen or allocated at the last minute.
So, when a global corporate event – previously planned months, sometimes years in advance – has a launch date in 8 weeks, how can it possibly be done?
And what are the consequences of such a short term approach?
The easy answer is that it’s done under high pressure, at greater expense, with fewer venue options, and by working really hard creatively to make it happen.
The impact of inflation has hit the events industry just as it has every other industry. Prices have increased almost universally throughout the supply chain, so clients’ budgets are under increased pressure.
The closer the event itself, the choice of suppliers is inevitably smaller as many will not be available at short notice – and the ones that may come at a premium when lead times cannot be extended which inevitably puts more pressure on event planners and producers.
Sourcing equipment and materials is more difficult as the available resources for the short time frame may be limited, and contractors may not be able to do the work – regardless of a client’s willingness to pay – if they are not yet restaffed to their pre-pandemic levels.
It’s not all bleak news, however. More sophisticated audience targeting should minimise dropout rates for events so that attending audience are engaged and committed to an event that is more personalised and relevant, and therefore more valuable.
Companies are having to do more with less which means that return on investment under the microscope. Content is done right, experiential capital is maximised, the core message is clear, the venue is optimal, and the whole process is an integrated part of an overarching marketing strategy.
Despite the uncertainty of the last few years, individual and team creativity, the emergence of innovative technology and customised event production mean that whether for a global event on the other side of the world or a destination close to home, the audience leaves more satisfied and more engaged – which continues to add value long after they have left.