Planning & Promotion

The Economics of Planning an Event Focusing on Intricacies of Budgeting Elements

Eventually Learning Team
Events can range from complex multi-day business conferences to simple one-topic micro-events. When planning an event, overlooking the business aspect of the event can bring a lag in return on investments, positive event branding and employee turnover rates. An event organizer has to weave in the market costs within his pricing strategy for putting forth a successful event execution. Some other factors that can shape the staging of an event are the organization and event size, market segmentation, audience travel patterns, customer service, event risk & security management and more.

Formalizing and integrating the event planning process with these various components and event budgeting considerations, especially from the ‘what are the economic impacts’ perspective, can provide for easy cents and dollars calculation for event organizers. Finding out what part of the revenue benefit was owing to what event cost spent or strategic execution -becomes a breeze.

Key Factors That Can Affect the Economics of Planning an Event 

It makes a massive difference if your event planner is on-staff or hired on contract. The work experience of event planners matters, as it also determines the level of their professional collaborations with the event vendors. Read well-formed vendor relationships equal more discounts and better event planning quality. Also, it is essential to look into the category of events that the planner has organized priorly – whether it is a banking industry product launch or a healthcare networking event.

Business events usually publish a request for proposal (RFP) wherein the event budget is being already set in stone. The fixed event costs would be based on the type of your event audience. For example, if the event is for food and beverage connoisseurs more event budgets would be spent on food - with a detailed study of the range of prices and the type of cuisines that would be most preferred at the event. If your event attendees are C-level executives, again, the event venue transportation needs will alter from maybe the usual bus to chauffeured limos.

The integration of costing subsections like labor pay and volunteer opportunities, studying event attendee travel trajectories, selecting local venues that save on costs, audio visual event experience designing and accounting for contingencies by developing attendee event security and health risk probability models - all play a determining role in an event’s economic success or failure.

The event planning timeline of an event is also important, whether a long-term or short-term planning is warranted. If it is a hub and spoke model hybrid event or a multi-day global B2B industry conference, event organizers need to consider the venue construction time periods, local infrastructure developments and the utilization of local event stakeholders.

Lastly, the event planning and sourcing periods also matter. Vendors may see ‘opportunity costs’ at sudden, urgent demands; hence for the event organizers, it is vital to have a Plan C and plan B in case Plan A fails. Some strategic solutions that you can use for effective event sourcing are reaching out to multiple vendor sources, booking way in advance and locking on service provider prices during the contract drafting.

Taking in to Account the Sponsorship Grades and Types

Event sponsors are well-aware that the event audience is not the only market for an event. The media, the event venue’s local population, the audience, and online event viewers are also the event’s target market. 90% of B2B event planners have reported expanding their audience reach and bagging sponsors as the two most pressing challenges of every event organizer. What makes sponsorships at events a tough nut to crack? From an event organizer’s perspective, a good event match can create a low ticket cost for attendees and a win-win situation for both the sponsors and the event organizers. For Financial Event Sponsorships or ‘Cash Sponsorships’, personalized packages are tiered through which the brands and event planners can negotiate the best possible deal for symbiotic audience engagements. Putting up a detailed event sponsorship levels framework – from platinum to gold to silver to bronze can help brands choose from a wide range of brand promotion options like in-person and virtual event app logo display, newsletter access, banner ads, alerts and live shows. The strategic tiered sponsorship model is a 'cash, in-kind, media & promotional partnership' inflow optimization approach that leverages tier levels, quantities of offerings per tier, along with a la carte sponsorship options.

Did you know Sponsors also finance event technology? Thus building event sponsorship budget paves the way for better attendee experiences through select superior marketing and analytical tools uptake.

Doing the Math: Calculating the Return On Investments

When it comes to event marketing, you can calculate the promotional spending and the returns you would expect from each event promotion channel. Remember bigger the event size, the bigger will be the event promotions! You can choose between pocket-friendly email marketing, free social media campaigns or do a cost-benefit analysis on hiring graphic design vendors, paid advertisement option channels and the event registration website building experts. Getting out an exclusive event website can help an event builder sell tickets, collect online payments and also give away refunds.

You can utilize event budgeting and predictive revenue tools to estimate audience attendance and other variables like ticket prices, equipment renting, and sponsorship cash inflows. Likewise, historical data can also be used for future event planning.

Thus comparing event expenses with projected sales can help you justify your event spending at every stage.

Frequently Asked Questions

Name some event management tools.

Some event management tools are lead capture tools, data and analytical tools, the mobile event app and guest management tools and more. You can sign in for websites like Cvent, Social Tables, Tripleseat, Caterease, Fonteva and DoubleDutch.

What are some good event planning budgeting software solutions that I can use?

Some event planning budgeting software solutions you can use are Cvent, eTouches, Mint, Quickbooks, Toshl and Lola.

What are some event sponsorship goals?

Some event sponsorship goals are raising product launch awareness for a brand, extending event target audience reach, boosting brand awareness amongst the existing audience, repositioning a brand product or service and communicating about a brand through CSR initiatives.

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