When we talk about economics, it’s not just what we earn from a source or two, it even comprises the component of what we save. Similar is the case of events, be it in-person, hybrid, or entirely virtual, it is the economics that decides which stands taller than the other. In the battle for the most economical amongst the lot, we have today, the king of flexibility, the Virtual Events, going against the king of engagement, the In-Person Events.
In this epic battle, we will be analyzing the economics of each event basing them upon the requirements of the industry in the current times. With this eventually, you can decide which event type actually suits your requirements and your budget
What differs In-Person Events from Virtual Events
The answer lies in the name itself. An In-Person event is more or less the conventional way of hosting an event, focusing primarily on face-to-face interactions between parties for smoother communication. On the other hand, a Virtual event is designed particularly keeping in mind the ease of accessibility and flexibility for the organizers and the attendees.
The In-Person events ought to be grand, the more the merrier. Such events are meant to showcase the products and services vividly, so as to capture the audience well and increase engagement. Audiences can well experience the showcased product or service and interact profusely with the organizer as well as the brands. But all this comes at a hefty cost and this is where the Virtual events shine.
The Pandemic brought a boom in the demand for Virtual events. The reason was simple, it had no boundaries of venue, time, housing, or logistics and most importantly it could be easily hosted from any corner of the world for audiences worldwide. All this made it really cost-effective not only for the organizers but for the attendees as well. But is that really true? Is Virtual Event actually more economical of the two?
Let’s find out!
The Pandemic brought a boom in the demand for Virtual events. The reason was simple, it had no boundaries of venue, time, housing, or logistics and most importantly it could be easily hosted from any corner of the world for audiences worldwide. All this made it really cost-effective not only for the organizers but for the attendees as well. But is that really true? Is Virtual Event actually more economical of the two?
Let’s find out!
The Clash of the More Economical Titans
To decide the more economical of the two, it is critical to understand that just a lower cost of hosting and executing the event is not enough, what’s more, important is the event must cost less to in bringing a similar or better output than the other. Let’s analyze the two based on their effective budget allocation and profitability.
Investment
When it comes to direct investment of money and financial resources in hosting an event, Virtual Events are the most cost-effective choice. There is no cost of the venue, lodging, catering, and logistics added to its budget which saves a humungous 68% of the cost incurred in the In-Person Events. This allows organizers to spend sufficiently on noted speakers, a stable and immersive Virtual Event Platform and promotions.
Cost-to-benefit Ratio
Spending a hefty amount of money doesn’t guarantee an event’s success. What matters is the cost-to-benefit ratio, i.e. the amount of profit received on each unit of money spent. In the case of In-Person events, the amount of money spent is quite large, hence the profit must be high to avail of a high cost-to-benefit ratio. Whereas a Virtual Event shortens the spent amount massively which allows the organizers to avail a high cost-to-benefit ratio in a much lesser time.
Overall Efficiency
The efficiency of an event type is defined by how feasible it is in terms of cost, reach, flexibility, and scalability. In-person events are no doubt more cost engrossing as compared to the virtual events but that adds to the event’s engagement and interactions levels. Being physically present in an event opens up to a lot of opportunities, both for the organisers and the attendees. But the question here is to understand, if the cost incurred justifies the benefits it brings on board?
- In terms of Reach: Virtual events are miles ahead when it comes to event reach. With no limitation of any physical venue, it allows attendees from across the globe to experience the event, i.e. a larger audience group per event at a lesser cost.
- In terms of Flexibility: No limitation of a physical venue to host an event means adding the flexibility for the organizers, speakers and attendees to be a part of the event from any and every corner of the world without getting into hectic processes of travel and logistics. This added flexibility brings in more customers and saves a huge amount of the budget, hence, greater efficiency.
- In terms of Flexibility: No limitation of a physical venue to host an event means adding the flexibility for the organizers, speakers and attendees to be a part of the event from any and every corner of the world without getting into hectic processes of travel and logistics. This added flexibility brings in more customers and saves a huge amount of the budget, hence, greater efficiency.
- In terms of Cost: Renting a venue for a single day can cost tens of thousands of dollars, and that doesn’t even include the price of refreshments, speaker lodging, or insurance for the space. These expenses do not exist for virtual events. All you need, is a world-class virtual events Platform, a strong advertising plan, and speakers from all over the world to make your event a success. Hence, virtual events offer greater value at lesser cost.
- In terms of Scalability: Physical venues have a limited attendee capacity, and entertaining a large crowd will cost significant money. Scalability is greatly facilitated by virtual events, allowing for the hosting of more attendees at a much lower expense. You may also increase your audience and raise awareness of your brand in this way.
- In terms of Engagement: Almost 30% of people are more likely to interact with someone in an virtual booth. Perhaps this is a result of attendees’ fear of approaching strangers or their enjoyment of anonymity. In either case, virtual events provide resources such as surveys, Q&A, and live chat that allow audience to fully participate in the event. Greater participation benefits organisers and brands in bringing higher outputs through the event.
- In terms of Reliability: Reliability is a hidden cost we pay to avoid untimely setbacks in an event. Physical events, due to their nature, cannot be entirely reliable, as seen during the pandemic times caused a loss of capital worth billions. Virtual events are undoubtedly resilient. A virtual event does not need to be cancelled due to bad weather or even a worldwide pandemic. Elements that would seriously hamper a physical event are not even taken into account because people can attend the event from anywhere. Hence, an overall efficient choice of events.
Environment friendly
Hosting a physical event has expenses that go beyond money, such as environmental consequences. In 2018, 463.6 million visits were made by Americans for work, 38% of which were for events and meetings, i.e., more than 175 million of journeys, only to attend meetings and events. With Virtual Events, people no longer need to drive hundreds of miles to venues in order to attend an event; instead, they can do it from home or any remote location, saving businesses money and lessening their environmental effect.
The above mentioned factors judging the economics that goes behind an event, provide insights on which event type to choose based upon your business needs. In-Person events are great and undoubtedly perform exceptionally for every industry. But when it comes to the more economical one, virtual events are the undisputed king. They not only offer a much greater advantage to the organisers but also to the brands looking for a significantly economical option to market themselves, that too globally. Industry leaders like ibentos have been keen in delivering these benefits to their customers across the world. A portfolio incorporating huge industry giants as well as small and medium entities, ibentos believes that virtual events offer parity in the events industry, where every brand regardless of its market cap, can promote itself globally, with higher efficiency and at a much lesser cost.
Read more | Virtual Conferences – The 2021 Guide
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