The Hype, Myth & Reality of Virtual Events
Last Friday, 3 June, Michael Westcott, CEO of relate solutions and Nancy Drapeau, PRC, CEIR Director of Research, presented initial findings from the CEIR Virtual Study at IAEE’s Mid-Year Meeting in Washington, D.C. Below are the top ten findings.
1. Most Virtual Events Are Extensions of Physical Events vs. Stand Alone Events. More than a majority of past (59%) and future virtual event organizers (65%) say their virtual events are affiliated with a physical event. Though results also suggest that there is reluctance to stream content live as only 35% of past users and 26% of future users plan to hold virtual and physical events at the same time.
2. However, Live Content is Most Popular. This point suggests that those planning future events may want to rethink their strategy, as live video and webcasts are the most popular form of content according to 68% of past and future users. And in a similarly revealing question, many physical event hosts (43%) capture less than 10% of the content from their physical events for other uses.
3. Resource & Technology Concerns Remain. When asked what concerns they had about executing events in the future, the following issues emerged (in order of incidence):
a. Staff time required to execute was the top concern at 49% (18% have dedicated staff for virtual, but many rely on a physical show director – 30% past and 20% future organizers)
b. Costs to execute (45%)
c. Quality of experience (42%) points at the need for better content and creativity
d. Complexity of the technology (38%)
e. Not enough interest from attendees (36%), exhibitors or sponsors (32%) (Average registrations: 801; Median registrations: 100)
4. There is Room For Improvement in Revenue Generation. Sixty-five percent of past users of virtual events did not charge attendees and nearly half received no sponsorship revenue.
5. Modest Expectations Have Been Met. Seventy-six percent claim they have met or exceeded registration objectives and 23% fell short. Yet nearly half of past users have held five or more virtual events and 70% plan to do more. It is clear we are still in the pilot-testing phase of virtual events, as objectives for attendance and revenue have been modest. Most aim to be self-sustaining (40% of past and 42% of future users).
6. Key Learnings Include Careful Planning, Longer Sales Cycles and Shorter Events. Respondents recommend planning as you would a physical event, ensuring there is audience demand and sponsor understanding. And short format content sessions and shorter event days are preferable, with 40% indicating their events are less than one day.
7. Reaching a Larger Audience Is The Most Important Objective. This is by far the most mentioned objective, cited by 82% of past users and 84% of future users. Especially since nearly half (48%) of those surveyed indicate they reach less than 50% of their target audience with their physical exhibitions and events.
8. Use Is Higher Than Anticipated. In an earlier study published by Tagoras this year, Virtual Conferences, The State of the Sector, results indicated that less than 12% of this audience had executed a virtual event versus 37% of respondents to this survey plus another 27% that plan to.
9. More Than One-Third Are Still Not Interested. Thirty-six percent of those polled have no interest in holding virtual events in the future, with more senior executives in this cohort taking this position. Primary reasons are concern over ROI; time and resources required; preference for face-to-face events; lack of expertise to implement a virtual event effectively; and concern about the level of target market demand.
10. New Revenue Is Elusive, But New Models Are Emerging. Most see sponsorships as the primary revenue source (44% past, 72% future). Most event producers are not yet leveraging online platforms for Continuing Education (CE). Sixty-six percent of past users do not offer CE and 59% of future users do not plan to. Yet many see positive lessons learned that are helping them reach new audiences and in some cases, helping physical events.
The full report will be available early this summer.
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