My Experiments with Virtual Events – Part 2
In our 2nd focused post on Virtual Events, following the one last week – https://outsideinlens.substack.com/p/my-experiments-with-virtual-events – we look at the feasibility and sustainability of digital events for Organizers. While the attraction of the ‘virtual’ proposition for consumers (read: event attendees) was well established in the previous post, we try and establish how it could even make business sense for organizers to maintain this new ‘medium’ even when things go back to normal. We suggest a ‘hybrid’ model that extends both the physical as well as digital options for the consumers and in the process maximizes ‘total’ revenue. And, we identify a few best practices on creating a seamless Experience – irrespective of the medium of a consumer’s attendance. Let’s see what we can find out, using the Tomorrowland Event as an Illustration.
The Case for Tomorrowland ‘Hybrid’ Event
1) Regular ‘Physical Event’ Attendance Revenue:A global melting pot – Tomorrowland 2018 & 2019 had over 400,000 (0.4 million) attendees – with an average ‘Global Journey Pass’ pricing at 2200/- Euros – that includes roundtrip airfare and lodging charges during the span of the event. So, the event organizers and participating ‘physical’ partners potentially garner revenues of 88 Million Euros per Year via the Physical Event.
These back-of-envelope projections of mine are more or less in sync with 2017 Projections of Tomorrowland Earnings derived from a Reddit Forum discussion highlighted below:
2) Exceptional 2020 ‘Digital Event’ Revenues: The Digital only event in 2020 had a huge response, bringing in over 1 million people across the weekend all of whom had to pay to attend. To “go” to “Tomorrowland Around the World” it cost €20 for the weekend or €12 for a day ticket. This means that not only was the festival huge in its attendance but that they’ve racked up decent revenue from it too. Ballpark computations could say that the organizers would have realized revenues of 20 Million Euros last year, with the ‘physical’ partners having drawn a zero, via the Digital Event.
Additional revenue streams were created via initiatives like ‘relive’: If you missed Tomorrowland on its original hosting dates, you could still join the action via an on-demand version. Ticket holders can access it with their passes, while everyone can check it out for a fee of 12.50 Euros.
And new virtual ‘Signature’ event was created, with revenue earnings: Tomorrowland came out with a brand new digital event in 2020 – New Year’s Eve Party.
It featured 1,200 fireworks, 184 lasers and 2,750 lights. That might sound like the setting of a typical electronic music festival. But Tomorrowland 31.12.2020 also included 1,000 rendering hours, 17 4K ultra HD cameras and zero in-person attendees. Instead it was attended by 950k people from 151 countries. The NYE event cost 20 Euros a ticket. So, it is possibly additional 20 Million Euros of revenue for the Event Organizers. This New Year’s Eve event could be considered an encore of sorts.
3) Towards a ‘Hybrid’ Model: With these illustrations of Tomorrowland’s initiatives in the digital arena, I am willing to bet that these ‘digital’ events will become a permanent fixture – along with the physical Belgium edition – now in the Global Entertainment Calendar. Imagine, Tomorrowland 2022 physical event is being planned for the entire month of July 2022!
In fact, I would like to believe that I helped them in some small measure to kick-start their efforts on the hybrid model building process with inputs to a general survey last year, below:
On-demand sets led to development of the ‘relive’ platform
Pricing for the online edition stayed at a reasonable 20 Euros
Support for full rockstar line-up of Performers
And so on…
I am hoping I’ll see some Celebrity Chats this year…
Events Who Seem to have realized this Potential Already:
CES 2022: It will be a ‘hybrid’ event with options for physical as well as digital editions: CES 2021 was a ‘digital’ only event whereas CES 2022 will be a hybrid physical and digital event. “In 2022, our plan is to have a hybrid event in Las Vegas and a super-enhanced digital event based on our learnings from 2021,” according to Gary Shapiro, CEO of Consumer Technology Association
Cannes Lions Live 2021: Cannes Lions 2021 is going to run as 'fully digital experience' this year – just like 2020. But, with a big difference – It will be a paid/membership version! As per People Magazine, the individuals from the Lions Membership, which launches in May 2021, will be given free admittance to 'Cannes Lions Live'. An independent digital pass for Cannes Lion Live and a standard enrollment expense are both valued at Euro 249 (USD 298). It is still a steep discount compared to the full price of 2399 Euros in 2018. But, I guess I am not going to be twice lucky, as I had alluded to in my previous post. There is no free lunch…
As a hybrid ‘Events’ model emerges, this is a quick summary about the potential gains for the Organizers as well as the Consumers below.
Benefits for Organizers
Regular ‘Digital’ Revenue Stream
A major appeal was the absence of Product installation and removal costs (as one vendor of the Canton Fair had put it – on the virtual Canton Fair)
Content Reuse and Monetization
Global Consumer Base
Annual/Membership Programs
1st Party Data Repository
Benefits for Consumers
Monthly Exhilaration Calendar
Highly Economical Entertainment – No Travel & Lodging Costs
Rise in Number of (Global) Events Attended
No Logistics Hassles
Reduced Health Hazards
Takeaways for Marketers
Four things to consider in making a brand matter at “Hybrid” Events from now on:
1. Evolution and adaptation of Content to the Digital and Social Space
2. Use of Social Features to recreate Offline Behaviours
3. Re-imagining Communications initiatives for an Online/Social Strategy
4. Innovation through allocating Event Budget to Marcom Technologies
In Conclusion
Physical Events will be support for Digital Events, with smaller events supporting bottom of the Funnel Sales. – Ronald Van Loon AI & IoT Expert
Consumers indeed have an option and opportunity to pick and choose the medium of their attendance. The Organizers have found a way to earn their revenue, while entertaining the fans on both mediums. Win-Win!
References and Sources
1) Tomorrowland 2020: https://routenote.com/blog/over-1-million-people-went-to-tomorrowland-online-this-year/
2) Tomorrowland Revenue: https://www.reddit.com/r/Tomorrowland/comments/cjhu59/revenue_of_tml/
3) Cannes Lions: https://www.canneslions.com/early-bird-terms-and-conditions-2#:~:text=The%20total%20cost%20for%20a,pass%20for%20the%20eligible%20individual
4) Ogilvy Paper and Conversations That Matter: A New Game for Virtual Events
5) CES 2022 Hybrid Event: https://venturebeat.com/2020/07/28/ces-2021-will-be-an-all-digital-event-in-january-2021/
6) Cannes Lions 2021: https://www.devdiscourse.com/article/entertainment/1527271-covid-19-impact-cannes-lions-2021-to-run-as-fully-digital-experience
7) Tomorrowland NYE 2020: https://www.bizbash.com/event-tech-virtual/hybrid-virtual-event-production/article/21220863/see-inside-tomorrowlands-virtual-music-festival-that-drew-950000-attendee
8) Tomorrowland 2022: https://www.edmtunes.com/2021/04/tomorrowland-plans-2022-comeback-with-a-month-long-festival/