From cost cutting techniques they could have followed during the event to what went wrong with the security management and from what lacked in the décor to whether the performances were good enough- Event organizers need to keep a tab on everything today. Organizing an event today involves heavy investments and thus after the event there are many questions that need to be answered.
One of the most prominent questions is regarding the ROI of the event. Every event organizer wants to know whether their event was a successful one or not and what the return on investment was from the event. The calculation of ROI in the industry today is not only complex but also varies in perspective and most organizers feel unsure about the success of their event.
We ask industry veterans on how they determine the ROI on Events.
Reema Gupta, Director, Red Entertainment comments-“It depends upon the kind of event you execute. For events where in a direct exchange for cash is involved we directly subtract the expenses from the incomes. Also consideration of other factors such word of mouth publicity and the kind of buzz generated helps us.”
Lalit Jain, Founder and CEO, Lakshya Events says-“It is without a doubt a daunting challenge for us. The calculation is very vague and what creates the worst confusion is that there is no fixed metric to determine the ROI. I have heard EEMA (Event and Entertainment Management Association) is working on that for now but till it comes up with something every calculation is an assumption as there is no full proof method. For now what we do is that we adopt standardized data from the market and work on it our own way. The result is very near to ROI but still it’s estimation at the end of the day.”
One of the most followed system to calculate ROI around the world is
(Gross Profit – Marketing Expenses) / Marketing Expenses. Wherein the Gross Profit has to be the benefits received from the attendance of the event, which however is an uncertain figure to zero down upon.
“For me a satisfied audience is the biggest return on investment”-says
Harimom Jatiya, Owner, Excellency Time Entertainment Pvt Ltd. He says money is not always important but it is the success of the events that counts. “An organizer too makes new contacts from the event for his business. I calculate ROI from the success of the event itself. If the event is executed properly, the audience is happy and it has managed a good response then it is all the return on investment I need. Many times when we have multiple events on a single date we hire artists for full day and make them perform on multiple locations to control event budget. It all depends on what you really expect from the event in return”- he completes.
_20250311123424_original_image_29.webp)
