According to the report, the total size of the events and experiential marketing industry for last audited year stands at INR 6250 Cr of which the organized sector represents INR 3750 Cr. Interestingly the top 25 agencies of the total organized sector account for INR 2183 Cr, that’s almost 59% representation by frontrunners such as Wizcraft, Showtime, Encompass, Shobiz, OML, Procam, Phase1, including others. Top 100 agencies represent nearly two thirds of revenue share of the organized experiential industry, and nearly 40% of the total experiential industry.
The report predicts the total spends towards experiential to increase to INR 7281 Cr in the current fiscal year as a result of an estimated industry growth rate of 16% to 17%.
An interesting find is that the organized sector constitutes 60% of the entire industry size while the disorganized sector sits at 40%. This ratio was recorded at 50:50 in year 2012 as per industry findings.
For the year 2016-17, experiential spends at INR 8483 Cr sit at 13-14% of the total advertising expenditure pie of INR 62,483 Cr. The report makes another bold statement by declaring that spends towards experiential marketing are greater than spends towards digital, albeit marginally at 13.6% and 11.9% respectively.
Other key findings include that debt equity ratio at
1.85 – 1.95 is high, and represents that agencies are dependent on external borrowing to finance operations. Profit ratio for the experiential agencies was estimated at 4 – 6 %. Net worth (representing current assets - current liabilities) of the Top 50 experiential agencies is INR 17 – 19 Cr.
Financial data of a sample of 150 agencies was acquired from Registrar of Companies, Ministry of Corporate Affairs, and individual filings of agencies were accessed to acquire various data points such as revenue, profit and debt ratio for the purpose of the report.
Research through Industry opinions, trends and extrapolation based on previous reports and findings have also been used for this comprehensive study of the multihued Indian event and experiential marketing industry.
