8 Agency focus
SHORT LEAD TIMES , SHORT TERM PLANNING … LONG TERM SOLUTION
Martin Fullard looks at how short lead times and short-term planning are putting strain on many agencies . But a more long-term view is that agencies must evolve to meet changing demands
he global economic climate has felt like it has been in a state of almost ‘ perma-crisis ’ since the beginning of 2020 . Through the pandemic , conflict , and geopolitical crises all leading to rises in inflation , spiraling costs , and strained supply chains , businesses and individuals have arguably feeling rather battered and bruised .
The knock-on effect is permeating every corner of our lives , and in a business sense , anecdotally at least , decision-makers are less able to plan strategically for the long-term than perhaps they would like . There is a sense that short-to medium-term thinking is the only way to manage the current landscape .
What this means for the conference and meetings industry is a change in habits towards forward planning . There is no doubt that demand for in-person conferences and meetings is stronger than ever , with the seemingly relative collapse of the wider , arguably inflated , virtual event platform sector suggesting as much . As organisations hold on to their ever-tighter budgets for just that little bit longer , it means that events are being booked with shorter and shorter lead times .
Indeed , according to the Events Economy Tracker Q4 by The Business of Events and Venue Performance , the average lead time for conferences and meetings in 2023 was 78 days . Generally , the lead time was closer to three weeks in the case of simple meetings . This can put a strain on agencies as well as venues , as availability and preferred locations are often harder to secure .
The knock-on effect of this , together with the increasing costs caused
Claire Fennelow
Julie Shorrock
” Demand for in-person conferences and meetings is stronger than ever , with the seemingly relative collapse of the wider , arguably inflated , virtual event platform sector ”
by inflation , is that the revenue per delegate has also gone up . According to the same report in 2023 , costs peaked in Q2 at just under £ 140 per head , with the yearly average settling just under £ 120 , some 12 % higher than 2022 .
The figures suggest that budgets have broadly stayed the same , but fewer delegates are being planned for by way of compensation . The average event size in 2023 was 59 delegates , some 37 % below 2022 ’ s average of 93 .
On top of this is the familiar soundbite that clients are demanding more than ever , as perhaps they should . It takes an agile and strategic agency to be able to deliver on these demands in the face of economic pressures .
Stress levels on the rise Claire Fennelow , executive director at industry association EVCOM , says of the key challenges faced by creative agencies : “ There ’ s certainly more work , but client budgets are reduced . From both a time and a financial perspective , agencies are being expected to do more for less . And this has a knock-on effect on everything they do .
“ At EVCOM , we have found that some of www . conference-news . co . uk