Behind The Pricing Curtain Of A Digital Experience
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For many planners, the pandemic has been a crash course in learning a new way to put on events and activations. As we’ve written before, there’s been a deluge of information on HOW to put on a successful digital event (some of which we’ve written) - some of it extremely helpful, some of it a regurgitation of what you’ve likely already seen. There’s no silver bullet though, much as we’ve all searched for it!
A LOT STILL RIDES ON EVENTS.
As I write this, the vaccine is available and being distributed, but our industry is forever changed, and we will be experiencing hangover symptoms of 2020 to some degree as we make our way through the next 12-18 months.
Regardless, the show MUST go on (or, rather, BUSINESS must go on), and for many companies, events are a crucial component to ensuring people meet, learn, be inspired, network and close deals. Equally as crucial, these events must be engaging and compelling - or we lose attendee’s attention and goals are not met. A LOT still rides on events.
There’s been a healthy debate about investment levels of a digital event as well. Experts and novices alike do not agree on whether or not a virtual event is more or less expensive than a live one. How is this even possible? Well, like many things (especially related to money!), it all depends.
We’d like to shed some light on what goes into pricing - give you a peek behind the curtain to what, based on our experience, goes into a budget for a well done and business-transforming virtual event. The key thing to keep in mind is with virtual, you have the ability to scale AND collect data in a way that you cannot with a live event. That’s a silver lining in and of itself.
1) PLANNING
We cannot underscore enough how much time and effort goes into the planning phase of a digital program. Though it may seem counter-intuitive, as much if not more planning goes into virtual events, and this is because the medium has to work harder to attract and maintain attention. As noted in our blog from a few weeks ago, we make it a practice to ask a multitude of questions - from the strategic to the technical - so that we have enough information to set a solid foundation for the program and build up from there. The “plan” is more intricate in digital than in live - there is no way around this if you want to do it right. Invest in your planning, and enlist professionals to help or handle it outright (with your participation and collaboration of course!). The plan must also include KPIs and a measurement plan. Otherwise, justification for doing another will be that much more challenging.
2) DESIGN
A digital program is limited to a computer screen, and if you’re lucky, a mailer or custom box with items designed to enhance the on-screen experience. We all know personally by now how much attention to detail matters to an attendee on the receiving end of the experience - it connotes how important and special the recipient is. Was the presentation of the material well-crafted? Was it aesthetically pleasing or interesting? Did it complement or add to the information delivered? Was the overall experience high quality? In addition to clever and creative ideas, the execution and design of them is imperative to communicating to your audience that they are worth the investment. It sets you apart from your competition, which is anything competing for your attendee’s attention, but the way. (On this note, we’ve heard anecdotally that a blockbuster movie costs more than $1MM per minute to make. Now, this isn’t exactly what we’re competing with but we have to consider that it’s what we’re conditioned to want).
3) PRODUCTION & LOGISTICS
Depending on the type of digital program you’re putting on, this will vary quite widely. You’ll have levers in your budget to pull and weigh, but here are the big ticket items to consider:
Platform: there’s a wide swath to choose from and the price range is equally diverse. It is always best to select your platform after your goals have been set.
Studio production rental + lighting: this should be included if you are pre-recording or want a more controlled live environment for speakers or panels. We recommend this be factored in as a professional setting will also enhance your end experience.
Activities: keeping your audiences engaged will be easier if there are participatory activities to flank keynotes, panels and other non-collaborative components.
Entertainment: just like in live events, entertainment helps break up the day/session by providing an intermission for the brain. Attendees are able to switch gears to a passive and pleasant.
Home deliveries: it goes without saying that just about anyone appreciates a delivery that’s been thoughtfully curated and crafted to complement a digital event. We are starved for the physical, so including a delivery component - while it can become expensive when taking into consideration cost of goods plus shipping - it will compel higher attendance and commitment of participation.
International: if your program is international, there are MANY complexities to consider: time zones, additional shipping costs, translations, captions and more sophisticated platforms.
You’ll discuss all of these in the planning phase, and determine what makes sense for the experience you’re looking to create and based on your priorities from a budgetary standpoint.
Your run-of-show will be extremely detailed because a digital experience will have more of a broadcast quality to it (again, if done right!). Budget time and resources for this too, as it will grow, contract, change, etc.
4) ON-SITE
Because this is not yet an automatic assumption, “onsite” for virtual events begins during tech rehearsals. We recommend including two at the least - one for tech and another actual “dress” rehearsal. Make sure you have the right staff in place to handle the demands of the day (or days), as there will be many.
Additionally, most digital events these days include breakouts of some sort but 99% have a chat function of some sort. Both scenarios require moderators to monitor the chat. This person ensures attendees are taken care of, have their questions answered and prompts the group to converse on a chosen topic.
There are other roles necessary as well to ensure a seamless experience for your attendees - see a comprehensive list here.
5) POST-EVENT: FOLLOW-UP COMMUNICATIONS, ANALYTICS & MARKETING
Much like a live event, most virtual events programs contain a follow-up component of some sort, except given the digital format, this is easier and even more trackable. Virtual event attendees have come to expect communications from the event sponsor or host; our advice is to include useful content of some sort so that you may be remembered long after your event. The budget that might have gone into swag before that would sit on someone’s desk should alternatively go toward a compelling and informational piece for the attendee.
Additionally, if you’ve set your program up correctly, you’ll be able to track the results of your efforts, account for lessons learned and optimize accordingly. But most importantly, you’ll have data that will show the return on your investment. You’ll need this when you go to make a case to leadership for budget on your next virtual event, so it’s important you build in time for this.
Lastly, if it makes sense for your business, you’ll want to consider ways to merchandise your successful event with a case story or audio-visual feature that showcases your wins and/or is a piece of (again) useful content to build loyalty among your base and pique prospects’ interests.
In closing, there’s a lot that goes into a budget for a virtual event. Some of it you’ll share with your internal team, but enrolling a partner or two to complement your efforts will pay dividends - even if the value equation is still somewhat new and unfamiliar. Challenge yourself and your team to hold high standards for your events and appropriately invest - your attendees are counting on it. Your business depends on it too.
Updated on Jan 22, 2021
PART II: BUDGETING GUIDE
After the great response to part I (above), we’re excited to continue the open conversation with part II that includes actual numbers for a good, better, and best virtual/digital experience. Please fill out the form below to receive the guide.
Need some strategic insight for your next brand activation? We’d love to hear from you.
