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The Indian events and activation industry - The transactions opportunity and RoI measurement - EY - India

The Indian events and activation industry

The transactions opportunity and RoI measurement

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Deal activity in the events and activation industry has been minimal. The industry was largely unorganized and most of the players had not achieved critical scale or size.

Historical M&A landscape


Deal activity in the events and activation industry has been minimal. The industry was largely unorganized and most of the players had not achieved critical scale or size.

The sector did not attract the attention of private equity (PE) funds, primarily due to:

  • Regulatory uncertainties around entertainment taxes, licenses and permits required, etc.
  • No established best practices from a PE perspective
  • Inadequate financial transparency and low degree of control
  • Concerns around the stability of future cash flows, margin management and the ability to achieve critical scale

Deals in the events and activation industry

Date Target Investor Industry Deal Type
June 2012 Hungama Digital JWT Activation Inbound
July 2011 Direxions Global LoyaltyOne Databasemarketing Inbound
October 2010 Asian BusinessExhibition andConferences QInvest LLC Events Private
Equity
June 2008 Megaron MCI group Activation Inbound
April 2008 ChateauxHospitality Pvt.Ltd. (Rams) WPP/Grey Events/
Activation
Inbound
April 2008 PerceptHoldings Pvt.Ltd. Everstone,JPM, PassportCapital Events /
Activation
Private
Equity
January 2008 EncompassEvents Pvt. Ltd JWT Events /
Activation
Inbound
December 2006 Sercon IndiaPrivate Limited Bates Asia Events /
Activation
Inbound
November 2005 SolutionsDigitas Publicis Groupe Events /
Activation
Inbound
January 2005 Kidstuff Promos& Events DDB Mudra Events /
Activation
Domestic

Demonstrating return on event investment (RoI)


Measurement of RoI and transparency of costs are amongst the most important requirements from service providers of event and activation companies.

An analysis of the size of the TV and radio industry suggests that introduction of a universally acceptable measurement metric has led to an increase in advertiser confidence in the medium, and boosted growth.

Thus, there is a strong case for the Indian events industry to define and implement a standard measurement metric to demonstrate RoI.

Wish list from your existing events agency
Wish list from your existing events agency

A proposed approach
A proposed approach

Over a period of time, the Events and Entertainment Management Association (EEMA) or another industry body could define a universally acceptable set of guidelines for measurement of awareness, trial, sales, etc. A standard could be created, which would go a long way in building advertiser and sponsor confidence, and provide a further boost to growth.

 


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