Global Market Outlook on Audio Visual and Creative Agencies
In 2017, the global Meetings, Incentives, Conventions, and Exhibitions (MICE) market was valued at approx. $797 billion, and it is expected to grow at 6–7 percent to reach approx. $840 billion in 2018. AV production and creative services in events account for 8 to 15 percent of the meeting spend, based on the technologies employed.
- Percentage of Meeting Spend: AV production and creative services in events account for nearly 8 to 15 percent of the meeting spend
- Growth Rate: Growth rate of 7–8 percent is expected, it is higher in Asia, lower in North America and Europe, and stable in other regions
- Growth Drivers: Rapid expansion of hotel properties and the introduction of new venues for M&E are the key growth drivers
Key Trends in AV Production and Creative Services Market
The AV landscape changes just as often as the tech industry. Large companies need to be aware of the latest technological innovations in order to provide their attendees an unique experience.
- Content has become more interactive and digital
- Companies should make use of video presentations and LED displays/signage among many other forms of digital setups and systems
- 4K monitors are so bright with brilliant colors that they cannot help but catch attendees' eyes
- The 3-D monitors offer a more interactive feel and companies wanting to show depth and dimension can easily incorporate them
- Videos are the new text when it comes to delivering and conveying information
- It is much easier and more fun to not only present information in the form of a video, but also to absorb it.
- An increase is expected in demand for live streaming events in the upcoming years
- Drone streaming is another trend that we expect to see paired with the live broadcast features of social media sites
The AV production and creative services supplier market is highly fragmented, with few global suppliers and a majority of local suppliers spread across the globe. Event production agencies typically provide two kinds of services – AV production and creative services. Large organizations usually categorize the AV production and creative services into two, based on commoditization of the categories. AV and production services can be commoditized, while it is harder to commoditize creative services.
- Typically, AV and production services are considered as one category, as these services can be commoditized
- The number of equipment units, technicians, and the number of items used can be defined in these services
- Services include:
- Creative services are usually considered as a separate category, as these services are harder to commoditize
- Creative services are more qualitative in nature. Only the items used in the actual production of creative themes can be commoditized
- Services include:
Leasing or Purchasing of Equipment
Earlier, number of large companies bought AV equipment and had their own technicians. Currently, these organizations predominantly rent AV equipment, owing to rapid advancement in technology. They do have their own AV equipment in their headquarters and in major countries where events are frequently held.
- Provides more options and increased flexibility since organizations have total control over what they purchase
- Endpoints and infrastructure can be customized to meet the organization’s exact specifications and requirements.
- No upfront costs and expected monthly payments
- Equipment is easier to update and replace
- Companies will always have access to the latest technology