Physical, Virtual or Hybrid Events - Which Approach Is Best?
Events are essential for any business, regardless of industry or size. These events provide platforms to establish connections with potential clients and foster relationships with existing ones.
In 2021, the Events Industry Council (EIC) commissioned a study with Oxford Economics to gauge the global events industry's economic impact.
The findings revealed that corporate events generated over $620 billion (USD) of direct GDP while contributing a cumulative economic impact of approximately $1.45 trillion of global Gross Domestic Product. However, the question remains: How should businesses organize these events? Virtual, physical, or hybrid? Which approach is ideal for your company?
The Development of the Business Events Industry
Company events, also known as corporate events or gatherings, are organized for several reasons. The main reason is that they act as platforms to establish connections and foster relationships. Additionally, company events announce important news, such as new product launches. Other causes include the internal-focused ones, such as town hall meetings.
Business events began emerging in the early-mid 20th century with large, national conferences organized by professional associations, unions, government bodies, and charismatic individuals.
Over the last decade, the popularity of business events has risen significantly. This can be attributed to several factors, including higher infrastructure investments, increased focus on professional development, the popularity of online platforms, and the COVID-19 pandemic.
The digital revolution is also a significant factor in this rise by transforming how people communicate. It has given businesses greater flexibility to connect with potential clients and existing ones without being limited by location and time.
Technological advancement has also fostered the development of company events. Currently, attendees globally are more likely to attend virtual company events than in the past. This can be attributed to a lower cost of virtual events, the availability of high-speed internet connection in many parts of the world, and a more significant number of countries where formal company events face regulation issues.
The transformation in this industry shows no sign of slowing down. According to Deloitte's predictions, business events are expected to change drastically. They predict that virtual events will become even more popular, while physical conferences will be reduced due to restrictions by governments and international bodies due to the pandemic. They also forecasted a sharp rise in hybrid or mixed-reality events.
The History of Business Events
Industry events have been around since the early-mid 20th century. These events were primarily organized for educational, political, and trade purposes. The events were held by professional associations, unions, government bodies, and prominent individuals in society.
Among the early corporate events to be held include one in the 1930s by Emilio Collado, president of Standard Oil of New Jersey, which is today Exxon Mobil. The event took place for three weeks and was attended by over 500 senior executives from different countries. The issues discussed revolved around future market trends to technical requirements for building refineries.
Another notable business event held nationally was the 1945 Labor-Management Conference organized by the National Association of Manufacturers (NAM). The event brought together over 4,000 business people from around the country to discuss post-war economic policies. It was instrumental in supporting the NAM's opposition against wage-price controls and a permanent Fair Employment Practices Commission.
The first business event to be held in multiple geographical locations at different times is the International Management live Conference. It was held in Geneva for the first time in 1994 with over 800 attendees.
While the industry has changed considerably over the last decade, company events are still considered among the most popular forms of marketing.
How Commercial Events Have Progressed With COVID-19
The COVID-19 pandemic has resulted in an increase in corporate events for several reasons.
The emergence of online forums
The pandemic gave rise to forums held over the internet, usually through social media. These forums are essential tools for businesses to promote their brand while engaging with clients more interactively.
The popularization of virtual corporate events
Virtual events have become increasingly popular due to their simplicity and convenience. They are cost effective, readily accessible via an internet connection, and allow greater participation. People can attend virtual company events from remote or convenient locations.
The rise of physical commercial events
Despite the growth in virtual commercial events, physical events are still popular. This is attributed to the high cost of running online events accompanied by face-to-face contact between participants.
Increased popularity of hybrid enterprise events
Due to the pandemic, the rise in virtual and physical commercial events has led to a new genre of company events: Hybrid or Mixed-Reality events. These events combine the elements of both virtual and physical events. They combine the opportunities for participation through online platforms with a strong focus on face-to-face contact.
Virtual, live, or hybrid events: Which one is best for business purposes?
Virtual, live, and hybrid events are not mutually exclusive. Most company events use a combination of these approaches to achieve their objectives. While they all have a common goal regarding their value through participation, there are specific business scenarios where each type would be most suitable.
Virtual Business Events
These are events held online via social media channels, broadcast, or web conferencing tools. A virtual event may have an offline segment to allow for interactive activities such as Q&A sessions.
The benefits
No cost for venue and travel expenses
Overwhelming participation levels due to accessibility
Greater opportunities for branding and exposure
The drawbacks
A lower level of participation due to the lack of face-to-face contact between participants
Reluctance by many people or businesses to disclose information due to the heightened anonymity
Live Business Events
Live events entail the combination of business activities with face-to-face contact. They are held at specific venues, studios, or any other geographical location where participants can interact.
The benefits
Greater opportunities for networking and relationship-building
Higher levels of engagement and interaction due to face-to-face contact between participants
Improved knowledge sharing due to the exchange of ideas
Potential influence on buying decisions due to the high levels of engagement
The drawbacks
High costs associated with location, venue, and travel
A physical event in the middle of a pandemic would be potentially risky with regard to participants' health and safety
Hybrid Business Events
These events use a mix of virtual and live elements to achieve their objectives.
The benefits
Greater focus on communication activities such as interaction and engagement due to the combination of virtual and live elements
Higher levels of networking opportunities due to face-to-face contact
More practical knowledge sharing due to the focus on communication rather than presentation
The drawbacks
Concerns about security and increased liability
Complex organizational structure due to the need to coordinate activities across multiple platforms
Whenever you're looking for a reliable corporate or business event organizer and manager,Think Global Forum has resources and insight. Register your interest to join the community today to engage and discuss global topics with industry leading professionals.