As the world gets back to a semi-sort of normal, many businesses continue to deliver or host virtual events instead of or alongside in-person events. Some organizers are even dropping virtual completely in favor of in-person, but there does not seem like a clear-cut answer as to whether virtual events are cheaper to run than in-person events.
While it may seem like virtual events do not have the overhead costs associated with in-person events, such as venue rental, security, build, and catering, there are still expenses for things like technical support and online event management software as well as quality broadcasting equipment to create an immersive experience - though it's not completely necessary! Additionally, virtual events require a lot of time and effort from organizers to ensure a successful virtual experience for attendees.
However, what really matters is the return on investment (ROI) of an event – whether virtual or in-person. In-person events offer networking opportunities that are very difficult to replicate online, as well as face-to-face interaction, and a sense of community that may not be easily replicated in a virtual setting as well as making it easier for event participants to find new products, new exhibitors, and new opportunities.
Additionally, studies have shown that people retain information better in a live setting, primarily due to the fact they are not distracted by everything else going on around their laptop or tablet when they tune into a virtual conference.
So, are virtual events really cheaper than in-person events? And is the ROI worth it? Let's take a closer look at the options.
What is a virtual event?
Before we dive into the topic, we need to understand what we're referring to when we use the term "virtual events".
For the purpose of this article, a virtual event is an online conference or summit that is held over the internet. Participants can join in from anywhere in the world and can often participate in real-time sessions through chats and polling, for example.
Compare virtual and in-person events
Here we look at key factors when it comes to delivering either a virtual event, in-person conference or trade show that event planners and organizers should consider. We've created a sample comparison chart below, based on our experience delivering both types of events for clients (insert a chart / table of the subject and who wins?). Who will come out on top?
Event Networking
When was the last time, on a coffee break from a virtual event, you picked up your phone and spoke to another random participant of the event? It's unlikely.
Virtual events struggle to replicate that serendipity of meeting someone new whereas at in-person trade shows or networking conferences, not only can you spark conversations more at random through, for example, discussing the last session you attended, but it's easier to be introduced into a conversation already ongoing at these types of events.
Which ever option you go for, it's clear that you need a matchmaking or networking app to help facilitate connections, meetings and introductions. This typically helps to generate greater leads, increase business opportunities and drive ROI - but just consider that this is more difficult to achieve in a virtual setting where attendees are not physically co-located.
Anne Lafère, Group CEO at Easyfairs Group, commented in their recent financial release “We’ve done many digital pilots and we’ve seen that online events work exceedingly well for educational purposes. But nothing will ever replace the joy and the efficiency of meeting in person when it comes to doing business.”
When you consider that in-person events have the bonus of 'accidental networking' it's clear that they win this round.
In-person events 1, Virtual Events 0.
Event Distractions
When you attend any event, exhibition or conference, your purpose for attending is clear - you are there to learn, network and/or meet new and existing suppliers and partners.
However, one of these leads to more distractions and interruptions such as delivery drivers, kids coming home from school, YouTube, Netflix... the list goes on.
Whilst you may have fully intended to join every session online, it's too easy to become distracted when you can still access your emails, work documents and other day-to-day tasks at the same time.
In comparison, it's easier to fully immerse yourself in the event itself at an in-person event as there aren't these everyday distractions that are so easily accessible. However, those coffees you go to grab with an old colleague, client or partner could mean you miss a session or an important meeting - though the reason you're grabbing that coffee may be just as important!
For this round, in-person events come out on top.
In-person events 2, Virtual events 0
Event Costs
This one should be a hands-down win for virtual events to come out on top.
Whilst there may be a cost for the technology used to hold the event, it's likely to be significantly lower than booking physical venues, catering and exhibition or staging build, for example.
The cost savings seen from any event participants are huge too. No hotels, no travel, no external lunches and dinners, and often there is no need for them to take time out from their day-to-day work just to attend your event.
Whilst virtual events may not offer all the bells and whistles of a physical event, it's clear that they come out on top with the costs involved.
In-person events 2, Virtual events 1
Accessibility at events
With virtual conferences and events, organizers can make every event accessible for all attendees and should make it mandatory for anyone attending an event both virtual or in-person.
Whilst event planners are to provide more accessible formats to both, it's likely easier to build onto a virtual conference than it is at a physical setting.
Making your event more accessible should be a number one priority and should include providing access to sign language interpreters, real-time transcription, and closed captioning helping to make the event more accessible than in-person. It's crucial for events marketing teams to include accessibility information in their campaign material, making it easily accessible for anyone to find.
Quite rightly, there is much more focus on inclusivity and diversity at events or trade shows and conferences including building quiet spaces for those who may struggle with sensory overload or social anxiety as well as providing a range of dietary options for attendees. However, it can still be difficult to make the event entirely accessible for all attendees at in-person events.
Whilst live events are making more of an effort to be inclusive of all, it appears that virtual events win this round.
In-person events 2, Virtual events 2.
Event Experiences
Have you seen Jurassic Park? Did you watch it at the cinema, at home or did you go to the latest exhibition at ExCeL London? If you have done at least two of the above, which one left you feeling more excited? Which one felt your senses come alive?
Ok, so you may not have the sticky floors and the smell of days-old stale popcorn at home, but the event experience that can be obtained from a physical event is hard to replicate online.
Whilst virtual events work on immersing the attendee in the experience through polls, live chats and interactive sessions, being physically present at an in-person event allows for a more tangible experience.
You can see, touch, taste and feel the atmosphere of the event and all it has to offer. You won't forget that time you bumped into a robot in the aisle or the Lego character you got to take home from the breakout session.
For this round, in-person events take win.
In-person events 3, Virtual events 2
Sponsors and Exhibitors
This one would likely take the fight right to the very edge, there are pros and cons to both options here.
Whilst virtual events may have a lower cost of participation for sponsors, it's important to consider the value that is being provided for those sponsors and exhibitors. Will they still have access to the same level of attendees? Will they be able to build relationships in the same way as at an in-person event? Will they randomly meet new prospects?
Exhibitors and sponsors want to maximize their ROI, therefore it's important that they meet the right people for their business, whether that be through networking events or through how their exhibition stand is laid out which is why it's crucial to utilize an event matchmaking app as part of every event organizer's strategy to help facilitate successful meetings between buyers and sellers.
Whilst there are currently more real measurement opportunities on virtual events (clicks, follows, session interaction, proof of sponsorship visibility) which can be shared in real-time with exhibitors or sponsors, where face-to-face events traditionally rely on attendance, dwell time, leads captured, or scans in a certain area, it's ultimately about making those valuable connections to generate business.
Either way, post event, both exhibitors and sponsors should be provided with a detailed report of their ROI, demonstrating the value they received from participating in your event.
When researching which apps deliver the best returns, event planners should look at the Best Event Platform for Attendee & Exhibitor Leads to help deliver greater value for both exhibitors, sponsors and event participants. .
The jury is out on this round, one point to virtual events, one point to in-person events.
In-person events 4, Virtual events 2
Virtual Booth versus Trade Show Booth
This section refers to virtual booth builds versus trade show exhibition stands.
Whilst virtual events allow for 24/7 access to remote attendees, it's important to consider how many people will actually visit a booth in a virtual setting. As per the distraction section above, if an event participant came for the content, are they going to look around the virtual hall?
It's likely that a number of booths will not be visited at all during the event, no matter how well they have been promoted or featured in virtual sessions.
In contrast, at an in-person trade show, event participants will physically walk around the exhibition hall and visit stands that catch their eye. They may not necessarily stop at every stand, but they are more likely to discover new products or services as they explore or make their way to the next conference session.
Exhibition stand designs can also play a huge role in attracting visitors and it's easier to showcase and demonstrate products in person rather than through a screen.
Whilst virtual booths may again have a lower cost of participation and can still generate leads, in-person trade show exhibition stands are likely to provide greater ROI for exhibitors with the opportunity for face-to-face interaction and physical demonstrations.
In-person events 5, Virtual events 2. Final score:
Return on Investment
You only have to look at a number of recent articles about revenue increases at major event organizers to understand that ROI is up because in-person has come back and sponsors and exhibitors are flocking to the live event experience.
GL Events reports revenue up 84% in the first nine months of 2022. Easyfairs Group recently released their financial statement that the events company's revenues are close to pre-covid level and as Matt Benyon, Easyfairs Group CEO says "there's no doubt, trade shows are playing an important role in the economic recovery"
So, we can see that for traditional events or trade show organisers, the return of in-person has had a positive impact on their businesses. Can the same be said for sponsors and exhibitors?
Whilst virtual event platforms have a place, allowing for a more global reach and cost-effective participation level, it's clear that in-person events provide a more valuable experience that brings greater returns. Increased spending at in-person events, trade shows and conferences are proving to be a key driver in economic recovery for not just for business, but for global economies too.
In-person events win the ROI round.
In-person events 6, Virtual events 2.
New Formats of Events
Overall, while virtual events may seem cheaper on paper, in-person events bring a level of tangible experience and valuable connections that lead to greater returns and higher ROI.
Whilst it looks like in-person events come out on top, the one main event type we haven't included in this overview is that of Hybrid Events.
What is a Hybrid Event?
A hybrid event is a combination of both in-person and virtual event elements, allowing for a global reach and participation level whilst also still providing that valuable face-to-face interaction.
When you look at the results of our findings above, although in-person events come out on top at five points to two, it's clear that virtual events have their place, particularly for those with a global audience, those on a tighter budget, or those with accessibility requirements in many forms.
Hybrid events allow the best of both worlds and give attendees more flexibility in how they participate in the event. They also offer new opportunities for sponsors and exhibitors to connect with their target audiences through both physical and virtual touchpoints.
Whilst hybrid events may have a higher price tag than traditional in-person or virtual events, the ROI and value gained by combining both event types can often be greater.
Forbes recently noted that revenues have risen 60% following hybrid formats with sponsorship now accounting for 35% of its advertising revenue. So is that the way forward?
Hybrid events not only provide the opportunity for greater ROI, they also allow for extended event reach, increased attendee engagement, better data collection and an expanded attendee market.
Virtual, In-person or Hybrid Events - which is best?
So to answer the question - are virtual events cheaper than in-person events? It's not that simple. In some cases yes, in others no. It really depends on the event type, format, and goals of you as the event planner or organizer.
Whilst virtual events may seem to come out on top in a couple of categories, we can't deny that there is something special about attending a live event. The energy and excitement of being surrounded by like-minded individuals, networking face-to-face and the memorable experiences gained, all contribute to a higher ROI for in-person events.
But that doesn't mean virtual events platforms don't have their place. And with the rise of hybrid formats, event organizers may want to consider incorporating both virtual and in-person elements for a more successful and valuable event experience.
Virtual and hybrid events can provide a valuable addition to your event strategy and lead to increased ROI and attendee engagement.
It's time to start thinking about how you can integrate hybrid elements into your next event. Are you ready?
Sources:
https://exhibitionnews.uk/gl-events-reports-revenue-up-84-in-first-nine-months-of-2022/
https://www.adweek.com/media/forbes-events-hybrid/
https://exhibitionnews.uk/gl-events-reports-revenue-up-84-in-first-nine-months-of-2022/
https://www.easyfairs.com/2022/10/24/easyfairs-experiences-spectacular-rebound-after-pandemic/
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