How has the Russian event marketing market changed over the past five years?
Alexey
Previously, we were given the task of creating the perfect event. Typically this involved wrapping the entire room in vinyl and laying down carpet. A lot of money was invested in “ideality”. Now demands are changing. We recently did an event for Jaguar in an old Soviet swimming pool - we drained it and put a car worth about three million in the center. People entered the premises through shower stalls. And for the S7, they held an event in a hangar where airplanes are repaired - bolts were visible, a piece of a wing lay somewhere. Vinyl is gone, the polish is gone, people are waiting for something real. You're not trying to make a space where everything is perfect, you're trying to make an event where you can feel something.
What are the main trends in the market in the next three years? Where is the industry going?
Alexander
Previously, brands created a shell for which a person went to an event and watched a commercial. There were velvet curtains, a cool buffet table, a stage - everything for the guest to watch the video. Now the shell is not enough to concentrate - while the ad block is running, people switch to their phones and chat with friends.
Alexey
We are used to not watching advertising and do not want to see it at an event. But brands need to say something. Therefore, the event should be centered around a story inspired by the value behind the brand. If we present a new S7 aircraft, we talk very little about its improved characteristics - but the main focus is on the travel that becomes possible with this product. The show is inspired by the product, but the product itself is not featured. This is very difficult and risky. Some clients are ready for this. Some don’t, so they lose—people switch off.
There is an opinion that digital is eating away the share of the event. For example, today it is technically possible not to hold conferences offline - just put the speaker in front of the camera and set up an online broadcast of his speech. How will this trend develop in the long term? Will digital events kill?
Alexey
They need to get married. For example, we had 600 people at the presentation of the S7 aircraft, and a three-minute video after the event was watched 4.5 million times. Another way to combine offline and online is to stream. We did a Night Flight Show for S7, where they gave away a million miles among the participants in their program. We organized an event in the form of an immersive theater and streamed it from there. As a result, the performance lasted 40 minutes and was watched by about four million people. Will digital events kill? Why should he kill if people need something to watch.
What should an event be like to attract the interest of representatives of generations Y and Z?
Alexey
Firstly, since they are not focused on owning things, but on new experiences, the event itself must be an experience. It's quite difficult. A standard buffet and tartlets will not do. Secondly, everything that happens at the event should be Instagrammable, plus or minus. This is also a non-trivial task. People want to take pictures of everything. You put up an LED stick and expect that they will take it down - it won’t work that way. You need to think. Third, they switch quickly, so there shouldn’t be any drag. And lastly, for the new generation it is important that the brand carries some value and really changes their lives. They want to know - how is your company making the world a better place? You must answer this question or they will not be interested.
Alexander
In the last few years we have felt a very short period of fashion for anything: activities, memes, characters. We are talking about days and weeks. Therefore, the brand’s ability to react quickly is valued - you prepare an event with your goals and organically weave in what has become fashionable during this time.
What competencies should a modern event marketer have and where can they be obtained?
Alexander
By nature, an event marketer must have good empathy, be able to feel with the audience - understand what is good and what is bad and react flexibly to it. And you achieve professional competence in about five years - then you just have to follow the trends. ANTON, ADD ABOUT THE COURSE HERE
What are the specifics of the Russian event market compared to other countries?
Alexander
We have a tradition of large events that host a thousand guests or more. This gives us opportunities that are more difficult for Europeans to gather: a banquet for a thousand or five thousand people is something extraordinary for France. Plus we have high competition. It’s probably hard to work in Bulgaria and Austria - there are no big companies or big demands there. But in Russia, good agencies fight for a good event and gradually hone their skills.
How has the crisis affected the Russian event industry market?
Alexander
Event is a function of optimism. When people expect everything to be fine, they meet, hold awards, presentations. When optimism disappears, all this is crossed out. Therefore, we feel the cooling of the market before anyone else, and only after some time do retail sales begin to fall, investment activity begins, and the crisis becomes noticeable. This is one fact. On the other hand, as soon as some hope appears, activities are immediately carried out. We are the earliest to shrink and the earliest to thaw - GDP has not yet begun to grow, investments have not yet been reflected in statistics, but we are already seeing that the market is reviving.
Are you shrinking or thawing now?
Alexey
We are thawing. And all our competitors. Everything is growing little by little.
The main problems in the industry today?
Alexey
Finance. First, clients made a postpayment for 60 days. Then they introduced an agency agreement - according to its terms, we must provide documents from contractors for all expenses incurred at the event. The agency collects such documents within a month or two. As a result, under the agency agreement, we get paid in 4-6 months. This slows down the development of the market and destroys it. The second problem is the commission. When we started working, the commission was 15-20%. Now it drops to 5%. In reality, it is impossible to work with such a commission; 5% is the end of the market. And we will fight this.
How will you deal with this?
Alexander
We need to unite with our own kind in order to agree on the rules of the game - what conditions we agree to work on and what terms we refuse. We hope that this will lead to a balance of interests in the market.
Alexey
We want to agree at the association level among large agencies about certain responsibilities that we bear and reasonable requirements that we present to the market. Including - not agreeing to 5%.