The study of ANAé highlights a healthy market
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ANAé (French association for event agencies) has just published its annual study, a report conducted among its 61 agency members. According to this study, the growth is maintainedt: the accumulated billing of the agencies ascends to 626 million Euros (+10,5 %) in 2006 and the gross margin has grown up to 178 million Euros (+10,5 % also), representing a 28.5 % of sales.
According to the association, this growth “confirms the development of events as a communication tool for companies, and the value added of agencies is increasingly clear”. The ANAé also highlights the importance of the training that it offers to its members in the consolidation of this added value.
Looking at the future, 51 % of the agencies foresee a market growth, whereas only 5 % foresee a decrease.
¿To bid or not? From the 75 % of the agencies who sell 75 % of its events to its existing clients, 34% sold without a bid, 41% with a bid and 25 % corresponds to new clients. The bad news for agencies is that fewer and fewer events are awarded by renewal without bidding (the proportion has lowered from 41 to 34 %). The association admits that the work that they have done with advertisers did not improve the situation, and that the purchasing departments have a minor role in the consultations (from 28 to 22 %) but a major role in the decisions (from 20 to 22 %).
The model of remuneration recommended by the ANAé, combines fees for conceptualization, in time spent and margin on services, generalising 78 % of invoices for conceptualization, 80 % invoices for time spent and 70 % invoices for margin on services.
Other learnings: according to the agencies, include: clients consider event to be increasingly “an investment”, but they still do not define a clear annual strategy. And they increasingly ask for the measuring of the impact of their events.
Finally, the association reminds that the mobilization of the whole event sector in favour of sustainable development. But the demand remains only slightly clear: according to 40 % of the agencies, their clients are not sensitive to the sustainable development, while a third said that their clients are.
