How much does a virtual awards show cost?
In the “old world” the majority of a show's production budget was going on moving equipment and people around; in order to set things up and take them down again. Catering and venue budgets, mostly going on food and drink. But with a virtual event, these costs don't exist.
As a result, practically all of the budget goes directly on things which either enhance the audience experience or drive value for sponsors. The equipment remains setup at The Virtual Venue and there is minimal transport.
How much can be charged for tickets?
This is very much down to each audience. We have witnessed some organisers transfer paying guests over to virtual at the same ticket price - while others give free entry to virtual awards. When considering where your show should sit in this spectrum consider carefully how your guests will feel in a year and whether they will come back. I believe that virtual events should certainly have a lower ticket price, but how low depends on the value you are providing. For example, an awards show that is supported with high-quality deliver-to-door dining and rich live engagement can command higher prices than one which is a dry stream.
Typically we are seeing shows that would have traditionally had a production and content budget of around £40,000 being delivered for under £10,000. This includes technical, content, and venue hire. Typically speaking a 50%-80% cost reduction on production is achievable. Catering costs can drop to almost zero. There are no venue costs as the venue now becomes a production cost as it is the studio from which the show is streamed.
How much can sponsors justify spending?
Typically sponsors and organisers are concerned about the sponsor opportunities of a virtual event. However this is one of the best parts of virtual events - sponsor exposure can be increased substantially and to a larger audience.
In order to establish the value of sponsor packages, it is vital to understand what benefit can be derived from a show’s sponsor options. Is it brand awareness? Data capture? Access to direct mailing? In-show messaging? This can then define the sponsor package fees.