As the UK continues to grapple with economic uncertainty, financial pressure is being felt across every sector and the events industry is no exception. The cost of living crisis has been at the forefront of our minds for years now. We all experience it, from rising bills and huge grocery bills at home to rising supplier costs in the events world.
Research from The Audience Agency (published June 2024), found that 71% agree they are ‘worried about the cost-of-living crisis and its effect on [them/their] family’and 49% say that their disposable income has decreased in the last five years. Financial constraints appear to lead directly to reduced cultural attendance, with 61% agreeing that the cost of living crisis means that they expect to attend less paid for entertainment and leisure activities over the next year. Furthermore, in 2023 they found that 52% of respondents who consider themselves worse off financially than the previous twelve months are also attending less events than the previous twelve months.
So, with event attendance taking a hit and event organisers facing rising costs for venues, catering and other suppliers – how are event agencies being affected?
Conference News spoke to three agencies – brand experience agency Strata, INVNT a brand story agency and Patch Marketing, a full-service marketing agency to find out how the cost of living crisis has affected them.
Rising Costs and budget realities: The new economics of events
From soaring venue fees to increased salaries and operational expenses, agencies across the industry are grappling with the financial pressures of the cost-of-living crisis. Balancing these rising costs with clients’ tighter budgets is forcing tough decisions and sharper focus on project viability.
Claudia Stephenson, managing director, INVNT EMEA says: “The ripple effect of rising costs is being felt across all areas of our operations, from logistics to staffing to travel. As a global agency, we’re constantly managing variable costs across multiple regions, and the increased cost of living has certainly introduced more complexity into how we plan and deliver events.”
For Patch Marketing, its operational costs have risen by 25% since 2023. Jackson Clarke managing director says: “The number of tools and systems we’ve implemented to streamline processes and enhance collaboration both internally and with clients has increased, so annual subscription fees are a notably increased cost.”
He adds: “Since the pandemic, we’ve increased salaries for entry and mid-level roles by around 30%, driven by the steady rises we’ve seen across the board for similar positions within the sector. This has come to be the expectation of people with the skillset and experience we’re looking for and reflects the reality of ever-increasing living costs.”
Cole Mulkerrins, CEO of Strata echoes the challenges faced across the sector: “Like many in the industry, we’ve seen an increase in operational costs. From energy bills and travel expenses to the cost of materials and services. We’re definitely considering how best to plan, budget, and deliver incredible experiences for all of our clients. “
Higher costs from suppliers and venues are further compounding pressures. As Stephenson notes: “Year-on-year increases are expected in this industry, but the current spike is more aggressive, particularly from suppliers and venues whose own operational costs have skyrocketed due to energy and staffing expenses.”
Creativity under pressure: Delivering value without compromise
Obviously, clients still expect exceptional events even with constricted budgets and despite financial headwinds, agencies remain committed to delivering engaging, high-impact experiences. Smart planning, innovative thinking, and agile solutions are helping event professionals maintain quality and creativity without blowing budgets.
Clark explains that the increased operational costs mean that the agency have had to consider new opportunities a lot more carefully than in previous years. He says: “With the investment needed for continual development of our team and working systems to ensure we remain at the top of our industry; we have had to decline some work. “
He adds: “One of our core values is honesty, so if we feel there isn’t enough budget to achieve what’s required and deliver tangible success, we’ll be very transparent about this. While we don’t like having to politely decline any work, we want every partnership to be mutually beneficial.”
Meanwhile, INVNT are focusing on creating experiences that are more targeted, inclusive and content rich, something that they believe is an important evolution in the events world. Stepehnson said: “Attendee expectations have shifted, not just due to financial factors but because of broader lifestyle and content consumption trends. It’s about delivering pragmatic inspiration, experiences that are both meaningful and memorable.”
Mulkerrins adds: “We’re designing experiences that can scale based on budget and audience needs. Connecting brands to value add moments that audiences choose to engage with. Earn their attention, not demand it, and measure the impact.”
Shaping the Future: Technology, Hybrid Solutions, and Industry Evolution
Economic pressures are accelerating change, pushing agencies to explore technology, AI, and hybrid event models. As the industry looks ahead, there’s a growing emphasis on sustainable formats, personalised experiences, and redefining how value and ROI are measured.
Clarke says: “It feels inevitable that if everything it takes to deliver exceptional events becomes increasingly more expensive, we will see less events taking place or more stripped back execution. The perceived value of in-person connections and shared experiences hasn’t diminished, but we face a reality where certain elements simply become unaffordable.” He explains that planners will need to explore and develop creative ways to amplify their event marketing, so that the entire lifecycle is fully maximised for ROI and attendee retention.
At Strata, the agency has seen an increasingly collaborative model emerge with shared risk agreements, co-branded initiatives and joint ventures, all of which help to distribute costs and create more resilient partnerships.
Mulkerinns says: “It is not a crisis per se, it is a period of accelerated change, where budgets are scrutinised and clients deman more ROI. Change fuels creativity and it is forcing agencies to be more effective, more innovative and work more collaboratively with clients to develop better solutions together.”
He added: “We may see a continued shift toward smaller, more targeted events, greater demand for ROI transparency and a stronger emphasis on sustainability and efficiency. Agencies will need to be more consultative and data-driven.”
Despite relentless financial pressures, event agencies remain determined to innovate, proving that creativity and resilience can keep the industry thriving even on a tightrope.
As budgets tighten and expectations rise, it’s clear that those who adapt, collaborate, and think smarter will shape the future of unforgettable live experiences.
