How we measure event ROI (and why it matters)

Event ROI is something that’s constantly in the back of event organizers’ minds. It’s one of the ways clients and stakeholders gauge our success and is a key factor in determining future budgets and resources.

So, it goes without saying that knowing how to measure event ROI accurately is a must.

Don’t worry if you’re not super confident in this area. This guide will explain the concept of event ROI, its importance, and practical steps to measure it. It will also provide insights on how tools like EventsAir can simplify the process.

What is event ROI?

Event ROI is a metric that helps you assess an event’s viability. It tells you how much you “get” for the resources (time, money, and effort) you “put in” to organize it. If your event ROI is positive, you get more value than you spend, and vice versa.

Event ROI typically focuses on monetary value. As organizers, we often face clients or stakeholders who (understandably) want to see tangible results. So, many see event ROI as a simple ratio of revenue to expenses.

However, this simplistic view doesn’t tell the full story. There are plenty of other forms of “value” that you can include in event ROI calculations, including:

• Sponsor acquisition and retention
• Brand awareness
• Media coverage
• Attendee satisfaction
• Employee / member engagement

How to calculate event ROI

The formula to calculate event ROI (and ROI in general) is:

• (Return / Cost) x 100% = Event ROI

If you’re looking for a simple, revenue-focused ROI, all you need to do is plug event revenue metrics into the “return” and “cost” fields:

• (Revenue / Expenses) x 100% = Event ROI

However, what you plug into the “return” value depends on your event’s goals. For example, imagine a non-profit hosting a charity gala to raise funds and awareness for a specific cause. In this case, the total “return” value would include:

• Donations
• Media coverage

So, the equation would need to be adapted to:

• (Revenue + Estimated Value of Coverage / Expenses) x 100% = Event ROI

Why is it important to measure event ROI?

Event ROI is a powerful management and planning tool with wide-ranging applications. It helps you answer key questions like:

• Is continuing this event worth the investment?
• Should we invest more or less going forward?
• Did we hit our targets?
• If not, how can we improve?

Beyond that, it’s a powerful way to communicate the value of your events with clients, stakeholders, vendors, sponsors, and investors. It’s an easily understandable metric that boils down the effectiveness of your event into a single number.

How to measure event ROI

Now that you understand event ROI and its importance let’s discuss how to measure it effectively. 

Step 1: Set an event goal

Before you can measure ROI, you need to define success. Set clear, measurable objectives for your event. These could include revenue targets, attendee numbers, or sponsor acquisition goals. Your goals directly influence what you’ll consider a “return” in your ROI calculations.

There are tons of viable event goals, including:

• Generate revenue
• Generate sponsors
• Increase brand awareness
• Drive engagement

Step 2: Identify and track performance metrics

Next, you need to identify performance metrics that allow you to say whether your event has achieved its goal. 

For example, with sponsorship acquisition, you could track the number of sponsorship renewals, conversion rates from new potential sponsors, and revenue generated from those sponsors. All of these metrics have a fairly strong claim to indicate the success of your event in terms of revenue generation.

The tricky part is tracking these metrics. You can track many of them using a comprehensive event management platform like EventsAir—registrations, revenue, attendance, engagement, email marketing, leads, and more. You may want to also explore additional tech to further enhance your event reporting metrics, such as:

• Analytics tracking on your website and registration page
• A CRM integration to track registration status and conversions
• Social media analytics to track engagement and audience reach

Step 3: Track all expenses

Gather detailed information on all costs associated with the event, including venue rental, marketing expenses, staff salaries, and other expenditures. Ideally, you’re using a tool like EventsAir that lets you track these costs as they occur in real time.

The key here is being comprehensive—your expenses could include:

• Venue rental fees
• Marketing materials (e.g., flyers, posters, social media ads)
• Staff salaries and wages
• Travel and accommodation for speakers or performers
• Catering expenses
• Audio/visual equipment rental
• Insurance fees

With EventsAir’s Accounting dashboard, you can track all these expenses in real time via a simple interface. This allows you to monitor your budget and adjust as needed easily.

Step 4: Monitor revenue

Track all revenue sources generated by the event. This could include ticket sales, sponsorship deals, merchandise sales, etc. Be sure to segment by channel so that you can calculate channel ROI and overall event ROI.

What’s the difference? Let’s look at this example report from EventsAir’s Accounting dashboard.

It outlines the monthly revenue generated from ticket sales and is categorized by the source funneling the registration. This helps us assess the ROI of individual channels by giving us a comprehensive revenue breakdown.

For example, in this report, the event generated $236,156 in revenue from ticket sales attributed to paid social ads. If your expenses on ads, creative, and related costs were lower than this, it indicates a positive channel ROI.

Native payment gateway: EventsAir Pay

EventsAir includes a dedicated payment processor that facilitates seamless transactions for all types of revenue. This extensive feature offers several key benefits.

First, it ensures secure transactions, reducing the risk of fraud and giving event organizers and attendees peace of mind. Additionally, EventsAir provides real-time updates on all transactions, which means that revenue data is always current, allowing for accurate financial monitoring throughout the event.

Step 4: Analyze data

EventsAir’s customizable financial reports can help you easily analyze revenue and expenses, clearly showing your event’s financial performance and ROI.

Suppose the standard reports aren’t working for your specific use case. In that case, we give you fine-grained control over which data is used in each report, how certain variables (like tax and currency) are handled, and even the ability to create custom reports.

This allows you to create in-depth ROI reports that can be tailored to different stakeholders and situations.

Step 5: Present results

Presenting your findings to stakeholders is usually an important aspect of event ROI analysis. To make this less time-consuming, EventsAir offers 150+ pre-built report templates that can be tailored to suit your specific needs. 

These templates cover various reporting requirements, including financial summaries that provide a snapshot of overall income and expenses, detailed transaction logs that track individual financial activities, and segmented revenue and expense reports for more granular analysis.

In addition to the templates, customizable dashboards enable event organizers to view key financial metrics at a glance. This feature is particularly beneficial for facilitating quick decision-making and strategic planning.

Looking to improve your event ROI?

EventsAir simplifies the process of measuring event ROI and provides you with all the tools you need to manage your finances effectively. We’re also focused on helping you improve event ROI by increasing efficiency and boosting revenue.

Ready to take your event planning to the next level? Request a demo or find a plan that suits your needs.