Budgeting for a Virtual Event Cost Breakdown

Virtual events have quickly become the new normal, allowing businesses and organizations to connect with their audiences in new ways without the geographical limitations. Whether you want to organize a virtual conference, webinar, or product launch: Virtual events are scalable and easy. But, like live events, virtual events have costs that need to be budgeted for with care. Knowing how the finances work is important to avoid being tripped out and staying within budget.

In this article, we will be sharing the cost breakdown for virtual event planning, insightful considerations to take note of while organizing an online event and best practices on how to minimize your spending.

The Fundamental Elements of a Virtual Event

There are helpful buckets to consider when budgeting for a virtual event. Following is the bottom line on where the majority of your budget will be spent.

Technology Platform Costs

The platform you use to facilitate your virtual event will determine its back end. With prices ranging from a robust video conferencing software to a fully customizable event platform, the price can fluctuate a lot depending on what you need.

Some platforms have a subscription model with monthly or annually pricing, where other may have price per audience/member or event minutes. Things to pay close attention to are live streaming and break out room capabilities, participator interaction tools (think polls and Q&A) and the ability to gather data for after the event analysis.

Smaller events might be able to make do with rudimentary platforms like Zoom, which costs $149.90/year for a Pro license. Larger conferences might require purpose-built platforms like Hopin or ON24, which can run more than $1,000 an event.

When planning your budget, it’s also important to understand the differences between hybrid and virtual events, as each comes with unique cost factors.

Content Creation Costs

If the content is compelling and timely, attendees will remember it. This means high-quality video, properly produced, along with pre-recorded video and other supportive media (downloadable slides, etc.), not just well-curated slide decks.

The costs for producing content usually involve paying professional speakers, presenters, cameramen etc. Popular speakers can get paid anywhere from a few hundred to several thousand dollars. Working with creative teams to create branded visuals or videos will also contribute to the budget.

There’s a return on investment when we invest in good content that engages viewers, and this saves costs in the long run.

Key Cost Factors to Consider

Though platforms and content provide the glitz and glamour, there are other essential costs that still need to be accounted for when budgeting for your virtual event.

Advertising and Promotion Costs

An otherwise awesome virtual event—and I believe in Pulse—it’s only going to be as good as the handful of people attending it, if it’s not marketed effectively. It usually takes a combination of social media marketing, email promotion, and paid advertising to generate buzz and get people involved.

Social media ads on platforms such as Facebook or LinkedIn can be a few hundred dollars, depending on the reach you want. Email marketing tools such as Mailchimp or Constant Contact charge you a subscription cost, which tends to be around $10 to $20 a month for basic plans.

Some of this pre-event marketing, like selling early-bird registrations, can not only build buzz but help raise funds to cover other costs down the road.

Technical Support

There are few things that can take the power out of a virtual event like technical difficulties. It’s necessary to your budget that you fund having competent technical staff ‘on the bench’ to minimize these interruptions_capable of having someone work on your issues in the background for 2 days before it becomes serious or an ‘emergency.’

Technical support staff is available for platform troubleshooting, to maintain the quality of real-time audio visual and to deal with any issues delegates may experience. Training sessions for your event team to use the selected platform could also increase your costs.

Smaller events won’t need much more than a standard support package from the platform. Bigger or multi-track events may require a dedicated IT professional or contracted service provider, and that could run over $500 for a one-time event.

Hidden Costs to Watch Out For

A few cohorts of expenses may be less obvious and yet essential for successfully delivering a virtual event.

Data Security Costs

Cyber security is the watchword, as virtual events have taken off. Solid cyber security is needed to keep attendee data and proprietary content secure.

The cost of enhanced security platforms, which often comes for a premium, other tools like encryption software, or compliance costs that for certain industries (healthcare, finance) might be necessary. For instance, subscribing to comprehensive GDPR compliance software might carry an additional cost of somewhere between $50 to $100 per month.

Contingency Planning

No matter how much you plan, there could be unexpected hurdles. Having a buffer budget is essential to allow for the unexpected, such as a technical hitch that needs immediate fixing or being able to scale up the platform to handle more participants than you had planned.

It’s a good practice to keep at least 10% to 15% of the total budget as a cushion fund. “If you’ve budgeted $10,000 and you need $1,000 for any little thing that pops up — because it will pop up — do not take that $1,000 for shopping and fabric,” he said.

Optimization Strategies for the Cost

There’s more to a good budget than factoring in costs; it should also help you identify opportunities to save. Here are some ways to minimize spending:

Negotiate with Vendors

From service providers to marketing tools, many of them will give you large discounts if you pay for more or book in advance, or subscribe longterm. Contact Vendors Try it now to help you target your shopping and find the right price! You might be surprised with savings you can achieve by simply asking for bundled offers, for example, platform subscription with technical support.

Take Advantage of Free or Low-Cost Advertising Tools

Getting the word out about your event doesn’t need to cost a fortune. Employ free tools such as Canva to generate stunning visuals, or a website such as Eventbrite to keep track of registrations. Social media tactics such as organic posts or partnerships with influencers are typically less expensive and just as good at creating buzz.

Not obsessing too much over organic reach by instead producing shareable and engaging content can help to keep your advertising spend down – and build a natural bond with viewers.

Plan for Success With a Clearly Defined Budget

Budgeting for a virtual event doesn’t have to be overwhelming. But by breaking down the bare essentials, considering hidden costs, and shaving down unnecessary costs, you can plan for success without breaking the bank.

Remember, the secret to keeping costs within budget is thorough planning combined with ongoing financial reviews as the event progresses. Below, your guide to investing your resources wisely and producing a professional, impactful event that leaves attendees wanting more from you and your company.

Hunting for additional ways to make successful virtual event planning even more successful? Get this newsletter in your inbox while it’s hot — sign up here.