The European Experience Index (EEX) is fast becoming one of the most clear-sighted snapshots of the live experience sector in Europe. Less of a formal analysis, more of a reality check, the report combines agency and client perspectives across 27 European markets, creating the first dual-perspective benchmark of its kind.

Through our membership of the 27Names network, We Are Collider had early access to the findings, and today we’d like to focus on a perennial issue: budgets.

THE HEADLINE ISN’T THE WHOLE STORY

If you only read the top-level numbers, the picture appears healthy. More organisations say budgets are going up than down, suggesting confidence in live experiences remains strong. Across all markets surveyed, 40% of clients report budget growth, while only 22% report shrinking budgets. However, the EEX also reveals a gap between nominal growth and real growth.

A budget that is growing on paper may actually be losing a huge amount of purchasing power once rising costs are factored in. When venues, logistics, travel, and production all cost more than they did twelve months ago, a stable or even modestly growing budget can quickly become constrained. Factor in the dramatic spikes in oil prices due to the ongoing conflict in the Middle East, and the picture is indeed gloomy.

This is where the “inflation illusion” begins to shape decision-making. Around a third of clients now operate with budgets that are flat or only marginally higher than last year. Nominal growth is not always real growth, and that means agencies are often being asked to deliver the same – or, knowing our industry, a lot more – with fewer functional resources.

REGIONAL REALITIES: THERE IS NO ONE ‘EUROPEAN’ STORY

Another important takeaway from the EEX is that there is no single European budget story. Money pressures are playing out differently across the continent, but there is a theme tying everything together: marketers are being forced to prioritise what delivers the most impact.

In the UK and Ireland, that pressure is translating into a sharp focus on effectiveness, with 45% of marketers ranking it their number one priority – a clear response to budgets that are stretching less in real terms. Southern Europe, meanwhile, is facing some of the toughest conditions, with 16% of clients in France, Italy, Portugal and Spain reporting budget cuts of more than 20%, well above the European average.

Elsewhere, the strain shows up in different ways. The Baltics cite budget pressure as the biggest barrier to live-event activity, while in the Nordics, two‑thirds of teams are still establishing or formalising event KPIs – making it harder to defend spend when costs rise. BENELUX maintains comparatively strong investment in live events, and Central and Eastern Europe appear less affected by venue price hikes, but inflation is still reshaping how far those budgets actually go.

Taken together, these insights underline a simple point: budget pressure is not uniform. Some markets are expanding, some are holding steady, and others are consolidating. Agencies working across Europe need to navigate all three realities at once.

OUT OF THE FRYING PAN… TRADING ONE CRISIS FOR ANOTHER

One of the starkest sections of the EEX looks at how industry challenges have shifted over the last three years. Not long ago, Covid restrictions dominated the conversation, but today, economic factors have moved to the top of the list. Price increases for venues are now the most frequently cited challenge, affecting 43% of respondents. Hospitality costs follow at 30%, alongside travel expenses at the same level and sustainability regulations are also shaping budgets, with 22% highlighting them as a growing consideration.

As rising fuel and shipping costs ripple through the supply chain, the picture becomes clear: the operational environment for live experiences has fundamentally changed. It is no longer about navigating restrictions; it is about managing cost escalation across every stage of production. For many clients, this creates a new balancing act. Expectations around creativity, audience engagement and accountability continue to rise. Yet the resources available to deliver those outcomes are under increasing strain. Inflation has quietly become the dominant force shaping how events are planned.

THE COLLIDER TAKE: FOCUS ON SMART, EFFICIENT CREATIVITY

At We Are Collider, none of this feels abstract to us. We see the same pressures in day-to-day conversations with clients all across the continent. Our response isn’t to scale back ambition; rather, it’s to approach things in a more creative, roundabout way.

We’re big advocates for getting things right from the start. It’s no use having a conversation about inflation one week before the go-live date, we try to have robust scoping and open conversations about priorities from the start. We’re also creative with who we work with, collaborating closely with supplier partners across the 27Names network, sharing knowledge and approaches that help projects stay efficient without losing impact. Lean production choices can make a surprising difference when they are built into the concept rather than added later.

Behavioural science also plays a role. When you understand what actually moves people, you can focus investment on the elements that matter most. Good ideas that change behaviour don’t automatically cost more. They just need to be designed with intent. The EEX data helps anchor those discussions in reality. Instead of relying on assumptions, we can point to patterns emerging across the 27 markets and use them to guide smarter decisions.

IN CONCLUSION: INFLATION CAN’T BE STOPPED, IT CAN BE MANAGED.

Unfortunately, the Inflation Illusion isn’t a short-term blip, but a structural shift in how brand experience strategy is funded and delivered across Europe. The good news is that your impact doesn’t have to shrink alongside your budget; there are solutions. With careful planning, strong partnerships, and ideas built to perform from the start, branded live experiences really can still deliver real value.

If you’re navigating rising expectations and budgets that need to stretch further, we’re always happy to talk about how to make every penny work harder. Get in touch here.