More brands are putting purpose before product and are turning to experiential marketing to spread the message. Experiential marketing predates television. But lately brands across most of the product categories have been growing their experiential marketing budgets.
The spend in this marketing approach has increased by nearly five percent in the last one year. Brands are understanding the value of face-toface marketing over digital and have created separate budgets.
A CMO today feels that experiential marketing is purposeful. Today’s smartest brands aren’t marketing themselves; they’re championing a purpose. It’s why many brands in the btob and btoc space own and organize events instead of only sponsoring them. Brands that take this route also tend to have successful experiential campaigns.
As someone said, “No advertising campaign will get you the kind of credibility that a meaningful experience will.”
Offline events can be extremely targeted but reach can be minimal, which is why it’s no coincidence that experiential marketing is becoming more popular as social media matures.
The modern ecosystem of marketing is the interplay between experiential and digital. There’s been a lot of attention put on digital but less so on experiential. Brands that understand that experiences are the conduit that allows people to engage digitally.
Like any form of branded content, measuring the value of experiential campaigns is a exercise. Which metric matters most? Should brands care more about return on engagement than money spent?
Not all campaigns will achieve expected results and a poorly executed campaign can have the reverse effect – attracting negative media coverage or none at all.
Once you start to have shared experiences, you make a mental connection. You put a face to the company. It becomes unbelievably powerful. A 2012 survey from global brand experience agency Jack Morton found that 79 percent of American customers “only advocate brands when [they] have had great personal experiences with them.
The book Marketing Metrics shows the probability of selling to an existing customer is 60 to 70 percent, while the probability of selling to a new prospect is much lower, hovering around five to 20 percent.
Research published in Psychology Today found positive feelings for a brand have far greater influence on loyalty than trust and other judgments, which are based on a brand’s attributes.
In short, brands that embrace a purpose and invest in experiences that serve it are the same ones we’ll be following on Twitter and watching on the news.