5 Reasons To Invest In Experiential Marketing

Loosely described as messaging you can view, feel, or touch in a physical space, experiential marketing has been on the rise in recent years. According to a study by Event Track – an Event Marketing Institute – large companies have been dedicating a larger percentage of their marketing budgets to experiential marketing year after year: 3.8 % in 2012; 4.7% in 2013; and 9.8% in 2014.

Marketers in every industry, from cinema to automobile seek to create an experience and thus an emotional connection to consumers lives either digitally (via Instagram, Twitter, or YouTube videos) or in-person through events.

Experiential marketing aims at enabling personal connections between brands and their audience by creating real-life experiences worth sharing. It combines real-world and digital connections to establish stronger emotional bonds between brands and consumers. These are not PR stunts, but strategies that put the user at the center of a brand and create an experience worth sharing on their own social networks.

So, why are large companies increasingly investing in experiential marketing?

1. It is a proven marketing method

Although the term “experiential marketing” may be new, the concept has been in existence for a long time. Brands such as Heineken, Coca-Cola, and Red Bull have been real-time event boosters for years. Many companies have also engaged in things like tours and giveaways to promote their products, while convenience stores have organised Free Slurpee Days to boost sales. It is a tried and true method that has predated even television!

2. It is based on engagement

Many great brands are beginning to champion a purpose instead of simply marketing themselves. They are opting to do something good for the core consumer without asking for anything in return. The positive perceptions automatically translate to increased sales. For instance, Red Bull goes the extra mile to not only sponsor events, but also organise them, while Converse creates both television ads and recording studios.

3. It is fun

There’s no better way to influence people’s behaviour than by showing them a good time. Experiential campaigns are designed to put a smile on the faces of your consumers. A 2012 survey from Jack Morton – a global brand experience – found that 79 percent of American consumers only advocate brands that they have had a great personal experience with.

4. It appeals to millennials

The current purchasing power of millennials is around $1 billion, and will keep increasing as they continue to advance in their careers. This bracket is skeptical about traditional advertising methods that simply expose them to brands or products, and respond better to engagements that allow them to “feel” the brand.

5. It capitalises on modern marketing technology

The best thing about experiential marketing is that clients who are happy with the experience you have provided can share it on social media sites like Instagram, Pinterest, and Facebook, getting the good news about your brand to go viral.

Experiential marketing is still a growing area full of possibility, and more companies will be looking to engage their audience at a much deeper, personal, and emotional level to create a positive buzz that can be shared on social media. For more information on how you can capitalize on this concept, contact our team today!