Similarly to storytelling, micro-moments and touchpoints, experiential is another tool used to increase consumer engagement. From product sampling, immersive experiences to stunts and events, these offline acts support omnichannel online experiences. However, does the effectiveness of these experiences really work and influence consumer behaviour?
According to a recent study by Effworks, experiential marketing has been tried and tested since 2014. The research looks at consumer behaviours, before, during and after an experiential campaign and measures reach, impact and ROI.
The Data reveals that campaign spending has increased YoY confirming there is an ROI. With the clear success in experiential marketing, the inclusion of this to campaigns seems vital. Although the data has confirmed ROI for many industries such as fast-moving consumer goods and automotive, it is important to be aware that the cost per contact has not followed a steady incline, and does not follow a steady correlation with the campaign cost.
The research has shown that there is a surge in the demand for immersive experiences in particular with millennials. Businesses must understand who their demographic is as this will determine the type of experiential marketing that they implement. It is key to be wary of future challenges, marketers need to continue adapting experiences while maintaining audience engagement and abiding by brand guidelines.
Effworks study has shown “better quality engagement is leading to greater amplification and more post-event communication which brings the cost per reach down.”* As a result of this behaviour, individual targeting for a longer period of time should be tested to see if brand amplification continues to rise. The previous year's data “showed engagements of five minutes or more have the most positive impact on brand amplification”.* The goal for amplification to surge with minimal spend will require a test and learn approach that will take time to optimise with this new form of marketing.
Experiential marketing appears to be essential for businesses who can utilise experiences to relay their brand message, introduce personalisation and reach out to their demographic more directly. There is also a competitive advantage in relaying creativity in a way that has never been seen before. However, as shown in the Data the optimisation of experiential marketing is a work in progress but the ROI is enough of a motivation to introduce this into marketing strategies.
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* EffWorks-"Demonstrating the return from experiential"
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