4 Reasons Why CMOs Should Invest In Experiential Marketing

Consumers are clobbered with information from every angle, every day. Instead of allowing themselves to become saturated in the noise of traditional advertising, many consumers fight back by fast-forwarding through commercials, opting out of them altogether with streaming services, or by blocking pop-up ads.

In an age when customers view ads as more of a nuisance than as an engaging informercial, how are marketers expected to connect their brand with consumers? According to a study by Freeman Global Brand Experience, one in three CMOs intend to earmark 21% to 50% of their budget to create experiential marketing events over the next few years.

As consumers continue to demand more personalized experiences, CMOs must embrace experiential marketing to breakthrough to the consumer and stand out from their competition as a brand that rises to meet the needs of their demographic. Let’s take a look at the four reasons why CMOs should consider investing in experiential marketing:

Builds A Lasting Bond With Customers

Media, digital, and broadcast advertising are no longer capturing the full attention and interest of consumers. Unlike traditional advertising, which is often delivered to a consumer in a mechanical and disruptive manner in the form of commercials and ads, experiential marketing tailors an experience for the consumer, inviting them to preview the product with all five senses in an immersive and enjoyable way.

According to a 2017 global study by Freeman Global Brand Experience, 59% of CMOs value brand experience for creating ongoing relationships. Because live marketing builds greater personal connections between brands and consumers that last long-term, big-name brands, such as Verizon, American Express, and the NFL have implemented live events into their marketing strategy.

One example of an optimal experiential marketing event is the 2017 Super Bowl. By setting up interactive touchpoints and displaying projections in Discovery Green Park and on buildings throughout the whole city of Houston, the NFL created a spectacle that was hard to ignore, but that also acted as a welcome and inviting experience, even for those not attending the Super Bowl.

Not only did the NFL build a lasting bond with their current customers, but they also made an impact with consumers outside of their demographic, expanding their client base and associating their brand with a positive experience in the mind of the consumer.

Access To More Real-Time Consumer Data

Because experiential marketing events thrive off of the opinion of the consumer, any factors, no matter how small, that negatively effect the consumer experience can sink a live marketing event before it takes off. For this reason, many CMOs are hesitant to dip their toes into experiential marketing because the event’s ROI is difficult to measure. Relying on the opinion of the consumer to determine your brand’s marketing strategy will always fail if brands have a limited visibility of their target demographic.

This is where experiential marketing events can come in handy. Consumers are open and willing to trade personal information in order to take part in experiential events that feature brands and products they’re interested in learning more about. With access to real-time consumer data, marketers can engage customers in a more personalized and dynamic way that ensures a brand’s message is clearly received by consumers.

A Hands-On Education About The Product

The rise of online shopping has made the acquisition of products more accessible and convenient than ever before, but one thing it robs the consumer of is a physical interaction with the product itself. Hosting a live marketing event is one unique way to lure a consumer away from their computer screen and into an immersive experience they will find fun and educational.

Experiential marketing engages the customer in a sensory, hands-on experience that not only makes the product stand out, but makes it easier to comprehend. According to surveys conducted by Mosaic and the Event Marketing Institute, 65% of attendees said live events helped them gauge a better understanding of a product or service. While it may seem like the same hands-on experience can be achieved in a brick and mortar store, experiential events offer a more relaxed and enjoyable setting where the customer doesn’t feel pressured into purchasing the product, building an association of trust with your brand.

Brett Hyman, the president of NVE Experience Agency, says, “Well-executed experiential activations turn consumers from passive viewers to active participants.” Hosting an experiential marketing event will change your demographic from browsers to actionable consumers with a complete, first-hand understanding of your products and brand.

Produces Higher Conversion Rates

To a cautious marketer, experiential marketing may come off as a wasted investment of time and a tight budget, but this is a misconception. In fact, 65% of brands think that experiential marketing events are directly linked to an increase in sales.

So what is it about live marketing events that raise conversion rates and drive sales? Following the principle of reciprocity, it turns out that a classic give-and-take is necessary to convince customers that a product is worth their hard-earned money. Brands that invest in experiential marketing give customers a chance to test-drive their products and in return, the customers are more willing to buy them after being gifted an immersive and memorable experience.

[Originally produced for an event management company associated with Marketing Insider Group in May 2019]