Consumers have more choices than ever before and competition is stronger than at any other time. Many of the old certainties of marketing are over.
Filling the gap left by many forms of conventional marketing are experiential marketing agencies. This fresh approach to marketing is becoming a force to be reckoned with in the industry.
Many marketers in the industry are embracing this revolution – with 77 percent of marketers reporting that they use experiential marketing techniques.
Do you want to find out more about this transformation in marketing?
Let's take a look at why experiential marketing agencies represent an excellent investment opportunity for you.
What is Experiential Marketing?
According to the Huffington Post, experiential marketing refers to "marketing campaigns that begin with live, interactive brand experiences".
Consider the example of international apparel brand, Nike. Experiential marketers would argue that the Nike brand is much more than the name or the swoosh logo. What makes the brand powerful is the way it connects with the consumer on an emotional level.
To connect with consumers, experiential marketing is set around launches and events. By investing in an experiential marketing agency, you can be sure that your brand will be shown to be something special.
The Decline of Conventional Marketing
In 1994 Rust and Oliver, two marketing professors, wrote their famous article, "The Death of Advertising". They declared that: "mass customization and flexible manufacturing subsume the concept of mass production and mass advertising".
The reality of this prediction is proving true with the emergence of experiential marketing. Experiential marketing stands in stark contrast to many traditional forms of marketing.
The days of general marketing for smaller brands are over. TV advertising is a great way to raise awareness for your brand if you're Coca-Cola. But the conversion rate is much smaller compared to targeted or niche marketing techniques.
For instance, the Super Bowl ads can cost up to $5 million each. And yet, only 1 percent of viewers reported being more likely to purchase the product or service after seeing the ad. While these kinds of TV ads cast a wide net, they're simply not worth it for smaller businesses.
Relate to Your Customer Base
The best marketing is about creating relationships with your customer base. This means repeated purchases rather than one-off purchases.
By creating relationships, you gain a loyal customer and brand ambassador in one. You also encourage invaluable word-of-mouth promotion for your products and services.
In TV ads, the customer is passive in a one-way channel of communication. In contrast, an experiential marketing agency will allow for a two-way dialogue between the brand and the customer.
Therefore, there is always a focus on follow-ups, conversions, and interactions. This always keeps the target customer in mind. This sets it apart from marketing that is simply promotion without end.
The Personal Touch
Facebook and other social media platforms are pushing the marketing industry towards more personalized marketing. Experiential marketing is very much part of this transformation.
Rather than addressing a mass audience, an experiential marketing agency goes for the personal touch. This means your customers don't feel like just another number on your list. But instead, it's more like a friend recommending a product or service.
This is why experiential marketing is much more effective than conventional marketing: it achieves results for small businesses.
You may be thinking - is this just an idea, or does it actually produce results?
Experiential Marketing Actually Works
Investing in an experiential marketing agency doesn't mean buying into an abstract idea. Experiential marketing actually achieves results.
How many people share an experience about a TV commercial they saw? We don't know either.
We do know that experiential marketing results in consumers sharing experiences. This is supported by market research that states that if someone has attended a live brand experience, they tell an average of 17 people about the experience.
As a result, while you may only have had 100 people attend your branding event, the event could potentially reach 1800 people. That's not to mention that each of the 17 people who have been told about the event, are also likely to tell around 1.5 people.
This makes experiential marketing events one of the most effective ways to promote your brand. The reality is that people are much more likely to trust a friend than a commercial seen on television.
Creating Brand Loyalty Through Event Marketing
One of the most difficult obstacles to any company promoting a service or product is getting the initial purchase. After all, people are often reluctant to try something new and different. And if you're promoting a niche and/or innovative product or service, this is exactly the problem you face.
According to research into experiential marketing, 98 percent of people surveyed say that they would be more likely to purchase a product or service after attending an event or brand experience.
This is why businesses are looking to experiential marketing agencies to attract new customers.
Take Care of Everything
We've established the benefits of investing in an experiential marketing agency and we've discussed the evidence that they actually work. Now, let's look at the things they take care of.
When arranging and organizing launch events, there are many things to consider. But by investing your marketing budget in experiential marketing, you can make sure you have all bases covered.
This includes the three P's: Permits, Parking, and Police. From the flowers on the table to the extension cords for the lights, an effective experiential marketing agency handles everything from the smallest of details to the largest.
Invest in an Experiential Marketing Agency
Now you know the many benefits of investing in an experiential marketing agency, it's time to put your money where your mouth is.
Take advantage of this growing innovative industry today! To find out more about the marketing trends of today and tomorrow, get in touch with us or check out our blog.