Experiential marketing is a type of marketing that provides consumers with a refreshing alternative approach to traditional advertising, making it a win for both brands and consumers alike. In a 2019 survey, 40 percent of U.S. internet users surveyed used ad-blockers on their laptops, while 47 percent said they would prefer to block all ads on mobile devices. Experiential marketing provides consumers with what they want while allowing brands to make a lasting impression that strengthens customer loyalty and brand recognition.
Experiences bring more enduring happiness partly because they enhance long-lasting social connectedness, according to a Cornell University study in 2014. We feel more compelled to talk about our experiences, and we get more out of doing so. Talking about experiences tends to be more socially rewarding as well, according to lead researcher Dr. Thomas Gilovich. According to a 2018 EventTrack survey, 91 percent of consumers say they have more positive feelings about a brand after attending a live event or experience, and 85 percent of consumers are more likely to purchase a product or service after a live event.
The resulting word-of-mouth from experiential marketing can be massive. You do not have to participate directly in experiential marketing for it to make a lasting impression. For example, the Ice Bucket Challenge was an experiential marketing stunt that reached millions of people, from your average Joe to former President Obama. People who accepted the challenge dumped a bucket of ice-cold water on themselves (or someone did it for them) on video in order to bring attention to the disease Amyotrophic Lateral Sclerosis (ALS). Over 2.4 million videos of the challenge circulated Facebook, leading to hundreds of millions of videos and over $220 million in funds raised.
Experiential marketing drives word-of-mouth marketing and content generation, turning customers into promoters. According to a 2016 EventTrack report, 98% of consumers create digital and social content at events and experiences, and 100% go on to share these experiences. Given that 92% of consumers trust user-generated content more than traditional advertising, marketers cannot afford to ignore opportunities that generate organic, shareable content.
Experiential marketing is a powerful way to collect first-party data from your audience, which is becoming more important for advertisers as privacy laws tighten and cookies get blocked. Consumers are more inclined to provide their contact information in the context of an experience when they feel they are getting something valuable in return.
Experiential marketing comes in many sizes, shapes, and formats, and can be applied to almost every business and budget. To help businesses decide the right experiential approach for their brand, we will look at seven of the most common types of experiential marketing.
Event Marketing
Experiential marketing is frequently conducted through events. Event marketing can involve sponsoring events, displaying signage, distributing SWAG, running an exhibit at a trade show, or otherwise presenting at events. None of these things inherently create a memorable experience for participants, but they can often be elevated to do so, especially when it comes to exhibits. To make an event experiential, businesses should follow five keys to planning a successful brand activation.
Pop-Up Activations
Pop-up shops generate buzz because they are unexpected, temporary, and often immersive. They can appear anywhere from airports to farmers’ markets and can be inside other stores. The idea of a pop-up shop began to gain worldwide traction in 2004 when the Japanese brand Comme des Garçons surprised consumers in Berlin with a temporary store. Since then, the concept has spread like wildfire with many different brands staging pop-ups.
Influencer Marketing
Influencer marketing involves partnering with influencers who have a large following on social media to promote a brand or product. Influencer marketing is an effective form of experiential marketing because it allows brands to tap into the trust and credibility that influencers have built with their followers. By partnering with influencers who have an engaged audience that aligns with a brand’s target demographic, brands can create authentic, memorable experiences for their potential customers. Influencer marketing campaigns can include everything from product reviews to sponsored posts to brand collaborations.
Guerrilla Marketing
Guerrilla marketing is an unconventional marketing strategy that aims to create buzz and generate excitement through unexpected and often unconventional methods. Guerrilla marketing campaigns are often low-cost, but high-impact and can take many different forms, such as flash mobs, street art, or public stunts. The goal is to create a memorable experience that people will talk about and share with others. Guerrilla marketing is an effective form of experiential marketing because it creates a unique, personalized experience that engages customers in a way that traditional advertising cannot.
Product Sampling
Product sampling is a form of experiential marketing that involves giving customers a chance to try a product before they buy it. Product sampling campaigns can take many different forms, such as in-store demos, product giveaways, or product testing events. By giving customers a chance to experience a product firsthand, brands can create a memorable experience that builds trust and loyalty. Product sampling is particularly effective for food and beverage brands, where taste is a critical factor in purchase decisions.
Virtual and Augmented Reality
Virtual and augmented reality technologies are increasingly being used in experiential marketing campaigns. Virtual reality (VR) and augmented reality (AR) offer brands an opportunity to create immersive, interactive experiences that engage customers in a way that traditional advertising cannot. Virtual and augmented reality can be used to create experiences that showcase products, simulate real-life scenarios, or transport customers to a different location or time. The use of VR and AR in experiential marketing is still relatively new, but it is a rapidly growing trend.
Experiential Retail
Experiential retail is a form of experiential marketing that focuses on creating unique, engaging in-store experiences for customers. Experiential retail can take many different forms, such as interactive displays, product demos, or personalized shopping experiences. The goal of experiential retail is to create a memorable, immersive experience that builds loyalty and drives sales. Experiential retail is particularly effective in the age of e-commerce, where customers are looking for more than just a transactional shopping experience.
In conclusion, experiential marketing is an effective way for brands to create memorable, engaging experiences that build loyalty and drive sales. Experiential marketing can take many different forms, from event marketing to virtual reality to influencer marketing. Regardless of the format, experiential marketing is all about creating personalized, immersive experiences that engage customers in a way that traditional advertising cannot. As consumers continue to seek out more authentic, meaningful interactions with brands, experiential marketing will only become more important for marketers looking to create lasting impressions and build long-term relationships with their customers.
