Experiential marketing has been on the rise for several years now, as brands look to cut through the advertising noise and forge deeper connections with consumers. But the COVID-19 pandemic threw a wrench in experiential plans, with in-person events grinding to a halt. As we move into 2022, however, experiential is poised for a major comeback – and brands are ready to invest more than ever.
Experiential Marketing Growth & Projections
The experiential marketing industry has seen impressive growth in recent years, and that trajectory is expected to continue in 2022 and beyond:
- The global experiential marketing market size was valued at $49.49 billion in 2020 and is projected to reach $113.54 billion by 2028, growing at a CAGR of 12.5% from 2021 to 2028 (Allied Market Research)
- 71% of C-level executives plan to increase their spend on experiential and event marketing in 2022 (Aroscop)
- Experiential marketing spend is projected to increase by 11% in 2022 (Bizzabo)
- 58% of CMOs say experiential provides the highest ROI of any marketing channel (Mosaic)
Image Source: Allied Market Research
Why Experiential is So Effective
So what makes experiential such an attractive investment for brands? The answer lies in the unique way that experiences engage consumers on a deeper level than traditional marketing tactics.
When consumers participate in a brand experience, it creates a powerful emotional connection and sense of relationship that is difficult to replicate through other channels. This is backed up by neuroscience – experiences activate more regions of the brain and release powerful neurochemicals like dopamine, oxytocin, and endorphins that enhance memory encoding and positive associations with the brand.
Research shows how impactful experiential can be:
- Experiences are 70% more likely to be seen as "personally relevant" compared to traditional advertising (Momentum Worldwide)
- 91% of consumers say they have more positive feelings about brands after participating in experiences (Event Marketer)
- Experiential activations generate a 54% increase in brand awareness compared to traditional advertising like TV and OOH (Event Marketer)
- Consumers are 85% more likely to purchase from a brand after participating in an experience (EventTrack)
Experiential Marketing Case Studies & Examples
To understand how brands are leveraging experiential today, let‘s look at some recent successful activations:
HBO Max: The Friends Experience
- To promote the cast reunion special, HBO Max created an immersive pop-up replica of the iconic Friends sets
- Fans could explore 12 nostalgia-packed rooms, including Monica‘s kitchen and Central Perk, plus pose on the orange couch
- Integrated AR app unlocked 90s-era digital collectibles and exclusive Friends content
- The sold-out experience generated 31k social posts and over 1B potential social media impressions
Bumble: IRL Bumble Brew Café
- Dating app Bumble opened a permanent physical café location in NYC to bring its brand to life
- Café features a bright yellow design inspired by the Bumble brand and encourages IRL meetups between matches
- Space hosts regular events and panels around relationships and dating
- IRL presence led to a 20% increase in time spent on the Bumble app in NYC
Lego & NASA: Build To Launch
- Lego partnered with NASA on a digital and physical experience to inspire kids‘ curiosity about space travel
- Web experience lets kids build virtual Lego space vehicles and launch them on missions, learning STEM skills
- 13 Lego Discovery Centers featured Build To Launch events where kids could build and keep a NASA-inspired Lego set
- 30k+ consumers participated in the physical and digital experiences
Measuring Experiential Marketing ROI
One of the biggest challenges with experiential is measuring its impact and proving ROI, since many of the benefits are intangible or longer-term. However, there are several KPIs brands can track to assess performance:
- Reach & Impressions: Total reach of the experience across physical attendees, social media, PR, and digital content
- Engagement: Time spent interacting with the experience, user-generated content, and social sharing
- Sentiment: Positive vs. negative sentiments in social posts and earned media coverage
- Brand Lift: Changes in aided and unaided brand awareness, perception, and consideration post-experience
- Lead Generation: Email sign-ups, app downloads, registrations, or requests for follow-up info captured at the experience
- Sales: Immediate sales and average order values from an on-site retail component, plus any attributable lift in sales post-experience
Tools like Splash and Airmeet can help brands manage event data and track performance across online and offline channels. It‘s also important to benchmark experiential results against a brand‘s typical digital marketing metrics to assess relative impact and ROI.
Experiential Marketing Trends for 2022
As we move into 2022, there are several key experiential trends we expect to see more brands leverage:
1. Hybrid Physical-Digital Experiences
Even as in-person events return, digital will remain a key component of experiential to increase reach and engagement. Look for more hybrid activations that merge physical installations with AR, VR, and interactive digital content.
2. Web3 & NFT Integrations
With the rise of NFTs and the metaverse, brands will start to experiment with tokenized experiences that reward participation with exclusive digital collectibles. Imagine attending a pop-up and receiving a one-of-a-kind branded NFT that unlocks access to future perks and experiences.
3. "Phygital" Retail & Live Commerce
The lines between experiential and retail will continue to blur as more brands launch live shopping events. Think QVC but way more immersive, with hosts guiding you through shoppable physical brand environments. Alibaba‘s Tmall already hosts mega-popular 3D virtual shopping festivals.
4. Cause Alignment & Purpose-Driven Experiences
With consumers increasingly choosing brands based on values, we‘ll see more purpose-driven experiences that highlight a brand‘s mission and impact. Examples could include a sustainability-focused installation or an experience celebrating diversity and inclusion.
5. Data-Driven Personalization
As brands collect more first-party data from experiences, they‘ll be able to use that information to create hyper-personalized follow-up touchpoints across channels. Imagine an auto brand inviting you to a tailored test drive experience based on the car features you explored at their auto show installation.
The Future of Brand Experiences
The hardest experiences to create are the easiest to love. As brands seek to stand out in a sea of cookie-cutter content, innovative and immersive experiences will become essential to capturing consumer attention and affinity.
Experiential is no longer a nice-to-have – it‘s a must-have for brands looking to drive authentic connections and sustained growth. And while not every brand has Budweiser‘s budget, the beauty of experiential is that creativity and relevance trump scale. Even small, affordable experiences (think an artful subway takeover or a traveling pop-up school bus) can have an outsized impact when aligned with your brand purpose and target audience.
As you build out your 2022 marketing strategy, think about how experiential could amplify your existing programs and create new opportunities for consumer engagement, both IRL and URL. With the right strategic approach, experiential will not only boost your marketing ROI, it will help transform your brand into a living, breathing entity in the hearts and minds of consumers.
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