Experiential Marketing in the Digital Age

As young consumers’ habits continue to shift and media channels multiply, many brands have entered into a constant search for more creative ways to reach tech-savvy demographics. This has caused some to explore experiential campaigns as a method for cutting through the noise of standard advertising formats. By creating an experience for consumers, companies are forming direct relationships and making memories that will hopefully inspire people to remember their brand over others when faced with purchasing decisions.

According to a study performed by EventBrite, nearly 7 in 10 millennials experience “FOMO” (fear of missing out). In the digital age, where life experiences are constantly broadcast across social media, this fear drives them to attend events, share and engage. It is for this reason that experiential and guerilla marketing tactics continue to be growing trends in the advertising world, with the Event Marketing Institute even claiming that more than half of brands report plans to increase their experiential spend this year.

With so many new executional capabilities arising, how exactly should companies define “experiential marketing”? According to iD Experiential, a leading vendor in the space, it is a “live interaction between a brand and a consumer that is sensitive to brand values, impactful, memorable and capable of generating a lasting and positive impression.” By changing the focus from products to experiences, companies are able to create an in-person opportunity for interaction with their brand that stimulates their target’s emotions and sensations. In the digital age, this creates many opportunities for those brands to be organically shared through social media outlets and indexed via hashtags. According to the Pew Research Center, 81 percent of millennials living in the United States check a social media outlet as least once a day, which is a 3 percent increase from the year before. This constant increase in usage each year is huge for companies as they seek the attention of key social media influencers.

Benefits of experiential executions

By now, most are familiar with South by Southwest (SXSW), an event held in Austin, Texas every year which spotlights film, music, comedy and interactive media. With keynote panels, events, showcases, screenings, exhibitions and a variety of networking opportunities for global professionals, SXSW has become a mega contender in reaching brand-savvy individuals. In this playground of advertising opportunities, companies flock to test out new and engaging experiences with the hopes of creating a memorable interaction with all attendees. Thus, it presents a great case study for those looking to examine the latest and greatest strategies.

SXSW 2017 was a particularly noteworthy year for experiential marketing executions that pushed the boundaries of what is possible. For example, to announce the appearance of “Breaking Bad” character Gus Fring on spinoff series “Better Call Saul,” and to get fans excited about the new season of this show, AMC created a Los Pollos Hermanos restaurant in the heart of downtown Austin. The pop-up restaurant recreated the iconic yet fictional fried chicken chain from “Breaking Bad” and featured a menu that served curly fries to customers. This creative execution meant that SXSW attendees flocked to the restaurant in order to get a literal taste of the show. Show stars Bob Odenkirk (who plays Jimmy McGill, a.k.a. Saul Goodman) and Giancarlo Esposito (who plays Gus) even made an appearance for an autograph session, which made the experience truly unique for series admirers.

However, for a new television show with no previously established fan base, appealing to an audience through experiential marketing can be a larger challenge. Hulu attempted to take this on by using a group of unique characters to generate curiosity and social media buzz. To gather interest for the new adaptation of Margaret Atwood’s “The Handmaid’s Tale” the streaming provider enlisted an army of handmaids to eerily walk the streets in complete silence, just as the characters do in the show. With the handmaids’ bright red cloaks and white hats, their striking uniform captured the attention of many who encountered them at the festival. The show’s official Twitter handle encouraged passersby to share their content via social media. According to data provided by Spredfast, social media accounts for “The Handmaid’s Tale” received a 73 percent increase in engagement during the campaign. The uncanny actions of these handmaids walking around SXSW got many people talking, without Hulu’s brand ambassadors having to speak at all.

A common choice for many brands in 2017 was virtual reality (VR) technology, submerging people into immersive experiences. Totally engaging consumers in the fictional world associated with your brand has definitely become a recent advertising trend for applicable products. Lionsgate utilized this technology to their advantage during SXSW and created a VR experience for attendees to get a sneak-peek at the then-upcoming and newly-revamped “Power Rangers” film. By putting on Oculus VR headsets, attendees were able to feel as though they were truly immersed in the world of the Power Rangers as they battled evil villains. According to a consumer report conducted by Greenlight Insights, 81 percent of people who engage with virtual reality marketing experiences tell their family and friends about these experiences, increasing the brand awareness footprint. Given that both the Oculus Rift and the HTC Vive, the leading VR headsets currently on the market, both released in the spring of 2016, immersing consumers in the world of a brand’s product through VR has advanced rapidly, and marketers can certainly experiment with the capabilities of this technology as it continues to evolve.

From surfing in the heart of downtown Austin with TNT’s “Animal Kingdom” activation, to participating in an escape room challenge themed to HBO’s “Game of Thrones,” experiential marketing has no doubt become a great place for networks to immerse their audiences in the worlds of their fan’s favorite shows and movies. But what options remain for products or brands without a fictional world? What activations can companies launch to highlight their physical products?

Tito’s Handmade Vodka has quickly learned that the best way for people to enjoy a product is to give them an enjoyable experience. Nicole Portwood, VP of Brand Marketing for Tito’s Handmade Vodka, recently hosted a discussion exploring ways to stay true to Tito’s brand while providing fans with an unexpected and authentic interaction. Portwood recaps that while some businesses definitely need a return-on-investment (ROI) strategy, sometimes the relationships and feelings of goodwill formed between brand and audience are worth the risk of being a part of something that just feels right for the company but may not show an immediate ROI.

“The most powerful connection we can make with people is face to face, in the real world,” Portwood describes. “Event experiences of all kinds give us the opportunity to share a fantastic cocktail, tell our story, and give part of our human experience as part of this amazing company to the people we meet.” It is for this reason that Tito’s Handmade Vodka continues to sponsor both large and small music festivals which allow attendees to enjoy their favorite artist, performing their favorite song, with a Tito’s vodka cocktail in hand. By being a part of these opportunities, Tito’s Handmade Vodka is able to connect their product to specific memories, and even to create further awareness for other parts of their business, such as their non-profit efforts through Vodka for Dog People. By taking advantage of technology and social media, Tito’s Handmade Vodka can further their individual communication approach while also keeping true to the roots and fundamentals that has brought their brand to where they are today. With these tools, the company is able to both listen and respond to fans, while bringing them value and delight in any way possible.

Challenges with experiential

When creating the perfect marketing experience for consumers, there are some risks which advertisers should concern themselves with. Events not proceeding as planned can turn into PR nightmares, and it is always best to understand the risks that come with creating an experience, especially if the health and safety of a consumer could be in jeopardy at an event associated with a brand.

In 2013, Jägermeister had what initially sounded like a good concept: throwing a pool party in Leon, Mexico to celebrate the fun experiences they want people to associate with their brand. However, things turned tragic when party organizers poured liquid nitrogen into the swimming pool. The liquid nitrogen accidentally created a toxic brew, turning to gas as it made contact with water and displacing the oxygen over the surface of the pool, leaving some attendees unable to breathe. One man was put in a coma while eight others were hospitalized. While the idea of connecting a brand to a fun pool party sounds like a great one, the outcome of this event forced Jägermeister to release a public statement apologizing about the unfortunate turn of events at this party, and to face lawsuits by those affected.

Bud Light hosted a party in 2014 in the city of Crested Butte, Colorado, without warning the town’s residents prior to the event. As part of their “Whatever, USA” campaign, Bud Light flew 1,000 lucky winners to the small town of 1,487 residents for the “party of their lifetime.” When the town’s residents received word of the party, they were rightfully upset about the chaos their peaceful town would endure. Bud Light eventually settled the residents’ dispute by agreeing to pay a $500,000 convenience fee, double the typical cost. As in this case, taking necessary precautions and respecting the culture of the locations where these events will take place is vital to ensuring a continued positive brand image.

Experiential marketing definitely takes a lot of planning from a brand’s marketing team to ensure that everything is considered, both efficiently and effectively. With the many potential risks that could come from activating an event, marketers must weigh the positive rewards against possible negative outcomes in order to determine if a campaign is worth the investment. Still, many studies make compelling cases in support of the effort. According to one performed by the Harris Group, 72 percent of millennials would rather choose an experience over a material item. By creating these types of brand associations, companies are continuing to see positive reflections of experiential marketing that forms robust relationships with their target demographic.

Measuring success

So say that an amazing experience for a brand is executed flawlessly. How then does one measure the campaign’s effectiveness, and are there things that can determine if the money invested will benefit the brand? And without clear digital analytics to measure an experience, how can marketers track event execution? Some topline benchmarks include:

Defining Key Performance Indicators (KPIs):  Before any event is implemented, there must be some indication on what the expected outcome of the event is. By setting up KPIs that are obtainable and trackable, experiential marketing campaigns can easily be tracked to understand if the overall event is best for the brand. Goals, such as knowing the potential outcomes and risks of the event, are key in helping to understand how to measure the success of a campaign.

Social Media Engagement: Social media is a huge component of measuring the success of a campaign. When consumers who enjoyed a great experience put on by a brand tag it in their posts on Facebook, Twitter, or Instagram, these are bonus impressions that their followers who were not able to be at the event will see and engage with. Because social media can be tracked and referenced, it is a great indicator to prove how well or successful a campaign ran. By tracking every mention of a specific hashtag that was advertised at an event, brands can utilize social media at events to their benefit.

On-Site Techniques: Keeping track of how well the event is being executed both during and after the campaign can also give a company insight on how well the campaign performed. Whether this means tracking the number of interactions and leads during the event or collecting feedback through surveys on how well the consumer enjoyed the event once it is finished, marketers can utilize various methods of on-site data tracking to determine if the event ultimately was a success or not.

Sales: While sales may seem to be the most obvious metric, it becomes trickier when understanding how a company can attribute a sale associated with their specific event. Though there is not a direct way to track whether an experiential campaign influenced a sale, trends related to your campaign will be the best indicator. By noticing inclinations in sales in the areas around the event, marketers can conclude that this peak can be attributed to the company’s campaign.

Overall, running an experiential campaign is only half the battle. Measuring the success of a campaign and analyzing the importance of the relationships that form directly from the product is the truly exciting part. Defining a brand’s loyal audience and their opinion of a brand before, during and after an experiential campaign is an extremely worthwhile endeavor, and one that often leads to new approaches across other media efforts.

While digital media encroachment and new interactive capabilities are changing the face of guerrilla marketing, there is no doubt that marketers will continue to expand upon these tried and true techniques in an attempt to form meaningful relationships with consumers. The real power of experiential lies in its inherent ability to introduce people to the identity, character and values of a brand. Marketers who recognize that, and plan appropriately for all angles, will often create unparalleled experiences that allow their brands to stand out from competitors. It is for the reason that the future of experiential marketing in the digital age is looking bright.