Experiential marketing events are becoming very popular and common. Many brands are keying into this experience driving marketing method. But marketers are starting to ask questions like How do we measure the success of experiential marketing? Are these events making a strong enough impact on the brand? What metrics do we use to measure the success of experiential marketing? Is it worth the big investments?
These questions have been a mystery for a while but brands and agencies are working to answer these questions. They are working to prove how beneficial these experience-based marketing events are to a brand. They want to prove that these events are worth the investment and that they yield returns. On this post, we would be discussing how some agencies are measuring the success of experiential marketing.
The Infatuation an agency which has put on a variety of large and small events since its founding in 2009 is using social media impressions. As simple as social media impressions seem, The Infatuation believes it is important to measure the success of experiential marketing. After an event, the agency usually spends weeks putting together numbers from social accounts, brand partners and influencers. This is very hard and tricky especially since Instagram’s Stories disappear after 24 hours and Facebook’s API isn’t accessible to everyone. According to the agency’s co-founder and CRO Andre Steinthal, this measurement metrics are effective. He says so far with this method what you see is what you get.
BYOM (build your own measurements)
Some agencies have started to build their own in-house services to measure the success of experiential marketing. One of such agencies is Meta, the experiential marketing agency, they have done of massive installations for brands like HP. They want to launch a platform which will help measure the success of experiential marketing efforts. The platform will examine four areas: psychographic data, behavioural data, cultural data and social data. The platform will combine those figures with attendance and social media statistics to create an ROI value.
Another way is used to measure the success of experiential marketing is the revenue or potential revenue generated. RedPeg Marketing is one of such agencies which use this method. According to Matt Sicaglia, senior director of strategy, they look at ROI in three areas: short-term revenue projected incremental revenue and advertising value. For the short term, they look at the direct-response at the event such as through sales of products or services. With incremental revenue, they calculate the lifetime value of existing or potential customers that engage with an experience.
To track who is influenced to make a purchase after an event, they use third parties to add data that can filter out audiences based on benchmark data for each industry. The brand could include the average value per customer while also measuring sales based on the frequency of purchases.
Some agencies are experimenting with tracking people in more creative ways. These agencies are tracking and measuring the success of the event right at the scene. Dotdotdash is using heat-mapping and facial recognition to understand what draws people to experience. They are also using these techs to determining how long these people are staying. Another agency using these creative methods include Live Nation who is experimenting with biometric data to gauge fans’ excitement at an event.
Can’t be measured
Some agencies are insisting that the success of experiential marketing can’t exactly be measured. One of such agencies is Culture Trip, their CMO Mike Fox says that he set expectations early in the process to make sure management understands that not everything can be measured. He says he tells them that it is you either have to believe in experiential or not because it’s notoriously hard to measure with precision.