EXPERIENCE 2006:
The Bright Future of Experiential Marketing
By Josh McCall, CEO
2005 has been an incredible year for experiential marketing. Projections for 2006 look even better. The practice of engaging every important brand audience with live experiences—from employees, to business partners, to consumers and the public at large—gains champions every day.
For those of us who have been in the business of creating brand experiences for many years, the affirmation is sweet. For the brands we serve, I'd like to send this simple message: as early adopters of experiential marketing strategies, you are already ahead of the curve. Keep on course and keep company with the pros in the years to come.
Experiential marketing is one of the most effective ways to engage today's savvy, hard-to-reach audiences, and increased interest will surely lead to many new agency launches and start-ups. Who wouldn't want to join this industry? Coverage has been relentlessly positive. What impresses me most is not that experiential marketing generates buzz in marketing circles—but that it does it on a global scale. Last year, it was the U.S.'s PROMO that predicted 15% growth in experiential marketing for 2005. This year, it's Europe's Marketing Event and In-Store that project huge increases in spending for 2006.
In-Store published the results of their Field Marketing Survey 2005, stating conclusively that "experiential marketing techniques are set to change the sector." An HPI Research Group study covered by both magazines found that 68% of surveyed marketing execs spent more on experiential marketing in 2005 than 2004. Nearly half say they plan to increase their experiential marketing spend in 2006. The reason? Results against a compelling new set of business goals that are proven to strengthen brands.
A variety of tactics can lead to a temporary spike in sales. But experiential marketing has the distinct power to build loyalty and advocacy—to connect with audiences, inspire them to engage with a product or brand and forge a relationship that lasts.
We at Jack Morton conduct our own research each year, asking audiences themselves what they think about experiential marketing. This year, 70% said participating in experiential marketing would increase purchase consideration. The majority also said their favorite way to learn about a product is to see it or try it through an experience. And 80% who'd been part of an experiential event told others about it, affirming that a brand experience's impact is profound and personal.
Marketers are responding by shifting experiential marketing into the heart of the marketing mix. Just a few years ago, marketers relied on tried-and-true methods, tacking experiential elements on to more traditional programs. Today, we see PR and advertising campaigns as extensions of brand experiences—not the other way round.
Earlier this year, we launched the Pontiac Solstice with a live concert by Jet in New York 's Times Square , an event that was rebroadcast on the Jimmy Kimmel Show. Street teams went out in full force the following morning to keep the buzz alive and facilitate live national and local news spots featuring VH1 VJ Rachel Perry. Programs like these root their creative in the live experience and its aftermath, recognizing its power to galvanize PR and inspire viral word-of-mouth advocacy.
I applaud marketers who adapt to meet the expectations of today's audiences. And I challenge brands to insist on quality and experience in choosing their partners as we move forward. Agencies of all stripes will now market themselves as specialists in experiential marketing just to get in on the spend. But to get the best possible results from experiential programs, brands must turn to experienced partners.
Think of all the recent innovations that have the power to impact events. Marketers can use RFID to track visitors' progress through an experience and measure results. Podcasts extend the impact of live experiences to a limitless global audience, on any day, at any time. But their integration must be weighed against principles of audience alignment and incisive brand strategy. These powerful tools can only achieve results in the hands of proven experience designers.
I can hardly wait for 2006, because I know that Jack Morton is an agency that has these strengths and will continue to lead this industry—even as demand surges. We've championed experiential engagement for over six decades. I look forward to the creativity that experiential marketing's growth will drive in the marketplace and to continuing to achieve great results for our clients.
Recently, Matthew Bending, Chairman of the Live Brand Experience Association (LBEA) expressed his confidence that quality will win out—stating that in 2006, "the cream will rise to the top." I like to think that will ring as true for brands as it does for marketers. Those that truly understand and embrace experiential marketing's potential will come to the experts. And the experts will help those clients achieve more and more ambitious goals through the growing power of experiential marketing.
Josh McCall is CEO of Jack Morton Worldwide. He can be contacted in the agency's Boston office (617-585-7000) or via e-mail (josh_mccall@jackmorton.com).
Sources: In-Store, Marketing Event, The New York Times, PROMO
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