Measuring the Success of Experiential Marketing

ABSTRACT:
Experiential marketing has an increasingly important role to play in marketing
communications strategy. This paper examines the use of experiential marketing in
Ireland and how campaigns can be measured.
Exploratory research was employed, with data collected using judgment sampling.
Eight in-depth interviews were conducted with Irish brand or marketing managers,
who have each engaged in at least one experiential marketing campaign.
Findings indicate that most organisations actively measure the effectiveness of their
experiential marketing campaigns. Measurement can take place at any stage of a
campaign and a variety of different tools and methods are employed, however there
does not appear to be any stringent policy surrounding which methods are best for
differing campaigns.
The research has indicated a positive outlook for experiential marketing; however its
success has been pointed towards the responsibility of its agencies. Experiential
marketing may require an industry wide measurement framework which will prove its
effectiveness and justify its place in the marketing mix. The entire experiential
marketing industry must work closer together to promote and publicise what it can
offer. Research indicates that for experiential marketing to really work for a brand it
should be encompassed as an overriding model for the entire communications
strategy.

Measuring the Success of Experiential Marketing

INTRODUCTION:
Tell me and Ill forget. Show and I may remember. Involve me and Ill understand.
Confucius, Chinese Philosopher, 551-479 BC.
Lodish et al (2007) explain that the importance of marketing is to make an impact on
how a product is perceived by the target market. Experiential marketing allows an
organisation to communicate their brand message across a broad range of
demographics by targeting those profiles individually and creating an emotional and
unique experience that brings their brand to life. Schmitt (1999) explained that as
services became commoditised, experiences have become the next big step in the
progression of economic value and that the next competitive battleground lies in
staging experiences.
While there is no universally accepted definition of experiential marketing, Young
(2009, p24) suggests that it includes any live interaction that uses consumers
insights and emotions to connect them with a brand. It is this moment of interaction
that will create a lasting memory or impression on the consumer so that when faced
with the decision to purchase either your product or your competitors, that consumer
will remember their experience and choose it. One of the most famous experiential
campaigns known today was the Pepsi Challenge, (cited by ID Live Brand
Experience, 2005a), it was all based on an invitation to experience the brand, so one
could say, that while some think experiential marketing is a new phenomenon, it is in
fact everywhere (Schmitt, 1999) and has been for some time.
Mc Cole (2004) believes that there is a lack of academic writing which reflects
contemporary marketing practices; this combined with the need to educate senior
marketers as to how they can innovatively connect with their consumers (ID Live
Brand Experience, 2005b) suggests a need for research in this area. They further claim
that the old marketing formula is not effective enough in delivering results and
consumers are harder to reach and increasingly turned off by traditional marketing.
They summarise that while experiential marketing appears to be an expensive way of
reaching a small audience relative to the cost of TV, press or poster advertising, there
is comparatively little wastage and the quality of communication is far in advance of
that which is achieved by passive media. Mc Nickel (2004) argues that just as
television did not replace radio, experiential marketing does not replace other media,
they believe that it merely alters the way they are used.
A Jack Morton (2005) study opened a lot of eyes in the marketing world according
to Lenderman (2006) when its key findings suggested that experiential marketing
played a critical role in driving purchase and consideration across age, gender and
ethnicity in over 70 per cent of consumers.
MEASUREMENT:
The measurement of experiential marketing is a topical issue with many debates
around how successful it is and what impact it has on consumers. Koremans
(2007) says that experiential marketing faces an uncertain future, unless agencies start
placing greater emphasis on Return on Investment (ROI) measures for their clients.
An Experiential Marketing Forum (EMF) and IMI International (2011) report found
2

that experiential marketing was second to digital for forecasted marketing spend
growth. Witthaus (2004) (cited by Williams, 2006) states the growth in experiential
marketing is because it achieves measurable results by offering innovative ways for
brands to communicate with customers, leading to a better ROI.
Smilansky (2009) indicates that a major criticism of the experiential marketing
industry is that there is a lack of suitable and consistent methods for its evaluation, so
often it is measured using similar metrics to traditional marketing which are far from
suitable.
Mullins (2005) explains that every organisation is concerned with being effective, but
the criteria for measuring success may differ from one type of organisation to another.
Establishing your customers expectations and setting them correctly will play a big
role in how experiential marketing is measured and the results analysed. Peter Scott
of T-Mobile (cited by Shaw and Ivens, 2002) says that perceptions are built up by the
brand, so once the level is set we have to meet and exceed that expectation through
the customer experience itself.
In order to understand the value of experiential marketing surely the organisation
must decide what their objectives are for such a campaign. These may include raising
awareness, repositioning a brand or ultimately to increase sales. Smilansky (2009)
argues that such objectives cannot be effectively measured if experiential marketing is
not part of the overall marketing communications strategy. They argue that there
must be systems and mechanisms in place which are tailored to the experiential
objectives during the planning of the campaign. They list the common experiential
marketing objectives and then suggest systems and mechanisms that could measure
their achievement. They recommend that each system should be tailored for
individual live brand experiences. For example if the experiential objective was to
increase sales in a store during the experiential live brand experience, Smilanskys
(2009) mechanism would be to ask the store manager to provide data that shows the
sales for the product in the store for one month prior to the brand experience and the
same data for the product during the live brand experience.
Schmitt (1999) cited by Grundley (2008) identifies that the shift towards experiential
marketing is because of developments in technology, which now provide a two way
communication model and also because of the strength of brands today, products are
no longer just functional, they provide a means to enhance customer experiences. The
core functions of marketing still remain important; however, Medcalf (2004) reports
that people are exposed to anything between 500 and 3000 messages every day. This
illustrates the challenge faced by organisations today to stand out amongst their
competition, to get the attention of their target market and then to keep it. Lenderman
(2006) points out that the traditional marketing formula is rejected by experiential
marketing and that an impression instead means a personal interaction between a
consumer and a brand to create a memorable experience. If success was therefore
measured according to experiential marketings unique benefits, then marketers would
find that it is hugely successful in impacting large numbers of people (Smilansky,
2009).
Toyota utilized a traditional survey method to measure the success of their campaign
in the US in late 2003 when they launched a new brand without any mass advertising.
3

Despite this, Toyota sold 99,259 cars that first year. Instead they utilised experiential
marketing by targeting their exact market at youthful lifestyle events and venues such
as nightclubs, with one car was parked outside each event. If customers expressed an
interest in the car they were taken for a quick test drive. This created word of mouth
buzz in the strategically selected niche geographical location (California) before it
was rolled out across the US. An awareness survey was then conducted, the results
showed that awareness was at 55 per cent nationally and 75 per cent in California.
They ranked how people had heard about the new brand, at the top of this ranking was
seeing it on the street or at an event (Lenderman 2006).
More recently agencies across the world have been conducting their own research and
developing their own mechanisms for measuring activations for their clients so that
they can push measurability and drive growth and trust in experiential marketing.
Research conducted by EMI (2008) shows those who measure and track attendance at
events anticipate a 67 per cent increase in their marketing budget allocations and 34
per cent of respondents found event marketing gives them the highest ROI. Another
report by EMI (2011) identifies five reasons why consumers choose to engage with a
brand at an event, these include free giveaways, a connection to the brand/product, a
visually engaging experience, an interesting product demonstration and the event
location being near the consumer. Ensuring an experiential campaign offers one or
more of these five reasons for engagement will therefore increase the chance of
customer interest. The EMI (2008) report interestingly highlights that by mixing
qualitative and quantitative metrics, marketers can more easily compare and analyse
their results from various parts of the marketing mix thus promoting integration of not
only the campaign itself but also of its measurement.
METHODOLOGY:
The researcher has adopted an interpretive research philosophy for this study.
Creswell (2003) explains that this philosophy holds that individuals seek an
understanding of the world in which they live and work. An exploratory research
design was employed, and the data collection method utilised was in-depth interviews.
Data was collected through eight in-depth interviews with Irish brand or marketing
managers who have engaged in an experiential marketing campaign. This was an
adequate sample size as proven in similar pieces of research which include Campbell,
Bennett and Stephens (2009), Stokes and Bergin (2006) and Carr (2008). Judgement
sampling was employed to select the sample for this research either through the
researchers own industry network or through a direct email request for participation.
Of the eight brands chosen, half are service providers and half are product brands.
This equal division presented a balance in the analysis of the use of experiential
marketing across a number of varied industries. While non-probability sampling is
perceived as being subject to bias because it may not be representative, it is
commonly used in exploratory research and in this case the researcher believes those
selected respondents are representative of the target population and have provided
information to answer the research objectives.
FINDINGS AND ANALYSIS:
Six of the eight brand managers interviewed during this research have demonstrated
that they actively measure the effectiveness of their experiential marketing campaigns.
Of those who do not measure its effectiveness, one manager said it is not because they
4

are unaware of the methods in place to do so, but because there are too many
variables and it is too much hassle versus the end reward of knowing the exact
percentage. The other manager indicated that time is a lacking resource and that if
there was a package you could take off the shelf and use [they would] love it. Five of
those interviewed outlined that they measure and track their campaign effectiveness
before, during and after the experience. One service provider manager explained the
importance of measuring and tracking your numbers during a campaign, if its not
returning what I wanted and I cant see it tripling in numbers by the endIm a firm
believer in killing itif its not going to be detrimental to the campaign.
The findings highlighted that campaign effectiveness is measured via internal research
and insight teams and agencies, who conduct face to face interviews with consumers,
phone and online surveys and collection video clips and sound bites. The tools are
used interchangeably and there does not appear to be any stringent policy surrounding
which methods are best for differing campaigns.
When asked if they received confirmation from consumers as to the effectiveness of
experiential marketing mediums employed, responses were mixed. They indicated
that the documentation of consumer feedback varies from unstructured to highly
structured processes across the eight participating brands. Only one brand explained
their use of ground, walk out, random, mystery shopping and online research
throughout their live brand experiences. Despite literature which states experiential
marketing achieves real measurable results (Witthaus, 2004, cited by Williams, 2006),
two of the product brands reported they rely solely on untracked anecdotal feedback.
Over half of those interviewed confirmed their receipt of agency reports at the end of
a campaign. However, one brand manager commented on the reliability of these
reports commenting that an agency will always have an agenda.
Those metrics actually measured are closely aligned with the set objectives, with all
six brands who actively measure their campaigns effectiveness agreeing that they are
interlinked. The literature identified criticism around a lack of suitable and consistent
methods for the evaluation of experiential marketing (Smilansky, 2009). However, all
the managers indicated they are happy with the metrics that they use. Another
comparatively said that metrics are constantly evolving, were constantly fine
tuningso that we can better reform ourselves to achieve our targets.
Where recent literature suggests that experiential marketing requires an industry wide
measurement tool which will prove its effectiveness, the research findings pose the
question, whether should brand managers instead, be allowed to measure their
campaigns in the best way they see fit for their particular brand.
Two service providers use experiential marketing to sell a story, therefore in
measuring the effectiveness of their campaigns, facts and figures are not prevalent.
Both of these brands commented that the ability to measure experiential marketing
does not make it difficult for them to justify using it. One highlighted that they had
never considered it to be a barrier; they firmly believe they can measure the
effectiveness of their activity and therefore it is not an issue. In contrast, another
brand manager criticised that experiential marketing was seen as very fluffy and hard
to track and as budgets and focus have tightened over the past few years all activity
has to be validated, so not being able to accurately track and measure experiential
5

makes it very difficult to justify its use. Another interviewee interestingly suggested
that it is dependent on what exactly you are trying to do with the live brand
experience and how often you are using experiential marketing to deliver a message.
If experiential marketing is being used annually for brand awareness then perhaps it
will work, but if a brand is looking at cost per ROI on a campaign that takes place
quarterly then thats a different agenda. This brand manager insists that the ability to
justify using experiential marketing completely depends on what your objectives are.
The research revealed that you can never really get a scientific type scenario [in
experiential marketing] where you could monitor it properly [because] you never
operate in perfect markets. The researcher has noted that brands who do actively
measure, are also aware that they do not operate in a perfect market type scenario, so
instead when evaluating their campaigns they allow for some degree of external
factors which are out of their control.
CONCLUSION:
The research has indicated a positive outlook for experiential marketing; however its
success is reliant the ability to measure its effectiveness. The findings reveal that
most brands are measuring the success of their experiential marketing campaigns and
note that setting objectives is a crucial stage in the process. Some organisations have
pursued experiential marketing on a gut feeling and rely on anecdotal feedback,
mixed with a number of other occasional measurement tools. At the other extreme,
some brands already conform to strict measurement techniques and processes. It
therefore appears that going forward, facing an ever changing marketing landscape,
experiential marketing may require an industry wide measurement framework which
will prove its effectiveness and justify its place in the marketing mix.
Alternatively, if experiential marketing agencies can continue to develop their own
new models and promote its effectiveness to their individual clients, then brand
managers may still be able to secure additional resources. What is obvious is that
during recessionary times, as marketing budgets get tighter, management must be able
to see in black and white that experiential marketing does truly work. Therefore the
entire experiential marketing industry must do whatever it takes to work closer
together to promote and publicise all that it can offer.

REFERENCES
Bashford, S. (2006), Events by Numbers, Marketing, November, [online] (cited 14
December 2010) Available from <URL:http://www.ebscohost.com>.
Campbell, K., B. Bennett and S. Stephens (2009), Utilising minority language to
develop brand identity: an evaluation of current practice using the Irish
language. Irish Marketing Review, Vol. 20, No. 1 pp. 67-72.
Carr, H.M. (2008), The Use of Branding within SMEs in Donegal, MSc Thesis,
Letterkenny Institute of Technology.
Creswell, J.W. (2003), Research Design- Qualitative, Quantitative and Mixed
Methods Approaches, Second Edition, Sage Publications, California.
Event Marketing Institute (2008), Measuring Events in the Marketing Mix [online]
(cited 10 February 2011) Available from <URL:http//www.eventmarketing.com>.
Event Marketing Institute (2011), Connecting with Gen Y [online] (cited 10
February 2011) Available from <URL:http//www.eventmarketing.com>.
Experiential Marketing Forum and IMI International (2011), 2011 Global Experiential
Marketing Research Industry Trend Report, [online] (cited 27 February 2011)
Available from <URL:http//www.experientialforum.com>.
Grundley, D., (2008), Experiential Marketing vs. Traditional Marketing: Creating
Rational and Emotional Liaisons with Consumers, The Romanian Economic Journal,
Year XI, no. 29, 133-151.
Hauser, E. and Lenderman, M., (2008), Experiential Marketing [online] (cited 10
February 2011) Available from <URL:http//www.experientialforum.com>.
ID Live Brand Experience (2005a), Experiential Marketing-the future of marketing
[online]
(cited
29
November
2010)
Available
from
<URL:http://www.idexperienital.co.uk>.
ID Live Brand Experience (2005b), Experiential Marketing-in the context of other
marketing activities and relative cost-effectiveness [online] (cited 29 November
2010) Available from <URL:http://www.idexperienital.co.uk>.
Jack Morton Worldwide (2005), Experiential Marketing: A Survey of Consumer
Response
[online]
(cited
10
February
2011)
Available
from
<URL:http://www.jackmorton.com>.
Koremans, S. (2007), Experiential need ROI focus, [online] (cited 14 December
2010) Available from <URL:http://www.ebscohost.com>.
Kvale, S. (1996), Interviews: An introduction to qualitative research interviewing,
Thousand Oaks, CA, Sage.

Lenderman, M. (2006), Experience the Message, How Experiential Marketing is

Changing the Brand World, Carroll & Graf Publishers, New York.
Lenderman (2010), [online] (cited 28 February
<URL:http://www.experiencethemessage.com>

2011)

Available

from

Lodish, L.M., Morgan, H.L. and Archambeau, S. (2007), Marketing that works,
Pearson Education Published as Wharton School Publishing, New Jersey.
Mc Cole, P. (2004), Refocusing marketing to reflect practice, Marketing Intelligence
& Planning, Vol 22, No. 5, pp 531-539, [online] (cited 26 October 2010) Available on
<URL:http://www.emeraldinsight.com>.
Mc Nickel. D., (2004), Experiential Marketing: What it is, why it works and how you
can
do
it
[online]
(cited
09
June
2011)
Available
from
<URL:http//www.marketingmag.co.nz>.
Medcalf, P. (2004), Marketing Communications- An Irish Perspective, Gill &
Macmillan, Dublin.
Mullins, L. (2005), Management and Organisational Behaviour, Seventh Edition,
Financial Times Pitman Publishing, London.
Schmitt, B.H. (1999), Experiential Marketing, Journal of Marketing Management,
Vol 15, pp 53-67.
Shaw, C. and Ivens, J. (2002), Building Great Customer Experiences, Palgrave
Macmillan, Hampshire.
Smilansky, S., (2009), Experiential Marketing: a practical guide to interactive brand
experiences, Kogan Page, London.
Stokes, D. and Bergin, R. (2006), Methodology or Methodaltry? An evaluation of
focus groups and depth interviews, Qualitative Research: An International Journal,
Vol 9, Iss 1, pp 26-37.
Williams, A. (2006), Tourism and hospitality marketing: fantasy, feeling and fun,
International Journal of Contemporary Hospitality Management, Vol 18, No. 6, pp
482-495.
Young, L. (2009), The Measurement Conundrum, Marketing Magazine, Vol 114,
Issue 11, pp24-27, [online] (cited 14 December 2010) Available from
<URL:http://www.ebscohost.com>.