More than half of chief marketers will spend at least a fifth of their budget on experiential in the near future, a new study shows, compared to less than a third who do so now, writes Campaign Magazine’s Simon Gwynne.
One thousand chief marketing officers and brand managers in Europe, North America and Asia were polled by brand experience agency Freeman data solutions and research provider SSI about where they expect to direct their resources.
Globally, 51% said they would spend more than a fifth of their budget on experiential in the next three to five years, compared to just 31% who do so currently.
The bulk of these – 37% of those polled – said they expected to spend between 21% and 50% of their budgets on experiential.
Meanwhile, 14% said they would spend more than half of their budget on brand experience – but this compares to 18% who do so already, suggesting marketers increasingly see experiential as a major part of a mixed strategy, rather than a single dominant channel.
Chris Cavanaugh, executive vice-president and chief marketing officer at Freeman, said the numbers showed that brand experience was continuing to grow in scope and importance.
He added: “Steep competition, changing demographics and more sophisticated audiences mean now, more than ever, marketers need new approaches. The right brand experiences have the power to evolve brands, build relationships and inspire action.”
Commenting on the research, Sense Deputy MD Lou Garrod said: “We wholly support the research by Freeman. We’re in the height of the experience economy with more and more brands using experiences to connect with consumers. We’re likely to see brands in non-traditional sectors using the medium of experience to engage. For example, from financial institutions and legal firms to Publishers (The Economist) and utilities providers (EDF Energy).