As an event production company, we've long believed in the power of experiential to captivate consumers and forge lasting connections with brands. We are delighted to see PQ Media's Global Experiential Marketing Forecast 2022-2026. The latest findings support the growth of our field in years to come.
According to PQ Media's report, spending on experiential marketing in the United States is forecast to outpace overall advertising and marketing investments by up to 6%, by 2026. This projection comes on the heels of a turbulent period for the industry, with consumer experiential marketing experiencing a 25.7% plunge in 2020 due to the impact of the COVID-19 pandemic. However, the sector is bouncing back according to the figures, showing 8.2% growth in 2021, further accelerated by 11.1% in 2022, to $75.16 billion.
In a constantly evolving marketing landscape, we’ve witnessed firsthand the incredible impact experiential marketing can have on our clients' brands, and we're thrilled to see the industry continuing to observe its potential.
The Resilience of Experiential Marketing
Despite the challenges posed by the pandemic, experiential marketing has proved to be remarkably resilient. The desire of major advertisers and marketers to gain brand awareness among consumers, create positive brand associations and boost sales has fuelled a continued growth of experiential marketing in the post-pandemic era. As a result, it is expected to regain pre-pandemic spend levels by 2024, according to the survey.
At KGA we are seeing empirical evidence of this, as 2022 became our most commercially successful year to date.
The Power of Storytelling and Metrics
Experiential marketing's resurgence can be attributed to several factors, one of which is the power of storytelling. Brands like Ecover and Booking.com, that have mastered the art of storytelling, can create emotional connections with their audiences, making their campaigns more memorable and impactful. Compelling narratives resonate with consumers, fostering a sense of shared experience and forging strong brand-consumer relationships.
Additionally, experiential marketing provides superior metrics and more meaningful engagement with customers compared to traditional advertising channels. Brands can directly interact with their target audience, understanding their needs and preferences on a deeper level.
The Future
The outlook for experiential marketing remains optimistic. Brands are shifting budgets to media channels that demonstrate the ability to engage target consumers, create emotional connections, and increase sales. Experiential marketing's consistent growth, even amidst strong headwinds faced by other digital and traditional media, highlights its resilience and effectiveness.
As an experiential production agency, these findings validateour unwavering belief in the effectiveness of experiential marketing. Despite the challenges posed by the pandemic, we’ve observed up-close and personal, how vital a tool it continues to be for the identity and spirit of our clients’ brands. It is heartening to see the industry recognising this.
