Boosting Financial ROI of Experiential Marketing Events

There are as many ways to measure the effectiveness of experiential marketing events as there are booths at a trade show — which is to say a lot. But when it comes to measuring specifically financial return on investment (ROI) — the dollars generated at, through, or as a consequence of an experiential event — things get trickier. Experiential marketing events like pop-ups and brand activations are typically about creating experiences, after all, not directly selling goods or services.

Most discussions around measuring the effectiveness or success of these events are centered around measuring the impact of those experiences on brand loyalty, brand awareness, or brand image, not dollars and cents. But although measuring the financial impact of experiential marketing can be challenging, it’s crucial to understanding its effectiveness.

Where to Start

Measuring the financial impact of your experiential marketing efforts begins with understanding experiential marketing’s ROI challenges.

“Brands are investing more in experiences,” says a recent article posted by a marketing software platform, “but the marketing industry is facing a number of challenges.” These include “zero-based budgeting,” where marketers must justify every expense before committing to any investment. In addition to these pressures, the internet has spoiled us all — we’re used to seeing the results of marketing campaigns roll in in real time. “Marketers have become all too used to the instant feedback loop of digital marketing,” says Tom Gray in an adweek.com article, “which makes understanding the benefit of experiential marketing a much more challenging task.”

Succeeding in this task requires assigning quantitative value to qualitative, intangible results in a way that focuses on dollars and cents, on financial return for financial investment. The key: Research the market carefully, and plan for measurement from the beginning.

“Measuring the success of a campaign shouldn’t be an afterthought, it needs to be built into the core elements of the campaign to ensure you have the metrics in place to measure exactly what it is your brief needs to fulfill,” says a recent blog post.

Pre-Event Planning and Measurement

Establish a Baseline

One of the most important parts of calculating ROI for an experiential event is studying the state of the brand before the event — so the marketing team has something to compare post-event outcomes to.

Collect baseline data on metrics like website traffic, social media engagement, and sales prior to the event to establish a benchmark. Track the same data during and after the event to uncover upticks in awareness, traffic, engagement or sales that can be attributed to the event.

As you build the event, enhance the power of these data-gathering efforts by creating event-specific hashtags, QR codes, and landing pages to pinpoint traffic that’s specifically and unambiguously tied to the event.

Plan to Gather Data and Leads

Build metrics into the event itself by creating opportunities to count or track attendees during and/or after the event. Giving away swag is one example of this — keep track of how many items you distribute — but there are more direct means such as selling products at the event or creating a unique discount code used solely at the event to track future sales tied directly to attendance.

Use social media to track not only the reach and engagement of hashtags related to the campaign but also likes, shares, comments, and impressions. “One of the hallmarks of a successful experiential campaign is its ability to inspire user-generated content,” notes wearepurity.com. “Monitor the quantity and quality of UGC generated during and after your event,” including photos, videos, reviews and testimonials attendees create.

Don’t neglect leads — these contacts with consumers that may later translate into sales or other desired activities. One example of this is collecting email addresses from attendees to add new customers to your email list, then tracking their clicks and purchases from there. Another might be sign-ups and downloads of information through your website or on-site at the event.

“Set up tracking pixels, QR codes, campaign URLs, conversion tracking, and unique discount codes to attribute online actions directly to your experiential campaign,” advises Promobile Marketing.

During the Event

Experiential marketing events have bottom-line value not only because of actual sales generated but also because of the data-gathering opportunities they present.

Collecting data from attendees through surveys, interviews, quizzes, or contests can provide priceless insights into their perceptions of your brand and the event. The cost of getting that info at an event ranges from virtually nothing to very reasonable when compared with traditional customer research such as direct mail and focus groups.

Keep track of the number of customers surveyed or interviewed, as well as demographic data wherever appropriate. Each of those answers has dollar value to the brand — short-term in that it saves some of the cost of market research, and longer-term in that the insights help the brand better target and acquire future customers.

Use behavior-tracking technology to monitor foot traffic and attendees’ movements through the event, and use online listening to track social media mentions and online engagement during the event.

Post-Event: Calculating ROI

The most obvious way to calculate ROI is by selling product at the brand activation or pop-up, then comparing that total to the cost of the event, but experiential events have value for the brand beyond day-of exposure. These metrics can be used to create a more complete picture of the event’s value:

Lead Generation

Every email address or social media handle collected is a potential customer. Count the number of leads generated, and assign a monetary value to each lead based on historical conversion rates.

Code or Coupon Redemptions

Track the number of redemptions and the total value of sales generated through those redemptions. Do this over time — the sales impact of an event could take weeks or months to mature.

Media Coverage

Calculate the media value equivalent (MVE) of earned media coverage, such as news articles, blog posts, and social media mentions.

By carefully planning, tracking, and analyzing your experiential marketing campaigns, you can gain valuable insights into their financial impact and make data-driven decisions for future events.

“The ROI of a given event is much more than associated revenues minus event expenses,” says a post on cramer.com. “When properly planned and executed, the best brand experiences offer on-going returns, whether or not the event itself sees a profit.”

Promobile Marketing is a dynamic experiential marketing agency based in New York City. For over a decade, Promobile Marketing has collaborated with a range of brands—from budding startups to major CPG brands—on immersive marketing campaigns. Get in touch to discuss your next project.