Event & Experiential Marketing Industry Forecast & Best Practices Study. FOURTH ANNUAL EventTrack. executive summary.
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1 Event & Experiential Marketing Industry Forecast & Best Practices Study FOURTH ANNUAL EventTrack special report by
2 EventTrack table of contents Introduction 3 I.) Key Findings & Insights from the Brand Survey 4 II.) Key Findings & Insights from the Consumer Survey 8 About Mosaic 12 About the Event Marketing Institute 13 EventTrack Executive Summary 2
3 EventTrack introduction Welcome to the World s Most Comprehensive Annual Research Study on Event & Experiential Marketing In the face of rapid, revolutionary change across the marketing landscape, event and experiential marketing is adapting and thriving as it officially takes the throne as the world s fastest-growing form of marketing. Face-to-face marketing combines the best elements of above-the-line and below-the-line branding into a powerful engagement platform. The evolution is being driven by Fortune 1000 companies now putting much more emphasis (and budgets) on interactive customer experiences and businessimpacting event engagements with b-to-b customers. Welcome to the fourth edition of the Event Marketing Institute and Mosaic EventTrack, the world s largest annual Event & Experiential Marketing Industry Forecast & Best Practices Study. This groundbreaking annual study monitors the continual growth and expansion of the event and experiential marketing industry. Unique to EventTrack is its dual-channel format. Two research studies are created and fielded, one to brands across the Fortune 1000 and the other to thousands of consumers. The result is an incredible pool of data that connects what experiential marketers are doing and why with how consumers react and buy. This Executive Summary provides detailed analysis of events and experiences from the perspective of leading brands as well as consumers and event participants. Some of the key areas provided in this report include: From the Brand Survey Event and Experiential Marketing Goals and Strategies Industry Overall Growth and Budget Analysis The Sales Impact of Event and Experiential Marketing Measurement and ROI Trends and Stats From the Consumer Survey How Experiences Drive Purchasing and Alter Brand Perception What Motivates Consumers to Participate in Events and Experiences Word of Mouth Generation Data, Engagement Rates Social Media Adoption, Content Sharing and Viral Behavior The brand analysis is based on in-depth surveys and interviews with more s at more than 220 companies across the Fortune The survey of consumers polled more than 1,600 people who recently attended or participated in events, both in-store and out-of-store. Copyright Event Marketing Institute. All Rights Reserved. No part of this publication can be copied or disseminated without the permission of the Event Marketing Institute. EventTrack Executive Summary 3
4 EventTrack I. key findings and insights from the brand survey Event and Experiential Marketing Goals and Strategies The survey asked: Which of the following best describes your organization s external event and experiential marketing goals and strategies? The top two goals and strategies for experiential marketing? Increase brand awareness and drive sales. It s just further evidence that Fortune 1000 companies are using live engagements to building their business and their brand. The data shows a clear and present picture of strengthening strategies, bolder campaigns and definable metrics as marketers use events to drive product knowledge and understanding and influence deeper customer involvement. Also in the past year there have been increases in the percentage of brands that say their event marketing goals are to enhance product knowledge and understanding and influence deeper customer involvement. Events and experiences are becoming more important in the critical areas of informing consumers and getting customers more involved with brands. These are also areas in which brands are focusing their digital and social media efforts. Using event and experiential marketing to launch new products continues to be very important to over half of brands as well. 2012% 2013% 2014% % Increase / create brand awareness 73% 79% 78% 81% Increase sales 83% 77% 79% 79% Enhance product knowledge and understanding 53% 58% 52% 62% Influence deeper customer involvement 48% 52% 51% 57% Launch new products 48% 50% 59% 55% Gather leads 48% 58% 49% 50% General media impressions / press coverage 38% 34% 39% 45% Build prospect database 45% 44% 38% 41% Increase website traffic or Facebook Likes, social media activity 34% 36% 31% 40% Conduct research, learn 23% 22% 17% 26% Indentify, develop influential consumer-based brand ambassadors 22% 18% 24% 24% Indentify, develop influential business-to-business brand ambassadors 17% 22% 12% 20% Increase effectiveness of other media 16% 19% 11% 18% Reduce price sensitivity 10% 8% 4% 14% Other 8% 4% 4% 3% Source: EMI/Mosaic EventTrack EventTrack Executive Summary 4
5 Event Budgets are Increasingly Funded by Corporate This strong 6% budget growth raises the question: What s the source of this increased spending? Is it new funding from corporate, or are resources being shifted from other areas of the marketing mix? The answer is: 58% of brands said they are being funded directly by corporate and not out of other marketing budget buckets, while 42% of brands with increasing event budgets say the new funding is coming from other parts of the marketing mix. As the charts show this is a key shift from the 2014 findings. These findings suggest corporations are finding more sources of investment outside of the overall marketing budget to fund event and experiential campaigns. This is due to the success of event and experiential programs and the desire to get closer to customers. From other parts of the marketing mix 65% % Funded directly by corporate and not from other marketing budget buckets From other parts of the marketing mix 42% 58% Funded directly by corporate and not from other marketing budget buckets EventTrack Source: EMI/Mosaic EventTrack Are Event and Experiential Programs Correlated to Sales? Another key finding compared to the 2014 data is that a larger percentage of brands are directly correlating experiential marketing activity to sales. No 41% 35% 2014 Yes No Yes 59% 65% Source: EMI/Mosaic EventTrack More Events and Experiences in vs Industry growth is also shown in the findings below on the number of event and experiential marketing programs to be executed by brands and corporations in compared to A significant 79% of the brand respondents say they will execute more event and experiential programs this year compared to last year. Less 21% 79% More Source: EMI/Mosaic EventTrack EventTrack Executive Summary 5
6 Measurement is On the Rise A continuation of a long-term trend is shown in the data below that today 79% of brands are measuring their event and experiential programs. This is up from 78% last year and 71% in the 2013 study. 79% 21% EventTrack % 22% % 29% Yes No Source: EMI/Mosaic EventTrack Top Three Criteria Used to Measure Events and Experiences The top measurement factors and criteria according to the survey of brands are total attendance, Facebook and social media activity, and number of leads % 61% 58% Total attendance, participation or visits Facebook Likes, social media activity, postings, etc. Leads Source: EMI/Mosaic EventTrack Budgets are Expected to Increase Over 6% in Companies and brands are increasing their event and experiential marketing budgets by a healthy 6.1% in. This is up from an increase of 5.4% found in the 2014 EventTrack study. The average growth rate is nearly three times the level of recent U.S. GDP growth. Average Brand Event and Experiential Budget Growth % 5.4% 6.1% Source: EMI/Mosaic EventTrack EventTrack Executive Summary 6
7 ROI Generated Events and experiences provide a significant ROI. The survey asked specifically: What ROI do you expect from events? Forty-eight percent of brands realize a ROI of between 3:1 to 5:1, and 29% indicated their return is over 10:1. Twelve percent say their ROI is 20:1 or higher. 1 to 1 return 2 to 1 3 to 1 9% % 4 to 1 9% 5 to 1 16% 10 to 1 13% 20 to 1 4% Greater than 20 to 1 12% % 23% Source: EMI/Mosaic EventTrack EventTrack Criteria Used to Measure What criteria is used to measure events and experiences? The top measurement factors and criteria according to the survey of brands are total attendance, Facebook and social media activity, and number of leads. 2012% 2013% 2014% % Total attendance or participation 74% 83% 80% 85% Facebook Likes, social media activity, postings, etc. 45% 37% 57% 61% Leads 62% 67% 64% 58% Post-event sales 46% 49% 66% 57% Public relations, press coverage 56% 54% 59% 47% Website traffic 41% 50% 46% 47% Gross sales related to the event 49% 54% 32% 47% On-site sales 31% 29% 41% 44% Time spent at experience 31% 25% 34% 44% Other online activity and postings 29% 26% 30% 30% Retail shelf lifts na na 9% 18% Gross profit related to the event 24% 30% 32% na Other metrics 11% 5% 9% 5% Event Programs are Part of Integrated Campaigns Source: EMI/Mosaic EventTrack The findings show the trend is to integrate events and experiences more closely with wider corporate marketing and branding initiatives. About the Brand Survey Respondents The survey polled marketers across large companies in such categories as information technology, consumer products, automotive, consumer electronics and mobile telecommunications, financial services and medical. Thirty-seven percent of the brands indicated their overall event and experiential marketing budget is over $10 million. Eleven percent have large budgets over $50 million. In terms of the number of events and experiences, 38% run hundreds of events and 13% manage thousands of them. Less 18% 11% 2014 More Less More 82% 89% Source: EMI/Mosaic EventTrack EventTrack Executive Summary 7
8 EventTrack II. key findings and insights from the consumer survey There are two overarching key insights from the new EventTrack Consumer Survey. The first is that the impact of event and experiential marketing on consumer purchasing continues to increase. The second is that consumer usage of mobile devices and social media at events, and the segment that shares their experience with family and friends via technology, continues to increase dramatically. For example, comparing the 2014 and survey findings shows a big jump in the percentage of consumers that text about the event or experience: from only 7% last year to 49% in the new survey. Events Drive Purchases A significant 98% of the respondents said that assuming the product or service promoted was one they were interested in, participating at the event or experience made them more inclined to purchase. This is up from the 96% figure in the 2014 survey. Inclination to Purchase as a Result of Attending Less Inclined to Purchase Less Inclined to Purchase 4% % More Inclined to Purchase 2% 98% More Inclined to Purchase Source: EMI/Mosaic EventTrack What Motivates Event Participation The main motivators to participate are free samples or other giveaways, discounts or special offers -- and to learn about the product or service. 2013% 2014% % Free samples or other giveaways 68% 83% 81% A discount or special offer is provided 45% 52% 54% To learn about the product or service being promoted 51% 44% 49% I like the brand or company putting on the event Na 51% 46% If the event looks interesting 33% 40% 46% Source: EMI/Mosaic EventTrack EventTrack Executive Summary 8
9 Events and Experiences Improve Brand Perception Events and experiences positively improve brand perception. After the event 74% of the participants have a more positive opinion about the company, brand, product or service being promoted. No opinion Same 2% 20% 4% More Negative 74% Source: EMI/Mosaic EventTrack More Positive EventTrack More Consumers are Purchasing During Events Sixty-five percent of consumers purchase the product or service promoted at the event or visit. This finding is up significantly from the 54% found in the 2014 survey. Males are more likely to buy at events and experiences than women, according to the cross-tabulated survey findings. The age range most likely to buy on-site are those between the ages of 25 and 35. No 46% 35% 2014 Yes No Yes 54% 65% Source: EMI/Mosaic EventTrack Purchase Again at a Later Time (After Initial Purchases) Eighty-seven percent of the consumers said they purchased the product or service after the event at a later date, in addition to their purchase made at the event or experience. There has been an increase over time of the event participants that say they purchase the product again following their first purchase. 2012% 2013% 2014% % Yes 58% 51% 68% 87% No 42% 49% 32% 13% Source: EMI/Mosaic EventTrack EventTrack Executive Summary 9
10 Event Participants are Likely to Become Regular Customers Seventy percent of event and experience participants that purchase once then become a regular customer. EventTrack No 30% 70% Yes Source: EMI/Mosaic EventTrack Purchase Motivators: Why More Inclined to Purchase? Simply trying or seeing products drive the purchase decision. % Gave me the opportunity to try it out first 78% Showed that the company believed enough in its product or service to let me check it out I was given a discount coupon or special offer that made me more likely to buy 50% 49% Source: EMI/Mosaic EventTrack What Most Influences Purchase Decision The survey asked: If you did buy the product/service being promoted at the event, what most influenced your decision to purchase during that visit? The key purchase decision factor is the ability to sample the product or see a demonstration. Better understanding the product and being provided with a coupon or discount have become much more important in one year. 2014% % I sampled, used, or saw a demonstration of the product/service and liked it 83% 80% I had a better understanding of the product/service from the event 36% 57% I was given a coupon offering a discount 34% 49% Source: EMI/Mosaic EventTrack EventTrack Executive Summary 10
11 Powerful Word of Mouth The word-of-mouth communication, both digital and in-person, that results from event and experiential marketing is significant, and the brand impact is powerful. According to the consumers, 96% of consumers that tell a friend or family member about their experience mention the company or brand running the event. Are Companies, Brands or Products Mentioned in Discussions with Friends and Family? EventTrack No 4% 96% Yes Source: EMI/Mosaic EventTrack Live Events are More Effective than TV, According to Consumers The survey asked consumers if live events help them understand products or services better than TV commercials. Eighty-seven percent of the respondents said events are more effective than commercials. No opinion No 9% 4% 87% Yes About the Consumer Respondents Fifty-nine percent of the 1,600 consumer respondents are female. The age categories are broken-out as follows: under 25, 24%; 25 to 35, 41%; 36 to 45, 13%; 46 to 55, 9%; 56 to 65, 9%; over 65, 5%. Fifty-eight percent of the respondents to the survey live in the U.S. and 42% in Canada. Source: EMI/Mosaic EventTrack EventTrack Executive Summary 11
12 EventTrack about Mosaic Mosaic is the fastest growing experiential marketing agency in North America. Utilizing its People as Media approach, Mosaic delivers fully integrated solutions that connect with consumers at every point along the path to purchase. With Brand Ambassadors at the core of every experience, Mosaic executes thousands of consumer events and retail visits across North America each year, making one-to-one consumer connections in store, online and in the community. Mosaic s U.S. operations are headquartered in Dallas, Texas, with offices in Chicago, Illinois, and Bentonville, Arkansas. Its Canadian operations are headquartered in Mississauga, Ontario, with offices in Toronto, Ontario and Laval, Quebec. Recently acquired by Acosta Sales & Marketing, Mosaic now operates under Acosta s marketing arm, AMG. Dallas Chicago 220 East Las Colinas Blvd 750 N Orleans, Suite 600 Irving, TX Chicago, IL Phone: Phone: Mississauga Laval 2700 Matheson Blvd East 2500, Boul. Daniel-Johnson West Tower, 2nd Floor Bureau 230 Mississauga, Ontario L4W 4V9 Laval, Quebec H7T 2P6 Phone: Phone: Toronto 100 Liberty Street Suite 100 Toronto, Ontario M6K 3L7 Phone: EventTrack Executive Summary 12
13 EventTrack about the Event Marketing Institute The mission of the Event Marketing Institute is to help our members enhance their professional performance by providing comprehensive education, research, and analysis related to emerging trends and insights into event marketing strategy, as well as creating a growing list of productivity tools and professional networking opportunities to foster information exchange. To learn more go to eventmarketing.com. Event Marketing Institute 10 Norden Place Norwalk, CT Tel: eventmarketing.com EventTrack Executive Summary 13
14 EventTrack Event Marketing Institute 10 Norden Place Norwalk, CT Tel: eventmarketing.com Copyright Event Marketing Institute. All Rights Reserved. No part of this publication can be copied or disseminated without the permission of the Event Marketing Institute. EventTrack Executive Summary 14
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