Experiential Marketing - What Is Your Magic Number?

Do experiential marketing services have to be expensive? Do they have to form a significant part of your overall budget? Can you retain the best experiential marketing agency on a limited budget? How much are you really spending on your overall marketing efforts? Experts say that marketers are going to spend more and more in the coming future on experiential marketing and this translates into an increase from $560 to $740 billion U.S. dollars by the time we enter the mid of 2020.

Why Is Everyone Looking At Experiential Marketing With Eyes Wide Open?

This is because the customer has moved on from the virtual world to the real world and the transition hasn’t really taken much of an effort for them. This came as a natural process because virtual experiences, entertainment and engagement through a screen have very limited prowess to impress the audience which is growing in intelligence and awareness by every passing second. Experiential marketing is what brings them closer to the brands they have grown up with and grown to love for so many years.

In the past one year, we have seen a massive jump in the revenues for experiential marketing. The figure jumped 7% to $50.6 billion! This was not unexpected as experts were already hinting on it becoming one of the most preferred method of marketing especially for bigger brands. All thanks to the best experiential marketing agencies in the industry brand activation revenues will soon reach $357 billion this year itself.

But What Should Be Your Annual Spending On Experiential Marketing? How Will You Decide On The Magic Number?

According to an independent study conducted in 2018-2019, several companies are now spending close to 11% of their annual budget on their overall marketing efforts. The same study has also concluded that many of the large scale companies are more than willing to spend close to 12% of their annual budget on experiential and digital marketing campaigns alone. These companies record annual revenue of more than $10 billion! Companies that recorded revenue between $500 million and $1 billion were happy allocating 8.5% of their marketing budget to similar platforms and methods of advertising and experiential marketing services. So what is going to be your magic number?