The New Currency of Experiential Marketing
Authored by Jonathan Adler
November 21, 2024
From footfall to form-fills, experiential marketing is undergoing a fundamental transformation. This interactive and analog corner of the marketing world is now a powerful engine revved up and ready to deliver one of the most valuable metrics in modern marketing – first-party data – the new currency of experiential marketing.
Memorable experiences, bold designs, and unforgettable conversations remain the foundation of activations. What’s new is the move from subjective to objective ways of looking at their impact as the foundations of KPI frameworks shift. For CMOs wrestling with attribution challenges, especially in sectors with extended purchase cycles, such as the automotive industry, this opt-in information transforms a one-time activation into the foundation of a measurable customer relationship.
Research shows how much brands are shifting strategy to maximize the ability to capture data. Experiential spending is on track to surpass pre-pandemic levels, according to recent research from PQ Media. Patrick Quinn, PQ’s CEO, summed up the two main driving factors behind the growth: “Experiential marketing is becoming a more important part of marketing campaigns because of better metrics and engagement with customers.” First-party data encapsulates both of those points.
Beyond Traditional Metrics: The First-Party Data Advantage
It’s no surprise that brands are tuning into the power of experiential marketing for its ability to deliver opt-ins. First-party data serves several pivotal roles for marketing leaders. Perhaps the most obvious is its ability to provide a quantitative ROI for marketing spend. Tracking registrations or sign-ups goes beyond a simple snapshot for a single event. Having that information empowers CMOs to demonstrate the following:
- Activation Engagement: Opt-ins provide hard numbers for post-event analysis and insights. They reinforce the picture created with traditional filters such as length of stay, foot traffic, social listening, media coverage, or surveys.
- Year-over-Year Growth: Registrations track growth for annual events and ongoing campaigns. As CMOs build multi-year strategies, having both current and historical data reinforces success in the long term.
- Straightforward Attribution: First-party data takes the guesswork out of tracing a sale back to the customer’s first experience with the brand. While the entire customer journey remains a top priority, this simplifies tracking–from activation to point of sale.
- Reduced Customer Acquisition Costs: There’s no reason to depend on purchased lists or third-party data. Today’s data environment is evolving, and consumers are more protective of their online privacy, amplifying the value of voluntary information sharing.
Why First-Party Data Changes the “How” of Reaching Consumers
While hard numbers form a powerful set of KPIs for opt-ins, there is an equally robust framework that highlights how it transforms the strategies available to marketers. It’s not just about staying one step ahead of cookie deprecation or opt-outs, either. It’s about exchanging third-party tracking that only tells brands what consumers are doing to first-party information that shows them why they are doing it – because they’ve chosen to engage with the brand. Consider the value CMOs and their teams can unlock:
- Never start with a truly cold call: By the time a prospect’s information is in your database, there’s already a predisposition to buy. You’ve already raised the brand’s profile in that prospect’s mind.
- Leverage authentic audience intelligence: Replace speculative personas with real customer insights. You get the certainty that these particular individuals are interested in your brand rather than a “best guess” based on demographics or psychographics.
- Build an omni-channel strategy: building on a foundation of demonstrated interest is solid ground for brands looking to craft a long-term strategy.
Metrics That Matter – A Modern KPI Framework
While first-party data is crucial, it exists within the broader goals of experiential marketing. Brands and agencies need to build mechanisms to encourage voluntary information sharing. Every aspect of the design and development of a concept must include simple, practical, seamless and creative opportunities that make consumers want to engage. It also means that comprehensive measurement approaches still matter, such as:
- Traditional Metrics: Footfall, dwell time, interactive engagements
- Business Impact: Direct sales, post-event meetings, demos
- Digital Extension: Social engagement, UGC, earned media
- Long-term Value: Customer lifecycle tracking
Trust is Critical to the Future of First-Party Data
As marketers tap the potential of opt-in data, the onus is on them to maintain consumer trust once that information is collected. Today’s consumers are hyper-sensitive to feeling “spammed” or worrying about their data being sold. Clear policies on data privacy and user-friendly opt-out options are musts.
Trust is a two-way street: consumers need to know their information is being respected and brands need to trust that they’ll stay opted in if the content is relevant and engaging. Marketing is and always will be about so much more than metrics. The ability to leverage metrics while building meaningful relationships is what will truly define success.
Jonathan Adler
CMO, FGPG
Jonathan Adler is Chief Marketing Officer of FGPG, and a seasoned marketing leader who brings global brand visions to life through strategic integrated campaigns and storytelling. He is a veteran agency executive with proven expertise in building cross-continental teams. Currently, he leads marketing strategy for client activations and brand launches across media and entertainment, gaming, technology, and luxury automotive sectors. His portfolio includes transformative work for global brands, including Coca-Cola, Amex, Samsung, P&G, Lotus, Emirates, and SABMiller.