Experiential Marketing's Reset Is Being Propelled By 'Virtual Fatigue'
Digital should be part of a balanced use of interactive screens as in-person events retake center stage
“Enthusiastic caution” may be the most celebratory description for the current state of experiential marketing. Tugging at the imaginations of agencies and marketers is the idea that a backup plan and disaster preparedness must be baked into every program moving forward.
The crisis mode that gripped performance marketing agencies and brands since March 2020 may actually lead to a stronger year than initially predicted. As vaccinations rise, consumers’ pent-up demand for something physically social increases exponentially. Experiential marketing planners and brands are incorporating digital lessons learned from when live gatherings went virtual.
The use of virtual reality and other tools will provide an enhancement that marketers can use to connect with attendees at everything from major sporting events like the U.S. Open Tennis Championships to live showcases by spirits giants like Bacardi to retail pop-ups.
If the forecast for experiential seems strong, perhaps it’s because 2021 marketing plans didn’t turn out quite as bad as anticipated, said Daniel Gregory, CEO of experiential marketing agency TEAM Enterprises.
TEAM is currently lining up “two major events” with BMW in the next two months, Gregory said, which will be live press events in the Northeast and California. The Fort Lauderdale, Fla.-based agency is also working on an activation for South Beach Wine and Food Festival in May.
Beware of screen fatigue
The trends of the pre-pandemic era accelerated digital transformation to every function of life. At the same time, marketers need to be mindful that consumers will have little patience with virtual and augmented reality gimmickry.
“While brands and consumers spent the last year adjusting to a new reality, with each passing day, we’re seeing continued virtual fatigue and a growing appetite for real-life connection,” said Michelle Roguso, head of experiential for CAA Brand Consulting, a division of the Creative Artists Agency. “The past year has accelerated trends we were already seeing: a blend of digital/virtual with [real-life] experiences.”
Bacardi adapted its in-person tastings to virtual bartending sessions and used a green screen so it still felt like people were together for events. Bacardi
Comfort level and personal timelines will vary, Roguso cautioned. But brands are asking for help in approaching what “reentry strategies” could look like. Starting this summer, brands will test reengaging in experiential activations in targeted, small ways, she added, such as green screens, the use of AR/VR and small in-person gatherings.
Sol Marketing founder and CEO Deb Gabor echoed Roguso’s point. “People’s patience for one-dimensional video or audio events is diminishing,” said Gabor, and people are showing more interest in hybrid models. Virtual and hybrid events also introduce new opportunities for brands to expand beyond their traditional geographic borders, opening up both new conceptual and financial territory, she said.
“It’s forcing event organizers to devise innovative methods of taking branded experiences to consumers and purchase influencers wherever they are in their journey of dealing with the experience of the pandemic.”
Creativity rises
According to Gabor, the limitations enforced by the pandemic have increased the creativity in the methods used to retain consumers’ attention.
“Event organizers are using new platforms beyond simple videoconferencing to increase engagement among attendees and between attendees and presenters and content makers and brands to create new styles of engagement versus attempting to simulate an in-person experience,” she said.
Kim Crawford developed Sweat Between Sets for consumers to work out alongside fitness guru Megan Roup and tennis legend Maria Sharapova. Kim Crawford/U.S. Open
Event ticketing and management platform Eventbrite is exploring those new tools with its community of organizers and partners for the return of in-person gatherings. Eventbrite CMO Tamara Mendelsohn is currently working on a virtual conference to set the stage for the “in between” time.
“We anticipate there will be a role for both in-person and online events post-pandemic, making way for a new live experiences economy,” Mendelsohn told Adweek. “While we can’t predict the future exactly, we can provide our event creators with the tools and resources they need to successfully reopen their doors for live events, host a blend of hybrid events or stay virtual.”
Live events go green [screen]
The crucible of the past year demonstrated the true value of partnerships between brands and agencies. In the end, new creative expressions emerged from these tested periods.
Gregory credited built-up trust with long-standing clients like Bacardi that allowed the agency to try out new methods in the pandemic. Among the first tests it encountered, which it passed, the agency helped Bacardi shift its trade advocacy event work to virtual. Instead of hosting tastings and entertainment in a nightclub, virtual bartender sessions lifted brand affinity and drove leads.
“Through green screen technology, we were able to allow Bacardi to continue with some of their regional and national meetings,” Gregory said. “It looked like the vps and executive leadership were all on the same stage. As a result, we were able to maintain some semblance of normalcy.”
Cox Automotive turned its live event into a three-day virtual event where it showcased upcoming models for next year’s showrooms. Cox Automotive
Cox Automotive, the publisher of Autotrader and Kelley Blue Book, is another TEAM client that had to do a massive pivot in 2020. Every year, Cox hosted large 10,000-person live events. These gatherings were pivotal networking opportunities and marketing showcases for cars that were going to hit the next year’s showrooms.
TEAM created a three-day virtual session with prerecorded elements, which allowed the program to continue seamlessly. Gregory expects that event to influence next year’s programming even when it returns to in-person. The company declined to reveal data about how the session performed.
Delivering experiences—literally
Wine and spirits industry brands took a significant hit from the absence of major marketing events to sponsor. Kim Crawford, a bestselling New Zealand wine brand, had been looking forward to the 2020 U.S. Open tennis tournament, which is held in New York typically in late August through early September. During the first few months of the pandemic, it appeared there might be hope for playing before an audience.
Ultimately, the 2020 U.S. Open was held without fans. This forced Kim Crawford, which traditionally activated and poured on-site, to engage virtually, Roguso said.
CAA Brand Consulting parlayed Kim Crawford’s existing relationship with fitness guru Megan Roup to develop Sweat Between Sets, a live social event, where viewers at home worked out alongside Roup and tennis legend Maria Sharapova. Kim Crawford followed up by hosting a Q&A.
Between the event, paid media and press coverage, the program garnered over 10.3 million impressions, Roguso said.
Consumers Remain Cautious in Returning to Live Events
Last fall, Morning Consult conducted a study examining Gen Z’s lack of enthusiasm for virtual events. The majority of the “always-online” demo had yet to embrace digital replacements for in-person experiences. The survey was conducted Aug. 21-23 among 1,000 Gen Z respondents.
As for general consumers’ comfort returning to pre-pandemic activities, as of April 11, only 28% of Americans said they feel comfortable going to a concert. To compare, nearly double (43%) feel comfortable going to a museum.
Consumers remain wary about returning to some live gatherings than others.
The new value of experience
The cost savings involved in going from in-person to digital will likely have a lasting influence on the future of experiential marketing. The value of flying 150 people to Atlanta for 24 hours for a dinner and five-hour meeting probably isn’t going to come back right away—if ever.
“Clients look at those past gatherings now and say, ‘We could do a pretty cool virtual interaction for $30,000 versus spending $300,000,” Gregory said.
Whether digital or live, the primary goal of experiential marketing will always be about creating emotional connections, Roguso said. The brands that are most successful are the ones that provide fun, helpful ways for people to connect.
“It’s not about going back to normal, but rather about reimagining and recreating connection and experience today,” Roguso said.