measuring the effectiveness of experiential marketing

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MEASURING THE EFFECTIVENESS OF EXPERIENTIAL MARKETINGAn Introduction to the IPM’s Experiential Measurement FrameworkApril 2018


Contents

• Context

• Why are we doing this?

• Our purpose

• The framework

• How will it work?

• The research task

• Plan

• Seals & benefits


The IPM is the brand activation

ROI body. We are dedicated to

protecting, promoting and

progressing the best practice,

commercialisation and marketing

effectiveness of promotional

campaigns conducted by our

agency, service agency and

brand owner members.


The ultimate purpose of

experiential marketing is to

affect the behaviour of the

target audience through live

engagement and this can and

should be measured…

CONTEXT


The UK spent £21.4b in 2016 on advertising. Agency brand experience budgets were estimated at £171.9m (Campaign & Event May15 -June16). In London alone, the spend on brand experience activities in the capital in the same calendar year was £81.4m. This investment represents a continually growing channel in the marketing mix.

Although some Experiential agencies do seek to measure effectiveness and ROI, currently there is no standard, industry-agreed, approach to experiential evaluation and therefore no consistent and credible yardstick for comparisons.

This is harder to achieve for Experiential marketing because there are many differing types of event, each with differing reach and impact, and currently no common method for judging the business benefit of a campaign.

WHY ARE WE DOING THIS?


The purpose of this work is to outline how to

evaluate the Reach, Impact and ROI from

Experiential Marketing campaigns in order to

improve confidence in the strategic benefits of

experiential; create common industry standards,

benchmarks and terms for experiential marketing

practice; and enhance the reputation of the

experiential marketing industry.

This summary highlights the principles and the

model that the IPM are proposing. For more

information, please refer to the step-by-step

approach of IPM Effectiveness Measurement for

Experiential Marketing guide.

OUR PURPOSE


THE FRAMEWORK5 Key Principles

1. KPI’s

It is critical to define the business

challenge experiential is solving at the

start of a campaign through setting

SMART KPI’s.

2. Terms & Conditions

Use industry common language for

measurement: (contacts, interactions,

engagement, reach, amplification).

3. Benchmarking

Where possible, activity adopt a best

practice of assessing past data &

benchmark ‘what good looks like’ in order

to build robust activity.

4. Robust Methodology

To ensure the accuracy, consistency and

validity of results regardless of the sector,

category, brand and agency, the IPM

advocates minimum standards required

for measurement methodology:

– Statistically robust sample sizes for surveys

– Independent data collection / data auditing

– Surveys conducted pre- & post-activation.

5. Effective Measurement

A common approach to effective

measurement and evaluation covering:

Reach, Impact, ROI.


Our approach accounts for all types of experiential in one measurement framework.

HOW WILL IT WORK?POP UP RETAIL BRANDED EVENTS BRANDED INSTALLATIONS CREATIVE SAMPLING

RETAILTAINMENT GAMIFICATION LIVE STUNTS LIVE PERFORMANCE

Dolce by Ferrero Roche Irn Bru Lucozade Dorset Cereals

Pandora Berghaus “The Get Out Game” Sky, Game of Thrones Season 7 Launch PlayStation at London Pride


EFFECTIVENESSExperiential Effectiveness Measurement Model

Live Reach Impact ROIPre-Event

Event Post-Event

Measure Current Brand Affinity & Usage Heard

Saw

Took Part

Measure New Brand Affinity and Brand Usage with Impact, Reach and Advocacy analysis:

BAMBrand Affinity Measure

RAAVERelevancyAssociationAccessibilityValueExpectation

AdvocacyNPS

Conversion Ratio

ROI = Value of Uplift from the Campaign / Cost of the Campaign


THE OUTPUTUltimately, we are looking to have an industry wide database of experiential campaign data that can be compared and contrasted to form benchmark standards for our industry. A set of Industry Standard Measures will be defined and consistently measured and collected:

Total Market

Vertical Market Sector

Type of Experiential

Campaign Budget

The database will be

searchable by:

Each campaign will be measured by the same

methods so that benchmarks can be set…

A report can then

be created.

Affect on Advocacy Measures

Guideline Cost per Contact

Average Net Promoter Score incl. affect on swing

Expected/Industry Average Reach

Average length of Engagement

Total Industry Spend

% of Overall Budget

spent on XM

Spend by vertical

Affect of time spent

on Return

The HOLY GRAIL = Return

per £ spent


THE TOOLApp / site to be developed to search databaseInitial search criteria suggested by IPM Experiential Council database


The Research Task

Measuring• Reach• Impact• ROI


REACH

Three Types of

Reach Need to

be Measured

Each type has

2 or 3

audiences to

be quantified

Reach

1. Direct

3. Amplified

2. Indirect

Took Part

(Active Participant)

Had Other OTS

(Attended Event)

Informed by an

Active Participant

Informed by an

Event Attendee

(Paid) Media

PR / News

(Paid) Social


IMPACT

Measuring

Impact – 3

Key Elements

To be

quantified for

each of the 3

types of

exposure

Impact

Awareness

Likelihood to Purchase

Brand Affinity (via RAAVE measures and/or Willingness to

Recommend)

Indirectly Exposed

Directly Exposed

Via Amplification

Indirectly Exposed

Directly Exposed

Via Amplification

Indirectly Exposed

Directly Exposed

Via Amplification


ROI

Measuring ROI

– 3 Options (&

ideally use all

3)

And (ideally)

quantified for

each of the 3

types of

exposure

ROI

Track Changes in ‘Actual’

Behaviour (Pre- and Post-Event)

Put a Value on the Reach Obtained

(“Media Equivalence”)

Put a Value on the Impact Achieved

Hard Sales (e.g. EPOS)

Claimed (via Survey)

By Relating Brand Affinity

and Existing Behaviour

By using ratio of

%Purchasing to %Aware

Indirect

Direct

Amplified


PLAN

PHASEInitial ConsultancyFollowing our initial consultation within the council, 10 member agencies and an independent research agency have been involved in pulling together the initial framework.

2015 to 2017

Vetting & GuidanceEach of these campaigns have been vetted by our research agency to ensure they adhere to our new framework for measurement. And have been offered advice on how to comply with the framework.

June 2017 on-going

Date Modelling /

ComparisonWhen the campaigns are complete, the data will be correlated by our research agency and filtered into the initial beta data sets we are looking to set up in our data base in phase 2.

From August 2018

Initial Industry

White PaperWe plan to share a white paper in Q4 2018 (target: IPA Effweek 2018), which will correlate the findings of our initial test phase and be available to all IPM members.

Expected Q4 2018

Wider Launch of the

IPM’s Measurement

DashboardTest Phase completes, and Phase 2 begins. 30 member brands and agencies are asked to commit to the build of the industry database and a second round of data collection.

Dec 2018 onwards

1

2PHASE

Test & Learn15 member brands and agencies have been asked to participate in the initial Phase 1 test and learn by sharing one client/campaign results.

June 2017 on-going


Seals & benefits• Receipt of a bespoke seal of excellence

• Promoted as a Practitioner member through all

IPM media

• Exclusive access to all Council output content

upon launch (not available to non-members of

the specific Council)

• Training on how to use the benchmarking tool

• Voting rights on the strategic direction of the

Council

• Opportunity to attend Council panel sessions

and other events free of charge

• Opportunity to publish opinion pieces relating

to the council as a Council Practitioner

member


Contact

Paul Cope, IPM Managing Director

020 3848 0441

[email protected]

measuring the effectiveness of experiential marketing

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