Measuring return on investment (ROI) is a marketer’s way of proving their efforts bring in results. While there are equations and metrics that offer ways to calculate ROI for traditional and digital advertising efforts, what about the growing popularity of using experiential marketing instead?
To understand how to create ways to evaluate ROI for brand experiences, you must first grasp what return on investment means. ROI is a measure of performance that allows companies to evaluate the difference between the amount of return and the cost of an investment, becoming a way to determine relative success and a standard for comparison.
Measuring results for your marketing efforts is not always as simple as profit minus cost. Several key issues include knowing when to measure, determining reasonable goals and recognizing outside variables that affect your sales or engagement.
These factors are not insurmountable, as many have achieved relative success with ROI for more typical marketing tactics. Experiential marketing poses a different challenge, however.
There are several key benefits to experiential marketing.
As marketers we have to get creative. In AdWeek’s article, “Measuring the Unmeasurable: How Agencies Are Tracking ROI for Experiential Activations,” they present a few options for tackling the measurement dilemma.
While determining an ROI for experiences isn’t simple, utilizing experiential marketing is certainly worth the effort.