Measuring the ROI of Brand Experience

Blog // 11.21.2019 // Measuring the ROI of Brand Experience

Can You Measure Experiences?

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?

What is ROI?

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. 

So, why choose experiential marketing?

There are several key benefits to experiential marketing.

  • Experiences leave a lasting impact.
  • There’s an opportunity to gather more data when face-to-face.
  • Consumers can be educated about your brand while simultaneously allowing you to observe how they naturally interact with your product or service.
  • Opportunities for organic social coverage are abundant during experiential marketing. If you can give your audience a reason to snap a photo or hit send on a tweet, they will.

How can you measure the ROI for experiences?

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.

  • Define your own metrics. Personalizing your measurement strategy to your goals seems like a given, but many get hung up on a standard ROI. Take a step back and look at what you’re hoping to accomplish: what does success truly look like?
  • Skip the metrics and focus on your sales. Whether you are looking at short-term return, such as merchandise sold at your event or long-term increases post-experience, these numbers are easily obtainable.
  • AdWeek puts it simply – “some moments can’t be measured.” An event with low attendance could garner triple the attention on social. Check all of your channels and keep your eyes open.

While determining an ROI for experiences isn’t simple, utilizing experiential marketing is certainly worth the effort.

Take your brand to the next level with McD Digital, contact Randy McDaniels, or 309-346-7412.

McD Marketing

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