A recent report by Gradient reveals a growing shift towards experiential marketing, with 80% of companies significantly boosting their budgets for immersive brand experiences by 10-30% over the past three years. The findings underscore the increasing recognition of experiential marketing as a critical tool in capturing consumer attention and driving deeper brand engagement.

The study, which involved interviews with 15 C-suite executives and surveys of over 750 senior marketing professionals, highlights the surging interest in strategies that provide hands-on, memorable interactions between brands and their audiences. As competition intensifies across industries, companies are leveraging experiential campaigns to stand out and create lasting emotional connections with consumers.

According to Gradient’s research, brands from various sectors are already implementing these strategies. Lamborghini hosted a luxurious winter driving event for its Urus SUV, blending the thrill of a test drive with a high-end experience, allowing potential customers to experience the brand firsthand. Facebook launched an interactive pop-up in New York City, offering visitors the chance to engage with its privacy controls and interact with representatives, enhancing trust and transparency. Costco and Whole Foods Market have long capitalized on in-store experiences like food sampling stations and cooking classes, making shopping a hands-on activity that fosters brand loyalty.

The report further reveals that 72% of marketers believe they are missing opportunities by not integrating experiential marketing into a broader strategy. More than 20% of the companies surveyed now allocate up to half of their marketing budgets to experiential efforts. Despite challenges in measuring success, over 85% of respondents are satisfied with their experiential marketing ROI, tracking factors like earned media value, social engagement, and follower growth.

However, the report also highlighted hurdles, including the need for earlier incorporation of experiential efforts in the customer journey, seamless collaboration across teams, and the difficulty of quantifying the impact of experiential campaigns.

As customer expectations evolve, experiential marketing is becoming an essential piece of the broader marketing puzzle. Gradient’s findings offer a roadmap for brands looking to maximize the impact of these immersive strategies.