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Event marketing is one of the promotional mediums that has seen tremendous growth recently. Each year, there is a rise in both the total number of events and the money spent by companies on these types of programs. However, despite the increase, they continue to concern marketers and agencies alike because of the difficulties they present in accurately measuring the results. Reaching the consumer in a one-to-one manner has proven to be effective in building market-share and brand equity, but along with this success, being able to control the event and effectively measure the results is still an issue. Many times, event marketing programs do not have the same control and measurement factors that are typically found when running a more traditional marketing program.
With the rise of event marketing, there has also been a decline in the effectiveness of traditional advertising mediums such as television, magazine and print. For years, they had been the preferred marketing methods because of the manufacturer’s ability to tightly control the variables and measure the results. In addition, advertising agencies could easily gauge their work and accurately assess the return on investment. Over the past 10 years, the shift in funds to more promotionally-oriented programs has created a gap in both being able to precisely measure each element of a program and determining the ROI.
Although event marketing programs can be an effective means of reaching the consumer, the inability to assess and modify them mid-stream has become a significant issue. Unlike television campaigns where it is possible to use recall scores and overnight ratings to quickly ascertain its effectiveness and then make necessary adjustments, the structure of the vast majority of event marketing programs make it difficult to accurately measure them while they are in progress. The number of contact points involved in a typical one can make mid-stream adjustments nearly impossible.
None of the issues outlined above would be a concern if marketing did not have to worry about the efficiency of their spending. It would not be a problem if event marketing was only being done to fulfill the needs of a retailer in conjunction with a larger trade program. However, this is not the case. Today, event marketing is an integral part of the advertising mix. The ability to successfully execute a program of this type is often the reason a brand either achieves or misses its quarterly volume / share objectives. For someone in marketing, the way an event marketing program runs and the results it achieves can be the very reason why they get promoted or passed over. To an agency, a well-run campaign is not only a key marketing tool, but it can also provide the agency with a huge PR lift.
It’s easy to find examples of brands that have incurred near fatal blows from a marketing campaign that was poorly executed. It’s even more common to find brands that have incurred significant financial losses simply from a marketing campaign that was conducted in the field in a manner different from what management had planned for. Over the years, there have been many occasions where an event marketing program that was not executed to the expected standards has resulted in a lengthy legal fight between the involved parties.
For many CPG companies, running an event marketing program such as an instore product demonstration requires additional levels of approval to secure the funds. In most cases, this is a result of a finance department’s concern over how the money is going to be used and the audit process in place to ensure it is used properly. The only reason a finance department would have these additional controls in place is due to a bad experience from an event marketing program that may have run years earlier, but the issues associated with it remain in the minds of those in control. A prime example of this is the ability for an independent auditor to verify placement of an ad in newspapers by reviewing tear sheets or case shipments in conjunction with a trade program. For an event marketing program, the same verification is not as easily done, especially if the audit is not conducted by people who understand this type of promotion.
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