How are AI, web3 and other emerging technologies transforming the future of experiential Marketing?
The main objective of traditional marketing is to directly or indirectly show customers the value of a product or brand. Modern audiences, however, are not as swayed by traditional marketing as they once were in this day and age.
A marketing paradigm known as experiential marketing focuses on giving customers experiences that fully immerse them in a brand or product. The goal is to use tools like an augmented reality photo booth or a virtual reality booth to engage as many of the customer’s senses as possible to create a memorable experience that will increase brand loyalty and influence their purchasing decisions more successfully.
Research shows that only 1% of millennials claim to be influenced by ads, and 84% of them do not believe traditional marketing. It is not surprising that experiential technology solutions for marketing are more impactful than traditional marketing for millennials and Gen Z, who are in the prime of their working lives and are extremely valuable to marketers across all industries. The new generation values experience above everything.
Technology Trends In Experiential Marketing
Let’s discuss a few technological trends in experiential marketing that have come to define how we perceive marketing both now and in the future.
Technological advancements like artificial intelligence (AI), better targeting, and dynamic creativity are changing how consumers interact with brands. Businesses are also benefited by improved analytics and a greater understanding of how advertising works. AI-based advertising campaigns can benefit from machine learning insights, which take the guessing out of making the most of massive amounts of data.
In the context of advertising, machine learning refers to a process where technology collects data, analyses it, and then makes a determination that can improve a task or a method. The results of this technology can be utilised for media buying, audience targeting, and personalization, among other things.
Google, Meta, and Twitter employ audience data in combination with layers of ML and AI to predict and target the right audience segment for advertising.
Internet of Things (IoT)
Every day, more and more gadgets are being connected to the internet. This enables the web to be always present and accessible to everyone. Marketers will benefit from this in their analysis of consumer purchasing patterns across various platforms. They can collect information on how customers interact with their products and determine where they are in the purchasing process.
Blockchain technology aims to do away with centralised systems and build an open and transparent ecosystem that changes the face of marketing. Additionally, it can aid in data centralization and security. Users will have direct control over their data and privacy thanks to Web 3.0, which will make businesses more user-centric and transparent.
The present marketing environment is being disrupted by NFTs, which is forcing brands to come up with creative incentives for audience engagement. NFTs have been included into brand and marketing plans, and they are aiding in the development of new consumer relationships and the promotion of conversion for businesses.
MAC, Adidas, Dolce & Gabbana, and Mahindra & Mahindra are just a few of the numerous examples of brands and companies that strategically leveraged NFTs to enhance campaign outcomes and provide clients with a unique and varied experience.
Experiential marketing is the new fad in marketing that aims to go beyond the conventional approaches that have lost their effectiveness due to a number of factors, particularly the fact that the younger generation no longer believes in advertising and instead looks for real, impactful interactions with brands.
Businesses now have a wide range of marketing options at their disposal, including 3D virtual shopping tours, live shopping on social media platforms, and much more. Customers will remain interested in their present websites and online spaces if these experiences are improved and expanded. Additionally, it will pave the way for what comes next in the Web 3.0 era. To get ready for the new digital consumer scenario, which marketers will be facing head-on in, keeping track of emerging trends is crucial.
(The author is Ms. Monica K Dhawan, CEO and Managing Director of Fusion Corporate Solutions and the views expressed in this article are her own)