MEASURING THE VALUE OF AN IMPRESSION

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How much is an individual impression worth? It's one thing to look at cost/CPM, but how much is each single impression worth? Measurement is really in the eye of the beholder. If we assume that engaging the target audience and having them spread the message via "word of mouth" (WOM) is a byproduct of truly effective marketing, then it may make sense to measure the ability of an impression to spread positive word of mouth for a brand.

Looking at both ends of the spectrum: Broadcast media vs. Experiential marketing

Let's discuss broadcast media. Radio, print and tv are the predominant forms of broadcast media. It's a "one to many" approach where you have the ability to reach large audiences in a very short time and at a relative low cost. The problem is clutter. The average consumer is bombarded with thousands of messages a day. When was the last time you mentioned an ad to someone in conversation? Let's assume the following equation: Target Reach (40%) x Recall (12.5%) x WOM (10%) = .5%. This means 5 people out of a 1000 will spread your broadcast advertising message via WOM.

Now let’s look at experiential marketing. It’s a "one to one" approach whereby the consumer chooses to participate in an experience. It typically allows you to engage with consumers for a longer period, but comes with a high "cost per touch." There are no issues with clutter as you tend to have the full attention of the participant. Being able to create a meaningful sensory experience translates to 8 out of 10 participants who will share your experience via WOM. Using a similar equation: Target Reach (90%) x Recall (100%) x WOM (80%) = 72%. This translates that 720 people out of 1000 will spread your message via experiential marketing .

'Moving from the Information Age to the Recommendation Age'

We live in a "low trust" world. Consumers are inherently distrustful of advertising. Does this mean you should negate the reach of broadcast advertising and solely move to tactics such as experiential? Absolutely not. That said, your marketing should move towards activities that promote WOM. You need to get consumers to ‘vouch for’ or recommend your product. Experiential can be that platform for that dialogue. It can also be the platform to support other elements in the marketing mix: advertising, pr, sponsorship, online and retail. We believe at Synergy that the best experiential platforms are the ones that take a truly integrated approach.