Well in order to understand how much do the experiential marketing activities cost we must understand a few things first. The Scale and the scope of the activity. In every brief, you ever receive from any client they always have a clear idea of where do they want to conduct the activities. Or if they are unaware of where to conduct the activity then look at the audience that they want to cater to. Discuss with your client what is the scale of the activity in their mind. How many people do they want to tap with the activity?
How to know experiential marketing cost
So the list of things to consider are as follows:
The Scale of the activity
What kind of activity is it
How many people do you intend to reach
What are the objectives
The scale of activity:
The scale and scope of the activity define how large the activity is meant to be. Such as do you want to conduct the activity in multiple major cities of the country or is it one city only. Furthermore, within each city how many locations do you intend to target. Such as how many malls or how many hotels and restaurants. How many hotspots?
What kind of activity is it?
Every brief is different from each other, some briefs are on planning away days for the companies. While some are conferences that will be held in the form of a full-day event. similarly, there are briefs about activations in malls and other hotspots. For those of you who don’t know what a hotspot is. A hotspot is a place where a large number of people are gathered at one time. Such as markets, malls, restaurants, etc. In the agency terminology hotspots generally means open markets. So the kinds of activities that can be sub-divided are as follows:
How to measure Experiential marketing:
This is the major decider of the whole campaign, how many people will it reach. As the brand needs to know that the activity delivers a favorable ROI(return on investment). To study the reach of the activation there are two ways to monitor the activation and the number of eyeballs reached. Similar to social media, not everyone clicks on the ad, however, they do see it. So that is eyeball reach which is impressions. If you apply the same rule to the activation. Not everyone in the mall is engaging with the activity. However, if the mall has 30,000 footfall per day then there is a good chance that out of those 30,000, a minimum of 10,000 saw the activity which will fall in the impressions category. Measuring terminology:
Engagement here is those people who visited the stall and engaged with the activity in one way or another. For the purpose of gathering data, you can make them participate in a lucky draw. Generally, the brand ambassadors are handed over a sheet to fill out such as name, phone number, activity columns made on a sheet of paper. The Brand ambassadors simply fill out the details and keep the sheet saved for the agency’s perusal.
What are the objectives of the activity:
Clients generally offer a very clear objective for the activity which helps develop a campaign around the subject. Objectives can be as simple as conduct an activity in the rural areas and engage 30,000 people. or Reach 1 million people from around the country. This means that the scope of the entire activity is enlarged to encompass, not only major cities but minor ones as well. These activities will have to travel to big and small cities and at a number of locations per city.
Following the objectives that the client wants to achieve you can narrow down the activity and design something specific for them.
Combining all these elements will give you a cost sheet something looking like this, where everything can be broken down into Quantity, Days, and Cost. It’s fairly simple from here onwards depending upon how many items do you require you make the whole cost sheet. For instance, you want to conduct a photo booth activation. Then your sheet will look something like this.
Disclaimer: Keep in mind all the costs are mentioned in rupees and this is a random cost not based on real rates.
To develop the perfect experiential marketing cost you must take quotes from various vendors and see who offers the best price for the services that you need to offer. The above-mentioned sheet should give you some idea on how cost sheets are made. If you have any more questions regarding this feel free to get in touch with me and ill be able to share my tips on costing with you personally.