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Experiential marketing achieved its 11th consecutive quarter of growth in 2024, with brands significantly increasing investment in live events and immersive activations, according to the latest Bellwether Report.
Issued by the UK Institute of Promotional Marketing, the data shows sustained growth in the sector is critical for building direct, meaningful connections with consumers.
The first quarter of 2024 delivered a record-breaking 23.1% increase in experiential budgets.
The report says brands are responding to rising demand for real-world interactions at a time when digital spaces dominate work and leisure.
The ability of events and experiences to deliver tangible, shared moments has made experiential a top priority for marketers seeking audience engagement.
The momentum continued into Q2, where budgets rose by 17.2%, buoyed by major events like the Paris Olympics and the UEFA European Football Championship. These provided brands with opportunities to engage both on-site and online.
Nancy Cullen, CEO of SpaceandPeople was interviewed and she said high-footfall venues were critical touchpoints for reaching engaged audiences.
“Brands leveraged these spaces not just for visibility, but to create interactive, memorable experiences that deepened their connection with audiences.”.
Cullen also highlighted standout campaigns such as Liquid I.V.’s distribution of almost 300,000 samples over 18 days, while immersive experiences created by drinks brands, including the Aperol Spritz Aperidisco and Lipton Ice Tea Lunch Club tour, demonstrated the impact of interactive consumer engagement.
In Q3, experiential marketing showed resilience amid broader economic caution, with a net balance of +9.9% maintaining steady investment.
Seasonal activations and entertainment-led campaigns dominated, with Wicked’s Emerald City-inspired Christmas tree installation at St Pancras International drawing widespread attention. The 11-metre tree, adorned with 1,000 hand-painted flowers and a glowing yellow brick road, encouraged visitors to immerse themselves in “a vibrant, branded experience”.
Looking ahead to 2025, the Bellwether Report forecasts further growth with a net balance of +18.7% of marketers planning to increase budgets.
Nigel Clifton, head of creative at N2O, predicts immersive and personalised experiences will remain central to consumer engagement strategies.
“Consumers – especially Gen Alpha – will crave vibrant, immersive brand experiences that excite and educate on their terms. These physical, hands-on interactions will be pivotal to fuelling sales, loyalty, and sustainable growth for brands.”
Cullen expects trends such as PR stunts and brand collaborations to gain further traction in 2025, as activations increasingly rely on viral amplification. She cited examples like the Specsavers bollard stunt and Sky’s Sugababes Push the Button campaign, both of which captured consumer attention and drove social media engagement.
