Grassroots Marketing / Experiental Marketing

I am looking for some information on how large companies fund their grassroots marketing/experiental marketing efforts. In other words, does Coca Cola spend x% of their sales on this type of marketing, or is it a percentage of their total marketing budget. I am not looking for Coke info specifically, that was just an example.

"According to Forrester Research, experiential marketing spending has grown to $11.2 billion, capturing nearly 80% of marketing service dollars." Jack Morton Worldwide http://64.233.161.104/search?q=cache:qI53qNdQHngJ:www.jackmorton.com/australia/what/experiential.asp+%22experiential+marketing+spending+has+grown+to+%2411.2+billion%22&hl=en

Hi! I continued my search and found some more relevant information. It appears that funding for experiential marketing efforts comes out of each company's marketing and/or communications budgets Excerpts: ??the best way to attract and retain customers is to create experiences within them. Knowing this, many companies have begun to establish location-based experiences, like General Mills' Cereal Adventure at the Mall of America, Heineken's new Heineken Experience in Amsterdam, LEGO's multiple LEGOland theme parks, Pleasant Company's American Girl Place off Chicago's Magnificent Mile, and Volkswagen's Autostadt in Wolfsburg, Germany.? ?Tellingly, the money for such experiences often comes out of each company's marketing and/or communications budgets.? Event Marketer: Getting Serious About Experiences http://www.eventmarketer.com/index.php?id=478&backPID=513&swords=gilmore&tt_news=21 --------------------------------------------------------------- Ford Motor Company's Mercury division is funding their digital and experiential marketing with almost 25 percent of their total marketing communications budget. ?Ford Motor Company's Mercury division is kicking off a multi-year campaign in which 25 percent of spending will go to digital and experiential marketing -- with the bulk going online.? "For this campaign, we are dedicating nearly 25 percent of our total marketing communications budget to digital and consumer relationship events, which represents a substantial commitment when compared to prior launches." ?The company wouldn't break out exactly how much would be spent online versus on experiential marketing efforts, but one executive estimated that about 16 percent of spend would go online.? ClickZ News: August 27, 2004 http://www.clickz.com/news/article.php/3400811 --------------------------------------------------------------- ?U.S. marketers earmarked an average of 10.6% of their total marketing dollars for events; event-marketing budgets averaged $827,911, per PROMO's October 2003 survey of 305 marketing execs.? ?Brands earmark an average 10.6% of total budgets for events.? Chief Marketer http://chiefmarketer.com/presence/events/marketing_street_smarts/ --------------------------------------------------------------- Spending on experiential marketing has grown to an estimated $166 billion in 2004, a 9% increase over 2003. http://blog.brandexperiencelab.org/experience_manifesto/2005/06/ --------------------------------------------------------------- Creating a Successful Experiential Marketing Program ?Event marketing is a growing part of companies? marketing mix, with more than 22 percent of companies? marketing budgets devoted to events. According to the Association of National Advertisers, event marketing is a $10 billion industry in North America, and investment in events is growing at double-digit rates, outpacing growth in advertising and promotions.? MediaLive International, Inc., http://www.medialiveinternational.com/pdf/Successful_Experiential_Marketing.pdf --------------------------------------------------------------- EXPERIENTIAL MARKETING: New Consumer Research June 14, 2005 http://www.jackmorton.com/360/industry_insight/jun05_industryin.asp --------------------------------------------------------------- I am reposting my previous findings below for your convenience. According to GMR Marketing President Jay Lenstrom, many brands have added event or experiential marketing as a separate budget line item. ?Budgets also grow as marketers seek a broader range of activities, says GMR Marketing President Jay Lenstrom. Many brands have added event or experiential marketing as a separate budget line item. That cements events as the darling of brand marketing, blending promo, p.r. and advertising elements. It also intensifies pressure to prove its worth; that?s got marketers and their agencies developing measurement systems to prove ROI. Nearly half (47 percent) of marketers think events give the best ROI of all disciplines, per Intellitrends? survey. The trick is devising one formula to suit disparate campaigns." "Lou Bitonti, senior manager of brand events for DaimlerChrysler, spent a year creating measurement templates for its national, regional and local events. As money shifts from media to experiential marketing, events become an integral part of our marketing mix.? Promo Magazine http://www.pmalink.org/research/AnnualRep03.pdf --------------------------------------------------------------- North American companies are spending a percentage of their events budget on experiential marketing. ?Experiential marketing embraces event- and location-based marketing efforts that bring potential customers together face-to-face with products and services to create a connection -- and a longer-lasting impression. North American companies will spend an estimated $5 billion of their $11.1 billion events budget on experiential marketing in 2004. And the amount earmarked for experiential marketing is expected to grow as much as 25 percent a year, according to Jim Andrews, editorial director of Chicago-based IEG Sponsorship Report, a marketing industry newsletter.? Source: More than Window Dressing Fast Company: Issue 85 August 2004 http://www.fastcompany.com/magazine/85/neverstop.html --------------------------------------------------------------- Cadillac spends 10 percent of its marketing budget on events. ?Cadillac, meanwhile, will be running a spot on the Super Bowl, but it will also "have 400 vehicles ... shuttling Super Bowl attendees to restaurants and ... top hotels. GM also plans to take over an entire city block for a celebrity go-cart race." Says Cadillac's Jay Spenchian: "There is less and less network viewing by our target, and event marketing is one way to give customers firsthand experience with our products." In 2004, Cadillac spent some 10 percent of its marketing budget on events, up from 5 percent the year before. The carmaker would seem to be on-trend: "U.S. spending on event marketing grew 15 percent, to $152 billion in 2003, according to the Promotion Marketing Association, www.pmalink.org. While total spending isn't available for 2004, the group says it expects there was an increase of more than 15 percent." http://64.233.179.104/search?q=cache:Yq2SMPUsnBUJ:blog.brandexperiencelab.org/experience_manifesto/advertising_news/+%22experiential+marketing%22++%22percent+of++*+budget%22+&hl=en --------------------------------------------------------------- I hope the information provided is helpful! Search criteria: "Experiential marketing? ?grassroots marketing? expenditures ?percent of? ?Advertising budget ??marketing budget? Best regards, Bobbie7

Very good answer. Some addtional information is available at http://promomagazine.com/mag/marketing_buzz_gets_louder/. PROMO Magazine, a source cited has very good information about event marketing. Many thanks.

Hello again Santabarbara, Would the information below serve your purpose or are you looking for something else? Thanks, Bobbie7 According to GMR Marketing President Jay Lenstrom, many brands have added event or experiential marketing as a separate budget line item. ?Budgets also grow as marketers seek a broader range of activities, says GMR Marketing President Jay Lenstrom. Many brands have added event or experiential marketing as a separate budget line item. That cements events as the darling of brand marketing, blending promo, p.r. and advertising elements. It also intensifies pressure to prove its worth; that?s got marketers and their agencies developing measurement systems to prove ROI. Nearly half (47 percent) of marketers think events give the best ROI of all disciplines, per Intellitrends? survey. The trick is devising one formula to suit disparate campaigns." "Lou Bitonti, senior manager of brand events for DaimlerChrysler, spent a year creating measurement templates for its national, regional and local events. As money shifts from media to experiential marketing, events become an integral part of our marketing mix.? Promo Magazine http://www.pmalink.org/research/AnnualRep03.pdf North American companies are spending a percentage of their events budget on experiential marketing. ?Experiential marketing embraces event- and location-based marketing efforts that bring potential customers together face-to-face with products and services to create a connection -- and a longer-lasting impression. North American companies will spend an estimated $5 billion of their $11.1 billion events budget on experiential marketing in 2004. And the amount earmarked for experiential marketing is expected to grow as much as 25 percent a year, according to Jim Andrews, editorial director of Chicago-based IEG Sponsorship Report, a marketing industry newsletter.? Source: More than Window Dressing Fast Company: Issue 85 August 2004 http://www.fastcompany.com/magazine/85/neverstop.html Cadillac spends 10 percent of its marketing budget on events. ?Cadillac, meanwhile, will be running a spot on the Super Bowl, but it will also "have 400 vehicles ... shuttling Super Bowl attendees to restaurants and ... top hotels. GM also plans to take over an entire city block for a celebrity go-cart race." Says Cadillac's Jay Spenchian: "There is less and less network viewing by our target, and event marketing is one way to give customers firsthand experience with our products." In 2004, Cadillac spent some 10 percent of its marketing budget on events, up from 5 percent the year before. The carmaker would seem to be on-trend: "U.S. spending on event marketing grew 15 percent, to $152 billion in 2003, according to the Promotion Marketing Association, www.pmalink.org. While total spending isn't available for 2004, the group says it expects there was an increase of more than 15 percent." http://64.233.179.104/search?q=cache:Yq2SMPUsnBUJ:blog.brandexperiencelab.org/experience_manifesto/advertising_news/+%22experiential+marketing%22++%22percent+of++*+budget%22+&hl=en

I do not think that percentage or total dollar amount of spending exists, so if this is the best information you can find, that's the best we can do. If you can find anything else, that would be great, otherwise consider the question answered.

#If you have any other info about this subject , Please add it free.#

6 January 2009 | cameltoepants.com | edit