In the ever-shifting terrain of Nigeria’s economic landscape, businesses are increasingly turning to innovative marketing strategies to navigate the turbulent waters and connect with consumers on a deeper level. With economic uncertainties looming large, experts in the field of experiential marketing offer valuable insights into the evolving trends and strategies that are reshaping the marketing landscape
In an interview with The Brand Colossus, Experiential Marketing Experts revealed the increasing shift of businesses to below-the-line (BTL) and Experiential Marketing strategies to deal with economic uncertainties and drive Return on Investments (ROI).
According to Milagrosa Nana Utomi, CEO of MPXM Experiential Agency, experiential marketing initiatives provides cost-effective solutions for brands seeking to maximize limited resources, “Through experiential activations, brands can create memorable experiences that resonate with consumers, driving brand awareness, loyalty, and advocacy without the hefty price tag associated with traditional advertising channels. These initiatives allow brands to leverage creativity, innovation, and strategic planning to optimize their resources and achieve tangible results in a cost-effective manner. Experiential marketing initiatives provide opportunities for measurement and analysis of return on investment [ROI] and return on experience [ROE]. Brands can track key metrics such as foot traffic, engagement levels, social media mentions, and conversions, allowing them to assess the effectiveness of their campaigns and make informed decisions for future initiatives by leveraging the unique advantages of experiential marketing.”
She further added that, economic uncertainties prompt a shift towards Below-the-Line (BTL) and experiential marketing strategies. Utomi emphasized, “In times of economic uncertainity, businesses turn to below-the-line (BTL) and Experiential Marketing (XM) strategies, prioritizing experiential marketing for personalized and immersive consumer engagement. What I am certain of is as we journey through 2024, the BTL and Experiential Marketing trend will flourish, driving innovation and deeper connections in Nigeria dynamic marketplace.”
The experiential marketing expert further pointed out some common concerns and pain points often expressed by brands when considering experiential marketing, in light of economic constraints.
“When brands are considering Experiential Marketing amid economic constraints, brands commonly express concerns about ROI, budget allocation, scalability, and uncertainty regarding consumer response. It is crucial to address these concerns with transparent communication, data-driven insights, and strategic planning to build confidence and foster successful partnerships as well as curating the type of experience for the consumer / target audience.”
However, “there has been a noticeable shift in client priorities towards Experiential Marketing in Nigeria. Clients increasingly value the tangible and memorable connections experiential activations forge with their audience. They recognize the unique ability of experiential marketing to create authentic brand experiences, foster consumer engagement, and drive meaningful results, making it a preferred choice in today’s dynamic marketing landscape” she said.
In the same vein, Aizehi Itua, another Marketing expert, echoed this sentiment, noting that economic volatility impacts consumer behavior, leading to increased FOMO (Fear of Missing Out) and spontaneous buying. “Nigeria’s economic landscape can be a rollercoaster, impacting marketing strategies heavily. The volatility of the exchange rate is rapidly becoming a menace withing the business scene. It has shrunk the purchasing power of consumers and aroused a level of spontaneous buying in the consumers as they do not know what tomorrow’s price will be. In these kinds of economic climates, FOMO is heightened. We have also seen a change in the spending pattern of brands to enable them to utilize their scarce resources judiciously. The CMO is now under pressure to bring tangible results that impacts the bottom-line. we are seeing brands play safe in a surplus economy. While BTL and experiential marketing may feel the initial tremors, they often emerge stronger. Why? Their inherent flexibility and focus on direct consumer engagement offer a lifeline during constrained times.”
“Traditionally, brands might slash BTL budgets during downturns. But savvy players recognize its unique value. Forget mass reach and prioritize meaningful connections. Create pop-up events that generate buzz, partner with relatable micro-influencers, or launch unexpected guerilla campaigns – all at a fraction of the cost of traditional advertising. Remember, BTL isn’t just about impressions, it’s about fostering brand loyalty and advocacy, which pay dividends long after the budget tightens” he added.
Both experts emphasized the cost-effectiveness and measurability of experiential marketing initiatives, Itua explained, “Experiential marketing initiatives are relatively cheaper especially when you see the value it brings to brands in terms of share of love and wallet. But cost-effectiveness isn’t the only advantage. BTL thrives on measurability. Unlike the nebulous reach metrics of ATL, BTL allows you to track engagement, brand sentiment, and conversions, showcasing the true impact of your investment. This data-driven approach becomes even more crucial in uncertain times, allowing for optimization and maximizing limited resources. It is easier to analyze the reach and conversion rates as well as the ripple effect post campaign. It however, takes an integrated marketing approach to provide a holistic consumer experience.”
Furthermore, he highlighted the importance of an integrated approach and leveraging technology to create immersive experiences, “It takes an integrated marketing approach to provide a holistic consumer experience,” Itua advised to “Use technology to your advantage. Digital experiences and CGI’s to create and immersive experience.”
Itua acknowledged the concerns commonly expressed by brands as regards ROI measurement and execution challenges in light of the economic constraints, stating, “Brands often express concerns about measuring ROI accurately in BTL campaigns. Pricing and execution have also been common complaints from brands as a common what we ordered versus what we got scenario persists due to the client’s canoe budget for a Private Jet project. True, it requires a shift in focus from traditional metrics to engagement and sentiment analysis. Additionally, executing impactful BTL activities requires creativity, planning, and logistical expertise, which can be daunting for resource-constrained teams.”
Looking towards the future, both experts foresee experiential marketing playing a pivotal role and evolving in the experience-driven world, “In light of ongoing economic uncertainties, Experiential Marketing in Nigeria is set to play an increasingly vital role. It will serve as a beacon of resilience, fostering genuine connections and driving brand loyalty amidst economic fluctuations. As Nigeria consumers seek meaningful experiences, experiential marketing will emerge as a cornerstone for brands, offering a powerful means to navigate challenges and thrive in a dynamic marketplace. MPXM Agency as a member and in collaboration with EXMAN – the Experiential Marketing Association of Nigeria is certain; Experiential Marketing will thrive amid economic uncertainties. EXMAN’s initiatives and expertise empower brands to leverage experiential strategies effectively, fostering resilience and innovation in Nigeria’s marketing landscape. Together, we are shaping a future where experiential marketing drives meaningful connections, brand loyalty, and sustainable growth despite economic challenges.” Milagrosa Nana Utomi said.
Itua also added that Experiential Marketing is taking a more significant role in the experience-driven world and will continue to evolve in the coming years, “The boom in virtual experiences shows how much consumers want to create and tell their stories. It is also an opportunity for brands to weave themselves into that story by occupying a Mindspace. This can be achieved through unique and memorable experiences. Consumers now have mental ad block due to the increased exposure to commercialized and transactional relationships that lack depth, some more tech integrated experiences with data driven solutions do bring their wildest imaginations to life in a hyper personalized manner.”
In conclusion, amidst economic uncertainties, experiential marketing merges as a resilient and effective strategy for brands seeking to foster genuine connections and drive meaningful results in Nigeria’s dynamic marketplace. As brands adapt to the changing landscape, prioritizing meaningful connections over mass reach, experiential marketing stands as a beacon of innovation and resilience.
