A new study from Gradient, a global experiential marketing agency, reveals that 82% of retail companies have increased their experiential marketing budgets in the past three years, reflecting the growing importance of engagement-driven strategies in the retail industry.
Based on interviews and surveys with 152 retail marketing specialists as part of a broader analysis of over 750 senior brand marketers and 15 C-suite executives across more than 12 industries, the study highlights the crucial role that experiential marketing plays in driving both sales and brand awareness.
Retail companies surveyed reported allocating 10-30% of their overall marketing budgets to experiential marketing efforts. Of those, 74% of respondents represent companies with revenues ranging from $50 million to $1 billion, emphasizing that larger, well-established retail brands are driving this trend.
“Retail marketers are seeing experiential marketing as essential for staying competitive in a digital-first marketplace,” said Pauline, Gradient’s CEO. “This shift reflects the need for brands to create memorable, engaging experiences that resonate with today’s consumers.”
Key findings include:
- 41% of retail marketers prioritize driving sales, well above the industry average of 22%.
- 34% focus on building brand awareness, compared to the 19% average across other sectors.
- 64% use earned media value and 51% track social engagement as top metrics for measuring campaign success.
While retail marketers are seeing positive returns, they face challenges related to budget allocation (49%) and internal cross-collaboration (52%), signaling a need for more integrated strategies within their organizations.
As experiential marketing evolves, the integration of digital strategies, such as paid social and content creation, is proving critical. Retailers are increasingly using these methods to amplify the impact of their events, creating cross-channel experiences that drive both customer engagement and sales.
To explore the full analysis and gain deeper insights into experiential marketing in the retail industry, visit the complete study at Gradient’s website.
About Gradient
Gradient is a global experiential marketing agency with offices in New York and Los Angeles. Specializing in creating immersive brand experiences for Fortune 500 companies, Gradient is at the forefront of driving engagement and measurable results across industries.