How automotive companies use experiential marketing (2022)

Brands that prioritise the customer experience tend to have greater success

By Arvind Balan

Experiential marketing creates brand awareness through direct interactions with consumers in real-time, and that’s what makes experiential marketing stand out from more traditional and digital forms of advertising. All of the senses are stimulated, and that’s been demonstrated to increase brand loyalty by making an impression on people emotionally. Using experiential marketing may raise consumers’ awareness of your brand and strengthen their attachment to it through a more personal and genuine channel. To your benefit, you will gain extensive knowledge about your target market.

The following case study highlights how luxury auto brands have used experiential marketing for the promotion of their new products:

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Case 1-The Audi Experience

Audi, a brand known for its luxury cars, has recently embraced experiential marketing. Audi Driving Experience is a race-track-based advanced driving training program that gives customers an up-close view of the car’s creativity, skill, and precision. Before bringing its driving experience to India in 2012, the German brand offered it in various countries. Another such event is the Audi Sportscar Experience, which attracts more than 2,000 drivers annually, improving its engagement with customers. Buyers may see the car’s capabilities on the circuit.

Case 2-Cadillac-Culinary Kitchen

Cadillac California hosted the LYRIQ Electriq Kitchen to introduce the new LYRIQ, skipping the New York auto show. The five-course menu was inspired by the EV. Chefs developed the tasting menu over six weeks after a Cadillac designer gave them a walkaround. The new Cadillac was both the inspiration for the menu and the showpiece for the event. Innovative dishes were prepared and were inspired by the translucent glow of the car’s front grill and the lighting created a tingling sensation.

The Takeaway

A common refrain among successful business owners and CEOs is to “Take care of your consumers or else your competitors will.” The automotive sector is no exception.

(Video) Examples Of Experiential Marketing - Disha Kanchan

People often underestimate the challenges faced by the auto sector. On the surface, performance appears to be excellent, but there are significant challenges due to new technology, a shifting regulatory landscape, and a very picky clientele.

Adding experiential marketing to your auto company’s overall marketing plan can make a huge difference. Numerous studies have shown that this method of advertising can be just as effective as traditional methods. Measuring the performance of an experiential marketing campaign is trickier than other marketing tactics.

With these advantages in mind, the article explains how automotive businesses are implementing experiential marketing to give consumers a favorable experience with their brand.

  1. Automotive companies are shifting budgets to experience.

The use of experiential marketing is logical. More and more businesses are allocating resources away from traditional marketing and toward more innovative forms of promotion, such as events. Increasingly, motor companies are spending money on in-person promotions. During the next three to five years, CMOs are expected to devote as much as 50 percent of their marketing budgets to experiential initiatives. The goal of any successful experiential marketing strategy is to leave a lasting impression on consumers through the creation of memorable experiences. Experiential marketing is effective because it encourages positive word-of-mouth about the brand from real customers rather than the company itself.

  1. Need to Woo ‘Millennials’

For younger generations like millennials and Gen Z, the value of traditional marketing strategies like email, direct mail, sponsored advertisements, etc., has diminished. Therefore, automotive companies have a unique opportunity to engage with their target audience in a memorable and engaging way. The automotive sector leverages experiential marketing to establish connections with customers that go above and beyond those of social or digital marketing.

  1. Engaging All Five Senses

It has been observed that experiential marketing is the most powerful form of advertising. It’s the most efficient strategy for converting consumers into buyers and advocates. It’s no surprise that after an experiential marketing event, the vast majority of attendees end up becoming regulars. Unlike other channels, experiential calls for participants’ active participation, which includes the use of their senses. Cars are such an important part of people’s lives and such a significant investment that it’s crucial that they have a pleasant, multisensory experience with them. Pop-up bars with digital displays, auto shows with interactive wheel stands, and expos with product demos are all examples of experiences that allow businesses to connect with customers on an experiential level. Products are available to consumers through all of their senses. These senses are amplified by cutting-edge technologies like artificial intelligence (AI). Customers in any industry, but especially the automotive sector, would rather have a physical product in hand as opposed to a digital one. Instead of reading about the car, they want to take a test drive and see it for themselves.

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  1. Creating the right BUZZ

Earned media, organic, or user-generated content, both contribute to the buzz surrounding any given marketing event. This anticipation, however, is amplified through experience marketing. Experiential advertising is the only method that can create a real stir. A recent survey found that nearly all consumers who participated in an event or experience shared the content on social media. Experiential marketing helps firms expand their reach and introduce their products to new consumers.

  1. Boost Omnichannel Visibility

Those times when experiential marketing could be thought of as the marketing equivalent of the Wild West are swiftly passing. The most iconic and innovative automotive brands are now adopting this method to learn more about their customers. The benefits of merging digital and physical client data into a unified profile are already being felt by marketers. This increases participation and provides material for subsequent advertising efforts.

A print ad in a magazine or newspaper will not spread like wildfire. No amount of attention from a publicity stunt will last. Flyer distribution does not necessitate any sort of personal interaction with the target audience. Although digital and social media have their advantages, they cannot compare to the power of experiential marketing. Reaching out to these demographics can be accomplished through experiential marketing. It’s much more probable that an event will attract enough attention on social media to go viral if it’s original, intriguing, and significant.

Impressions made during immersive events and shows will remain in the minds of attendees for as long as they continue to reflect on the nature of their experience. Having an experience gives customers a sense of belonging, both personally and with a particular brand. The effects of all this are likely to linger in people’s minds long after they’ve finished their morning coffee and turned off the news.

The marketing industry is evolving. Nowadays, consumers can pick from a wider variety of options, so businesses must establish genuine connections with their clients if they hope to retain them. It is no longer adequate to merely bombard an audience with messages in the hopes that some will stick. Brands that prioritise the customer experience tend to have greater success. More and more automotive companies are experimenting with experiential marketing due to its proven success. It’s a tried and effective method for getting things done, and it works better than ever because of advancements in technology and shifts in mindset.

The author is a co-founder at Maxperience. Views expressed are personal.

(Video) automotive experiential marketing

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How do marketers use experiential marketing? ›

Experiential marketing is designed to create an immersive experience for consumers by immersing them in a particular environment. Crafted to increase engagement, this sensory-driven marketing strategy aims to entice consumers into participating in the product or service they're selling.

Why do companies use experiential marketing? ›

Experiential marketing generates an authentic brand awareness through the use on non-traditional marketing methods. In essence, it's interesting, which gets attention and helps people to remember the brand. Through experiences, consumers are invited to get to know a brand via their senses.

What is the difference between experience marketing and experiential marketing? ›

1 highlights that the platform of experience marketing is strategic and larger than experiential ... ... experiential marketing focuses on tactical and operational level actions where the main question is how to do marketing experientially.

What type of marketing is experiential marketing? ›

Experiential marketing, also called engagement marketing, is a marketing strategy that invites a company's followers and consumers to more directly engage with a brand via unique experiences. These efforts may take several forms—as digital or live marketing.

How experiential marketing builds brand loyalty? ›

Over time, experiential marketing can be a powerful tool in increasing brand loyalty by building emotional connections with passionate customers, leading them to become brand ambassadors and influencers who help to spread the brand's messaging to their networks.

Why is experiential marketing so powerful in connecting brands to its target audience? ›

There's something about experiencing something first hand that makes it more memorable than just hearing about it or seeing it in a commercial. That's why experiential marketing is such an effective way to reach consumers. When people are able to interact with a brand, they're much more likely to remember it later on.

What are experiential benefits? ›

Experiential benefits need to revolve around your specific customers and offer a better experience for them. These benefits also need to reinforce your brand promise and create deeper emotional connections. Essentially, experiential marketing aligns tactics, touch points, and engagements.

Why is experiential value important? ›

Experiential value provides important criteria for understanding customer behavior. Therefore, many studies have been conducted to understand customer behavior through analyses of experiential value in various tourism and service sectors.

What is an experiential marketing campaign? ›

“Experiential marketing is, in its simplest definition, a type of marketing based on creating memorable and innovative customer experiences to create deep emotional connections between the customers and the brand,” said Esther Sauri, marketer at Linkilaw Solicitors.

What is experiential branding? ›

Experiential branding is an approach to the overall branding and positioning of companies and their products that focus on the experience that the consumer is looking for. Experiential branding can differentiate a product or brand from their competition.

What is an experiential marketing agency? ›

What is an experiential marketing agency? Experiential marketing is a type of marketing that involves live events and real-life experiences. The big benefit to hiring an experiential marketing agency is that the marketing engages customers through branded experiences and live events.

How do I get into experiential marketing? ›

The qualifications to get an experiential marketing job include a bachelor's degree and several years of professional experience in advertising, marketing, event planning, or sales. Good subjects to study in college include marketing, communications, psychology, and statistics.

Are at the core of experiential marketing? ›

At its core, experiential marketing is all about immersing consumers in live experiences. It's likely a similar approach you already use when crafting your event experience. Events most often overlap with experiential marketing campaigns in two ways.

Does Apple use experiential marketing? ›

Many companies, like Apple, choose to make use of experiential marketing to connect with their consumers by creating products, services, and environments based on a holistic consideration of the consumer's experiences (Diller, Shedroff, & Rhea, 2005, p.

What is experiential learning examples? ›

Experiential learning examples.

Going to the zoo to learn about animals through observation, instead of reading about them. Growing a garden to learn about photosynthesis instead of watching a movie about it. Hoping on a bicycle to try and learn to ride, instead of listening to your parent explain the concept.

Why do we focus on direct marketing with experiential events? ›

Experiential marketing lets you connect with your customers in an authentic and relatable way, while building brand awareness and loyalty. You'll be rewarded with deep consumer insights that could prove invaluable.

What are 5 ways that make experiential marketing successful? ›

Here are five benefits of experiential marketing to inspire your next campaign.
  • Standing out. In a crowded market, experiential marketing can set your brand apart. ...
  • Getting the attention of media and influencers. ...
  • Social media exposure. ...
  • Allowing consumers to experience your brand and product. ...
  • Memorability.
Jul 10, 2017

Who benefits most from experiential learning? ›

What are the benefits of experiential learning?
  • Students can better grasp concepts. ...
  • Students have the opportunity to be more creative. ...
  • Students have the opportunity to reflect. ...
  • Students' mistakes become valuable experiences. ...
  • Teachers often observe improved attitudes toward learning.

Why is experiential learning so effective? ›

Experiential education teaches students to examine their actions and their thought processes, and even their emotional responses. This internal reflection prepares students for the workplace and helps them make major life choices, improve their personal relationships, and address their emotional needs.

What is experiential learning? ›

“Experiential [learning] is a philosophy and methodology in which educators purposefully engage with students in direct experience and focused reflection in order to increase knowledge, develop skills, and clarify values” (Association for Experiential Education, para. 2).

What does functional value mean? ›

Functional value is defined as the perceived utility derived from an alternative's capacity for functional, utilitarian, or physical performance, and emotional value is defined as the perceived utility derived from an alternative's capacity to arouse feelings or affective states (Sheth, Newman & Gross, 1991).

What is experiential positioning? ›

Experiential positioning is the strategic process of. understanding consumer desires, creating and. delivering a particular form of experience, and. communicating the firm's proposed experience to. consumers in a way that differentiates the brand from.

What do you understand by experiential marketing How do organizations deliver customer experienced value? ›

Experiential marketing, also known as engagement marketing, is a marketing strategy based on providing an exceptional customer experience. Wikipedia provides the following experiential definition: experience marketing directly engages consumers and invites and encourages them to participate in the evolution of a brand.

What is experiential marketing Wikipedia? ›

Virtual extension. Experiential marketing is a growing trend which involves marketing a product or a service through custom memorable experiences that engage the customers and create emotional attachment to the product/service.

What are experiential elements? ›

The Elements of Experiential Learning
  • Engaging. Experiential learning is engaging, and training cannot be effective if your learners aren't paying attention in the first place. ...
  • Cause and Effect Link. ...
  • Active. ...
  • Observing Real Results. ...
  • Personal Experience. ...
  • Smart Reflection. ...
  • Abstract Thinking. ...
  • Group Sharing and Brainstorming.
Feb 12, 2019

Why should marketing managers adopt experiential marketing? ›

Real-Time Experience for the Consumers: Happening outside a physical world experiential marketing ensures a real-time experience for the consumers by engaging pragmatically with them during the campaign. Experiential marketing permits customers to literally experience your brand by generating a friendly relationship.

What is the concept of experiential marketing? ›

Experiential marketing, or engagement marketing, is a marketing strategy that directly engages consumers and encourages them to participate in a brand experience.

What is experiential marketing theory? ›

Smilansky (2009) says that experiential marketing is the process of identifying and satisfying customer needs and aspirations profitably, engaging them through two-way communications that bring brand personalities to life and add value to the target audience.

How do you market your experience? ›

Here are five ways to improve your experience marketing:
  1. 'The way you make me feel' Feelings and emotion derive from experience. ...
  2. Make it shareable. By giving people something to share you're helping take your offline experience online. ...
  3. Show, don't tell. ...
  4. It's good to talk. ...
  5. Tell your story.
Jun 29, 2020

What is experiential product? ›

Experiential products are defined as ones which consumers choose, buy and use solely to experience and enjoy; movies are studied as an example.

What is experiential branding? ›

Experiential branding is an approach to the overall branding and positioning of companies and their products that focus on the experience that the consumer is looking for. Experiential branding can differentiate a product or brand from their competition.

What are the 11 pillars of experiential marketing? ›

This chapter describes these 11 pillars that include, remarkable, shareable, memorable, relatable, memorable, relatable, personal, targetable, connectable, flexible, engageable and believable marketing campaigns. These pillars are essential building blocks of successful experiential programs.

How do you create experiential marketing? ›

To begin developing your experiential strategy, view your brand from customers' perspectives. Discover how they perceive it, the emotions they associate with it, and how you can delight or support them in a memorable way.

What is experiential positioning? ›

Experiential positioning is the strategic process of. understanding consumer desires, creating and. delivering a particular form of experience, and. communicating the firm's proposed experience to. consumers in a way that differentiates the brand from.


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