Event Marketing ROI Measurement Model and Benchmarks (Article 1 of 2)
by Chris Clegg
Learn how we’ve modeled experiential marketing ROI for more than 130 brand engagements over the past six years. Read the details on how to do it yourself with our event measurement coaching tools.
We base the return-on-investment model for experiential marketing on the simple division of “value” and “cost.”
“Cost” is the all-in expense to deliver the program.
“Value” is the combination of Projected Incremental Revenue and Ad Value Equivalent (AVE).
- Projected Incremental Revenue is the Year One rate of non-customer segments, their purchase intents, and revenue per customer.
- Ad Value Equivalent (AVE) is the estimated number of impressions, cross-referenced with the industry or Client’s typical CPM.
Let’s look more closely at Ad Value Equivalent.
Ad Value Equivalent is an advertising industry term. The value of an impression is the cost to purchase that impression through other media. The process of obtaining a dollar value from impressions starts with accurately counting the number of impressions.
Five impression sources cover what most any program will generate. See event measurement training video number 7 for details on how to define and measure each:
- Mobile impressions
- Onsite impressions
- Word of mouth impressions
- Digital and Social Media impressions
- Off-line impressions
In aggregate, you’ll have a total number of impressions that is clear and defendable. In order to reach this objective, you must have a well-defined method for gathering accurate and reliable data for each impression type. Field staff will provide much of the impression data after each day of event activity. Additional data is available from clipping services and media partners.
How do you value impressions?
Look for the second Event Marketing ROI article (available on 08/25/16) to learn more about impression value as a key component in event marketing ROI modeling.