Why live experiences must deliver business outcomes, not just impressions

As budgets come under greater scrutiny and marketing departments face increasing pressure to demonstrate commercial value, live experiences are being judged by a new set of metrics.

It's no longer just about creating moments that people remember; it's about proving those moments drive business results.

So says Richard Hannah, managing director of experience agency Imagination, who sees that shift as one of the biggest changes of the past decade.

"The value of experiences within marketing has grown significantly," he says. "Whether it's a conference or a brand activation, clients are looking for experiences that create genuine value and resonate within broader cultural contexts."

This growth has stemmed from the fact that clients no longer view events as standalone moments, he adds.

"They expect them to generate wider marketing value through content, partnerships, influencer engagement and broader communications activity. ROI is under greater scrutiny than ever, which means experiences need to be closely integrated into the wider marketing strategy and deliver measurable impact.

"Simultaneously, planning cycles are becoming shorter, often driven by wider economic and geopolitical uncertainty. As a result, agencies need to be more agile and flexible in how they respond to briefs and support clients."

Richard Hannah, Imagination

Experience as a commercial tool

For Hannah, the growing importance of experiential marketing is no accident.

As consumers and business buyers spend increasing amounts of time in digital environments saturated with content, live experiences offer something digital channels struggle to replicate: genuine human connection.

"We are in the business of persuasion, like all communications," Hannah explains. "Experiences are extremely potent in this respect, so it's key to deeply understand the customer context so we can move the needle."

For Imagination, that means beginning every project by identifying client outcomes before discussing creative execution.

Rather than asking simply what an event should look like, agencies increasingly need to understand where it sits within the customer journey, what behaviours it should influence and how success will ultimately be measured.

First-party data has become an increasingly valuable part of that equation.

"Agencies are developing formats that maximise both lead generation and insight opportunities, connecting directly to data-rich client CRM systems, which is crucial in high-involvement or high-value product categories," says Hannah.

Innovation needs a purpose

From augmented reality and immersive storytelling to artificial intelligence and the metaverse, technology has dominated conversations around events for much of the past decade.

But Hannah believes agencies sometimes become distracted by technology simply because it's new.

"One of our internal mantras is 'message over method'," he says. "Innovation should always serve a purpose. Our industry can sometimes become distracted by new technologies without being clear on the value they create. The metaverse is, arguably, the most obvious example from recent years."

"The litmus test is to be quite brutal," he adds. "When experimenting, be very direct about the specific value to the brand - but allow for a dose of sheer magic sometimes!"

Ultimately, Hannah believes meaningful engagement comes down to a simple principle.

"Experiences are powerful as they create real-world proof and lasting memories for audiences. There's strong evidence that novelty is very powerful at encoding messages to memory, so experimentation and innovation will always have a role to play.

"When it comes to meaningful engagement, the most important principle is value exchange. If you're asking for someone's time, what are you giving back? Are you entertaining them, inspiring them, teaching them something or helping solve a problem?

"The second factor is human authenticity. Brands often underestimate the influence of credible storytellers, whether that's a CEO, salesperson or someone on the shop floor. Those voices remain incredibly powerful - if you invest here, it will pay dividends."

AI as an accelerator, not a replacement

Artificial intelligence is, of course, impossible to ignore.

But while AI is already changing agency workflows, Hannah rejects suggestions that technology will replace creative talent.

"Imagination has a philosophy for AI," he reveals. "While it’s a powerful tool, it needs a truly talented conductor to reach its potential. The ingenuity of our creative talent can’t be replaced and continues to set the standard for memorable, impactful event design.

"In our workflow, AI’s value comes into its own. We're already seeing conceptualisation processes transformed, enabling more sophisticated pre-visualisation and simulation that cuts pitch times and leads to more effective experiences."

Conjuring amazing visuals is one thing; delivering them well in the real world is quite another, says Hannah.

"Clients should be on guard about what they’re seeing and probe the viability of ideas, both commercially and practically.

"There's a raft of new tools delivering significant efficiency gains in content design and production, but the use case for event and fixed-facility 3D design is less mature," he adds. "Schemes still need to be accurately designed, especially with production and commercial realities in mind."

For Hannah, the biggest opportunity lies in areas such as adaptive storytelling and tailored content.

"That adds much more personal value than a generic customer approach," he says. "This includes reactive environments, AI assistants, immersive storytelling, and seamless customer journeys, all of which have the potential to further amplify the power of live engagement as an effective channel."

Independence still matters

The agency landscape itself is also evolving.

Consolidation continues across the communications industry, with many holding groups acquiring experiential agencies as demand for integrated services grows.

"While we've seen significant consolidation across the industry, I'm not convinced that demand for integrated solutions is a new trend," says Hannah. "Some clients have always preferred consolidated models, while others continue to prioritise specialist expertise."

Private equity has also become increasingly interested in experience businesses.

"Some of which is likely down to private equity betting on events having more of a ‘moat’ against AI disruption, and thus a good hedge investment," says Hannah. "Holding groups have also made acquisitions for similar reasons. recognising the value experiences can bring to brand authenticity in an increasingly sceptical consumer landscape.

"In reality, large organisations are complex, with different markets requiring adaptable approaches. Ultimately, clients tend to choose partners based on quality, value and trust.

"What's become increasingly important is an agency's flexibility and ability to collaborate effectively with other partners. The best outcomes are often achieved when agencies work together to create greater value for both clients and audiences."

The future remains live

Despite economic uncertainty, political instability and relentless technological change, Hannah remains optimistic about the future of live experiences.

If anything, he believes digital transformation is making face-to-face engagement even more valuable.

"As the industry and beyond becomes more digitally-driven, people are seeking real-world connection," he says. "We see this trend especially in the B2B sector, where rapid innovation and business transformation are creating new opportunities for events as a primary marketing channel for customer engagement and sales.

"Advances in creative technology, data and personalisation will only strengthen the channel's effectiveness, making experiences more memorable and valuable for both brands and audiences.

"There are challenges the industry must continue to address, including sustainability, diversity and working against a challenging economic environment, but I'm encouraged by the progress already being made. Additionally, while AI raises a question mark around entry-level talent across many industries, I believe live experiences will buck this trend, supporting and attracting new talent."

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