Why experiential marketing will dominate 2025

As consumers grapple with ad fatigue and a growing mistrust of digital platforms, brands are increasingly turning back to a classic marketing strategy: in-person activations or experiential marketing. This approach allows for direct, memorable interactions that foster lasting loyalty and align with the consumer desire for authenticity. A number of industry experts agree that experiential marketing will only continue to grow in relevance and effectiveness through 2025, and say that those who embrace these carefully crafted, experience-driven activations will not only capture the attention of their audience but will also foster the kind of loyalty that builds communities around brands. Connect with consumers beyond the screen “I believe that consumers are becoming more and more experience-driven, seeking brands that are tangible and memorable,” said Ray Sheehan, the founder of Old City Media, a marketing agency specializing in activations that help retailers like grocery supermarkets, big box retail and hardware stores create new revenue opportunities. “Consumers crave authenticity and want to feel seen and understood by the brands they support.” Sheehan points out that the average cell phone user sees thousands of digital ads daily, most of which are forgotten as quickly as they appear. Experiences, however, have staying power, especially when they evoke positive emotions and build genuine connections with the brand. A highly successful program that exemplifies the potential of in-person activations is Old City Media’s Gift Program. During these, pop-up activations from major brands like AT&T and Renewal by Andersen are hosted in brick-and-mortar retail spaces, such as independent Ace Hardware stores. These activations involve handing out free, pre-purchased gift cards to in-store customers, which encourages spending beyond the gift card value while boosting the likelihood of return visits. The program is mutually beneficial to both the advertiser and the retail location, driving loyalty for large brands and traffic for retail partners. “The brands that really succeed are the ones connecting with consumers on an emotional level,” Sheehan said. While digital elements like social media promotions often play a supporting role, the key to lasting impact lies in face-to-face interactions. Create profit through enhanced retail presence Despite the appeal of digital marketing, Scott Geisel, district canvas manager for Quality First Home Improvements in Citrus Heights, California, noted that traditional retail environments still hold high value, particularly for Generation X and older consumers who appreciate face-to-face interactions. “There’s a segment of the population that still values that personal connection,” he said. Because of this, after implementing in-store activations in select Walmart locations in 2024, he reported a monthly increase of $80,000 to $120,000 per store. “It’s as close to a free lead as you can get, and it’s hugely profitable,” he said, underscoring the value of retail-based activations. Another, more permanent version of this is strategic partnerships and select brand placements in trusted retail environments to help brands reach customers in more authentic ways. Sheehan points to the Ulta and Target shop-in-shop collaboration as a prime example, where two brands complement each other’s appeal and drive new traffic. He said he sees collaborations like this as the new path forward, and the Old City Media has positioned itself to help brands navigate this process. Where artistry meet commerce Smaller, more curated experiences are likely the future of brand activations, according to Mike Morrow, founder of experiential marketing company Public XP. Working primarily with mid-sized luxury brands, Morrow and Sheehan often work together to craft exclusive events, such as high-end restaurant gatherings, for intimate groups. “The next big thing is a lot of little things,” Morrow said. “People aren’t looking for massive events as much anymore. They want exclusive experiences with the right music, service and ambiance.” For brands, these intimate settings offer the perfect opportunity to leave a lasting impression and connect with discerning audiences who value quality over quantity. This shift in experiential marketing also reflects a demographic change: today’s luxury consumers are older, with more disposable income. “At 50, people are social, have disposable income and appreciate elevated experiences,” Morrow said. Done well, experiential marketing can be where “artistry meets commerce,” offering brands a way to create value through carefully crafted, meaningful engagements. Integrating technology enhances activations Though digital fatigue may drive some of the desire for in-person interactions, emerging technologies such as AI offer invaluable tools to enhance these experiences. For instance, Sheehan suggests using AI to optimize activation timing. “It can be as simple as researching peak traffic times at a store and scheduling the activation accordingly,” he said. By thoughtfully integrating technology, brands can maximize impact while still focusing on personal connections with consumers and local communities. They can even successfully integrate digital tools to amplify their reach—for example, Uber and Smartwater’s selfie-mobile campaign at New York Fashion Week equipped rideshares with selfie stations, encouraging influencer riders to post with a branded hashtag. As brands and consumers move into the next year, experiential marketing’s revival signals a shift back to authentic, human-centric engagement in an increasingly impersonal digital landscape. By meeting consumers where they are—whether in a favorite retail spot, a niche event or through a personalized interaction—brands can create lasting, meaningful connections that no digital ad can replicate. In a world inundated with fleeting digital impressions, experiential marketing offers a powerful way to stand out, drive impact and promote trust through genuine connection. About Old City Media Old City Media Inc. is an international experiential marketing agency that connects brands with target demographics through immersive marketing strategies at retail, grocery or big box locations. Our robust client network and proven brand integration formula allow us to help retailers leverage and monetize their real estate more effectively.

Why experiential marketing will dominate 2025

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