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e v e n t m a r k e t i n g . c o m

e v e n t m a r k e t i n g . c o m

2010 GPJ exper ience ma r ket i ng

e v e n t m a r k e t i n g . c o m

MARKETING MIX CONTINUES TO ADJUST, EVENTS ARE ACCELERATING CUSTOMER RELATIONSHIPS A slowly recovering economy, lingering unemployment, changing media consumption habits and other macro-economic factors continue to pressure marketing and sales leaders to drive immediate results while also protecting and growing brand equity. In response, Web marketing and events have emerged as the two most potent weapons in the marketing arsenal in terms of accelerating customer relationships and overall ROI. INSIDE: Top Ten Facts ............................ 2 Methodology .............................. 3 Macro-Level Trending................. 4 Budget Concerns........................ 5 ROI............................................. 8 Measurement .......................... 11 Experience Marketing .............. 12 Procurement............................ 13 Green....................................... 14 Summary ................................. 15

These and other findings captured in EventView 2010 have tremendous implications for how event marketers engage audiences, recruit and retain talent, report upward to management, integrate with other internal channel owners and manage agency partners. To help event marketers contend with these challenges, anticipate opportunities and act to improve event performance, George P. Johnson Experience Marketing (GPJ) and the Event Marketing Institute (EMI) are proud to present the 8th annual EventView report, the industry’s longest-running research program focused specifically on the needs of this audience. This year’s EventView has been taken to the next level: more relevant questions, deeper insights and more extensive interviews with senior marketing and sales leadership than ever before. The respondents are professionals with responsibilities across the marketing mix—outside of the event marketing function—and as such, their answers are telling. EventView is more than the broadest survey of marketing and sales leaders’ budget plans related to event marketing, and a benchmarking model for event marketing professionals. It’s an orientation point for better decision-making around the marketing mix as a whole as brand marketers, agencies and others in the event marketing ecosystem move forward. We encourage readers to use EventView data to: • Inform the budget-making process • Make the case for event marketing to senior leadership • Benchmark tactical spending/allocations against peers • Optimize agency performance • Inform procurement and sourcing • Plan 2011 and 2012 programs and portfolios • And much more….


TOP TEN FACTS EventView 2010 10.

 f those surveyed, 50 percent consider event marketing along with other media O when planning marketing budgets. A third (32%) consider event marketing a “vital component” of their marketing plan out of three (62%) respondents say their overall marketing budget for events has either remained constant or increased this year

9. Two 8.

7.

When asked about primary marketing concerns, reaching new customers (25%) was at the top of the list, followed by ROI (15%) and growing market share (14%)  hen asked about external events, a third (30%) of respondents said they saw the W highest ROI from conferences and seminars, followed by trade shows at 24 percent

6.  Procurement

is playing an increasing role, with nearly double the number of respondents indicating that role is “high” from the previous year, and the percentage of those who indicate procurement’s role “low” down by 25 percent Green” is still a consideration for many event marketers with 27 percent planning a move within the next three months. But significantly, 53 percent report they have no current plans

5.  “Going

it comes to Experience Marketing, 34 percent of respondents plan to move to an experience-driven portfolio within the next three to 12 months, while 31 percent say they have already done so

4. When

3.  The

percentage of marketers that rank the future importance of events as increasing went up this year, from 29 percent to 36 percent report that of all marketing elements, they see the greatest ROI from Web marketing (40%), with event marketing coming in second at 22 percent

2. Respondents

1. When asked to list the top three marketing elements for accelerating and deepening relationships, event marketing led at 64 percent, followed by social marketing at 55 percent and Web marketing at 54 percent

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Methodology In the first quarter of 2010, 108 senior executives in sales and marketing management positions in North America were interviewed with the goal of illuminating the value and role of events in the marketing mix as it compares to other elements in a marketer’s arsenal. Interviewed participants were selected in industries including (but not limited to) automotive, technology, healthcare and finance. Of this sample, 27 percent represent companies with annual revenues in excess of $1 billion. The margin of error is ±3 percent. FIGURE 1 – Survey Demographics | Company Size by Revenue

5% – $5 - $9.9 billion

9% – $10 billion +

12% – $1 - $4.9 billion 5% – $500 – $999.9 million

57% – Less that $250 million

11% – $250 - $499.9 million

FIGURE 2 – Survey Demographics | Job Titles 4% – Consultant 5% – Other 5% – Sales Management

19% – CEO / CFO / COO/ President / Executive Director, Owner

16% – Marketing Management

5% – Manager

27% – Director Level

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20% – Executive Vice President / Vice President


Macro-Level Trending Top Marketing Concerns When asked about primary marketing concerns today, reaching new customers (26%) was top of mind for respondents. Measurement of return on marketing investments (16%) and growing market share profitably (14%) followed. Clearly the priority for marketing leadership right now is generating bottom-line results and being able to prove that impact. It’s interesting to note that despite the headline-grabbing nature of the gradual global economic recovery, the economy is cited by only 4 percent of respondents as a top marketing concern (Figure 3). FIGURE 3 – Companies’ Primary Marketing Concern Measurement of return on marketing investments

16%

4%

Re-engineering the marketing mix to improve performance

1%

Reaching new customers Smarter budget management

26%

12% 0%

2% 4%

The economy

23% 8% 9%

Building brand awareness Maximizing sales in emerging markets

3%

4%

Growing market share profitably

14%

7%

Keeping loyal, profitable customers Price/Cost

10% 0%

12%

5% 3%

Other

0%

26%

5%

10%

15%

Future Importance of Events The percentage of marketers that rank the future importance of events as increasing went up this year, from 29 percent to 36 percent, suggesting that marketers are placing more emphasis on high-touch brand experiences to engage and retain customers (Figure 4). Those that see the future importance of events as remaining constant held mostly steady, at 47 percent this year versus 49 percent last year. This is in line with EventView’s budget findings, which indicate that 62 percent of respondents see their event budgets remaining constant or even increasing (Figure 6).

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2009 2008

10%

20%

25%

30%


FIGURE 4 – Future Importance of Events 100% 90%

50%

80%

Increasing Remaining Constant

41% 36%

70%

29%

60% 50% 40%

51%

49%

47%

2007

2008

2009

42%

30% 20% 10% 0%

2006

The Role of Events in the Marketing Mix EventView confirms that in the last year event marketing edged up slightly in terms of its prominence within the marketing mix, up 5 percent among marketers that take events “under consideration with other media” and down 3 percent among those that characterize events as “an afterthought.” Unchanged from last year is event marketing’s status as a vital component of the plan, remaining steady at 32 percent (Figure 5). FIGURE 5 – The Role of Event Marketing 10% 12%

A lead tactic

14%

2009 2008 2007 2006

17%

A vital component of the plan

32% 32%

25%

39%

Taken under consideration with other mediums

45% 39% 6%

9% 8% 7%

Usually an afterthought 0%

5%

10%

15%

20%

25%

30%

35%

Looking forward, EventView respondents indicate that event marketing will continue to play a large role in their planning and go-to-market strategy.

BUDGET Budgets Vary Widely A full quarter of the senior marketing and sales executives who participated in EventView indicated that the overall marketing budget—inclusive of events and other channels— actually increased in the last year (28 percent reported budget increases in 2009). A full 37 percent saw that budget remain constant and 34 percent saw a decrease (Figure 6).

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50% 47%

40%

45%

50%


FIGURE 6 – Marketing Budget: Increased or Decreased?

25%

Increased

37%

Remained Constant/No Change

34%

Decreased

5%

I don’t know

0%

5%

10%

15%

20%

25%

30%

35%

Budget Trends: Where Increased Funding Goes When asked what marketing channels benefit from an increase in overall marketing budget, respondents indicated that the majority of investment (60 percent) would go to Web marketing. While event marketing fell slightly behind last year’s allocation, contributing to the Web’s spend increase, this may be an indication of marketers lingering concern that event travel budgets might be hampered in the recovering economy. Even still, it’s important to note that nearly a third of respondents’ budgets went to events, while print and broadcast continued their decline. The decline in PR and print is even more significant than the broadcast investment. The event marketing allocation is roughly in line with last year’s 36 percent, indicating that events hold the same weight in the minds of respondents. Web marketing’s 60 percent allocation is nearly double last year’s 34 percent. This suggests that the maturation of Webbased marketing as a discipline is being accompanied by increased support as budgets re-stabilize and/or increase. One clear takeaway: marketing and sales leaders are interested in moving away from a broadcast marketing model to a narrowcast model focusing on personalizing brand experiences and being more targeted in engaging audiences. For event marketers, this would suggest that investing in blending digital and event marketing represents a potent strategy for retaining and even growing budgets going forward.

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40%


FIGURE 7 – Budget Increase Allocation 31%

Event Marketing

7%

Print Advertising

23%

Broadcast Advertising

10%

Public Relations

10%

14% 21%

Web Marketing Social Marketing

60%

34% 33%

0% 10%

Direct Mail Other

2009 2008

36%

23%

0% 0%

30% 10%

20%

30%

40%

50%

60%

Budget Trends: Where Decreasing Budgets Have an Impact When asked which marketing channels get reduced funding if there is a reduction in overall marketing budget, once again respondents indicated that print advertising (47%) followed by event marketing (35%) would be the channels most likely to face cuts (Figure 8). However, nearly twice as many people last year said they would decrease the event budget as said they would this year, an astounding increase in the confidence in event marketing. Other marketing channels fall into a similar range of one another in terms of budget reduction, none exceeding more than eight percent of any other, suggesting that outside of events and print advertising, no one discipline is more likely to have funding reduced over another. The implication for event marketers is that measurability of the event investment is paramount to making an argument for increased budget in the face of reductions. FIGURE 8 – Budget Decrease Allocation 35%

Event Marketing

68% 47%

Print Advertising

12%

Broadcast Advertising

0%

20%

35%

0% 0%

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34%

8%

Direct Mail Other

35%

18%

Web Marketing Social Marketing

34%

16%

Public Relations

55%

38% 10%

20%

30%

40%

50%

60%

70%

2009 2008


External Event Budgets Reflecting the priority to drive sales, marketing and sales leadership once again rank trade shows and conferences as the top event formats that receive the majority of budget allocated for external-facing events (Figure 9). Trade shows remain in the lead (54%), but that number is off from last year’s 62 percent. Conferences and seminars showed a strong jump to 45 percent, up strongly from last year’s 33 percent. Road shows and mobile marketing also rose among respondents’ choices, up 5 percent (15 percent), compared with last year’s 10 percent. A significant increase in budget was seen in guerrilla marketing, cited by only 2 percent last year, but this event format was named by 13 percent as a recipient of increased budget support. This suggests that event marketers are broadening their portfolios across more event types than ever before. FIGURE 9– External Event Budget Distribution 54%

Trade shows

65% 63%

Conferences and seminars

27%

45%

33% 35%

15% 10% 9% 13%

Roadshows and mobile marketing

12%

Sports or entertainment sponsorships

12% 2% 2%

Guerrilla marketing

17% 20%

13% 5%

3% 2% 2% 3%

Mall marketing Grassroots

6% 5%

8%

2009 2008 2007 2006

2% 3% 2%

College Nightlife

2% 1% 2%

0%

10%

20%

30%

40%

50%

Return on Investment Event Marketing and Web Lead in ROI EventView 2010 confirms that once again Web marketing and event marketing lead all channels in terms of ROI (Figure 10). This is becoming a standard refrain, borne out by market research and real-world applications. However, for the first time, the data shows that Web marketing (40%) is now perceived to be generating higher ROI than events (22%).

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62%

60%

70%


It’s interesting to note that the third most-cited channel, print, is identified by a little less than a third of those that identified events. After Web and events, all other channels are way in the back of the ROI pack. Social marketing made its first appearance on this year’s ROI survey, cited by 5 percent of those asked as providing a high return; that’s a number which will bear watching in the years to come. FIGURE 10 – Perception of ROI by Channel 22%

Event marketing

25% 7%

Print advertising

5%

Public relations

15%

11% 11%

5% 7% 4% 6%

Broadcast advertising

10%

16%

13%

Web marketing

16% 5%

Direct mail

12%

Social marketing

15%

40%

20% 19%

2009 2008 2007 2006

17%

5% 0%

5%

10%

15%

20%

25%

Accelerating Relationships Event marketing is seen by marketers as the number one channel for accelerating and deepening relationships, being cited by 64 percent of those surveyed (Figure 11). This almost matches last year’s 62 percent. Following closely behind was new entry “social marketing,” favored by 55 percent of those asked. In third place was Web marketing at 54 percent, a leap over last year’s nine percent showing. These results show that in an environment of prolonged sales cycles and increased competition for customers, events and Web-based communication are perceived to be the most powerful means to win customers and expand existing business.

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31% 28%

30%

35%

40%


FIGURE 11 – The Marketing Discipline that Best Accelerates and Deepens Relationships

Print Advertising

17%

3%

Broadcast Advertising

9%

2%

Public Relations

54%

9%

55%

0% 7% 9%

Direct Mail I don’t know

37%

16%

Web Marketing Social Marketing

0% 0%

6% 10%

20%

30%

40%

50%

60%

ROI of External Events This year, for the first time since EventView’s inception, conferences and seminars surpassed trade shows as providing the highest perceived ROI among external events. Among those surveyed, 30 percent favored conferences and seminars, a big jump over last year’s 23 percent. Trade shows still held their own at 24 percent, but that’s down significantly from last year’s 40 percent. Rounding out the top three, sponsorships of sports or entertainment were favored by 13 percent of those asked, leapfrogging last year’s 9 percent response. It would seem that as the economy continues to weigh on large-scale events, savvy marketers are seeing the value in smaller, more intimate (and less costly) conferences and seminars. In a down economy, marketers may have felt more confident in investing in conferences which are known for providing a depth of content that is perceived by attendees of high value regarding real time issues—while trade shows are regarded as most valuable when budgets allow for shopping for new solutions, something marketers expected fewer would be doing given the challenging economic environment.

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2009 2008

64% 62%

Event Marketing

70%


FIGURE 12 – ROI of External Events 24%

40%

Trade shows

4%

Roadshows and mobile marketing

9% 9% 7% 13% 9% 9% 10%

Sports or entertainment sponsorships

Mall marketing

6%

.4% .4% 1% 0% 1% 1% 2%

Grassroots campaigns

College marketing

30%

23% 20% 21%

Conferences and seminars

Guerrilla marketing

50%

43%

3% 2% 0% 2%

6%

4%

2009 2008 2007 2006

2% 2%

Nightlife campaigns 0%

20%

10%

30%

40%

50%

ROI of Internal Events Survey respondents came out strongly in favor of education/training as the preferred event format for realizing ROI in internal-facing events (Figure 13). Some 42 percent believe that to be true, up sharply from last year’s 37 percent. Sales or marketing meetings were also favored by 30 percent, a rise over last year’s 26 percent. Employee events (social & business) faced the sharpest reduction in terms of perceived ROI, coming in at 13 percent, down by half from last year’s 26 percent. FIGURE 13 – ROI of Internal Events

37% 37%

Education / training 26%

Sales or marketing meeting 13% 21% 19% 4% 3% 1%

Analyst / investor relations

I don’t know

0% 0% 0%

0%

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46%

30% 29%

Employee events (social or business)

42%

35%

26%

6%

2009 2008 2007 2006

9%

10%

20%

30%

40%

50%

60%

70%


MEASUREMENT Measurement in Event Marketing With tightening budgets and everyone watching the bottom line, it comes as no surprise that demonstrating marketing ROI was cited as the motivation for measurement (Figure 14). Favored by 65 percent of respondents, that response greatly exceeds the 20 percent who selected the same response last year. Following close behind, 58 percent confirmed that they measure to justify expenditure. These responses suggest that marketing and sales leadership understand measurement to play a crucial role in their decision-making; event marketers should consider that reality when formulating their measurement strategy for their events and event portfolios. FIGURE 14 – Why Marketers Measure

Procurement influence

6%

Marketing best practice

2009 2008

13% 30%

11%

58%

To justify expenditure

44%

To protect or increase budget

25%

7%

To demonstrate marketing ROI

65%

20%

To improve attendee experience

33%

16% 0%

10%

20%

30%

40%

50%

60%

70%

For those who do measure, most (67%) do so to look at the number of qualified leads an event generates (Figure 15). Secondary measurement priorities include measuring traffic at an event, and sales increases (both 56%), followed by those measuring the quality of leads provided (47%). FIGURE 15 – What Do You Measure? Number of qualified leads

67% 47%

Quality of leads provided Overall communication effectiveness

36% 56%

Traffic at event 43%

Overall experience/attendee satisfaction 19%

Learning impact Change in perception/preference of brand

26% 56%

Sales increases Media impressions

25% 0%

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10%

20%

30%

40%

50%

60%

70%


EXPERIENCE MARKETING What is Experience Marketing? Experience marketing is an evolved form of event marketing which goes beyond the traditional interruptive model, to create physical and digital brand experiences that serve to powerfully demonstrate the value of a brand and its product or service and its relevance to the needs, wants and expectations of the audience. Experience marketing communicates this value authentically and in a highly targeted manner with an eye towards generating specific, measurable audience behaviors.

The Transition to Experience Marketing While the percentage of those companies embracing experience marketing has remained constant from last year to this one (32%, both years), the reasons companies are making this transition has shifted (Figure 16). Last year, 17 percent of those responding said they were moving to experience marketing to raise awareness, yet 48 percent cited that reason this year. This is a compelling point: senior marketers and sales leadership now see experience marketing as a means to create or increase awareness, an objective that has traditionally been seated within above-the-line channels such as broadcast or print advertising. The second most popular reason for deploying experience marketing is rooted firmly in driving revenue: 39 percent of respondents indicated that they deploy experience marketing to motivate purchase behavior. FIGURE 16 – O  bjective of Experience Marketing (RANK 1 = HIGHEST PRIORITY; RANK 5 = LOWEST PRIORITY) 1

2

3

4

5

a. Awareness (create or increase)

48%

18%

15%

7%

12%

b. Consideration (create or increase)

25%

32%

24%

14%

5%

c. Preference (create or increase)

32%

24%

27%

10%

7%

d. Purchase (motivate)

39%

24%

12%

17%

9%

e. Loyalty

32%

31%

20%

5%

12%

Don’t use experience marketing

57%

26%

4%

4%

8%

When asked how quickly their organization was transitioning from traditional event marketing initiatives to an experience marketing approach, 31 percent said they had already done so, down slightly from last year’s 32 percent; 16 percent indicated that they would make that transition within the next 12 months (Figure 17).

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FIGURE 17 – Transition to Experience Marketing

31% – Already transitioned 35% – Not at all

6% – In the next three months 16% – In the next 12 months

12% – In the next six months

PROCUREMENT The Role of Procurement The role of procurement increased yet again in the last year, with a 25 percent drop in those ranking procurement’s role as “low” and a 6 percent increase in those indicating the role of procurement as “high” (Figure 18). Despite this shift, the majority of senior marketing and sales leaders indicated that the role of procurement is not “yet” dominant. FIGURE 18 – Procurement’s Influence Today Low

40%

1

61%

37% 2

15% 21%

11%

4

High

12%

8% 8%

3

8% 6% 9% 7% 6%

5

0%

10%

19%

2009 2008 2007 2005

27%

12% 15% 15%

20%

30%

40%

50%

60%

The important question is trending – to what degree will procurement become increasingly involved in marketing decision-making? EventView 2010 provides a glimpse into the future: 22 percent of respondents indicated that they see that role realizing a slight increase from last year (Figure 19). A full 60 percent indicated that the role will remain constant, down a bit from last year’s 67 percent. Overall, sourcing departments are a constant part of vendor and partner reviews and selections.

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65%

70%


FIGURE 19 – Procurement’s Influence Tomorrow

2009

2008

6%

3%

17%

13%

2007

2005

22%

5%

0%

14%

13%

10%

60%

12%

67%

13%

61%

12%

66%

20%

30%

40%

50%

16%

60%

70%

80%

Green The Question of Green Despite reported gains made last year in environmentally sensitive marketing practices, it’s possible that the pressure to implement green initiatives may have dropped off significantly in the last year (Figure 20). When asked when they plan on implementing green initiatives within the event function, 53 percent of respondents indicated they had no current plans to do so, a big jump over last year’s 20 percent. But of those who say they plan to do it, 27 percent say that will take place within the next three months, as opposed to only four percent who said they’d do so in that time frame last year. Some seven percent indicated they’d take action in the next six months (to last year’s three percent) and 13 percent said they’d attempt to do so within the next year versus seven percent from last year. Translation: Fewer marketers are planning to go green, but of those that are planning to go eco-friendly, their commitment is firm. The decline of those pursuing a green agenda might be due to distraction borne out of a pressured economy—in which companies are less likely to buy new assets to meet green standards.

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Increasing strongly Increasing Constant Decreasing

90%

100%


FIGURE 20 – When to Implement Green

2009

53%

0%

10%

20%

30%

27%

40%

50%

60%

70%

7%

80%

No Current Plans In the next three months In the next six months In the next 12 months

13%

90%

100%

Summary While marketers’ number one concern is gaining new customers, a goal for which events are well suited, event marketing is also increasingly being used to drive brand awareness, a new use of this channel and likely related to the role of digital. In addition, events continue to be recognized as the best means for marketers to accelerate and deepen brand relationships. Proving that sales engagement is the new imperative for event marketers. As a result, the importance of tracking ROI and measuring all aspects of event performance has grown in significance. More than ever, it is incumbent on those who create and execute events to more readily justify the investment, their alignment to corporate goals and their impact on the business. Those who are able to do this will continue to win support from marketing and sales leadership while also moving the industry forward as a whole.

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Index of Figures FIGURE 1 – Survey Demographics | Company Size by Revenue................................3 FIGURE 2 – Survey Demographics | Job Titles...........................................................3 FIGURE 3 – Companies’ Primary Marketing Concern.................................................4 FIGURE 4 – Future Importance of Event Marketing...................................................5 FIGURE 5 – The Role of Event Marketing..................................................................5 FIGURE 6 – Marketing Budget: Increased or Decreased?..........................................6 FIGURE 7 – Budget Increase Allocation.....................................................................7 FIGURE 8 – Budget Decrease Allocation...................................................................7 FIGURE 9 – External Event Budget Distribution.........................................................8 FIGURE 10 – Perception of ROI by Channel..............................................................9 FIGURE 11 – The Marketing Discipline that Best Accelerates and Deepens Relationships...............................................................10 FIGURE 12 – ROI of External Events........................................................................11 FIGURE 13 – ROI of Internal Events........................................................................11 FIGURE 14 – Why Marketers Measure....................................................................12 FIGURE 15 – What Do You Measure?......................................................................12 FIGURE 16 – Objectives of Experience Marketing....................................................13 FIGURE 17 – Transition to Experience Marketing.....................................................14 FIGURE 18 – Procurement’s Influence Today..........................................................14 FIGURE 19 – Procurement’s Influence Tomorrow....................................................15 FIGURE 20 – When to Implement Green.................................................................16

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e v e n t m a r k e t i n g . c o m

e v e n t m a r k e t i n g . c o m

Contact Information:

e v e n t m a r k e t i n g . c o m Event Marketing Institute 10 Norden Place, Norwalk, Connecticut 06855 Kerry Smith, President/Executive Director www.eventmarketing.com The Event Marketing Institute (EMI) is the leading research organization serving the event marketing industry, dedicated to developing insights and business intelligence for individuals and companies using live marketing as a strategic marketing initiative. Through comprehensive research and education, EMI empowers members to overcome the challenges posed by today’s fragmented media environment and equips them with a research-based foundation upon which to build more effective, performance-driven event marketing programs.

GPJ exper ience ma r ket i ng

George P. Johnson 3600 Giddings Road, Auburn Hills, Michigan 48326 David Rich, Senior Vice President, Program Strategy/Worldwide Phone: 617.535.9522 David.Rich@gpj.com www.gpj.com GPJ is the premier worldwide experience marketing agency specializing in using branded live experiences and environments to help clients cut through marketplace noise, differentiate from the competition and create lasting relationships that directly impact the bottom line. Ranked by Advertising Age as the “#1 Event Marketing Agency” and consistently placing among the world’s top marketing agencies, GPJ provides its services through 26 offices around the world. The agency’s clients won 37 awards in 2008, five Ex Awards in 2009 and took home both the Grand Ex Award as well as the Best 100% Virtual Ex Award in 2010.

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