The Future of Experiential Marketing in the Virtual Space

Experiential marketing has always thrived on engaging the senses—the feel of a product in your hands, the taste of a sample, the atmosphere of an event. But as the world shifts toward digital-first experiences, brands are now tasked with creating these sensory connections virtually.

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But how do you engage the senses in a space where physical interactions aren’t possible? In this blog, we’ll explore:

• how consumer behavior is evolving in the virtual space, 
• the technologies driving this transformation, and 
• emerging trends brands use to create immersive experiences in the virtual world.

How Consumer Behavior Is Evolving in the Virtual Space

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If there’s one rule in experiential marketing, it’s to always follow the consumer. Since the 2020 pandemic, consumer behavior and expectations have evolved to prioritize digital experiences. As people spent more time online, their comfort with virtual interactions grew, and now they expect brands to meet them in virtual spaces.

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While many still enjoy in-person events and experiences, statistics show growing interest (and preference) for virtual and hybrid formats:

• 46% of US event attendees prefer to attend a far-off event virtually, especially if it requires travel
• 50% of event attendees would still like to tune in to an event if they can’t attend in person
• 53% of online event attendees consider it a top source of training and professional content
• 40.6% of attendees prefer hybrid events over in-person or virtual

This shift goes beyond events. Consumers’ shopping habits, brand interactions, and content consumption patterns have also moved decisively toward digital platforms. People are looking for digital interactions that are immersive, convenient, and personalized.

Image Source: Shutterstock

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What These Digital Advancements Mean For Brands

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Shifting consumer behavior and expectations means a change in tactics. Around 59% of organizers consider virtual events an essential part of their event strategy, while 85% of marketers turn to immersive technologies to enhance their experiential marketing strategies.

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For forward-thinking brands, the virtual space is only another platform to connect, engage, and inspire audiences. Even in-person brand campaigns now incorporate virtual elements to create immersive experiences that captivate audiences. 

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Take Coca-Cola, for example. During the 2018 FIFA World Cup in Zurich, they placed a VR experience in front of a train station, allowing passersby to interact with a virtual soccer player, practice moves, or compete in a mini-tournament. 

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Technological Advancements Driving Virtual Experiential Marketing

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Experiential marketing follows consumer behavior; consumer behavior follows technology. Brand experiences in the virtual space are only possible through the rapid evolution of cutting-edge tools and platforms. Here’s a breakdown of the key technologies enabling immersive, interactive, and personalized virtual experiences.

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Virtual Reality (VR)

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Virtual reality delivers the most complete digital immersion available today. So, it’s often the first choice for brands looking to create immersive experiences virtually. 

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The technology is genius but relatively simple. It uses head-mounted headsets that replace the audience’s field of vision with 3D worlds or environments, creating a psychological sense of presence in another reality. Many also use hand-tracking or controllers that allow users to manipulate and interact with objects within virtual spaces.

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An experiential marketing agency can make the impossible possible in virtual reality—from virtual showrooms to entirely new worlds. You can host a festival, build immersive shopping experiences without physical space limitations, or create immersive games, rides or attractions.

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Metaverse

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VR experiences are typically isolated or time-limited, but on the Metaverse, brands can establish permanent presences and build ongoing relationships with communities. Think of it as a persistent digital universe where people interact as digital versions of themselves.

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In these always-on virtual environments, brands can:

• Create permanent virtual stores and showrooms
• Host regular events and gatherings
• Build dedicated brand communities
• Offer exclusive digital products and experiences

Learn more: How Corporate Metaverse is Changing Events

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Haptic Technology

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Sensory feedback is a must to create immersive experiences. For the longest time, virtual experiences could only engage our eyes and ears, but haptic technology adds touch to the mix. These systems use vibrations, forces, or motions to make users feel physical sensations when interacting with digital objects.

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Ideally, this technology should let audiences feel everything happening in the virtual world—from each blade of grass to wind blowing—and while we’re not quite there yet, we’re getting close. For now, brands can use simpler haptic feedback in experiential marketing through motion chairs or platforms, haptic vests or suits, gloves or controllers, and mobile devices. 

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Haptic technology helps amplify key brand moments with synchronized tactile feedback that heightens emotional impact. For instance, you can create interactive installations where visitors feel gentle vibrations when they "touch" virtual products or design mobile experiences where phones pulse in response to digital brand interactions. 

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Tip: This technology is also a great way to make brand experiences more inclusive for audiences with visual or auditory limitations. 

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Augmented Reality (AR)

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If virtual reality offers complete immersion, augmented reality blends the digital and physical worlds. This technology overlays digital elements onto real-world elements, typically viewed through smartphone cameras, tablets, or specialized glasses.

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Since it uses devices most customers already own, it’s much more accessible and easier to integrate into experiential marketing campaigns. Brands can use it to:

• Offer virtual product try-ons
• Show how products would look in customers’ homes/spaces
• Create interactive packaging that reveals virtual content when scanned 
• Develop location-based brand activations (think scavenger games or treasure hunts)
• Provide real-time information overlays at events or stores
• Create shareable branded filters and effects for social media

Image Source: Pexels

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XM in the Virtual Space: Emerging Trends

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The virtual world may be intangible, but it’s not lacking in opportunities for brands to create meaningful, immersive, and impactful experiences. As technology and customer behavior evolve, new trends form. Here are key trends that shape the future of experiential marketing (XM) in the virtual space. 

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3D Branded Experiences

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What if your audience could step into your brand’s story? 3D branded experiences make that possible by transforming physical spaces into dynamic, interactive environments. 

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Using technology like projection mapping and AR lenses, brands can project or overlay project images and animations onto three-dimensional surfaces. This helps create immersive experiences that resonate on a more personal level, leaving a lasting impact. 

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More Interactive Virtual Events

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With immersive technology now more accessible than ever, virtual events are moving beyond webinars and live streams to watch on a screen. Using AR, VR, and the Metaverse, brands are creating more dynamic, interactive experiences online. Think Metaverse concerts with multiple viewing angle options or virtual trade shows with 3D booths, immersive venues, and live sessions. 

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Gamification 2.0

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The most successful brand activations create emotional connections with audiences, and one of the best tactics to achieve this is through games. When brands incorporate gamification into their experiential marketing campaigns, they turn passive viewers into active participants, driving engagement and fostering loyalty.

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A good experiential marketing agency can take this further by integrating advanced mechanics like AI-driven challenges, real-time leaderboards, and immersive storytelling. For example, you can create a virtual app where users track their progress, compete with friends, and earn rewards (like Nike did). 

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“Phygital” Experiences

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Smart brands aren't choosing between physical and digital—they're blending them. This might mean: 

• sending out a cocktail kit before a virtual tasting event, 
• creating AR experiences that work in specific pop-up locations, or 
• connecting in-store and online shopping into one seamless journey.

These combinations give audiences the convenience of digital with the sensory richness of physical experiences. 

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The Future is Virtual—Are You Ready?

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Virtual isn’t coming; it’s here. Experiential marketing already leverages advanced virtual technologies like VR, AR, and AI to create immersive brand experiences that transcend traditional marketing boundaries—and it’s high time you did too.

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Concierge Club’s XM Playbook breaks down the top strategies for creating powerful brand experiences, here or in the virtual space. We’ve been designing groundbreaking campaigns for North America’s top brands since 2011 using tailored strategies, creative design, and flawless execution. 

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Our insights are crafted through years of deep market research, cutting-edge technology analysis, and relentless pursuit of innovation from proven experts—and we’re sharing the results with you. 

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Prepare for the future of experiential marketing. Download The Ultimate XM Playbook today.