What you need to know

Multicultural young adults consider brand-sponsored events as a next-level experience beyond everyday leisure entertainment experiences that provides the desired multisensory way to engage with their interests and connect with people that matter most to them. During the pandemic, brands have turned to virtual events to maintain a connection with consumers. However, they eventually will have to resume in-person events in some format to ensure this marketing tactic stimulates the mind and senses to encourage product or service trial and loyalty.

Key issues covered in this Report

  • The impact of COVID-19 on multicultural consumer behavior and experiential marketing.

  • How businesses have pivoted and government intervened to save the event venue industry.

  • The relationship between brand-sponsored event focus and consumer interests.

  • Different expectations of cultural assimilation vs entrenched identity across multicultural young adults.

Consumer research was fielded in July 2020 and reflects multicultural young adults’ attitudes and behaviors regarding their participation in brand-sponsored experiential marketing as the country continued to re-emerge from COVID-19 business closures.

Definition

For the purposes of this Report, “multicultural” refers to adults that identify as Asian, Black, Hispanic or Other (non-White); “young adults” refers to adults aged 18-34. This Report includes special consumer sample sizes:

  • 400 Asian adults aged 18-34

  • 400 Black adults aged 18-34

  • 400 Hispanic adults aged 18-34 (any race)

  • 200 Other (non-White) adults aged 18-34

  • 400 White, non-Hispanic adults aged 18-34 are also included for comparative purposes

Cultural engagement is a communications strategy that deepens the relationship between a brand and their best consumer.

Experiential marketing is a communications tactic that acts upon a brand’s engagement strategy by creating an emotional and sensorial experience with a brand’s product or service.

Scope

Brand-sponsored event marketing includes in-person and virtual experiences that are presented and funded by an advertiser. In person and virtual experiences include product and/or service activation at various types of events including but not limited to:

  • Food and drink festivals

  • Cultural festivals

  • Music/art festivals

  • Career/professional development

  • Sports events as a viewer

  • Sports events as a participant

  • Gaming events

COVID-19: Market context

The first COVID-19 case was confirmed in the US in January 2020. On March 11, the World Health Organization declared COVID-19 a global health pandemic, and on March 13, President Trump declared a national emergency in the US. 

Across the US, state-level stay-at-home orders rolled out throughout the months of March and April, and nonessential businesses and school districts across the nation closed or shifted to remote operations. At the time of writing, all 50 states have relaxed restrictions, allowing businesses to operate with varying levels of social distancing measures in place. However, a resurgence of COVID-19 infections has driven some states to slow down or reverse course on reopening plans, prolonging the suspension of in-person engagement for marketers to reach consumers through experiences.

Economic and other assumptions

Mintel’s economic assumptions are based on the updated forecasts released by the CBO on July 2, 2020. The CBO expects US GDP to fall by 5.8% in 2020 and recover to 4.0% growth in 2021. The CBO projects the unemployment rate to average 10.6% for the year, with an 8.4% rate for 2021. The current uncertainty means there is wide variation in the forecasts.

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