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In December 2006, Advertising Age identified the use of fragrance in advertising as one of the top 10 marketing trends to watch for in the near future.
Over the past 25 years, numerous studies have been conducted by researchers on the behavioral effects of scent on consumers. These studies indicate that incorporating scent to create a true multisensory branding campaign conveys a much more compelling message to the consumer.
Major studies have shown that customers spend 40% more time in a scented area of a retail store than in an odor-free area. Research has also shown an 84 percent increase in the willingness to buy a pair of Nike shoes in a scented location compared to a place with no odor (and pay $10.33 more for the same pair of shoes). In another study, slot machine revenue increased 53% in the scented area of a casino. (*Brand Sense / Martin Lindstrom / Free Press 2005).
In the highly competitive $800 billion advertising industry, most companies use only two of the five senses (sight and hearing) in their branding and marketing strategies. However, because emotions are so closely linked to our sense of smell, experts are beginning to realize that building emotional connections between scent, consumers and products is critical.
A good comparative example of this macro-growth phenomenon might be the home fragrance/aromatherapy market, which began more than two decades ago. In 1984, the home ambient fragrance market was virtually nonexistent. In 1994, the home fragrance market reached about $230 million in annual sales. According to Euromonitor International, the recognized global standard in market analysis, the home fragrance category in 2008 exceeded $8.4 billion in sales.
The main benefits of perfume are:
- The creation of a memorable experience for guests/customers.
- Better brand and product perception.
- Increased sales: customers stay longer in a pleasant-smelling space. Studies have shown up to 44% more time.
- Increased customer loyalty.
- Increased staff productivity.