Founder Martin Schnaack gives up the management

Munich He is regarded as the inventor of event and experience marketing in Germany: 37 years after founding Avantgarde, Martin Schnaack is now giving up the management of his brand and experience agency and retiring to the advisory board. “So far we have managed the company well through the crises,” Schnaack told Handelsblatt. Now is the right time to take the next step on the way from an owner-managed to a management-led agency.

Retail expert Marc Schumacher, who has been Schnaack’s co-boss for a year, will become the sole CEO. The 44-year-old wants to ensure the independence of the agency with further growth – and is focusing on a completely new field of business. With the help of sensors and the use of artificial intelligence, customers should be able to measure how well, for example, a speaker at a conference or a salesperson in the shop is received by participants and visitors. Optical sensors are used for this purpose, but they do not generate an image for data protection reasons.

“We want to roll this out worldwide,” said Schumacher. This solves the biggest problem of offline marketing, as the success of live experiences is made objectively measurable. For example, organizers or retailers can find out which speaker was best received at a conference or which lighting concept works best in a store.

Carsten Schröer, professor for trade fair, congress and event management at the Baden-Württemberg Cooperative State University, sees a fundamental need: “Measuring the success of events in the marketing context, be it trade fairs, congresses or events, has Industry is of great importance,” he told the Handelsblatt. In print and TV, but especially in digital communication, success and failure can be documented very well.

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Live events are under pressure to document and prove their effectiveness. “With the solution from Avantgarde, it seems possible to take a relatively simple look at important aspects.” The fact that emotions are also shown is an innovation. However, instruments such as surveys would certainly retain their place.

Brand experience as important as the product

In 1985, Martin Schnaack aroused the interest of sponsors with a fashion fair for young designers. He was one of the first to recognize that brand experiences – the brand experience – and emotions can be at least as important as the product itself. He staged presentations and road shows for Mercedes and Porsche, for the launch of a new yoghurt drink he set up pop-up bars.

outlook

230

million euros in sales

is expected by the group including recruiter Avantgarde Experts in 2022.

In the meantime, however, the founder speaks of an “experience economy”. In a world in which products are becoming more interchangeable, it is becoming increasingly important which experiences, experiences and impressions customers associate with a product.

Avantgarde has also developed its own concepts such as the store “The Latest” in Berlin, where customers can find innovative products from start-ups, young and established brands. Another mainstay was created last year with the start-up of Avantgarde Performance, which deals with digital topics such as marketing, conversion rate optimization, social media advertising, data analysis and consulting.

A few weeks ago, Avantgarde also took over the Munich start-up nonplusultra, which supports tech brands in entering the European retail market. Including the recruiter Avantgarde Experts, the group is likely to achieve sales of around 230 million euros this year.

Founder Schnaack had initiated a smooth transition over the years. “It was an incredibly good idea that we deliberately took a lot of time,” says the founder. “Now I can stop with peace of mind.”

Financial investor EMH holds a majority stake in the agency

Four years ago, the financial investor EMH took over the majority of the traditional agency. Then Schumacher was brought on board as co-boss. He had a doctorate in marketing and worked for Hugo Boss, Breuninger and Tom Tailor, among others. Before moving to Avantgarde, he was Managing Partner at the Liganova Group, which designs and implements brand and shopping experiences. At Avantgarde, he wants to develop “modern retail formats” in particular, which should provide a real shopping experience.

The core business of event marketing is now an important part of companies’ advertising plans. According to industry estimates, the larger companies in Germany spend a good 30 billion euros on communication in normal years. Almost a quarter of this is attributable to “integrated brand experiences”, of which around half or 3.7 billion euros is at trade fairs.

However, the environment for the industry is currently extremely difficult. Countless events were canceled or canceled due to the pandemic. Then came the Ukraine war with all its consequences. The entire industry is “disproportionately affected by the price increases,” said Alexander Ostermaier, Managing Director of fwd Federal Association of Event Management.

“We haven’t had any customers slashing budgets and I hope it stays that way.” Martin Schnaack, founder of the avant-garde

Events with up to 250 people have become an average of 58 percent more expensive compared to 2019. This is due to increased raw material and transport costs as well as lower market capacities with high demand for live trade fairs and events.

>> Read here: After a forced break of two years – a busy summer at trade fairs creates problems

However, Avantgarde expects double-digit percentage growth again for 2022. “So far we haven’t had any customers who cut all their budgets and I hope it stays that way,” says Schnaack. Real events will continue to play a major role in branding in the future. “Digital media are reaching their limits.”

In the medium term, Avantgarde is aiming for an IPO. “This is one of the most sustainable and best ways to lead a company into the future,” says Schnaack.

The founder now wants to provide advice via the advisory board and as a shareholder. “But I can let go,” asserts Schnaack. He already has enough ideas for the time after the avant-garde. For years he has had a plan in mind to start a premium bicycle manufacturer with production facilities near refugee camps in Africa.

More: Demand for digital professionals falls for the first time in two years

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