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From Pop-Ups to Permanence: Why Experiential Agencies Are Building Their Own Entertainment Destinations

By Andrew Dougan

In an era where our lives are increasingly lived through screens, there is a countervailing desire for the experiential. This hunger for tangible encounters has created a golden opportunity for experiential agencies to evolve beyond temporary activations into permanent entertainment destinations. Here’s why this shift matters and how it’s reshaping the industry.

The Digital Paradox: Why Physical Experiences Are Booming in a Digital World

As our daily lives become more digitally oriented, the desire for authentic, sensory-rich experiences has intensified. This isn’t just speculation – the numbers tell the story. The global location-based entertainment market is projected to reach $85.4 billion by 2025, with immersive experiences leading this growth. The more time we spend in virtual spaces, the more we yearn for physical experiences that engage and excite our senses.

The New Entertainment Landscape: Where Technology Meets Physical Space

The past few years have seen an explosion of groundbreaking immersive destinations. Las Vegas’s Sphere has redefined what’s possible in entertainment architecture, while London’s Outernet has transformed digital art into a public spectacle. ABBA Voyage has revolutionised the concert experience through cutting-edge mixed reality, and Area15 has proven that experimental art can be commercially viable at scale.

These venues share a common thread: they blur the line between physical and digital, creating hybrid spaces that feel both futuristic and deeply human. At Battersea Power Station’s newly announced Neon, visitors will soon step into a world where technology enhances rather than replaces human connection. Meanwhile, Phantom Peaks and Immerse LDN demonstrate how narrative and interaction can transform spaces into living stories.

Why Experiential Agencies Are Perfectly Positioned to Lead This Revolution

Experiential agencies have spent years mastering the art of creating memorable moments for brands. Now, they’re leveraging this expertise to develop their own entertainment IP and permanent venues. This strategic pivot offers multiple benefits:

New Revenue Streams Rather than relying solely on client projects, agencies can create sustainable income through ticketed experiences. This diversification provides financial stability and the freedom to innovate without client constraints.

A Living Portfolio Permanent installations serve as powerful demonstrations of an agency’s capabilities. Instead of showing potential clients photos of past events, they can invite them to experience their work firsthand, year-round.

Real-Time R&D Lab Operating a permanent venue provides invaluable insights into audience behavior, technology implementation, and experience design. This continuous learning loop helps agencies refine their approach and stay ahead of industry trends.

Pioneers in Action:

Several forward-thinking agencies have already made successful moves into owned entertainment experiences:

  • Moment Factory Montreal-based Moment Factory has created a series of enchanted night walks across forests in Canada and Asia. Their “Lumina” series transforms natural settings into magical multimedia experiences, combining light, sound, and storytelling. What began as a single installation has grown into a global entertainment product, with over a dozen permanent locations attracting millions of visitors annually.
  • Secret Cinema While not traditionally an agency, Secret Cinema’s evolution offers a compelling blueprint. Starting with temporary immersive film experiences, they’ve grown into a global entertainment brand, recently opening their first permanent location in Los Angeles. Their success has demonstrated how experiential expertise can be transformed into a scalable entertainment property.
  • Superblue Founded by Pace Gallery, Superblue represents a fascinating hybrid model. They’ve transformed their expertise in artistic installations into permanent venues in Miami and London, showcasing immersive works by artists like teamLab and Es Devlin. Their success demonstrates how agencies can evolve from creating temporary installations to operating permanent cultural destinations.
  • Meow Wolf Though beginning as an art collective rather than an agency, Meow Wolf’s trajectory shows the potential scale of immersive entertainment. They’ve expanded from a single location in Santa Fe to permanent installations in Las Vegas, Denver, and beyond, proving the market for bold, artist-driven permanent experiences.
  • Fivecurrents Fivecurrents, renowned for their work on Olympic ceremonies and global events, demonstrated their versatility by becoming a fundamental part of the founding team and creation partners for Frameless in London. This permanent digital art experience showcases how agencies can leverage their expertise in large-scale productions to create intimate, technology-driven cultural destinations.

Looking Ahead: The Future of Experiential Entertainment

As technology continues to evolve and audience expectations rise, we’re likely to see more experiential agencies step into the role of entertainment providers. The most successful will be those who understand that technology should enhance, not overshadow, the human element of these experiences.

The opportunity is clear: in a world hungry for meaningful experiences, agencies that can create compelling permanent destinations will find themselves at the forefront of a booming industry. The question isn’t whether to enter this space, but how to do it in a way that creates lasting value for both the agency and its audiences.

This isn’t just a trend – it’s a fundamental shift in how we think about entertainment, experience design, and the role of physical spaces in an increasingly digital world. For experiential agencies willing to take the leap, the rewards could be transformative.


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