IEG: Marketers To Spend $1.17 Billion On Live Music This Year
A downturn in the concert business in 2010 did not have a negative impact on corporate dollars spent in the space, as North American-based companies will spend $1.17 billion to sponsor music venues, festivals and tours in 2011, a 7.3% increase from the $1.09 billion spent in 2010, according to information compiled by Chicago-based IEG, which tracks the sponsorship industry.
The increase outpaces the projected 5.9% increase in overall sponsorship spending and represents the largest increase in spending among all property types including sports, causes and the arts. The increase reflects both the viability of live music as a platform for brands to connect with passionate consumers and a migration of marketing dollars from traditional media to the more interactive live event space.
“More marketers have returned to sponsorship as the economy rebounds, which in turn has benefited the music touring business,” William Chipps, senior editor of IEG Sponsorship Report, tells Billboard.biz. Chipps adds that double-digit percentage decreases in concert attendance last year should not negatively impact the live music sponsorships going forward. “The decline in the touring industry is not expected to have a significant impact on sponsorship spending. More and more companies are embracing nontraditional marketing channels, and music provides a marketing platform to tap into a key passion point.”
According to IEG, spending continues to be driven by the apparel, automotive, insurance, personal grooming, (more…)
