Live Music Sponsorship Gets Spending Hike, Credited With Brand Favorability Lift

September 30, 2016

This article is included in these additional categories:

Brand Metrics | Hispanic | Media & Entertainment | Sponsorships | Teens & Younger

ieg-music-sponsorship-spending-2012-2016-sept2016Live music sponsorship “consistently produces high favorability among fans,” declares Nielsen in its latest Music 360 report [download page]. Indeed, a majority of music festival goers say they view a brand more favorably if it sponsors an existing festival, per the study, and almost two-thirds say that product giveaways at live events make them view the sponsoring brand more favorably.

Sponsors might find a particularly receptive audience in Hispanics, who were 126% more likely than average to view a brand more favorably for sponsoring. Hispanics are also big spenders on live events, allocating 60% of their music spending to live events, slightly higher than the population average.

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What Hispanics spend on, though, does differ quite significantly from the general population. In particular, they allocate:

  • Twice the share of their music spending to DJ events (17% vs. 8%);
  • Almost twice the share to small live sessions (8% vs. 5%); but
  • A considerably smaller share to live music concerts (25% vs. 36%).

Overall, Hispanics spend 90% more on music than the general population. And among live music event attendees, they over-index the general population in attendance to various types of events, ranging from live concerts with a main headliner to music festivals and club events.

Teens also over-index in some areas, in particular music festivals and live concerts with multiple headliners. For sponsors, teens are also an important demographic, as they’re 43% more likely than average to view a brand more favorably for sponsoring an event.

Brands are increasing their sponsorship spending, according to recent data from IEG. Indeed, spending on music tours, festivals and venues is expected to reach almost $1.5 billion this year. That would represent a 5.6% increase from last year, a faster rate of growth than sponsorship spending on sports (5%), causes (3.7%) and every other category.

Music sponsorship activity is high with beverage brands. Wine and spirits brands are 7.4 times more likely to sponsor music than the average of all sponsors, per the IEG report, with beer (6.2 times higher) and non-alcoholic beverages (6.2 times higher) also seeing above-average activity.

Within the alcoholic beverage category, Annheuser-Busch is the clear leader in sponsorship activity: 28% of properties with a sponsor in this category report a partnership with an Annheuser-Busch brand.

Other active sponsors of music, per the report, include Pepsico, Diageo, Coca-Cola and Brown-Forman.

About the Data: The Nielsen data is based on a survey conducted July 14 – August 5 among 3,554 consumers reflective of the population of the United States. Additional responses were collected for ages 13-34 and for Hispanics. The survey was offered in both English and Spanish, as selected by the respondent. Data was weighted to the US census population based on age, gender, race, education and household size.

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