LIVE
MUSIC SPONSORSHIP
w e i v e r P n o i s r e v
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AUDIENCE Whether attending a concert, travelling to a music festival or simply watching an artist perform at a club or pub, understanding the music audience is a fundamental for potential sponsors.
5 Audience
WHAT TYPES OF MUSIC ARE PEOPLE LISTENING TO AND INTERESTED IN? While pop and rock music dominate the top five markets – and only in the USA do more people like rock than pop – further down the list market specific preferences become clearer. Rap and hip-hop, for example, is more popular in the United States than other markets, while 29 per cent of people in Japan, far more than any other market, like classical music. Electro and dance is most popular in France. Over two-thirds of people in the UK and USA enjoy alternative or indie music, although the definition of the genre is likely to mean different
things to different people – artists and bands might initially describe themselves, or be described, as ‘alternative’ before gaining popularity and becoming more mainstream rock acts. Heavy rock and heavy metal, meanwhile, are the most polarising of the main music styles: 26 per cent globally ‘don’t like it at all’ compared to 4 per cent for pop and 7 per cent for rock.
Interest in different types of music
TOP 5 MUSIC MARKETS
TYPES OF MUSIC
FOLK REGGAE
17%
Pop
20%
POP
Rock
55%
CLASSICAL
Rap/Hip-hop
24%
RnB/Soul
ROCK
HARD ROCK HEAVY METAL
Electro/Dance/Techno
49%
25%
Alternative/Indie
INDIE ALTERNATIVE
29%
Hard rock/Heavy metal
ELECTRO DANCE TECHNO
RNB SOUL
32% FRANCE
RAP HIP-HOP
Classical
33%
Reggae Folk
32%
GERMANY
UK
USA
JAPAN
1
53%
1
61%
1
55%
1
58%
1
51%
2
48%
2
55%
2
47%
2
55%
2
39%
3
40%
3
37%
3
41%
3
42%
3
29%
4
38%
4
36%
4
37%
4
40%
4
19%
5
35%
5
33%
5
36%
5
34%
4
19%
5
34%
4
19%
Base: 14 – 34 year olds
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10 Media
THE IMPORTANCE – AND LONGEVITY – OF VOD Unlike sport, which has traditionally benefited from major live coverage – and the attendant rights fees – major music events, especially festivals, are far more reliant on other forms of media distribution, such as VOD and social sharing to secure major audiences. Indeed VOD platforms are vital for festivals, as places where live performances can live on many weeks after an event, whereas sport tends to be more influenced by results and news and is therefore always producing new images. Across the top five markets, over 40 per cent of music fans say they sometimes watch music video clips on video sharing websites like YouTube, the same proportion as watch live broadcasts or recordings on TV. 39 per cent regularly watch live broadcasts or recordings via online streaming.
TV versus Live stream versus video on demand clips
TOP 5 MARKETS VS. REGULARLY WATCHING
LIVE BROADCASTS OR RECORDINGS ON TV
18%
42% SOMETIMES
VS. REGULARLY WATCHING
LIVE BROADCASTS OR RECORDINGS USING INTERNET STREAMING
15%
WATCHING VIDEO CLIPS ON
SHARING WEBSITES SUCH AS YOUTUBE
35% 42% SOMETIMES
39% SOMETIMES Base: 14 – 34 year olds
CASE STUDY
TODD PALMERTON – NATIONAL DIRECTOR OF LIVE MUSIC, RED BULL NORTH AMERICA “There are 80 million consumers between the ages of 18 and 35 in the US that deeply connect with music on a daily basis, making it the most relevant category to target. Brands are focusing more on millennials and Hispanics in this age range. Excluding country music, hip hop and electronic indie pop are the two most relevant genres at the moment. “I don’t believe that marketers are thinking long-term and I have not seen any event concepts that I think are moving the needle outside of what we are doing at Red Bull. Staying creative, relevant and credible are the biggest challenges – people are on their
©2015 Repucom
smartphones more than ever taking pictures, filming shows and sharing. “As record sales continue to decline, labels lose more and more money which drives up the performance fees for brands. This in turn increases the cost of touring and festival sponsorship fees year over year. “People go to festivals and concerts to see music and let loose with their friends. They do not go to shows to be sold a car. It’s about creating content that can reach consumers beyond the four walls of the venue and providing shareable social media moments on-site.”
1
11 Media
EXPOSURE, TOUCHPOINTS AND ACTIVATION Opportunities for brand integration into a major festival can begin almost as soon as the previous year’s edition has concluded, starting with the opening ticket sales promotions and announcements of the line-up – these tend to be the first media touchpoints, resulting in coverage, discussion and sharing amongst fans. Various communications channels can be utilised in advance of the event. Often, sponsors rely on web-focused activation concepts which enable brand positioning and audience communication long before the actual event, followed later by on-site activities. Philipp Schmoll of Jägermeister confirms this, and adds: “Digital channels are by no means detached from the overall communication, but are strongly coupled with the
analogue world”. A joined-up activation strategy will pay dividends. With an average of eight hours per day of shows at a multi-day festival, sponsors have sufficient time to create exceptional brand experiences for fans. The on-site activities remain vital. As Lars-Oliver Vogt, CEO from The Sponsor People says: “High quality and direct contact with the event viewer remains the crown jewel onsite and has a special significance for music sponsors”.
A festival’s media footprint
THE THREE WAVES OF EXPOSURE S IL VE ADCAST BRO streams
SITE N O ing
live TV
nd s Bra t Sale c Dire ation iv Act
DIA E M IAL DEO C O S VI ND AND DEMA ON- ok
ebo Fac ube T You gram a Inst er tt Twi
15 16 The touchpoints
FIRST LINE-UP ANNOUNCEMENTS
SOLD-OUT ANNOUNCEMENT
PRE-FESTIVAL ACTIVATION
EARLY-BIRD TICKET SALES
SHOW TIME: FESTIVAL WEEKEND
POST-PRODUCTION SEEDING
Insights by Repucom
ARTISTS As the business model underpinning the music industry evolves, the world’s major artists are exploring new ways to connect with fans and generate revenues.
19 Artists
PLAYING TO THE CROWDS Successful music acts come and go – popularity is generally measured in sales, number of downloads and tour revenues, but credibility can be harder to gain and quantify – virtually by the month, but for a select few breakout chart success can turn into a lucrative and lengthy career; indeed, there are world-renowned performers – amongst them Sir Elton John, Stevie Wonder, U2 and the Rolling Stones – who continue to sell out shows around the world many years after their last number one chart hit. For the major global acts of 2015, tour sponsorships and brand endorsements are not uncommon – artist reluctance to partner with corporate brands seems to be
waning, with the changing dynamics of the music industry prompting a search for new revenue streams and ways to connect with a fan base. Partnerships with the right brands can be a valuable way to achieve both. Several of the world’s major artists are now effectively the CEOs of their own corporations, with their own product ranges. As Adele, who eschews brand endorsements, proved in late 2015, though, there is more than one way for an artist to be successful.
The biggest grossing tours of 2015 by ticket sales and number of shows
57
KENNY CHESNEY
LUKE BRYAN
55
TAYLOR SWIFT
71 44
1.34 M
FLEETWOOD MAC
EST. TICKET SALES
591 K
1.01 M
EST. TICKET SALES
EST. TICKET SALES
1.98 M
EST. TICKET SALES
SHANIA TWAIN
68
MAROON 5
ONE DIRECTION
62
890 K
687 K
EST. TICKET SALES
EST. TICKET SALES
U2
BILLY JOEL
29
18
THE ROLLING STONES
710 K 625 K
EST. TICKET SALES
Source: Billboard/Boxscore (Nov 2014 – Nov 2015)
EST. TICKET SALES
64
1.13 M
EST. TICKET SALES
2.34 M EST. TICKET SALES
80
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Copyright © 2015 Repucom. All rights reserved. Repucom and the Repucom logo are registered trademarks. Other product and service names are trademarks or registered trademarks. All content herein is copyrighted. Any reproduction must contain credit to Repucom. All pictures are supplied by The Sponsor People GmbH, with the exception of Page 10: AFP PHOTO/Atta Kenare.