Marketers are increasing their spend on sponsorships of music, festivals and tours this year, a vital passion point for consumers.
Spending on these events will reach $1.09 billion, a 4.2% increase from the $1.08 billion spent in 2009, according to IEG Sponsorship Report.
The spending beats IEG’s projection of 3.4% and represents the third largest increase in spending among the major property types, following causes (6.1%) and entertainment tours and attractions (5.7%).
The money is being spent to sponsor large events to maximize their return on investment
“While national music festivals and tours have found success securing corporate partners, many regional and local events continue to struggle, said William Chipps, IEG Sponsorship Report’s senior editor, in a release.
As in years past, much of that growth is driven by new and incremental spending on big-ticket sponsorships, with auto, apparel, beverage, cameras, insurance, technology companies leading the charge, IEG said.
For example, Canon U.S.A., Inc. this year signed a new partnership with the Bonnaroo Music & Arts Festival, Red Bull aligned with Live Nation, and Sony Computer Entertainment America Inc. sponsored last weekend’s Coachella Valley Music and Arts Festival on behalf of its Bloggie handheld camcorder.
In addition, Live Nation late last year announced a six-year partnership with The Coca-Cola Co. that spans multiple assets including concerts, content, hospitality and the concert producer’s online ticketing and e-commerce operations, IEG said.
“While the economy appears to be rebounding, many marketers continue to take a cautious approach to sponsorship by focusing on large, established properties that provide broad reach,” Chipps said.
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