Definition Of Music Sponsorship
Music Sponsorship is a marketing technique whose aim is to achieve brand awareness and increase revenues mostly through live music events. Furthermore, addressing a specific and rich target, this marketing tool allows companies to gain loyalty and adopt premium prices.
Breaking Down Music Sponsorship
This form of brand sponsorship is turning out to be a real profit-driver. New studies pointed out that one of the most lucrative strategies for a brand to engage with customers and raise awareness is through music. In fact, millennials regard as more authentic and real these companies. That is, it’s likely they will buy from them in the future. Music sponsorship can range from celebrity endorsement to live event partnership/sponsorship.
In details, the reasons why companies attend music events are different:
- Brand awareness: music festivals such as Coachella welcome more than 200.000 people every year. A big opportunity for a brand to gain visibility and raise awareness. Also, expect to benefits from media exposure worldwide.
- Brand loyalty: as stated above, music festival attendees appreciate brands who sponsor an event. Thus, this opens a window to customer loyalty.
- Direct sales: take a beer company. What a better occasion than a music festival for advertising its products and generating a lot of in-place revenues?
- Customer engagement: music event attendees are usually active and dynamics. Engaging and building a relationship with them through different activities can be a smart move.
- Premium prices: at a music festival you are connecting with consumers who supposedly spent a lot of money. You can sell your products with a higher markup than usual (through your own stands or independent shops). Moreover, you can re-market them in the future with up-selling and cross-selling opportunities.