Goldman Sachs predicts that the global live music market will grow 7% per year, reaching $38.3 billion in 2030, with music festivals identified as the increasingly “dominant segment.” And saying that experiences are high priorities, 35% of Generation Z are willing to go into debt to pay for their entertainment, per a StubHub study.
Owning the IP
Building an event from the ground up means a heavy investment of time, effort and money from a brand, which is why so many marketers latch onto existing festivals and concerts like Bonnaroo, Outside Lands, Stagecoach and Electric Daisy Carnival. But being one of many sponsors, an ongoing reality, makes it tough to stand out.
“The power play is exclusivity (in a brand category),” said Kyle Nolan, co-founder at Sturdy, a production house that engineered an art-centric hot air balloon installation at last year’s Coachella for a Bad Bunny-Liquid I.V.-Patrón collaboration. “A presenting sponsorship gets you into all the PR and marketing, and the exposure can be worth all the money it costs.”
There are also benefits to developing an owned festival like Project Pabst, in essence creating intellectual property, because it signals a “go big” moment that yields months’ worth of original content, promo opportunities and social fodder, Nolan said.
“When you’re not a music or entertainment brand—that’s not your core product—it’s a big risk,” Nolan said. “But if you’re embedded in music and culture, and now your name is associated with every part of an event, that can be huge.”
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