Chicago, IL (PRWEB) April 29, 2011
North American-based companies will spend $1.17 billion to sponsor music venues, festivals and tours in 2011, a 7.3 percent increase from the $1.09 billion spent in 2010, according to IEG, the world's leading authority on sponsorship.
The increase outpaces the projected 5.9 percent increase in overall sponsorship spending and represents the largest increase in spending among all property types including sports, causes and the arts.
"Corporate interest in music partnerships has never been greater," said William Chipps, senior editor of IEG Sponsorship Report.
Spending continues to be driven by the apparel, automotive, insurance, personal grooming, retail, technology and telecommunications categories, all of which are increasingly using sponsorship to build their brands and gain one-on-one touch points with young adult consumers.
Building on a trend from the past several years, much of the growth is driven by sponsorship spending on multi-day music festivals, with one established festival generating an 80 percent increase in revenue.
Recent deals include Sweet Leaf Tea Co. sponsoring the Free Press Summer Fest in Houston; Camelbak Products, LLC partnering with Lollapalooza in Chicago; and consumer electronics manufacturer Vizio, Inc. and online local discount provider Gilt City teaming up with the Coachella Valley Music and Arts Festival in Indio, Calif.
In addition, RadioShack Corp. this year inked new partnerships with Lollapalooza and the Austin City Limits Music Festival in Texas.
Deal-making also is picking up steam at the venue level, with Live Nation and AEG both reporting new naming rights deals. Those include Virginia Farm Bureau signing three-year naming rights to Live Nation's Virginia Beach Amphitheater, a venue now called Farm Bureau Live at Virginia Beach.
AEG has signed a handful of naming rights deals over the past year, including the Best Buy Theater in New York City; 1st Bank Center in Broomfield, Colo. and the Verizon Theatre at Grand Prairie in Texas.
Corporate interest in music tours also has picked up, with several major acts hitting the road with corporate partners. Those include Katy Perry and Schick Quattro for Women and Taylor Swift and The Procter & Gamble Co.'s CoverGirl.
About IEG, LLC
IEG is the world's leading provider of independent research, consulting, training and analysis on sponsorship. Founded in 1981, IEG provides corporations and properties with the strategies and tools to harness the sales and marketing power of sports, arts, entertainment and cause marketing.
IEG offers services that include sponsorship consulting, competitive intelligence and valuation. IEG also produces IEG Sponsorship Report, the internationally renowned industry publication on sponsorship; the IEG Sponsorship Sourcebook, the definitive guide to sponsors, properties and agencies; and other industry publications and sources.
IEG also is the leader in sponsorship training. Its globally recognized Sponsorship Conference, now in its 28th year, attracts a capacity crowd of delegates each year. Through its conferences, seminars and webinars, IEG has trained more than 45,000 sponsorship executives worldwide.
For more information about IEG and the sponsorship industry, please visit http://www.sponsorship.com or call 800/834-4850 (outside the U.S. and Canada, 312/944-1727).
IEG is a unit of WPP's GroupM, the leading global media investment management operation. GroupM also serves as the parent company to WPP media agencies including Maxus, MEC, MediaCom, and Mindshare.
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