Sponsorship spending on music tours, venues and festivals is expected to total $1.4 billion in 2015, up nearly 5% from last year, according to IEG, part of WPP’s ESP Properties.
The spending increase outpaces the projected 2015 increase in the overall sponsorship industry—4%-- as well as sports (4.4%), causes (3.7%) and other property segments.
William Chipps, IEG Sponsorship Report senior editor, points to two factors driving the increased spend: continued interest in national music festivals and a growing appetite for regional festivals, some of which have secured significant deals.
“Music festivals continue to pop out of the woodwork, and many are drawing interest from national brands looking for an uncluttered marketing environment,” Chipps said.
Non-alcoholic beverages replaces beer as the most active category, although Anheuser-Busch replaces The Coca-Cola Co. as the most active sponsor. Coke is now the fifth most active sponsor of music.
One new company joins the most active sponsors list: Uber. The ride share app has significantly expanded its presence on the music festival scene with deals with Live Nation, Lollapalooza and the Sasquatch music fest, among others.