Schenck: How big are events to your business? What kind of attendance?
Luzzatto: Events represents 10% of our revenue, more complex than that When it comes to media planning. We package events for added value. It allows us to sell bigger branded content deals.
Kadetsky: 10-20% of our revenue but the event is being packaged with other media program, to get advertiser on the hook for a home stake.
Luzzatto: Depends on advertiser, sponsorship level. A lot of content is super important to being able to sell for events. Everyone want to extend reach offsite. Package content, influencers. Ton of media value. We have celebrity talent, press there. We’ve already generated 5B media impressions this year.
Kadestsky: Content that we have is not quite as viral but we get great engagements. We have a great story to tell for that advertiser.
Luzzatto: Event comes before the sponsorship. Funny dance. Pitfall is not knowing whether to build it and sell into it or build it only if it gets sold. The way you communicate with advertisers: we’re doing this event, want sponsors. Came up with one event definitely doing and invite sponsors and then a list of events to be held if sponsors come.
Kadestsky: Advertisers that want to be there know us. Some sales leads came from pharma side of media, health and wellness, testing waters with health events, advertisers clamoring over it. Hot space to reach women. Reverse came true.
Luzzatto: Two people dedicated to events on our team. Marketing team helps out as needed. Last week had two events on same night in L.A. lotta hands on deck. It does take a village. Need to be really strategic.
Kadestsky: We have a few dedicated folks, everyone pitches in when the time comes. Our influencer account editors are on the ground.
Luzzatto: Lot of risk in throwing parties. Especially with young, wealthy talent. For Nylon to activiate, cost goes up every year, we made an investment to do it no matter what. Two years ago blew out the event, cost was $4-500K, it’s a risk without sponsorship, one of the tough things people don’t talk about is, sponsors don’t typically want to pay up front. From a cash flow perspective, that can be tough. We have to structure out deals with production agencies, talent, venues so we’re matching sponsorship contracts, building in some liability To protect ourselves In case things get out of control at the party, which is great for media, bad for sponsorship. Not for the faint of heart.
Kadestsky: Knowing you’ll have an audience to attend is more important than getting sponsors. Know how to serve them, deliver on the experience.