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Inside the changing face of live music sponsorship

Prominent figures ponder whether concert brand deals have lost their allure or remain a premier choice for brand leaders

By James Hanley on 10 Jun 2022

Mark Davyd at the National Lottery's Revive Live showcase


image © James Drury Photography

The pandemic has changed the game for live music sponsorship, according to prominent figures across the business.

With question marks arising over whether brand tie-ins have lost its allure or remain a premier choice for brand leaders, most signs appear to point towards the latter.

Bijal Parmar, head of consumer marketing for Virgin Media O2, indicated much of the appeal for sponsors was derived from music’s “immense power” of connectivity.

“It’s a common culture and a universal language that during the pandemic – and even post-pandemic – has been able to unite people,” she said. “It’s something that has kept people connected, so we’re able to use it to articulate our brand strategy and provide an experience for our customers… So it’s a memory that we’re creating, not just an event.”

Dukagjin ‘Dugi’ Lipa, founder of Republika Communications Agency and co-organiser of Kosovo’s Sunny Hill Festival, with his daughter, Dua Lipa, discussed the evolving relationship.

“Rather than just being that transactional stance between the artist and the brand, we see a lot of changes and different approaches from brand partners,” he said. “Now it’s more connected to brand values: do they see anything that can have longevity rather than just one kind of interaction between the artist and the brand?”

“We get a lot of brand offers, but it’s never about the money”

Dugi pointed out that although the global success of Dua Lipa’s second album Future Nostalgia had placed her in even higher demand with would-be sponsors, there were additional considerations to take into account.

“We get a lot of brand offers, but it’s never about the money,” he insisted. “It’s always about the long term partnership and the values. You become part of the brand and the brand becomes a part of you for that period of time.

“Even though you have a lot of offers, you have to be very, very careful what your next step is and who you are going to be affiliated with, etc. We are living in a new kind of world, where everything is online, everything is reachable, everything is accessible to you. So you have to be very careful who you work and why you do it.”

US-based ASM Global EVP of marketing Alex Merchan summed up the venue company’s approach.

“A key thing we find is really looking beyond just the transactional relationship,” he said. “What is in it for both parties? We’re looking for partners that we can find unique, creative things that add value to the fan experience, or to the facility itself.”

Music Venue Trust CEO Mark Davyd explained the organisation’s formation in 2014 marked a turning point for the grassroots sector’s relationship with brands. Davyd referenced the Revive Live showcase, launched in July 2021 with support from the UK National Lottery, which contributed £1 million to directly underwrite the touring and production costs of hundreds of live performances.

“Post-pandemic, it seems to me like a lot of the brands are becoming smarter and not overlaying quite so much,” he suggested. “Our deal with them doesn’t really involve us saying ‘the National Lottery’ very much at all. What they’re looking to do is own the space where an artist broke through, from being unknown to being a touring artist. They want to own that across a number of years.

“In five years’ time, they’re hoping that one of the 60 or 70 tours we’ve already put out will be by the next Adele or Dua Lipa – and they want that reputational branding, rather than a big ‘look what the National Lottery has done’ shout, and that feels quite different. I’ve done a lot of branding where quite often you weren’t really sure why the company was there, but you liked their money. But what we’re now seeing is a lot more of a focus on, ‘What is the authentic experience and how can our brand sit alongside that?'”

“The reaction from the audience is tangibly different than it was before Covid. And I think brands can see that and want to be part of it”

Davyd added that Covid-19 had acted as a “wake-up” call for people who had previously taken their local venue for granted.

“They had to drive or walk past it when it was closed for nearly two years and they really thought, ‘Wow, I could lose that,'” said Davyd. “In this pandemic, a lot of the audience reconnected with what they’ve missed. I’ve been to about 200 shows already and the reaction from the audience is tangibly different than it was before Covid. There’s a real atmosphere in the room of being so happy to be there. And I think brands can see that and want to be part of it.”

CAA UK’s Bradlee Banbury continued on a similar theme, saying many brands had been forced to rethink their relationship with live music due to pandemic.

“They had been lazily badging tours or festivals, but not really activating in a different way with music fans,” he said. “And when we went into the pandemic and there were no live events happening, I think everyone had to reinvent the wheel a little bit. There were some brands that already had strong connections with musicians established for years and they lent into it quite easily. But there were others that were just completely shocked by the whole experience.

“Post-pandemic, I think everyone will have a bit more of a strategy to spread the money a little bit further and make that connection with the actual fans, rather than just badging a tour [although] there’s a place for that as well.”

Banbury spoke highly of drink brands White Claw and Jagermeister’s link-ups with All Points East.

“They’ve got their own stages,” he said. “So you’ve got a lot of fans seeing a show, drinking Jagermeister or White Claw; they’re having a party and they’re really enjoying it. Those brands have brought something to the table.”

This discussion took place as part of the Sponsorship: Falling through the cracks? panel at ILMC 34 in London.

 


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