Led By A-B, GnR, U2, Music Sponsorship Spend To Top Record $1.5B in 2017
Wednesday, July 26, 2017 at 03:51PM
NYSportsJournalism.com in Finances, Finances, Guns N Roses, U2, festivals, music concerts

By Barry Janoff

July 26, 2017: With such power groups and performers as U2, Guns N’ Roses, Red Hot Chili Peppers, Metallica, Adele, Ed Sheehan, Bruno Mars and The Weekend on tour in 2017, it is small wonder that brands have lined up to be part of the action and income.

Sponsorship spending on music tours, festivals and venues is projected to total a record $1.54 billion in 2017, up 4.8% from the previous record of $1.47 billion 2016.

That projected increase exceeds the projected 4.1% increase in overall 2017 North American sponsorship spending and 3.9% increase in entertainment spending, but trails the 5.6% increase in music spending in 2016, according to research and consulting firm IEG, Chicago.

The increase in sponsorship spend this year follows an upward trend in the category over the past few years, when spend was $1.4 billion in 2015, $1.34 billion in 2014, $1.28 billion in 2013, $1.22 billion in 2012 and $1.17 billion in 2011.

According to the 2017 IEG Music Sponsorship Report, "Anheuser-Busch InBev remains the undisputed leader in live music."
 
Some 51% of music festivals with a sponsor in the alcoholic beverage category report a partnership with an Anheuser-Busch brand, up from 28% in 2016.

The brewer is followed by ride-share service Uber, which replaces PepsiCo as the second most active sponsor of music festivals, with 21% of properties with a sponsor in the ride-share category listing a partnership with Uber.

That is more than double the number of properties in 2016 (8%), per IEG.

Brown-Forman (Jack Daniel’s, El Jimador) is the third most active sponsor of music (19%), followed by Fifth Generation (led by Tito’s Handmade Vodka, 17%) and MillerCoors (17%).

PepsiCo comes in at No. 6 (16%), with the Top Ten also including Heineken (16%), Coca-Cola (14%), Diageo (14%) and E&J Gallo (12%), Deep Eddy Vodka (12%) and Monster Energy (12%).

Bud Light (Anheuser-Busch) is among the lead sponsors for the upcoming Lollapalooza festival (Chicago Aug. 3-6), as are, Uber, Pepsi and Jack Daniel’s.

The wine and spirits category remains the most active category sponsoring music, but at a slightly less active pace than in 2016.

According to the 2017 IEG Music Sponsorship Report wine and spirits brands are 5.3 times more likely to sponsor live music in 2017 than the average of all sponsors, still No. 1 but down from 7.4 in 2016.

The Top Ten most active categories sponsoring music also includes beer (4.0), retail (3.5), food (3.1), non-alcoholic beverages (2.9), media and publishing (2.9), banks (1.6), automotive (1.5), hotels and resorts (1.5) and tech (1.4)

Among the highest-grossing tours for the first half of the year (January-June), Guns N’ Roses leads the way, grossing $152.5 million, followed by U2 ($118.1 million), according to Pollstar.

Top Ten Grossing Tours January-June 2017
1. Guns N’ Roses $151.5 million
2. U2 $118.1 million
3. Justin Bieber $98.2 million (remainder of tour postponed)
4. Metallica $88 million
5. Depeche Mode $68.2 million
6. Red Hot Chili Peppers $60.5 million
7. Adele $59 million
8. Ed Sheeran $57.2 million
9. Eric Church $54.5 million
10. Bruno Mars $52.7 million
Source: Pollstar

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