For Every $1 Marketers Spend on Music, This Company Wants 30 Cents
For every $1 that marketers spend on music, Live Nation wants at least 30 cents. That's the $300 million goal, according to a fascinating new BloombergBusinessWeek article. How confident is Live Nation that it can grow its sponsorship business? Seeking to double profit from advertising and sponsorships over the next five years, the company will be looking for 10 to 15% growth in earnings each year.
“Our ad strategy is the foundation of how we grow this business over time,” CEO Michael Rapino tells BloombergBusinessWeek. “Can I keep growing it 10 to 15 percent each year? Absolutely.”
Digital will be a driving force as the company looks to extract more partnership revenue from its business. With the recent relaunch of its website, LiveNation.com, the live music company is highlighting launch partners which include Chevy Sonic, Bud Light and Citi. Other integrated deals the company has secured in the past year include partnerships with blue chip brands such as Diageo, Hertz, Skype and Starwood Hotels & Resorts, among others.
According to IEG, North American companies spend more than $1 billion annually on sponsorship of music venues, festivals and tours. #strategytag