Live Nation Sponsorship & Ad Rev ^15%, Closing In On $300M
Sponsorship & Advertising revenue increased 15% in 2013 to roughly $285 million with Live Nation's 200 person sponsorship sales force working with approximately 750 different local and national sponsors throughout the year. The $36.8 million increase over 2012 is being credited to the growth in online advertising, new sponsorship agreements globally, expansion of existing sponsorship arrangements, increased custom events and $4.3 million in sponsorship revenue that resulted from recent acquisitions of other festival promoters.
The results leave the world's largest producer of live entertainment only $15 million shy of reaching CEO Michael Rapino's goal to hit $300 million. Perhaps most interestingly, the company asserts that its main competitors for sponsorship dollars aren't even in the music industry. From the 10-K:
Our main competitors at the local market level for sponsorships and advertising dollars include local sports teams, which often offer state of the art venues and strong local media packages, as well as festivals, theme parks and other local events. On the national level, our competitors include the major sports leagues that sell sponsorships combined with significant national media packages.