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Spending On Music Sponsorships Expected To Rise 15 Percent To $867 Million In 2006

April 24, 2006:

Spending increase to outpace the expected 10.6 percent rate of growth for the overall sponsorship industry

For More Information Contact:
William Chipps, IEG, LLC, Tel: 312/944-1727

Music Tour Sponsorship SpendingChicago, Ill. — Sponsorship spending by North American companies on music tours, concert series and venues is expected to rise 15 percent this year, reaching $867 million, according to IEG Sponsorship Report, the world’s leading authority on sponsorship. Marketers spent $754 million on music deals last year.

The spending increase outpaces last year’s 8.5 percent growth and IEG SR’s projected 10.6 percent year-over-year rise for the overall sponsorship industry, reflecting a number of key developments in the sector.

One such indicator is the increased sponsorship activity by telecommunications companies. Although the category was already one of the most active in music marketing, many of its players have ramped up their investments in the medium as they seek platforms to demonstrate their expanding array of products in front of the highly coveted youth and young adult market.

An especially noteworthy aspect of many of those deals is the role that access to content plays. For example, Sprint Nextel Corp. leverages its sponsorship of Bon Jovi’s tour to gain exclusive content for subscribers, including access to a streamed concert and two previously unreleased songs. Sprint customers also can download Bon Jovi ring tones and access the band’s music videos.

“The importance of content has never been greater. Companies are increasingly using sponsorship to gain exclusive content as a way to gain a point of differentiation,” said William Chipps, IEG Sponsorship Report’s senior editor.

New categories sponsoring music include flash memory and computer chip manufacturers, with SanDisk Corp. sponsoring punk rock’s Vans Warped Tour and Advanced Micro Devices, Inc. supporting the Austin City Limits Music Festival.

Other emerging industries within the music sector include the energy drink, secondary ticket and financial services categories. Deals include RockStar Energy Drink’s title of the Taste of Chaos tour;’s sponsorship of New Orleans’ Superfly During Jazzfest concert series; and First Midwest Bank’s title of the Chicago area’s former Tweeter Center amphitheatre.


Music Tour/Venue

Chevrolet Essence Music Festival
Soulfrito—The Urban Latin Music Festival
Honda Honda Civic Tour
Lexus Paul McCartney
Lincoln Lifehouse
Pontiac Virgin College Mega Tour
Beer and Spirits
Absolut Ultra Music Festival
Jagermeister Sounds of the Underground tour
Rolling Rock Little Steven Van Zandt’s Underground Garage tour
Southern Comfort Voodoo Music Festival
Dentyne Fire & Dentyne Ice Virgin College Mega Tour
Hershey Tim McGraw & Faith Hill
Dot-Coms Nine Inch Nails
Napster Instant Live Grammy Awards
Voodoo Music Experience Casting Crowns
Consumer Electronics
Emerson Nokia Theatre Times Square
Mark Levinson Paul McCartney
Panasonic ELS Donald Fagen
Energy Drinks
Rockstar Rockstar Taste of Chaos
Monster Energy Ozzfest
Financial Services
American Express New Orleans Jazz & Heritage Festival
Fidelity Investments Paul McCartney
First Midwest Bank First Midwest Bank Amphitheatre, Chicago
M&I Bank Summerfest, Milwaukee
Visa Int’l Ricky Martin Latin America tour
Visa Signature House of Blues
Sony PlayStation Breed Love Odyssey Tour
PlayStation DualPlay, House of Blues
Vans Warped Tour
Xbox 360 The Fray
Spin magazine Bumbershoot, Seattle
Mortgage Cos.
Ameriquest Mortgage Rolling Stones
Belle Tire DTE Energy Music Theatre
Meadow Brook Music Festival
ExxonMobil Steve Azar
F.y.e. Ozzfest
Hot Topic Rockfest Taste of Chaos
Sleep Train Sleep Train Pavilion at Concord
Sleep Train Amphitheater
Tower Records Village Voice Siren Music Festival
Virgin Megastores Coachella
New Orleans Jazz & Heritage Festival
New York Latin Funk Festival
Secondary Ticket Sellers
StubHub SuperFly During Jazzfest
Amp’d Mobile Fall Out Boy
AT&T Lollapalooza
Austin City Limits Festival
Cingular Wireless Gretchen Wilson
Samsung Vans Warped Tour
Sprint Bon Jovi
Verizon Wireless Reggaeton “Stars Of The Future” talent search
Vonage Bonnaroo Music & Arts Festival
Virgin Mobile MTV Video Music Awards

About IEG, LLC

IEG is the world’s leading provider of independent research, consulting, training and analysis on sponsorship. Founded in 1981, IEG provides corporations and properties with the strategies and tools to harness the sales and marketing power of sports, arts, entertainment and cause marketing.

IEG offers services that include sponsorship consulting, competitive intelligence and valuation. IEG also publishes IEG Sponsorship Report, the international biweekly newsletter on sponsorship; the IEG Sponsorship Sourcebook, the definitive guide to sponsors, properties and agencies; and other industry publications and sources.

IEG also is the leader in sponsorship training. Its internationally renowned Sponsorship Conference, now in its 24th year, attracts a capacity crowd of delegates each year. Through its conferences, seminars and webinars, IEG has trained more than 45,000 sponsorship executives worldwide.

For more information about IEG and the sponsorship industry, please visit or call 800/834-4850 (outside the U.S. and Canada, 312/944-1727).