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Spending On Music Sponsorships To Total $1 Billion In 2007

February 12, 2007:

New spending by telecommunications companies helps fuel growth

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

Music Sponsorship SpendingChicago, Ill. — Sponsorship spending on music tours, concert series and venues is expected to total $1 billion in ’07, a 16 percent increase from the $867 million spent on music properties last year.

That rate of growth outpaces IEG SR’s projected 11.7 percent overall rise in sponsorship spending, reflecting the growing importance of music to corporate marketing campaigns.

Telecommunications companies, particularly wireless phone services, continue to drive much of the spending on music properties as they seek unique and highly desirable content to offer their customers. For example, Verizon Wireless will use its new estimated-seven-figure sponsorship of Justin Timberlake’s tour to gain content, while Cingular uses a proprietary music series to offer exclusive access to live video and audio from the concerts.

“Wireless telecommunications companies are increasingly using sponsorship to gain exclusive content such as videos of live performances and early access to songs,” said William Chipps, IEG Sponsorship Report’s senior editor.

Other categories also are tapping music properties for content. Kellogg Co. leveraged Pop-Tarts’ presenting sponsorship of American Idol Live! to promote online webisodes featuring behind-the-scenes action. To access all of the content, consumers were required to enter a code from a product proof-of-purchase.

The auto sector remains an active sponsor of music as a platform to promote new vehicles and connect to the young adult market. Recent examples include: American Suzuki Motor Co. partnering with Christian rock band Kutlass to tout its new SX4 crossover vehicle; Chrysler Group teaming up with Nick Lachey to promote its new Dodge Nitro; and Toyota Motor Sales USA, Inc. linking with Brooks & Dunn on behalf of its redesigned Tundra truck.

Active Music Sponsorship Categories in ’06/’07


Music Tour/Venue

AARP Tony Bennett
Chrysler Patti LaBelle
Suzuki Kutless
Toyota Brooks & Dunn
Beer and Spirits
Bailey’s John Legend
Bass Pale Ale BritBus
Coors Light Intocable
Southern Comfort SoCo Music Experience
Snickers Nick Lachey
Direct Marketing
Reader’s Digest Music Engelbert Humperdinck
Energy Drinks
Rush! Energy Drink Rock Bus
Financial Services
Chase Card Services Army Concert Tour
ING Marc Anthony
Nintendo Nintendo Fusion Tour
Sony Voodoo Music Experience
2K Sports 2K Sports Bounce Tour
Xbox 360/Gears of War Megadeth
Packaged Goods
Energizer Cartel
Horizon Organic/Silk Soymilk Farm Aid
Kellogg’s Pop-Tarts American Idols Live!
Quick-service Restaurants
Burger King Sean “Diddy” Combs
Lowe’s MerleFest
Radio Shack Rolling Stones
Cingular Wireless Cingular Sounds Live
Vans Warped Tour
LG Electronics Cirque Du Soleil Delirium
Sprint Mana
Verizon Merriweather Post Pavilion
Verizon Wireless Dew Action Sports Tour
Essence Music Festival
Justin Timberlake
Virgin Mobile Virgin Festival

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 25th 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).