Just as the ways that people consume media and entertainment have evolved over time, so have the most effective ways to reach audiences through advertising. Not even a decade ago, companies may have had strong financial reasons to invest in magazine ads and cable TV ads. However, today, these mediums have been replaced by the many streaming platforms and social media apps available to consumers. For marketers, it is becoming increasingly challenging to capture the attention of consumers through ad spots.
Two core problems with this marketing method are that consumers are growing more disengaged with these types of ad campaigns and there is no guarantee that consumers will pay attention to an ad [1]. A marketing team could spend a large amount of money on a well-produced and emotionally driven ad-spot that airs before an original program on a streaming platform that is geared towards a similar target audience as their product. However, if the audience does not actually watch the ad, then it will not have the desired impact. Consumers tend to skip ads as soon as a platform allows them to or they hop on their phone and scroll while ads play on whatever content they are watching [2].
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Because of this, companies need to become more creative with their marketing strategies. This disengagement and uncertainty with indirect, mass media marketing is leading towards many companies incorporating event marketing and experience-based marketing as part of their strategy. This is especially pertinent to companies who want to capture the millennial and Gen Z audiences, as these demographics have proven to respond better to experiential marketing over traditional marketing techniques [3]. One big example of this can be seen with music festivals and concerts, as recent studies have shown that billions of dollars are spent annually by brands on advertising their products at music festivals [4]. These include events such as Coachella, Lollapalooza, EDC, and Stagecoach.
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The Benefits to Marketing at Music Festivals
So, out of all of the different types of events, why have music festivals become a large opportunity for brands? To start, brands who sponsor or otherwise partner with a music festival can reach the thousands of people who attend these events as well as reach audiences through all of the media and press covering these high profile events [5]. Additionally, their brand can get additional exposure through social media posts from those at the events as their products, banners, or other promotional material may appear in a posted picture or video. Music festivals generate thousands of social media posts, and these events are also frequented by influencers and celebrities, so it is possible for a brand to be featured, whether intentionally or in the background, of a social media post that will be seen by millions of people [6].
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Positioning a brand with a music festival can also blend the positive memories and experiences from seeing your favorite artist with your friends with a particular brand that had a presence at that event [7]. Another main driver behind advertising at music festivals is because they want to align their brand’s values and identity with the festival’s identity. For example, studies have shown that music festival attendees view the events as “cool”, “fun”, and “entertaining”, and that they tend to associate these same adjectives with any of the brands who they saw sponsor the event or have any type of pop-up experience at the event [8]. The chart below depicts how music festivals are viewed in the eyes of consumers in comparison to other events that have historically been attractive for brands to sponsor such as various sporting events.
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Research has also proven that music festivals are an effective way to reach an audience. Unlike a social media or TV ad, companies can be sure that the people who come across their brand at a music festival will notice it, whether the logo is painted on the stage or whether a free sample is handed out to attendees. One study concluded that 93% of festival attendees appreciated the brands that sponsored the events, with 80% saying they were more likely to purchase a product after the festival; 37% of festival-goers also had a better overall perception of the company after the festival [9].
The brands who choose to market at music festivals also tend to align with the demographics at the festivals as well as the needs of festival-goers. For example, a large majority of music festival brand sponsors are beverage companies because people at festivals often are outside in the heat, standing and dancing for long periods of time, and thus need cold drinks. These brands include Anheuser-Busch, PepsiCo, Coca-Cola, and Red Bull [10]. Not only can these companies market their products through unique themes stands, sponsored materials, and social media, but they can also bring in significant profits through product sales as people at festivals need to stay hydrated. It has also become normalized for everything sold at these types of events to be more expensive than if you were to buy the same product at the grocery store because of the convenience of getting it right on the festival grounds; this leads to a higher profit margin per product [11]. People who attend music festivals also have been identified as a group who tends to have access to disposable income, and people often have gone into the event knowing that they will spend money [12].
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A Recent Success Story: Liquid Death
One brand that has risen rapidly in popularity since its introduction into the market in 2019 is Liquid Death. Despite its attention-grabbing name that may conjure up images of an intense drink in the minds of consumers, the company is actually in the bottled-water industry. The idea behind the product was to make drinking water appear “cooler” in a sense by putting it in a can with a design influenced by heavy metal, rock, and punk music [13]. Social responsibility is also at the center of the company, as the cans are made out of fully recyclable aluminum, and thus the company is marketing themselves as a way to reduce plastic consumption [14].
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Since they took inspiration for their product design from music genres, they identified music venues and festivals as a prime opportunity to introduce and market their brand towards audiences who would be more likely to be receptive to it. Additionally in a study conducted by Live Nation, live music fans identified issues regarding the environment, including plastic pollution, to be their biggest concern with the live music industry, with 84% of those polled stating that they have made an active effort to reduce their plastic consumption [15]. Knowing that the brand’s core values align with those of a majority of music fans, advertising at music events is a perfect way to address Liquid Death’s target audience.
Their CEO emphasized that they do not want to market, but rather entertain [16]. Thus, creating unique and memorable experiences for music festival attendees is a perfect way to directly share their brand’s mission and identity with possible consumers. At 2023’s Lollapalooza, Liquid Death signed on as a sponsor and set up the “Liquid Death Country Club” on the festival grounds. Grim reaper statues guarded the club’s entrance and a sign above the door read “Sell Your Soul to Join” [17]. Inside the pop-up club, attendees could get airbrush tattoos, have their horoscope read, listen to live music, and enjoy the thematic decor. At night, the club was lit up with neon and eerie lights which gave it a feeling of a haunted house. The pop-up was also complete with a bar where all attendees could receive a complimentary can of Liquid Death water, something that most music festival goers definitely would appreciate [18].
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These pop-up festival experiences from brands are enjoyed by guests as they receive positive, and often free, benefits from it. The commitment to providing the guests with this memorable experience increases the odds that the guest will think and talk positively about the brand, as they will be able to attribute it to a personal experience. It is also more likely to be front of mind when they craft a social media post, especially if the pop-up experience provides a great photo backdrop.
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Liquid Death has also utilized their eco-friendly can to revolutionize the music festival beverage market through their partnership with Live Nation Entertainment, the world’s largest live entertainment company. In 2021, Live Nation announced a partnership to have Liquid Death as their exclusive bottled water brand at over 120 Live Nation owned music venues and music festivals. This is in conjunction with Live Nation’s Green Nation sustainability charter that they launched in 2019 which outlined their goal to phase out single use plastics at their venues and events [19].
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This has furthered Liquid Death’s growth exponentially, as now, concert and festival goers who want bottled water have no choice other than Liquid Death. Through this, many people are trying the brand for the first time and it often sticks in their brains as the memorable name and design becomes a part of their overall concert experience. Many customer testimonies share stories of trying the brand at a music event when they ordered water, and finding themselves enjoying the environmental mission of the company and how it made drinking water more fun. They then went on to become loyal customers, replicating their positive experiences with the drink at their own parties, events, or just day to day life. Liquid Death is just one of the success stories of brands finding new ways to engage with customers in a manner that they will be excited and receptive to.
Questions marketing managers would consider:
- How do you ensure your brand is noticed amongst similar brands who may also be sponsoring a music event?
- What are the indirect and direct costs and return on investment that can be identified for marketing at a music festival?
References:
[1] Why Alcohol Brands Sponsor Music Festivals: What the Marketing and Advertising Research Says. (2020, January 16). Trend Source. https://trustedinsight.trendsource.com/trendsource-trending/why-alcohol-brands-sponsor-music-festivals-what-the-marketing-and-advertising-market-research-says
[2] Why Alcohol Brands Sponsor Music Festivals: What the Marketing and Advertising Research Says. (2020, January 16). Trend Source. https://trustedinsight.trendsource.com/trendsource-trending/why-alcohol-brands-sponsor-music-festivals-what-the-marketing-and-advertising-market-research-says
[3] Why Alcohol Brands Sponsor Music Festivals: What the Marketing and Advertising Research Says. (2020, January 16). Trend Source. https://trustedinsight.trendsource.com/trendsource-trending/why-alcohol-brands-sponsor-music-festivals-what-the-marketing-and-advertising-market-research-says
[4] Why Alcohol Brands Sponsor Music Festivals: What the Marketing and Advertising Research Says. (2020, January 16). Trend Source. https://trustedinsight.trendsource.com/trendsource-trending/why-alcohol-brands-sponsor-music-festivals-what-the-marketing-and-advertising-market-research-says
[5] Duffy, Luna. (2023, February 20). Unmissable Brand Events & Experiences For Music Festival Goers. Hollywood Branded. https://blog.hollywoodbranded.com/unmissable-brand-events-experiences-for-music-festival-goers#:~:text=Some%20of%20the%20top%20brands,of%20beverages%20among%20festival%2Dgoers.
[6] Duffy, Luna. (2023, February 20). Unmissable Brand Events & Experiences For Music Festival Goers. Hollywood Branded. https://blog.hollywoodbranded.com/unmissable-brand-events-experiences-for-music-festival-goers#:~:text=Some%20of%20the%20top%20brands,of%20beverages%20among%20festival%2Dgoers.
[7] Music Festival Marketing – How Brands Can Engage Younger Audiences. (2019, July 23). E-Poll Market Research. https://blog.epollresearch.com/2019/07/23/how-do-you-reach-young-consumers-music-festivals/
[8] Music Festival Marketing – How Brands Can Engage Younger Audiences. (2019, July 23). E-Poll Market Research. https://blog.epollresearch.com/2019/07/23/how-do-you-reach-young-consumers-music-festivals/
[9] Duffy, Luna. (2023, February 20). Unmissable Brand Events & Experiences For Music Festival Goers. Hollywood Branded. https://blog.hollywoodbranded.com/unmissable-brand-events-experiences-for-music-festival-goers#:~:text=Some%20of%20the%20top%20brands,of%20beverages%20among%20festival%2Dgoers.
[10] Duffy, Luna. (2023, February 20). Unmissable Brand Events & Experiences For Music Festival Goers. Hollywood Branded. https://blog.hollywoodbranded.com/unmissable-brand-events-experiences-for-music-festival-goers#:~:text=Some%20of%20the%20top%20brands,of%20beverages%20among%20festival%2Dgoers.
[11] Why Alcohol Brands Sponsor Music Festivals: What the Marketing and Advertising Research Says. (2020, January 16). Trend Source. https://trustedinsight.trendsource.com/trendsource-trending/why-alcohol-brands-sponsor-music-festivals-what-the-marketing-and-advertising-market-research-says
[12] Why Alcohol Brands Sponsor Music Festivals: What the Marketing and Advertising Research Says. (2020, January 16). Trend Source. https://trustedinsight.trendsource.com/trendsource-trending/why-alcohol-brands-sponsor-music-festivals-what-the-marketing-and-advertising-market-research-says
[13] McLaughlin, Justin. (2023, October 13). Liquid Death Marketing Strategy Case Study: Slaying the Beverage Industry with Killer Branding and Marketing. Brand Credential.
[14] McLaughlin, Justin. (2023, October 13). Liquid Death Marketing Strategy Case Study: Slaying the Beverage Industry with Killer Branding and Marketing. Brand Credential.
[15[ Live Nation Entertainment. (2021, May 13). Live Nation Teams Up with Liquid Death Mountain Water to Bring Fans More Sustainable Water Options at Concerts and Festivals. Live Nation Entertainment. https://www.livenationentertainment.com/2021/05/live-nation-teams-up-with-liquid-death-mountain-water-to-bring-fans-more-sustainable-water-options-at-concerts-and-festivals/
[16] Team Pepper. (2023, July 17). Unhinged or genius? Deconstructing Liquid Death’s Marketing Strategy. Peppercontent.
[17] Berg, Jenny. (2023, August 10). Lollapalooza 2023: 13 Chart-Topping Activations From Dunkin’, Liquid Death, Coke, and More. BizBash.https://www.bizbash.com/production-strategy/experiential-marketing-activations-sponsorships/media-gallery/22869601/top-brand-activations-from-lollapalooza-2023
[18] Berg, Jenny. (2023, August 10). Lollapalooza 2023: 13 Chart-Topping Activations From Dunkin’, Liquid Death, Coke, and More. BizBash.https://www.bizbash.com/production-strategy/experiential-marketing-activations-sponsorships/media-gallery/22869601/top-brand-activations-from-lollapalooza-2023
[19] Live Nation Entertainment. (2021, May 13). Live Nation Teams Up with Liquid Death Mountain Water to Bring Fans More Sustainable Water Options at Concerts and Festivals. Live Nation Entertainment. https://www.livenationentertainment.com/2021/05/live-nation-teams-up-with-liquid-death-mountain-water-to-bring-fans-more-sustainable-water-options-at-concerts-and-festivals/
Images:
Image 1: https://blog.prototypr.io/dark-pattern-how-youtube-makes-sure-you-dont-always-skip-ad-e6ab2117e3b5
Image 2: https://edm.com/features/best-edm-festivals-florida
Image 3: https://offthewallmedia.com/sasquatch-music-festival/
Image 4: https://blog.epollresearch.com/2019/07/23/how-do-you-reach-young-consumers-music-festivals/
Image 5: https://blog.hollywoodbranded.com/unmissable-brand-events-experiences-for-music-festival-goers
Marketing Management 