Music: The Ultimate Passion Point for Brand Development

Disclaimer: The views expressed in this article are solely my own and do not represent the opinions of any organizations I am affiliated with.

Introduction:

Throughout my professional journey in the realm of sponsorship marketing, I've had the unique vantage point of observing and understanding the dynamics of brand partnerships. For those unfamiliar with the term, 'sponsorship' refers to a financial or in-kind commitment by a brand (the sponsor) to support an entity—be it a sports team, entertainment event, or non-profit organization. In return, the brand benefits from the marketing potential linked to that entity (source: marketing-dictionary.com ).

My initiation into this world began with the Houston Dynamo, where I delved into the intricacies of how properties collaborate with their brand allies. As my career progressed, I had the honor of overseeing significant sponsorship ventures across various domains, or as I like to call them, passion points. These included Football (NFL), Basketball (NBA), College Athletics (NCAA), Soccer (MLS), Cycling (Amgen Tour), Culinary (Various), and most recently leading a music brand partnership strategy in Austin, TX.

Understanding Passion Points Through the Planetary Analogy:

At the heart of sponsorship marketing lies the first principle concept of 'passion points.' Brands strategically align with these passion points to deeply resonate with their target audience. By aligning with what consumers are passionate about, brands are trying to effectively communicate, "We stand by what you love" in order to drive business development.

Imagine each passion point as a planet in the vast universe of marketing. The size of the planet represents the market size, while its layers - the crust, mantle, and core - depict the depth of fan engagement. I use this analogy as a framework for evaluating sponsorship opportunities:

Criteria for an Effective Passion Point Opportunity:

1. Market Size (The Size of the Planet): How many fans can your brand reach? How many are actually relevant to your business?
2. Avidity and Affinity Measures (The Layers of the Planet): How deeply do fans connect with the passion point? How likely are they to respond to your marketing efforts?
3. Cost-effectiveness: Can impactful campaigns be executed without breaking the bank? What's the opportunity cost?

Market Size - The Dominance of Music:

Which Passion Point do you think has the most reach? When I pose this question among peers, football often emerges as the predominant answer. It's a fair assumption. Based upon Vision Insight data, the NFL sees 188.4 million fans, MLB has 171.1 million fans, followed by the NBA at 155.9 million. These are all sponsorship properties with global reach considered.

Inevitably, when I reveal music as the answer, the classic "Aha!" moment occurs. The truth is that if you ask someone if they are fans of NFL, the answer "no" is not uncommon. However, if you ask someone if they like music, then the answer is usually the genre of music they listen to or their favorite artist. Although it is hard to directly compare the total addressable market of the passion point of music, I used the music platform subscription market to compare the market sizes since it is a viable property for brands to invest to reach music lovers. According to a recent study by MIDia Research, there are just over 523 million people subscribed to a music platform like Spotify or Apple Music. Given Jupiter's status as the largest planet in our solar system, music can be seen as the 'Jupiter' of all sponsorship passion points.

With 92% of fans sharing their live music experiences on social media, the influence of these events extends far beyond the venue, making them a potent tool for brands to tap into. This universal appeal of music a unique opportunity for brands to engage with a broader and highly engaged audience.

Music and culinary passion points are unique in this way. They are even ubiquitous among other fan experiences. Music and food experiences exist at a football game, but it would be unnatural to host a football game at a Taylor Swift concert.

Avidity and Affinity - The Depth of Connection:

While affinity signifies a liking for something (the mantle of our planet), avidity takes it a notch higher, symbolizing a profound love (the core of our planet). This deep-rooted connection is crucial because a fan's avidity often translates to a higher likelihood of them engaging with your brand offering. Casual fans, on the other hand, represent the crust of our "passion point planet."

This engagement even plays into the ways fans interact. If you place a passionate Steelers fan beside a diehard Packers fan in a bar, the interaction between these two distinct football fan bases becomes evident. Contrast that with the interaction between a fan of rap and rock and roll. There can be an engaging conversation that fosters community rather than competition. I've observed greater B2B success from a dinner experience with music than from a suite experience at a football game, precisely for this reason.

I have seen both sports and music industries increasingly focus on the avid fans and fan engagement strategies. The emphasis is on hyper-personalizing the fan experience and strengthening the bond with the artist/team. Given the dynamics of the music passion point, brands may find it easier to create a deeper connection and higher engagement levels compared to fans of football, soccer, basketball, and other sports.

Cost-Effectiveness - Maximizing ROI:

Where does the sponsorship money go in North America? 2.7 billion goes to the NFL, 1.5 Billion to the NBA, 1.1 Billion to the MLB. Despite its vast market size and potential for brand leverage, music sponsorship only reached 1.5 billion in 2018. The 2020 pandemic likely contributed to a decrease in overall spending.

Despite such heavy expenditures, the actual business impact of sponsorships is often poorly measured. This is another positive aspect of the music passion point. Music sponsorship platforms tend to offer more transparent and accountable assets to engage fans. The music passion point offers brands the opportunity to leverage digital platforms and experiences, which are supremely trackable. By tying sponsorships to special offers with tracking links and promo codes, brands can measure the tangible sales impact of their sponsorship efforts. This level of measurable accountability is what sets Music apart as a passion point, ensuring brands get the best return on their investment.

Challenges in Music Sponsorship Strategy:

While the potential of music as a sponsorship passion point is undeniable, it's essential to acknowledge the challenges that come with implementing a music brand sponsorship strategy.

Internal Selling: One of the primary challenges is the scarcity of mature properties in the music industry that can manage seven-figure sponsorship deals. In contrast, partnering with an established entity like an NFL franchise is a more straightforward proposition due to its maturity and proven track record. This makes it difficult for internal stakeholders to buy into a major sponsorship deal.

Partnership Ecosystem Identification: Where does one begin? Developing a strong sponsorship portfolio can be challenging in music. Musicians, venues, and festivals face challenges such as rising costs, increasing regulations, and difficulties in other revenue generating activities which make sponsorship revenue a critical driver. These challenges create a challenging valuation environment, making it tough for smaller businesses to get involved due to compounding costs. Furthermore, while platforms like TikTok offer immense potential for music discovery and artist promotion, they also present a new set of challenges for brands looking to navigate the digital landscape effectively.

Lack of Talent: It takes a forward-thinking team to embark on the journey of a music brand sponsorship strategy. This added creative challenge has not been met by an adequate amount of sponsorship professionals to drive deals forward in a strategic and cost-effective manner.

Conclusion:

The world of sponsorship marketing is vast and varied, but few passion points hold the universal appeal that music does. I challenge any brand to consider creating a partnership ecosystem centered around a segment of music fans. Its unparalleled reach, combined with the deep emotional connection it fosters and its cost-effective marketing potential, positions music as an under-leveraged goldmine for brands. Our planetary analogy illustrates that music not only reaches a vast audience but also nurtures a profound connection with its fans. This makes it a more compelling passion point compared to football, soccer, basketball, and other sports.