Selling Out: How Should Brands Rethink Reaching Festival Fans?

Since its start in 1999, Coachella stands as the world's highest-grossing festival, quickly selling out of tickets and breaking earnings records each year. 

An extensive study by StubHub recently revealed that ticket sales for this year’s festival increased by 125% from 2016, attracting a larger international audience representing seventeen countries. Demand for first week tickets rose by 60% alone, eventually selling out in just six hours.

After announcing a 40-acre expansion going into 2017, the Coachella crowd size grew from 99,000 in 2016, to surpassing 125,000 attendees this year. Generating over $94 million in revenue last year, the total profit is projected to nearly double, factoring in the added space and ticket offering. Nearly half of Coachella attendees fall within the 18-34 age range, accounting for more than $200 billion in annual spending, with a global spending power that isexpected to surpass $10 trillion in their lifetime.

Attracting a global audience of multicultural music fans with massive purchasing power, the festival further serves as a playground for brands to unveil a variety of elaborate activations. From sponsored parties, festival shuttles and living quarters, to branded houses and pop ups -- corporations have explored every angle to integrate their brand into the mix. Despite the evident opportunity to engage consumers and amplify awareness, brands have struggled to implement smart strategies that authentically attract the attention and interests of their target audience.

American Express became Coachella's first official credit card in 2015, landing a multi-year partnership that allows the company to provide exclusive experiences to cardmembers and fans, such as providing weekend passes, access to events, and various surprises through the festival app. For year three, they rolled out a more comprehensive, lifestyle and influencer-driven approach to activating the brand.

In addition to introducing an on-site experience, they occupied the Parker Hotel in Palm Springs, hosting their inaugural Platinum House. One focal point of their strategy was introducing the Platinum Collective -- a select group of influencers, entrepreneurs and thought-leaders assembled to shape experiences and connect guests through a specific set of shared values and interests. AMEX introduced this initiative as a step forward in the influencer space, steering away from major signage and overt product messaging.

Earning an estimated $6.50 for every $1 invested in influencer marketing, 86% of marketers used an influencer strategy to reach millennials in 2016, with 71% of consumers making purchasing decisions based social media references. As social media continues inspiring and spreading the latest viral trends, the logic is simple: content drives conversations and conversations fuel culture. 

Digital ad spending is expected to hit $72 billion in 2017, accounting for over 37% of total spending, with 11.7% of U.S. marketing budgets dedicated to social media. After years of pouring big budgets into ineffective pre-roll, rich media banners and homepage takeovers, brands have transitioned to a smarter spending strategy -- connecting to culture through empowering the influential people who shape it.

Walter Frye serves as the VP of Global Experiential Marketing & Entertainment Partnerships at AMEX, overseeing the company's expansive portfolio of artist initiatives and brand activations. Janey Whiteside serves as the SVP and General Manager of Global Charge Products, spearheading the vision behind both the Platinum House and Platinum Collective. 

I spoke with Walter and Janey about their approach to Coachella 2017, launching the Platinum Collective, and their advice for big brands looking to activate at festivals.

At festivals like Coachella, more brands are stepping away from signage and turning to influencers for their activations — Do you see influencer marketing as the answer and how have you approached picking the right influencers? 

Walter Frye: You can’t deny the power and reach of influencers today. I’ve personally purchased so many things that I saw on my social media feeds. We know that today’s new class of influencers has, in some cases, more of an influence and reach than music artists we work with. Influencers have a very unique relationship with their audience, who are so engaged with every post, and everything they’re saying. We have an influencer team that has an expertise in curating the right group for the particular events we’re doing, and we focus very much on the audience of each influencer to ensure they align with the audience we reflect as a brand. We also look closely at their content, making sure it aligns with the content of our brand. It’s about having trust in the influencers to create the content they want, because they have a unique vision, eye, and approach to storytelling. Bringing them into our spaces is really great, because we get to see our events through their eyes, and understand the experience through their perspective. It allows us to connect with people in an authentic way that we couldn’t before. It’s been fun, it’s been an adventure, and I see us doing more in the influencer space. We’ve certainly increased our influencer platform dramatically over the last 3-5 years, and I only see that growing as the reach of our collective continues to grow.

AMEX is very involved with artist partners, collaborating from concept to execution — Do you take that same approach working with influencers and how do you avoid compromising their authenticity? 

Walter Frye: It’s a great parallel, because American Express takes great pride in digging in deep with artists, letting them know what our objectives are within each partnership, so each partnership can be mutually beneficial. We have to put a lot of trust in artists. They are creative thinkers with their own point of view, and they've earned their influence because of that point of view. In addition to collaborating and getting deeply involved with the artists, we also see ourselves as a platform. All of our content reflects the partnership, and the deep conversation with have with the artists. When they go on stage, and it’s live streaming, they’re going to say what they want to say. When you think of the artists we’ve worked with over the years, they’re artists who are equally as focused on being authentic, consistent, and committed to creating experiences that add value to their audience. Those are brand values we align with, and we take this same approach with influencers. It’s the same level of trust, and sometimes more trust than we give artists.

What would be your advice for other brands and marketers looking to strike that same balance and implement an effective influencer strategy?

Walter Frye: In music, and in entertainment, American Express is focused on building longterm relationships with artists. When you look at Taylor Swift or Beyonce, they come to us first, because they know we’re focused on innovation, co-creation of value in the partnership, and it’s not starting from scratch. It’s always a continuation of the conversation, instead of an education of what our brand is about. We take the same approach with influencers. We try to work with influencers over an extended period of time, and many of the influencers who joined us at Coachella this year were here with us last year, so they understand our brand and point of view. Similarly, it’s a more cohesive relationship when it’s a continuation. It’s also about pushing yourself, being creative and doing more. That’s how you build deeper relationships with influencers.

When you were developing the Platinum Collective and Platinum House, what was the unique mission or experience you were aiming to create?

Janey Whiteside: We really wanted to create the right experiences for our cardmembers across the board. That’s why we executed three different activations at the festival this year. In terms of the Platinum House, we know where our cardmembers are, we know they’re coming to the festival, and a large proportion of our cardmembers are Platinum Card members. So, we wanted to approach the experience in an authentic and elevated way. We wanted to make it fun, interesting, and in a natural environment where people can enjoy real experiences with each other during the day. During Coachella, it’s hot, there’s a bunch of events. That's why we created something for people to come in, meet friends, connect with new ones, hang out, and enjoy different things to elevate the experience.

How important is it for a brand to step away from hard selling or heavy promotions and focus on curating experiences rooted in giving back to fans?

Janey Whiteside: It’s absolutely fundamental. For example, there are cards out there that reward you for spending, by giving cash back, and that’s it — which is fine. But, our model is different. We charge a fee to become a Platinum Card member, and we believe that membership brings you into a club, and that club gives you access to people, moments, and experiences that align with our brand. We are about providing value back to our members in tangible ways, or in more intangible ways. I think, as we continue pushing forward with this approach, you will see more brands start to adopt this approach. I like to say we’re leading the way in rethinking how other companies create experiences at big events like Coachella. It’s incredibly important for us, and a key to how we move forward. That’s why we’re a brand people trust, a brand artists and influencers appreciate, and a company that continues leading in the space.

The Platinum Collective is a group of entrepreneurs and influencers who represent different lifestyles — What are the advantages of having this collective and in what unique ways does it enhance the experience? 

Janey Whiteside: We focus on creating experiences that both represent and have something for everybody. We invited author and SoulCycle instructor Stacey Griffith to teach SoulCycle classes in the morning for people on a health kick, and she’s part of our Platinum Collective. If you want to enjoy a performance later in the day, we’ve got Bebe Rexha. For people are want to enjoy the atmosphere, move through an air-conditioned space, and dance a little bit, we brought Hannah Bronfman to DJ, who is a member of the Platinum Collective as well. So, we stepped into it exploring what can we do to capture all generations, in a way that offers authentic experiences and allows these lifestyle experts to be in their element.

Follow me on Twitter to share your comments and continue the conversation @Allthingsmitch 

This story was originally published on Forbes.com