State of Brands & Music

I was asked by New York’s Mayor’s Office of Media and Entertainment to organize a talk on the intersection of Madison Avenue and Music. I put together a powerful panel featuring Jennifer Frommer, Head of Brand Partnerships at Columbia Records (Rosalía, Harry Styles, Tyler The Creator, et al); Mike Ladman, head of music for Droga5; and Travis Montaque, the fearless leader of Group Black, an organization on a mission for diversity, inclusion, and black media ownership. Since starting Group Black, Travis has been racking up awards and was named Adweek’s 2022 Executive Of The Year.??

The talk will go a little something like this…

The relationship between bands and brands has evolved over the years, and the types of partnerships we’re seeing now are relatively new. One of the first brand partnerships was The Rolling Stones x Rice Krispies in 1964. It was not well received or considered credible at all. But now, when artists like Post Malone partner with Crocs, Postmates, Bud Light, or Doritos it’s seen as a huge boost for both artist and brand. These collaborations often result in the increase of not only market share but stock prices as well.

One of the main reasons for this evolution was the entrepreneurial spirit of hip-hop, the culture that embraced brands and pioneered these partnerships. We can trace this back to the infatuation with Adidas. Once it became clear that hip-hop could sell sneakers and brands could become revenue streams for rappers, it was on. Hip-hop’s bravado made brand partnerships cool, and brand money made hip-hop rich. That breakthrough, coupled with the digital revolution decimating the record business and cutting into artists’ income, made Madison Avenue and the larger brand ecosystem indispensable for pop stars.

Now, artists who in the past would have passed on brand partnerships – such as Springsteen and Dylan – are showing up in Super Bowl commercials. And these ads are some of the most “relevant” things they’ve done in the past few decades. As the market has evolved, so has the music industry.?

But it’s not a one-way street. Brands recognize how impactful music is. Why? Because music is the universal language and the lowest barrier to entry in shifting culture. Music is the great connector and, thanks to streaming, music is more present than ever in our daily lives. More people are listening to music, more artists are making music, and more fans are more rabid consumers. In many ways, brand revenue has been the unsung hero of the music P&L.

Artists are going from traditional endorsements to being creative directors. These days, you’ll find artists in the inner workings of a brand's DNA, helping to define the vision and mood of some of the biggest companies in the world. It’s exciting to see.?

The decade’s biggest and most lucrative stories in music have been brand stories: Yeezy, Fenty, and Beats. These are brands that were started by artists (Kanye, Rihanna, Dr. Dre), are owned by artists, and have been developed by artists, and they have all generated much more money than those same superstars’ record releases.

With the power of social media, a creator can manufacture a brand in months. The influencer market set the stage for this, and artists are the ultimate influencers. The future will feature more artists owning their IP, owning their masters, and owning brands. It’s no longer about endorsements, it's about real partnerships and using music’s reach to launch a brand. That’s where things are going.??

Jesse Kirshbaum

Co-Founder of Nue