How do you think most of the money in the music industry is made today?
With the rise of technology, social media and live stream apps, artists are finding it harder to monetise their music based on it being simply great quality.
Mind-blowing entertainers like Beyonce and Steve Aoki can afford to charge exorbitant ticket rates for live shows and make huge profits. But when artists aren’t performing live and working away in studio, how are they able to maintain their swanky lifestyles?
At the 2017 South West by West (SXSW) conference, a conglomerate of film, media, and culture experts will come together to discuss how artists and brands have partnered out of necessity. The discussion, which should raise some eyebrows when delving into the extent of band and brand convergence, will unpack how marketers and musicians collaborate in a time when brands are struggling to engage their target market, and artists are struggling to sell their music.
In the latest Bands and Brands: Value Exchange Report, Giles Fitzgerald, Trends and Insights Editor at FRUKT wrote that the direct financial benefits brand partnerships have for artists across the board is quite apparent: “A successfully secured high-level partnership can deliver a lucrative cash injection equivalent to innumerable downloads, streams or ticket sales.”
Fitzgerald goes on to say that it’s not all about dollars – artists are not only collaborating for financial gain, they’re working together on trade exchanges. “Bruno Mars, for example, humbly accepted what has become a standard NFL remuneration of $0 for his branded half-time performance during the 2014 Super Bowl. Naturally this is a top end example, but it shows the ‘value exchange’ in action at its highest level, with the artist netting a staggering $96 million worth of advertising in return for a 12 minute live gig.”
Bruno Mars is certainly not the only artist open to bartering with brands. Katy Perry’s manager, Steve Jansen, echoes Fitzgerald in the same report, saying, “Artists today understand that the real value of a brand partnership may not be immediately obvious when a potential deal is on offer. Focusing the negotiations purely on securing hard cash may not be the smartest option available. A true artist/brand partnership provides long-term benefits that go beyond financial remuneration. The true value is in achieving career goals that are enhanced by the partnership.”
And in the same way that brands are lending their audiences to artists, music moguls like Selena Gomez, who was reportedly Social Media’s Top A-list earner, are raking in millions by simply mentioning brands on their social networks. Mail Online reports that with 90.5 million Instagram followers, 61 million Facebook followers, and 44 million Twitter followers, Gomez could cash in $550 000 for sharing a single sponsored post.
Brand and band collaboration is evidently a massive trend contributing to the success of artists and business owners. The only factor that stands to make or break a potentially lucrative partnership is your marketing strategy. With global industry experience and constant engagement on the latest industry trends, HoneyKome is the ideal partner to help develop a rock-solid marketing strategy. Get in touch and view our international client base here.
Desere Orrill is the MD at HoneyKome – a leading digital creative agency, specialising in holistic publishing, marketing and strategy. Their international client base is serviced from their offices in Cape Town, Johannesburg and London.