MUSIC INDUSTRY BLOG

IEG, a global leader in sponsorship consulting services, valuation and measurement, published promising figures for US music sponsorship spending for 2009, in spite of the current economic climate.  The report highlights the consistent growth in the ‘big ticket’ live music sector, while noting that local music events and properties are displaying a decline in sponsorship support.

Recent deals include J. C. Penney Co.’s two-year integrated partnership with Rascal Flatts on behalf of its American Living brand; The Clorox Co. co-presenting the US stops of Keith Urban’s tour on behalf of its KC Masterpiece sauces and Kingsford charcoal; and Research In Motion Ltd. aligning with U2 on behalf of BlackBerry.

Tighter budgets for working class musicians is expected as a reflection of the music industry’s flux, but cashflows in the direction of A-listers may [eventually] trickle down toward the indies as competition for aligning brand with band stiffens.

Related Posts: Krafts Foods and Estelle Campaign, First Act, Music Branding

In 2006, Volks Wagon jumped on the, uh, wagon as yet another global brand tapping into the appetites of millions of people who simply want to rock.  The German car manufacturer teamed up with First Act, a musical instrument manufacturer that made millions selling cheap guitars for kids at Wal-Marts, to offer one of their guitar models, the “GarageMaster”, with a VW purchase in the US.  Apparently, the axe plugs into the VW dashboard… so you can practice your scales while cruising along the PCH.  The high-octane partnership fueled a series of ads featuring guitar heroes, Slash, John Mayer, and Christopher Guest (Spinal Tap?).  What wonderful branding on both ends…  Visiting the First Act website, you’ll notice that the “lifestyle music brand” is now working with Converse and branded their latest guitar line accordingly.  Also, a deal was announced in October 2008 for a custom Adam Levine (Maroon 5) signature series, the “222”, which was first introduced during a performance on Saturday Night Live.  The company has positioned itself like no other instrument manufacturer and will undoubtedly continue to impress through creative partnerships with enduring brands and celebrities.

The partnership between Groove Armada and Bacardi was a hot topic at Midem this year and yet another example of a major music act dumping its label (Sony, in this case) and looking for music-friendly partnerships outside of the traditional music industry ring.  The agreement is intended to help Bacardi become a stronger music-centric brand in the minds of new prospects and tap into Armada (and alike) fans.  Armada will be enjoying some well-funded creative and business license, including greater control over several facets of their business, namely a new digital distribution model slated for launch this year.

Matt Morissroe, A&R Director of Bacardi’s music division, B-Live Records, spoke in length about the deal’s schedule and the two parties’ plans to “share” new Armada music and release it independently, share being the operative word, not just in terms of this deal but also as the thematic underscore to Midem this year, the largest and most influential music industry summit.

From hotel lounges to corporate advertising campaigns, music is an integral part of creating a unique identity.  Businesses commission their own music to strengthen their brand in a number of capacities, including audio logos and signatures, gongs, jingles, theme tunes, and orchestral underscores.

The Cologne Bonn airport in Germany signifies the beginning of music in airport branding.  Several frustrating hours of delay at this airport in the mid-1970’s prompted Brian Eno to produce a record of calming music intended for public environments called “Ambient 1: Music for Airports”.  Its success paved the way for a new musical niche of ambient and ‘chill-out’ music.  In 2003, Cologne-based group, “plus49”, partnered with a design firm to create music specifically for the Cologne-Bonn Airport, a collaborative effort inspired by Eno.  The band wrote on-hold music for the telephones, elevator tunes, an airport speaker gong, and a short musical snippet called “Happy Sky” which aired prior to every overhead announcement at the terminals. Their song, “Symbols & Gateways”, dedicated to the launch of the Germanwings Airbus is, today, the airport’s theme song and featured on an album of airport-themed music.

Airports are, quite literally, a city’s gateway.  Although most of the passengers passing through them are unaware, airports invest considerably in a unique musical identity which, in turn, becomes synonymous with the destination itself.  Leaving a strong musical impression has become tantamount to providing a powerful customer service or shopping experience which helps to promote the city’s culture and attitude.  Los Angeles International Airport (LAX), for instance, traces its theme tune back to a 1970’s chart topper called “L.A. International Airport”, written by Leanne Scott and performed by Susan Raye.  For its 75th anniversary, LAX commissioned a change in the chorus to make the song more upbeat and ‘welcoming’.  During 2003, Southwest Airlines gave each of its arriving LAX passengers a CD copy of the song.

Arguably, the most ambitious airport music program is attributed to Austin- Bergstrom International Airport in Texas.  The airport hired a music coordinator to oversee its four live music venues and ensure that its passengers enjoy only local music, an approach now shared by many airports around the world to promote their local cultural assets.

Due to the ubiquity of music in today’s society – music is simply everywhere we go – brand managers and music coordinators have to work much harder and invest more money to ensure that their client, be it Heathrow Airport or Coca Cola, is tapping into an audience that will buy [and fly] with greater confidence if appropriate and assuring music accompanies the experience, a matter of increasing emphasis during a down economy.