Maximising Sponsorship Revenue in Live Entertainment

Earlier this month, Repucom’s Sandra Greer was at the Level Summit in Glasgow to talk about the relationships between attendees, sponsors and live entertainment.

Live entertainment is an incredibly important part of modern day culture with more events and opportunities for the public to engage through music, theatres and museums than ever before. This importance is also reflected in the commercial opportunities available in this sector, for example, the UK’s Live Music market is worth approximately £1.6 billion annually. With major concerts and festivals attracting more than 7.7 million customers, attendees spend an additional £1.4 billion as part of the whole music concert/festival going experience.

Because of this, venue and event organisers are increasingly looking to generate more revenue from their assets, whether that is in venue through those attending or through commercial rights such as sponsorship and advertising. In order to fully maximise both these streams, it is essential for venues and events to understand the key drivers behind each factor.

So, the first question is how much do venues know about attendees of their events?

Customer Relationship Management (CRM) data, based on transactional information, brings together insights on ticketing, membership and merchandising transactions and proves very successful in driving better communication with potential audiences. This data allows venues to understand more about their customers purchasing patterns, geographic locations, demographics and preferences. From this data, venues can profile individuals and groups to target their marketing messaging more effectively ensuring the right people get the most relevant message at the right time.

However, how do you understand the interests and behaviours of those who actually attend the events – rather than just those who purchase tickets?

Research and segmentation into event attendees is key to helping to find out about attendees purchasing behaviour and attitudes around their lifestyle. This view allows venues to broaden your understanding your potential customer base and could potentially help drive revenue in new areas such as content, catering and most significantly the opportunity to engage brands in sponsorship.

Repucom has undertaken psychographic profiling of event attendees and the results show that there are distinct behavioural and attitudinal differences between the attendees of different venues.

Our research shows there are particular event clusters that demonstrate similar attributes to distinctive behaviours:

Art Galleries, Film, Museums & Exhibitions: The Brand Trialists
This group are willing to try new products and brands but keep an open mind when using them. They usually make future purchasing decisions based on their experience, with purchase decisions linked to price.

Fashion Events: The Brand Pioneers
Brand Pioneers are amongst the first people to try brands and products. The reasons around them choosing this are based on novelty, intrigue and a feeling of being different to others.

Live Music, Theatre/Opera/Ballet: The Comfort Seekers
This segment includes those who choose with proven products and often take recommendations from friends and family before making purchasing decisions. They also frequently use review websites to before purchase to inform their choice.

Celebrity Events: The Must Havers
The Must Havers – as the name suggests – simply must have the latest technology, brands and gadgets. They see these brands and products as defining there character and are essential for their lifestyle – regardless of price or recommendation.

These groups show that understanding the attitudes and behaviours of your attendees can really assist venues in making sure you give them atmosphere and content at an event. It also is important when you start when you start to target sponsors whose brand objectives often fit with these specific groups.