Summertime is all about pool parties, barbecues and music festivals.
About 32 million people attend at least one music festival in the United States each year, according to Nielsen’s new Audience Insights Report on Music Festival.
Nearly half (46%) of concertgoers are ages 18 to 34, creating a great opportunity for marketers seeking to reach the coveted Millennial demographic.
The audience going to festivals such as Coachella, Lollapalooza, iHeartRadio Music Festival, Burning Man and others are a devoted group.
On average, festival fans travel 903 miles and one-third attend more than one festival a year. They also spend more money on music than the general population – about $207 annually on live events, digital music and streaming.
Over the years, music festivals have become big business on par with sporting events. Event producers, advertising sponsors and booking agents have monetized every aspect of festivals, from the tickets to the branded festival grounds.
Last year, Burning Man in Nevada, an event prided in its free-loving, anti-capitalist spirit, generated about $25 million just in ticket sales.
The popularity of music festivals has gained the attention of advertisers looking to have their brand associated with events that create good memories and experiences.
An estimated $1.34 billion was spent sponsoring music festivals in 2014, according to a report from IEG, with Coca-Cola, Anheuser-Busch and PepsiCo. among the top companies.
While the music industry has struggled in the past decade, music festivals have emerged as a shining star. Events have popped up for every musical taste and region and become a vital source of revenue and publicity for artists.
Local communities are benefiting from them, as well. Often held in small, lesser-known towns, festivals can bring tens of thousands of concert goers in one weekend, a windfall for local businesses and hotels that often hire more workers to accommodate the crowds.
The Coachella and Stagecoach music festival in the remote desert community of Indio, Calif. created 3,000 temporary jobs and generated $254 million in economic development in 2012, according to a local TV station KMIR.
While music festivals have become a favorite pastime of many young Americans, attending one isn’t cheap.
Compared with the legendary Woodstock festival in 1969, today’s average ticket is 60 times more expensive, making festivals less about music and rebellion and more about money and status.
