Over the last 12 months the wind has changed and managers, like record labels, are looking to develop new revenue streams around their artists to replace the declining revenues from CD sales.

Some of new mantras that you hear being bandied about in the music industry include 360 degree deals, a new DIY ethic, Venture Capital funding, and brand partnerships.

For the last 20 years much of the focus for brands has been on sports sponsorship. And big money has been made on both sides of the table. Global sports brands such as David Beckham or Tiger Woods have attracted vast sums of revenues from brands eager to attach themselves to their success! But sport is loosing its allure. It’s a very expensive game to play in, the audience for sport is getting older, and the majority of women just aren’t interested.

Music, however, offers a new and exciting challenge for brands. Unlike sport music appeals to everyone from 6 to 60 year olds, and is enjoyed by both sexes.

So why aren’t more brands supporting music? Brands have two big problems with dealing with the music business…

The record industry has always worked to tight release schedules. Yet one thing brands do fastidiously is plan ahead. A major brand’s sponsorship budget can be set in stone 12 months before the money gets spent. So it’s no surprise that brands find it hard to work with labels who may only have a slight inkling of what their release schedules will look like in a years time. In comparison the film industry will ensure that the majority of brand deals will have been done well in advance, often before the film has even begun shooting, giving all the brand partners plenty of time to gear up for its release.

The second big issue for brands is the knowledge that labels and managers can provide about artists and their fans, or more importantly the lack of it. The sort of research and insights that are commonplace in the brand world, are sorely lacking in the music world. And without that information brands and their agencies will continue to be tentative when it comes to supporting an individual act. Which goes some way to explaining why festivals are so popular with brands, as they allow them to spread their investment across a wide range of artists and music fans, minimising the risk of backing the wrong act.

citizensound says:

To stand any chance of success you need to start approaching brands well before the new record has even been recorded. And when it comes to providing information and insights about your artists and their fans you need to ensure that what you provide matches up to the brand’s needs and expectations.