Brands set to splash big bucks at Diljit Dosanjh and Coldplay concerts

New Delhi: “When you try your best, but you don't succeed when you get what you want, but not what you need,” these Coldplay lyrics had never been more true as a lot of Coldplay fans had to let go of their plans of watching the boy band perform live after ticket prices for the concert skyrocketed to Rs 3.5 lakh. 

This struggle also resonates with fans of Diljit Dosanjh, Bryan Adams and others who have concerts scheduled in India.

At the core of every fan’s misery lie the high ticket prices and long queues, with lakhs of people lined up for a single ticket. As bad as the news gets for fans, folks organising these events are blushing, as brands pay a premium to be a part of upcoming marquee concerts. 

Punnet Kumar Kanojia, Director of Sakshar Media, highlighted, “Premium concerts like Coldplay’s can demand 10 to 30 times higher sponsorship fees as concerts of the magnitude of Coldplay are often covered by leading media outlets, including international press, which significantly amplifies the brand's reach.”

Sponsorship deals for events like Coldplay offer exclusive branding opportunities, reflected in the average sponsorship ticket size. These deals highlight the event’s scale and visibility, providing brands with extensive on-ground and digital exposure.

Providing an insight into the average sponsorship ticket size for the Coldplay concert, Kanojia said, “For title sponsorship, the average cost is around Rs 20–30 crore, offering exclusive branding rights across multiple touchpoints. Co-sponsorship deals, ranging from Rs 10 to 20 crore, allow brands to share significant branding space with other sponsors, gaining visibility through on-ground and online channels. Associate sponsorship deals, more affordable at Rs 5–10 crore, provide moderate branding opportunities.

These deals offer exposure through various touchpoints, including on-stage banners, branded wristbands, tickets, and digital promotions. Sponsors connect with the audience during the event and continue to engage through pre- and post-event promotions across digital and experiential channels.”

With increasing disposable income and people willing to spend on experiences, the concert space has grown rapidly in India over the past few years, and so have the sponsorship deals. 

Commenting on the trajectory of sponsorship deals in India, Janvi Mankani, Founder of Mint & Milk PR, said, “Sponsorship deals for concerts have rapidly grown over the past five to seven years, with brands investing more in experiential marketing to drive consumer engagement. The average ticket size has increased by 25–35% annually, fueled by the demand for immersive brand experiences at marquee events.”

She also said that the brands pay a premium of 40 to 70% in sponsorships to be a part of marquee concerts like Coldplay. 

Is spending on concerts ‘worth it’ for brands?

While brands are lining up in front of the doors of event companies, standing with their wallets open, someone has to ask the question as to why they are doing so. Is there any data that makes spending exorbitant amounts on concerts for brands ‘worth it’?

Sharing her thoughts on why brands are shelling out money left, right, and centre to be associated with concerts, Mankani said, “Concerts offer brands a unique opportunity to create immersive and emotionally charged experiences that traditional advertising can’t match. According to Nielsen’s 2022 music report, 56% of festivalgoers feel more favourable towards brands that sponsor the events they attend. The same study showed that concert sponsorships can boost brand recall by 80 to 85%, significantly higher than digital and print advertising.

Additionally, 78% of consumers have a more favourable view of brands sponsoring live events, and 65% of attendees are more likely to buy from a brand they experienced live. An IEG study highlighted that companies spent over $2.5 billion on music sponsorships globally last year and  Eventbrite reported that 93-95% of marketers believe live events provide a better ROI than digital advertising.”

Standing out at concerts

Citing an example of how concerts amplify brand visibility, Shoven Shah, Founder & CEO of TribeVibe Entertainment, said, “At the Enchanted Valley Carnival (EVC), our three-year partnership with JioSaavn featured a dedicated stage for over 20 independent artists. This collaboration not only promoted JioSaavn but also converted regular members into pro members through a curated EVC playlist. Similarly, Red Bull hosted three days of multi-channel silent parties at the festival campsite, drawing thousands of eager attendees to experience top Indian artists.

To add, brands targeting Gen Z, such as Red Chief, Pulse, Amazon Pay, and Perfetti Van Melle, have engaged this audience through on-ground activation booths at over 250 live events, aiming for deeper engagement.”

We are speaking about concerts but forgetting the brand that is synonymous with concerts and house parties. If you haven’t guessed already, then yes, we’re talking about Bacardi, a brand that has been sponsoring live events and music videos in India since they were still infantile in India.

Speaking of how Bacardi has been engaging with the Indian audience through concerts for a while now, Mankani said, “Bacardi has been a front-runner in experiential marketing at music festivals and concerts. Their activation, Bacardi ‘The Sound of Rum,’ was a music tour that created an immersive island-inspired experience, aligning with their Caribbean heritage. 

They have also hosted numerous pop-up bars and interactive areas within concerts, where Bacardi cocktails have been a huge hit. Additionally, they launched Bacardi House Party, a post-concert experience offering a house party vibe, further enhancing their brand’s presence and engagement with attendees.”

Brands listen up! There are multiple ways of associating with a concert; some are creative and stand out, causing high brand recall, while others get swept under the rug as fans fail to notice their presence. So to avoid being such a brand, take a look at how Red Bull promotes itself at festivals.

In the words of Kanojia, “The energy drink giant sets up ‘Red Bull Stages’ at various music festivals, offering not only music performances but also interactive spaces for festival-goers. These activations often include extreme sports demonstrations, VR zones, and custom photo opportunities, all in line with Red Bull’s adventurous brand identity.

According to Nielsen, Red Bull saw a 5.1% increase in brand awareness through its music festival activations in 2019, as well as a 7.3% increase in brand favorability from concertgoers who engaged with its activations.”

Experts also suggest that this direct engagement and the organic buzz from attendees sharing their experiences on social media significantly boost brand visibility. Interactive booths and collaborations seamlessly integrate products into the concert experience, fostering natural exposure.

Substantiating the argument of increased brand visibility through social media, Krisneil Peres, Co-Founder and Director at Fame Keeda, said, “Social media amplification also plays a key role, with 80% of attendees sharing their experience online, organically boosting reach and visibility for brands beyond the event itself.”

A double-edged sword

When it comes to concerts and brands witnessing increased visibility and sales, it’s not all hunkey dorey but rather a double-edged sword. When done right, sponsoring events can do wonders for a brand but when executed poorly, it’s a different story altogether.

Providing a perspective on the same, Peres said, “Concerts create emotional interactions between brands and consumers, which can strongly influence perceptions. The experiential nature of concert marketing helps brands associate an emotion with the marketing, which builds trust and fosters long-term loyalty, especially when the experience is enjoyable.

However, the reverse can also happen, where attendees can associate negative aspects of the event with the brands. In these instances, brand loyalty can take a hit if the concert execution falls short of expectations, which makes it critical for brands to work closely with organisers to ensure a high-quality experience for everyone.”

Measuring ROI

So far, it has been established that concerts lead to increased brand visibility but how do brands measure it?

The question may sound challenging but Kanojia suggests a few metrics to help. From the horse’s lips himself, Kanojia said, “It’s important to focus on both qualitative and quantitative metrics to assess consumer engagement and sales outcomes effectively. 

To assess consumer engagement and sales outcomes at concerts, we track key metrics such as foot traffic and interactions using counters or RFID wristbands, app downloads or website visits via UTM links or QR codes, increased sales post-event with tools like Google Analytics, promo code redemptions, media coverage through earned media value (EMV), and overall ROI by comparing revenue generated with the investment. These insights demonstrate the campaign’s success and inform long-term marketing strategies.”

What’s trending?

Moving on, the “concert marketing” space has evolved massively over the years, and a shift towards combining physical and digital components can be observed.

Shedding light on how the space has evolved over the years, Shah said, “Emerging trends in the use of concerts for experiential marketing include the increasing adoption of AR/VR activations, data-driven personalisation, and sustainable event practices. Brands are leveraging these strategies to connect more effectively with their target audiences. 

For instance, Wonderla Amusement Parks sponsored TribeVibe’s live events across major colleges in the South, executing a VR experience of their roller coaster as part of their on-ground activation booth. This immersive experience engaged Gen Z effectively while also distributing special offers through college WhatsApp groups.”

“Looking ahead, we can expect brands to continue focusing on these innovative strategies to enhance audience engagement and drive brand loyalty. The future of experiential marketing at concerts will likely prioritise immersive experiences that resonate with younger audiences, creating lasting connections that extend beyond the event itself,” Shah further said.

Mankani further spoke about how future concerts will focus heavily on personalisation. “With the growing importance of data, the future of experiential marketing at concerts will focus heavily on personalisation. 

Brands will leverage consumer data from ticketing platforms, apps, and social interactions to curate highly tailored experiences that cater to individual preferences, you know. This could include everything from personalised QR codes on tickets that unlock exclusive content,” quoted Mankani.

Impact on OOH advertising

The growing number of concerts does not mean good business just for experiential marketing agencies only, experts believe that out-of-home advertising companies will also see their business grow as concerts go big in India.

Here’s what Hariom Seth, Founder of Tagglabs has to say about the impact of concerts on out-of-home advertising, “Concerts typically take place in major outdoor venues, significantly influencing the outdoor advertising scene since they offer excellent opportunities for immersive ads and experiential marketing. At the venues, billboards, digital screens, and tech-enabled engagements extend beyond the concert audience as attendees share their experiences on social media. 

This type of marketing builds equity for the brand by utilising physical venues and personnel to associate with the positive emotions of the concert event. The nature of concert environments enhances the performance of such activities, allowing the brand message to be delivered to the audience without being perceived as traditional advertising.”

The challenges of the trade

Marketing through concerts may sound like a great idea but nothing comes without its fair share of challenges. Highlighting the challenges, Peres said, “One of the key challenges is “how to align the brand’s message with the concert experience in a way that feels authentic.” Overcommercialisation and poor management of the venue can lead to consumer fatigue; hence brands need to integrate activations naturally and organically that complement the event.”

Finally, the question that every brand Coldplay fan has been waiting to be answered is whether the Coldplay event in Mumbai will get cancelled or not. Answering the query, a BookMyShow spokesperson clarified in the press that the event will proceed as planned.

However, in the worst-case scenario, if the event gets cancelled, then, “the cancellation of a major event like a Coldplay concert would have significant financial and strategic implications for both sponsors and event organizers. Event cancellations can lead to legal disputes over terms of cancellation or refunds. Although, sponsorship agreements often include clauses for cancellations, outlining procedures for refunds or rescheduling. Brands may receive full or partial refunds or have their investment carried over to a future date.

However, sponsors might retain value through pre-event digital branding efforts. Brands could pivot to promoting Coldplay-related digital experiences, maintaining audience connection. Strategic relationship management and long-term planning are key to mitigating negative effects and securing future opportunities,” said Kanojia.