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Banks and electric companies launch themselves to sponsor festivals in search of young clients

Date: October 4, 2023 Time: 16:24:17

Banks, energy, automobiles, fashion… the banners and posters of the great musical events in the country are once again filled with sponsors after years of lethargy. But regulars at these will have observed that the badges that populate these formats are not the typical ones, usually in the hands of breweries or spirits companies. The ‘boom’ of festivals in Spain has triggered the interest of the main brands in being present in these spaces with the idea of ​​reaching new audiences and showing their plans for the future.

Gone are the years where only the logos of consumer brands dominated these spaces, occasionally shared with ticket holders. With each passing year, the venues where the festivals are held become more like small nomadic cities that include supermarkets, itinerant markets or fashion products such as vapers. This opens the door for companies that have experienced this type of event externally to be present in these places, each with its own formula.

Sustainability, a key piece

Beyond the promotional stands and the small gifts that they can offer visitors, more and more big brands see their presence at these events as an opportunity to participate in the festival experience. And those who measure it, repeat it, because it offers them a good result. This is the case of Endesa, which has expanded its cultural sponsorships to some of the most outstanding festivals of the year: Mallorca Live, Cruïlla Barcelona or the Jardín de las Delicias in Madrid, where they were already present last year.

The energy company discovered that people who associated the Endesa brand with culture had a much better brand image than those who were unaware of this association. “It is a different way of approaching people. We are very interested in reaching a younger audience, and based on sustainability, one of our strategic axes, we saw that there was a space in festivals. Our entry was very natural, because they they seek to be more respectful in the spaces where they are produced,” explains María Lacasa, director of branding, sponsorships and content for the energy company.

Endesa defines its model as “sponsorship with a purpose”, a formula where this sponsorship “is not used as an advertising tool or brand presence, but rather allows us to have a purpose with society. In the case of music, we treat to leave a legacy, our mark, trying to make the festival we sponsor more sustainable”.

Thousands of transactions attract banks

The live music industry entered 459 million euros in 2022, its highest figure to date. Until the pandemic arrived, it was growing in double digits and the expectations of the sector indicate that it will continue to be so for the next few years. But a festival lives not only on tickets, which also moves huge amounts of money in bars and other auxiliary services that require virtual payment terminals and physical data, with their respective service fees. Therefore, it is not surprising that financial institutions choose to attend these events through different collaboration formulas with the promoters.

The most singular case is that of Banco Santander. After years betting on the sponsorship of large events and very popular events —such as professional soccer leagues, popular races or Formula 1—, it has entered the festival world thanks to its two giants, Mad Cool Festival and Primavera Sound. “These types of events have a clearly selected target, they allow them to reach different audiences and they have a good activation, in the sense that they are events where through promotions or advance sales of subscriptions you can position your brand”, they point out from the entity .

Santander’s policy in recent times has consisted of trying to position the SmartBank brand among young people, in line with the original philosophy of its product. This strategy offers priority to its clients in the purchase of vouchers and tickets for concerts or festivals. Proof of the success of this formula is how, after experimenting in the 2022 edition of the Mad Cool festival in Madrid, it has replicated it, offering more affordable prices in pre-sale than in the general period of sale to all audiences.

Festivals ‘zero emissions’

Repsol is another of the companies that has extended its presence to these events, considering them a perfect showcase to promote its commercial proposal. In their case, they have reached an agreement with the Marenostrum venue in Fuengirola, which in addition to concerts also hosts other types of comedy or entertainment shows. “It is about working with them to have a sustainable facility with the aim of becoming ‘zero carbon emissions’ in the year 2025,” they explain.

With this type of formula, the energy company seeks to publicize its transformation process—from petrochemicals to integrated energy—among the younger public. “Festivals need a lot of energy, they are a showcase for many issues and the young audience that goes there is increasingly concerned about sustainability. The central theme is the concerts, but more and more people are becoming aware of what energy is being used, yes completely possible to make them emission-neutral venues”.

Some of the actions that they have planned in the Malaga area are the supply of renewable electricity, efficient generators or collecting used oil from food outlets to transform it into renewable fuel. But the true technological revolution comes from the hand of “solar cubes”, portable devices that guarantee photovoltaic energy and store it for use in spaces such as artists’ dressing rooms. Repsol will test them this summer.

push from the breweries

Although this invasion of new sponsors may seem detrimental to those who usually dominated these spaces, the hegemony of the brewers remains almost untouchable. Their strategic and almost indispensable presence as a supplier makes them a key partner for promoters of large events, and proof of this commitment is the fact that they have redoubled their presence in this type of event.

The most common formula in these cases is to associate the festival with the main brand of the big breweries, or in the case of having a local brand in the process of expansion, try to give it prominence. The Damm group, with an extended presence in the Mediterranean, will sponsor 21 major musical events of very different sizes this year with its main brand Estrella Damm. It will replicate the formula with secondary brands such as Estrella de Levante, sponsor of the Warm Up festival in Murcia; or Cervezas Victoria, which does the same in Cala Mijas, Malaga.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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