LOS ANGELES (CelebrityAccess MediaWire) — Live Nation is increasingly pursuing revenue streams outside of the traditional live music business and hopes to double their profits from sponsorship and advertising in the next 5 years.
In an interview with Bloomberg, Live Nation CEO Michael Rapino said that the company was hoping to capture as much as 30% of the $1 billion spent in the U.S. on music sponsorship.
"Our ad strategy is the foundation of how we grow this business over time," Rapino told Bloomberg. "Can I keep growing it 10 to 15 percent each year? Absolutely."
Live Nation is basing their strategy on their newly-revamped LiveNation.com and festivals, which are particularly lucrative in regards to sponsorships. Last year, Live Nation booked 137.8 million on ads and sponsorship agreements, an increase of 7% from the same period in the previous year.
But Live Nation isn't just pursuing signage and naming-rights deals. In 2012, the company partnered with Kellogs in a promotion for Pop Tarts breakfast pastries. Through a social media campaign that offered customers a chance to win tickets to popular concerts, the Live Nation tie-in helped to drive customers to Pop Tart's Facebook Page and Twitter feed and increased sales.
Rapino also pointed to the company's expansion strategy, telling Bloomberg that the acquisition of electronic music promoter Creamfields, as well as the opening of offices in China and Russia were driven by advertising and sponsorship opportunities. – CelebrityAccess Staff Writers