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Posts tagged with X Factor

will ferrell daft punk

How brands are spending money on digital in the music industry

There was an increase of almost 17% in brand spending on digital within the music industry last year, compared to 2011.

Brands including Coca Cola, O2, Blackberry and Volkswagen spent a record breaking £100m in total on music in 2012, a 6% rise on 2011. This is according to the latest research from PRS for Music, the copyright collection society.

The area that’s seen the biggest increase, with a 33% rise in spending, is artist endorsement.

This may come as a surprise to some, depending on where your ideologies lie in terms of artistic integrity, however with increasingly evaporating record sales, artists who once comfortably filled out stadiums night after night are now turning to brand sponsorship to maintain the lifestyles they’ve become accustomed to.

For instance Jay Z recently made a deal with Samsung to release his latest album exclusively via its mobile devices.

The next up and coming trend in terms of spending however is digital. Digital is showing an increased rise in spending, far more than live music sponsorship (-5.6%), TV (+1%) and advertising support (+9.5%). 

How are brands spending their money on digital in the music industry? Here are some recent examples: