COMMENTARY

Live Music and Recording Brands: Are TV Ads Still a Thing?

• by Wayne Friedman , Staff Writer, Yesterday

Live music concerts continue to rocket up in terms of revenue and audience numbers, according to live events/music promoter and venue operator Live Nation.

But does TV have anything to do with that success?

Live Nation reported more than 117 million tickets sold so far this year -- up 20% year-over-year.

Live Nation, which also owns Ticketmaster, posted 27% higher revenue of $5.6 billion for the second quarter. Operating income grew to $386.4 million, Stadium attendance grew 28% to 8 million; arena attendance rose 19% to 10.7 million.

All that sounds good. But don't expect that paid TV advertising or marketing had anything to do with it for any areas of the music business.

For example, to attract the live events/music crowd -- Live Nation spent a very modest $3.7 million over the past 12 months on TV -- down 40% from the year before.

Social media, earned media and other paid or unpaid marketing paid a much greater role.

The specific “music recording” TV advertising category was down 35% to $6.8 million for the last 12 months.

The biggest spender was the kids-oriented group -- Kidz Bop -- coming in at $4.3 million, according to EDO Ad EnGage estimates. The group has been on tour from June until mid-September.

No surprise here that the biggest TV network when it comes to music marketing this group over the last 12 months was children's TV network Nickelodeon at $3.2 million, with its sister network Nick Jr. at $1.2 million.

What about MTV, the former giant music cable TV network? Unless you have been living under a rock, programming has shifted dramatically to target 18-24 and 18- to-24-year-olds with "lifestyle" TV content. 

MTV pulled in $841.1 million in national TV advertising over the last 12 months -- slipping 0.2% versus the previous period.

Top categories include Quick-service restaurants at $55.1 million, with candy marketers next at $50.3 million. Way down the list are tickets and live events at $65,480.

When looking at all live events -- music and otherwise -- $69.9 million was spent in TV advertising over the last 12 months. 

These advertising/marketing numbers may not be music to anyone's ears -- especially if one would like to believe music is a still a growing TV marketing category.

Live Nation results might tell another story. That out of home entertainment is still strong in certain areas. Should TV advertising sellers find new ways of seeking business that is -- for the lack of other words --  music to their ears?