How do sponsors make money from free shows?

The show Madonna on Copacabana Beach, this Saturday, the 4th, is already considered a second New Year’s Eve. The number of tourists that the singer took to the Rio de Janeiro It is registered at airports, hotels and stores in the capital of Rio de Janeiro. According to the city hall, 1.5 million people are expected for the event. And, although it is free to the public, the event generates stratospheric values, such as the R$17 million fee for the pop diva.

In addition to the investment from Rio de Janeiro City Hall so that the singer can take the stage later in the evening, the event has major sponsors, such as Itaú It is Heineken — the bank, in fact, was responsible for bringing the queen of pop to Brazil. Given the investments, many may wonder: what are the interests of these brands and how do they make money from a free show?

Marcos Machado, professor at FIA Business School, explains that the initiative works as an investment, as the financial gain is not immediate.

“For sponsors, the gain from being associated with an event is brand image. Obviously, the financial return may come later, as a consequence of strengthening the brand”, he adds.

Jaime Troiano, president of TroianoBranding, a research and brand management consultancy, also says that sponsorship is a way of bringing the company closer to its stakeholders (parties interested in its products). The key to this being successful is two dimensions, and both sponsors meet the requirements well.

“The first [chave] it is the potential affinity that exists between the personality of the sponsoring brand and the nature of what it sponsors. The second is how much the sponsor has an easily identifiable presence among the group of sponsors involved in the same project”, he explains.

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Madonna’s show will start at 9:45 pm and will last two hours. This will be the last show of the tour The Celebration, which celebrates the artist’s 40-year career. With the show, Madonna will have performed in Brazil four times. She has already enchanted the Brazilian public with her tour The Girlie Show, in 1993; The Sticky and Sweet Tour, in 2008; and the MDNAin 2012.

“When the public remembers their experience of the event and the presence of the brand, it will make a natural transfer, taking to the brand the meanings it was looking for. The fact that the event is free changes this process little. There is always a portion of people who rationalizes the process and understands that the bill for that experience is being paid by the brand”, adds Machado.

Source: Redação Terra