Digiday is at SXSW giving you the latest industry news out of the festival at Austin, Texas. More from the series →
SXSW is known for many things. A big one is the eye-popping marketing initiatives.
A big difference this year from years past is the dearth of startups doing splash (and expensive) initiatives. The reason is simple: Some of the world’s biggest brands now come here. Their budgets overwhelm startups. After all, how can a startup compete with American Express, which brought Jay-Z to do a full concert last year?
“You need a ton of money,” said a marketing provider. “You have to impress everyone like nobody’s business.”
With that in mind, we ran the numbers for some popular efforts.
Branded food truck: $2,000 per day, five days = $10,000. But the costs are just getting started. Add in signage, permits, food and labor: $60,000.
Rebranded restaurant: Some heavy hitters will take over entire restaurants for the week. There was a CNN Grill last year, for instance. This is not a cheap option. It will likely run you about $750,000.
Big party: Let’s say you want to throw a bash for 500 people. That will run you $40,000. But you’ll need to get people to come. That means a hot band or a DJ like Girl Talk. You could be looking at another $100,000.
Branded Pedicabs: Getting around town is a mess. Pedicabs do a brisk business. This is going to be more expensive than you think. Our source pegs the cost reaching $175,000.
Hotel door hangers: $700 -$3,700 depending on hotel.
SXSW beverage napkins: $5,200 for 4,000
Hotel shuttles: $25,000
Street team: Walking around Austin during SXSW is walking a gauntlet of aggressive street marketing. You’d think this wouldn’t cost much. Ah, but it does. You’ll need captains, t-shirts and other material. Over the course of a week, the bills add up. Expect to spend $75,000 for a team of 10 to blanket the area.
Jay-Z concert: “He doesn’t walk in the door for less than $2 million,” our source said.
More in Marketing
More brands are blending deterministic and probabilistic data for hybrid targeting approaches
Advertisers are exploring AI-assisted lookalike modeling for new audience targeting approaches — brought on by the fading third-party cookie.
The Home Depot adds another acronym — ‘ROMO’ — in next phase of negotiating retail media network measurement
The Home Depot is pitching a new acronym: ROMO, or return on marketing objectives, in addition to return on ad spend (ROAS) to help marketers paint a more holistic picture of their campaign efficacy.
‘It’s become a personality brand now’: Why Tesla’s brand perception is in a tricky spot as sales slump
Elon Musk has become a polarizing figure given his role in President Donald Trump’s administration and it looks like the ripple effects of that polarization are affecting the Tesla brand.