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
How Activision made ‘Black Ops 6’ the biggest ‘Call of Duty’ release yet
The buzz around “Black Ops 6” showed how “Call of Duty” has successfully worked its way into mainstream popular culture.
AI personalization played a bigger role in this year’s Black Friday and Cyber Monday
Retailers have been using predictive AI for years, but many have expanded their use of customer-facing chatbots or tools that can send out targeted messaging to specific customers.
2024 was a trillion dollar year that signals slower days ahead
Next year’s ad spending forecasts echo a familiar story: growth, but with a slower tempo.