Michael Rapino, the chief executive of Live Nation, has revealed that the concert operator now spends more than 80 per cent of its advertising for events online.
In an interview with business news website CNBC, Rapino explained that the company traditionally spent between $3m and $4m on advertising a concert, primarily on print, radio and billboards. However, the vast majority of that has now shifted online, with a particular focus on social media.
“We want to be where the customer is already active: Facebook being one of the best converters for us, as well as Instagram,” Rapino said.
“If you’ve already liked Rihanna on Instagram and you’re following her, we use that data feed.
“It’s been much more sharp-shooting, and we can go social, we can go where you are and where Rihanna is and drive conversion there. Much higher than you can on a Pandora or a radio station, which is a real shot that you’re not going to really nail that Rihanna fan over that day.”
Rapino acknowledged that the likes of StubHub and start-ups like SeatGeek were providing significant competition in the secondary market and added that legislation alone will not eliminate so-called ‘bots’, which snap up tickets and then sell them at inflated prices on secondary platforms.
“The real strategy is you got to price the ticket right to the market so the content can participate on that upswing,” Rapino said. “I think eventually you solve it, because content — whether it’s an NFL team or it’s an artist — is going to have a more dynamic pricing model.”
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