‘Artists have to work harder for deals’

Marcie Allen’s team works at the epicenter of the 10-figure – and growing – music sponsorship market [From our print edition featured in this week’s City Paper]

After the death of a close friend in 2004, Marcie Allen decided to redesign life on her own terms. She wanted less stress and a job tailored to the specialized skills and talents she’d honed in the music booking industry. Allen, 37, created that gig for herself by launching MAC Presents.

Allen has since positioned the seven-person company as a key player in the ever-growing — and highly profitable — niche world of brokering deals between popular music stars with high-profile corporate brands. MAC Presents isn’t completely Nashville-centric, although its product-star partnerships include plenty of talent from Music City.

MAC Presents-brokered deals in recent years have included teaming Tim McGraw and Faith Hill and Jeep, John Mayer and BlackBerry, John Legend and E&J Gallo and Lady Antebellum and Brita. Recently, she has brought BlackBerry’s sponsorship to the Foo Fighters Garage Tour and AT&T and Samsung’s endorsement to Keith Urban.

Although she’s had to keep costs down because of the economic climate of the past few years, Allen says MAC Presents is steadily increasing its client base and revenue. That’s thanks, too, in part to the fact that corporate interest in music partnerships has never been greater: According to IEG, the leading authority on sponsorships, North American-based companies will spend $1.17 billion to sponsor music venues, festivals and tours this year, a 7.3 percent increase from 2010.

How did you get started in the business?

I started my first company, MAD Booking & Events, out of my dining room in 1999. I was 25 years old and fearless — booking Eminem and Stone Temple Pilots for Voodoo Music Festival in New Orleans. By 2001, I owned and produced summer music festivals in Nashville and Atlanta and later, Washington, D.C. We produced 36 music festivals over three months. With offices in Atlanta and Nashville, a staff of 15, investors and all the other stresses that go along with running a company, it was literally non-stop.

One of my closest friends from college died in a hiking accident in July 2004. I will never forget standing next to my college friend at the base of a mountain in Colorado as we spread Jason’s ashes. My phone wouldn’t stop ringing, and I realized life is too short. I couldn’t even get a few hours away to grieve the loss of my friend.

The next day I walked away from everything — the company, the festivals, and most importantly, the stress. After taking a few weeks to think about what I truly wanted to focus on, I launched MAC Presents to bridge the gap between the music industry and the corporate world. Cracker Barrel Old Country Store was my first client. After only a few months, I secured a presenting sponsorship for Cracker Barrel with Alison Krauss & Union Station for their 2005 tour. I had finally found my niche.

Typically, how long does it take to design and broker a high-profile sponsorship?

Every deal is different. Typical deals start coming together about six months from the beginning of a tour. Some brands have longer lead times and require more time on the front end. In some cases, a deal will be held up in approvals or the negotiations will take a significant amount of time and the deal won’t actually close until 30 days from the beginning of the tour.

Is it pretty much a given now that well-known acts will get a sponsorship deal?How competitive is it?

It is extremely competitive. Rarely do I find a brand that has one artist in mind. Brands know that working with the right artist can forge a meaningful connection with a targeted consumer base, tapping into emotions and passions outside the scope of traditional media.

Artists have to work harder for deals now than they had to before. Labels have fewer dollars to allocate toward record launches and promotion. Touring costs are through the roof. Working with brands can offset costs and allow for better production on the road, or enhance the consumer experience onsite. Both sides need to be able to give a little and know what assets they have that can be leveraged as part of the deal.

How has the advent of social media changed the market?

Brands pay attention to how extensive an artist’s reach is via social media as well as the demographic breakdown of their fans. Demographic information used to be based on who was buying music or focus groups but that is not necessarily representative of who is engaging with and listening to the artist on a weekly or even daily basis. Brands are using social media as a general tool and also to promote specific partnerships. 

In the past, brands would create a microsite. However, it is now more cost-effective to create a co-branded Facebook page. We have used our AT&T and Samsung present Keith Urban Get Closer 2011 World Tour page on Facebook as the home base for all things related to the partnership and are constantly driving consumers there for behind-the-scenes access, Backstage Experience passes, concert tickets, signed guitars, Samsung Infuse 4G devices, and more. 

How much on average does a company pay for sponsorship? And how do they figure return on investment?

Deals range from $100,000 to $4 million depending on artist deliverables and what the brand can offer outside of cash. ROI is most often measured using impressions and sales that can be translated as a result of the partnership, but each brand has their own formula and goals.

Where do you see MAC Presents in five years?

On the beach, I hope.