Music Festivals

If the Supreme Court upholds a U.S. law that would ban TikTok if its Chinese parent company ByteDance fails to sell it by Jan. 19, it would be bad news for the music industry, including the live events business – which has increasingly relied on TikTok as a marketing engine in recent years.
A decision by the court could be days, even hours, away, and it will have a major impact on dozens of U.S. industries that rely on the site for marketing, including the live music business during one of its busiest marketing months. TikTok’s popularity among concert and festival marketers has increased significantly in the last two years, explains FanIQ CEO Jesse Lawrence, as the event industry shifts to content-based marketing models.

“The music industry is finally getting away from the static lineup ad and embracing storytelling and lifestyle content,” said Lawrence, who notes that the the company is seeing a return of 15 to 20 times its ad spend on TikTok.

Trending on Billboard

Part of the appeal of TikTok, Lawrence said, is that the learning curve for posting and sharing ads on the platform is fairly simple. Customers are separated into two buckets: upper funnel, which includes essentially new customers who know little, if anything, about an upcoming event, and lower funnel, in which clients have gained awareness and are close to making a final decision on a purchase.

“Our whole approach is about matching upper funnel engagement, based on the user’s interests, with content we’ve created around the festival,” says Lawrence. That includes using beauty and fashion content to find potential customers for a summer country music festival, sneaker content for hip-hop festivals or skateboarding and surfing content to market a punk rock and action sports expo.

“Our videos have a watch time tracker and if someone watches the video for 15 seconds or more, the next video they’ll get is one with specific details about the festival and specific videos instructions on conversion,” meaning buying tickets, Lawrence said. He later noted, “it’s just about knowing where your audience is spending time and putting content in front of them on those platforms.”

A recent content piece FanIQ created for the Oceanfront Festival detailed rapper Key Glock’s extensive sneaker collection, featuring interview snippets with the Memphis rapper.

“That video is getting served to the fan from the festival’s account,” Lawrence said. “The whole idea is that we’re taking content that feels very organic and putting it into paid (content).”

Lawrence encourages his clients to use multiple social media platforms – Snap, Instagram, Facebook, Reddit and Spotify — for their marketing campaigns, noting that each platform is home to a different audience.

FanIQ is one of the new systems that “aggregates performance across every platform,” Lawrence explained. “We want to give them this access so they can easily understand what’s working, do more of it where we’re seeing performance, and scale back where we’re not.”

Will Franklin with UK marketing firm Round says the strength of TikTok as a marketing platform for the live music business comes from its early success helping artists go viral, starting with the release of “Old Town Road” by Lil Nas X in December 2018. In 2020, Meghan Thee Stallion’s tracks “WAP” and “Savage” — used in countless dance videos by contributors to the platform — made her the No. 1 most played artist on TikTok that year and helped her land headliner slots at a number of major festivals in 2021 including Lollapalooza.

Franklin also notes that fans are increasingly looking to TikTok for video and content from events, noting that searches for the Boomtown festival in the U.K. soared from 29.5 million in the month leading up to the event to 266.8 million during the festival, creating increased awareness around the band.

Many marketers are holding out hope that TikTok will receive a last-minute reprieve from the Supreme Court, but several news outlets covering the hearing reported that a majority of the court’s justices expressed a lack of support for overturning the current ban. If the site is outlawed in the U.S., Franklin says he believes YouTube Shorts will temporarily fill the void.

“I haven’t seen huge budget shifts from TikTok to YouTube yet, but a lot of my clients are experimenting and spending small allocations on different platforms in case they do have to make a shift,” Franklin explains. “There’s a hesitancy because no other platform has as many Gen Z users as TikTok, but the assumption is that if the site is banned, its user will go somewhere else. For now all we can do is guess which platform that may be.”

If the Supreme Court does not intervene to save TikTok, it will be removed from U.S. app stores on Jan. 19 but remain live on users’ phones, albeit without regular push software updates to fix bugs and glitches. ByteDance might be able to maneuver and keep the platform online for a few months after the cut-off date, but the company hasn’t unveiled any of its contingency plans.

“We’re advising client partners to be cautious but optimistic, and recommending they pause TikTok media spend starting Jan. 18 to avoid any unforeseen investment complications,” said Kerry McKibbin, president/partner at ad agency Mischief @ No Fixed Address, adding that advertisers should familiarize themselves with the shorts platforms on both YouTube and Meta if they are concerned about a TikTok shutdown.