Brands that align themselves with Taylor Swift’s upcoming tour in Toronto are likely to reap long-lasting benefits, but they also face inherent risks. As tickets for Swift’s six-night run in Toronto went on sale, marketing experts warned of the potential drawbacks associated with such partnerships.
Rogers Communications Inc., a major telecommunications company, has positioned itself as the presenter of Swift’s performances at the Rogers Centre stadium, while Royal Bank of Canada (RBC) is listed as an official partner. RBC also plans to offer exclusive ticket allocations to its Avion members. However, the impact of these partnerships on customer loyalty and brand perception remains debatable.
In an email, Richard Powers, the national academic director of the Rotman School of Management at the University of Toronto, stated, “Whether someone would switch bank or card allegiance due to access to a Taylor Swift concert is debatable, but it is ‘eyes on the prize,’ and certainly there will be a lot of eyes on this event as we get to November 2024.”
Swift’s Eras tour, which began in the U.S. in March and is set to extend over two years, has already become one of the most lucrative shows in history. QuestionPro, an online research company, revealed in June that fans were spending an average of US$1,300 per show. Approximately 70% of the surveyed individuals expressed that the experience was rewarding enough to justify the expense, and 91% said they would attend another show.
Despite fans paying more than they budgeted, QuestionPro’s research indicated that the Eras Tour achieved an impressive Net Promoter Score of 68. This score positions the tour among esteemed brands such as Costco, Apple, and the Ritz-Carlton Hotel chain.
QuestionPro estimated that if the current spending pace continues, Swift’s tour could generate an estimated US$5 billion in economic impact. Dan Fleetwood, the president of research and insights at QuestionPro, remarked, “These numbers are pretty incredible. If Taylor Swift were an economy, she’d be bigger than 50 countries; if she was a corporation, her Net Promoter Score would make her the fourth most admired brand, and her loyalty numbers mimic those of subjects to a royal crown.”
These findings likely played a significant role in the decision-making process for companies choosing to align themselves with the tour and develop marketing strategies around Swift. RBC, for example, recently opened up its Avion program to all Canadians, regardless of their banking affiliation. This move allows RBC to tap into a different demographic, specifically parents purchasing tickets for their children.
Joanne McNeish, an associate professor of marketing at Toronto Metropolitan University, cautioned that targeting a younger demographic does not guarantee long-term brand recall or future purchases. McNeish stated, “A common mistake that brands make today is that if you put your name in front of young consumers who can’t currently purchase your product or service, they will remember you and purchase at another point in time.”
Moreover, associating with Swift’s tour presents risks beyond uncertain returns. For example, the ticket-selling process for the tour has historically been challenging for fans, often resulting in frustration and disappointment. Swift’s shows have overwhelmed Ticketmaster’s systems in the past, leading to U.S. Senate hearings and promises of improvement from politicians. While verified pre-sales have been implemented to minimize these issues, demand consistently exceeds supply, leaving many fans on waiting lists or resorting to scalpers.
In addition, unforeseen circumstances such as illness or concert cancellations can also impact sponsors in unexpected ways. Powers emphasized, “Even Taylor Swift can get sick, cancel dates. The big sponsors also bear some of the risk of an unforeseen issue causing a cancellation or postponement of concert dates.”
Despite the potential risks, brands like Rogers and RBC are leveraging their association with Taylor Swift’s tour to improve their reputation and connect with their target audiences. The outcome of these partnerships will only become clear as the tour progresses.
© 2023 The Canadian Press
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