Sponsorship has become an established tool within the marketing mix of
many companies. A sponsorship can provide significant benefits for
companies and brands, e. g. by increasing awareness and generating image
transfers and thereby activating (potential) customers and multipliers.
In Germany, a large number of companies have experiences as a sponsor
and dedicate a substantial share of their communication budget to
sponsorships - often primarily in the sports market. However, recent
developments like numerous doping scandals caused a shift of public
interest in favour of other areas, e. g. culture. And since the latter
market continuously gains relevance and is being covered by media, it
has become more attractive for sponsors, too. Within the cultural area,
music plays a central role in western cultures and has the potential to
grow even further. Due to fast spreading new technologies like the
Internet and the overall digitalisation, music has become accessible
practically everywhere and for everyone. At the same time, the structure
of the music industry, the roles of market participants as well as
existing business models are subject to drastic changes. In conjunction
with the increasing variety of potential music sponsoring measures, the
present development provides new chances and risks for sponsors. This
work examines how companies can take advantage of the latest
developments within the music industry regarding sponsorship. Thereto
the markets of music and sponsorship are analysed and relevant
opportunities and threats for (potential) sponsors on the music market
are derived. Based on the findings, strategic advice is given for
companies considering sponsoring activities in the "music industry 2.0".
