This year, one of Europe's largest music festivals - the Hungarian Sziget - turns 17 years old. Despite this age of large-scale events, receiving more than 400 thousand visitors, the first income he received only three years ago. Then, the organizers managed to earn 50 million forints, which at that time was about $ 240 thousand was only then that the festival saw the eyes of others - as a commercially profitable projects.
Ukrainian Festival in first etnofestivali until fairly young and maloopytny in terms of earning money. The main objective of the organizers - not to gain profit from the event and attract the rich and secure sponsors. And many of them do not have to ask twice, they agree to invest in culture. The proof of the fact - the annual increase in the number of festivals, which did not stop, even under the pressure of financial crisis. What the impact of folk festivals, investors expect?
Local Attractions
Our country can boast of an enviable diversity of such activities. The most popular of them - rock festivals (Slavske Rock, Taras Bulba , Rock Sich , Mazepa-Fest ), etnofestivali ( Country mriy , Art-box , ТрипіÐ»ÑŒÑьке kolo) and jazz festivals (Jazz Koktebel , Jazz Bezz). But as a rule, they do not exist in pure form, but a mix of different genres of music. According to Andrew Slabinskogo, CEO of Film Plus Production (organizer of the festival Jazz Koktebel), do festivals targeted unprofitable. It is best to combine several directions, it attracts an audience and quickly makes the popular festival. We are often asked why the Jazz Koktebel so little jazz? But true connoisseurs of jazz music in Ukraine by force, two thousand, and those gathered at a festival is unreal! - Said Mr. Slabinsky.
Generally, festivals are held in summer. Season organization helps ward campuses, aimed at large-scale audience. But some organizers prefer autumn. This is particularly true of festivals held in resort areas, which are seasonal. For example, the Festival Jazz Koktebel traditionally held in autumn, with the peak holiday season in Crimea is in summer.
Thus, the event becomes a good way to extend the season to attract tourists and, therefore, promote the region. In addition, during the peak season, the question of accommodation of guests becoming more complicated to the organizers. Uncomfortable conditions of stay at the festival may have a negative impact on its image and popularity.
expensive
To ensure that the festival has begun to generate income needed large cash infusions. Requires significant investment advertisement, announcing the event. For us in this regard, actual promotion of the festival in Belarus, Europe. So we are trying to expand our audience, - said Andrew Slabinsky. In addition, you must choose the right place to invest at least a minimal infrastructure, which would take the participants and guests of the festival. Certain items of expenditure - transport, logistics, artists' fees.
volume of investment needed for the festival, depending on its magnitude, direction, and that it wanted to see him at the event organizers. You can hold a children's festival worth 50 thousand UAH. According to market participants in our country there are such festivals, budgets up to several million dollars. Meanwhile, average investment in such projects in Ukraine is much more modest. Quality three-day festival without the involvement of high-profile stars, but with the very good teams, you can now hold over $ 100 thousand, said the founder of the festival Slavske rock Sergei Harchuk. According to him, if the amount is less, something sure to be affected: either the quality or sound, or the conditions of stay.
noteworthy that the organization of festivals in Ukraine is much more expensive pleasure than abroad. Andrew Slabinsky notes that sometimes it is a difference of ten. One reason for this difference - the significant transportation costs, remoteness of those regions, where most activities take place. The invited foreign artists often have no opportunity to speak during the days of the festival in other cities - Ukrainian or foreign. In the end, go astray their tour schedule, and compensation, respectively, rests on the shoulders of the organizers of the event.
By the way, namely the payment of royalties to artists (if we are not talking about trying a novice) is a major expense organizers. It takes approximately 60% of the total festival budget. Press secretary of the festival ТрипіÐ»ÑŒÑьке kolo Hope Pototskaya told that the group is starting to pay travel, accommodation and meals. But the invitation of foreign stars can afford to be in the $ 10 thousand Ukrainian singers are a bit cheaper - $ 5-8 thousand, and much depends on the circumstances in which the speakers want to work. Some of them agree to a 50%-ing the advance, while others insist on receiving the 100% case the fee before the start of the festival.
While gratis
Theoretically, festivals can be viewed as attractive investment projects. However, they begin to yield returns only after a few years, - said Sergey Harchuk. According to experts, the festival could become profitable after three to five years since the founding. The main sources of profits can be paid lease merchants, occupied the territory of the event, sale of souvenir items, related services, such as transportation and parking. The largest revenue brings the realization of tickets. If it is a large and well-known festival is held over several days, the cost is about 100 UAH.
For example, it is worth so much for an adult ticket to the festival Art-box, which takes placeduring the week. In the past two days, the organizers intend to reduce the price up to 75 UAH. The minimum cost of attending this event is 15 UAH. - So much is a ticket for one day. Last year, the festival has been recorded about 50 thousand visitors. We expected the same result. Similar rates and ТрипіÐ»ÑŒÑького cola, although he had the audience too - about 12 thousand people.
Anyway, as the success of the festival depends on whether it be a popular draw to the attention of investors, and most importantly - their willingness to cooperate with the organizers for a long period. In the Ukrainian realities sponsors such events do not count on the return of invested money. Typically, they have other purposes - depending on the type of organization that serves the investor. The largest cash infusion exercise political power. Mostly it happens in the elections and quietly becoming part of the campaign.
According to Sergey Harchuka, the most consistent and reliable partner of all festivals - embassies and cultural centers in different countries, which have been partially or fully cover the costs relating to their national teams. The most serious investors - commercial companies, manufacturers of alcoholic and nonalcoholic beverages, food and cigarettes. To be a sponsor of the festival for them is a large-scale advertising, because in all that relates to an event, be it a scene, tent, or an invitation booklet, read their logo. But according to specialists, such advertising is more effective than placing on bigborde in the city center or on the journal.
In addition, no matter how ambitious or a festival, the sponsorship fee will be much smaller advertising budget any more or less advanced companies. Another motivation - to promote the festival production of the sponsoring company, its promotion and sales in large volumes.
During the festivals we hold special studies, which analyze the effectiveness of the partnership with an event that traces the degree of loyalty to the company, - says the experience Olesja Zhulinskaya, Director of Public Relations of the Coca-Cola Ukraine.
This company is the third year of sponsoring the festival Country mriy. By the way, this year was the sole producer of beverage sponsor of the event, the remainder to abandon the затеи because of the financial crisis. Perhaps the company has decided to stay because of the fact that, in terms of economic dislocation advantage over sponsorship advertising has become more evident. On the other hand, it is possible that the Coco-Cola, see the festival of good earnings potential. Who knows, maybe in a few years it will sverhpribylnym or at least go to the level of the Hungarian Sziget.
Darius Isakova
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Cultural values
This year, one of Europe's largest music festivals - the Hungarian Sziget - turns 17 years old. Despite this age of large-scale events, receiving more than 400 thousand visitors, the first income he received only three years ago. Then, the organizers managed to earn 50 million forints, which at that time was about $ 240 thousand was only then that the festival saw the eyes of others - as a commercially profitable projects.
Ukrainian Festival in first etnofestivali until fairly young and maloopytny in terms of earning money. The main objective of the organizers - not to gain profit from the event and attract the rich and secure sponsors. And many of them do not have to ask twice, they agree to invest in culture. The proof of the fact - the annual increase in the number of festivals, which did not stop, even under the pressure of financial crisis. What the impact of folk festivals, investors expect?
Local Attractions
Our country can boast of an enviable diversity of such activities. The most popular of them - rock festivals (Slavske Rock, Taras Bulba , Rock Sich , Mazepa-Fest ), etnofestivali ( Country mriy , Art-box , ТрипіÐ»ÑŒÑьке kolo) and jazz festivals (Jazz Koktebel , Jazz Bezz). But as a rule, they do not exist in pure form, but a mix of different genres of music. According to Andrew Slabinskogo, CEO of Film Plus Production (organizer of the festival Jazz Koktebel), do festivals targeted unprofitable. It is best to combine several directions, it attracts an audience and quickly makes the popular festival. We are often asked why the Jazz Koktebel so little jazz? But true connoisseurs of jazz music in Ukraine by force, two thousand, and those gathered at a festival is unreal! - Said Mr. Slabinsky.
Generally, festivals are held in summer. Season organization helps ward campuses, aimed at large-scale audience. But some organizers prefer autumn. This is particularly true of festivals held in resort areas, which are seasonal. For example, the Festival Jazz Koktebel traditionally held in autumn, with the peak holiday season in Crimea is in summer.
Thus, the event becomes a good way to extend the season to attract tourists and, therefore, promote the region. In addition, during the peak season, the question of accommodation of guests becoming more complicated to the organizers. Uncomfortable conditions of stay at the festival may have a negative impact on its image and popularity.
expensive
To ensure that the festival has begun to generate income needed large cash infusions. Requires significant investment advertisement, announcing the event. For us in this regard, actual promotion of the festival in Belarus, Europe. So we are trying to expand our audience, - said Andrew Slabinsky. In addition, you must choose the right place to invest at least a minimal infrastructure, which would take the participants and guests of the festival. Certain items of expenditure - transport, logistics, artists' fees.
volume of investment needed for the festival, depending on its magnitude, direction, and that it wanted to see him at the event organizers. You can hold a children's festival worth 50 thousand UAH. According to market participants in our country there are such festivals, budgets up to several million dollars. Meanwhile, average investment in such projects in Ukraine is much more modest. Quality three-day festival without the involvement of high-profile stars, but with the very good teams, you can now hold over $ 100 thousand, said the founder of the festival Slavske rock Sergei Harchuk. According to him, if the amount is less, something sure to be affected: either the quality or sound, or the conditions of stay.
noteworthy that the organization of festivals in Ukraine is much more expensive pleasure than abroad. Andrew Slabinsky notes that sometimes it is a difference of ten. One reason for this difference - the significant transportation costs, remoteness of those regions, where most activities take place. The invited foreign artists often have no opportunity to speak during the days of the festival in other cities - Ukrainian or foreign. In the end, go astray their tour schedule, and compensation, respectively, rests on the shoulders of the organizers of the event.
By the way, namely the payment of royalties to artists (if we are not talking about trying a novice) is a major expense organizers. It takes approximately 60% of the total festival budget. Press secretary of the festival ТрипіÐ»ÑŒÑьке kolo Hope Pototskaya told that the group is starting to pay travel, accommodation and meals. But the invitation of foreign stars can afford to be in the $ 10 thousand Ukrainian singers are a bit cheaper - $ 5-8 thousand, and much depends on the circumstances in which the speakers want to work. Some of them agree to a 50%-ing the advance, while others insist on receiving the 100% case the fee before the start of the festival.
While gratis
Theoretically, festivals can be viewed as attractive investment projects. However, they begin to yield returns only after a few years, - said Sergey Harchuk. According to experts, the festival could become profitable after three to five years since the founding. The main sources of profits can be paid lease merchants, occupied the territory of the event, sale of souvenir items, related services, such as transportation and parking. The largest revenue brings the realization of tickets. If it is a large and well-known festival is held over several days, the cost is about 100 UAH.
For example, it is worth so much for an adult ticket to the festival Art-box, which takes placeduring the week. In the past two days, the organizers intend to reduce the price up to 75 UAH. The minimum cost of attending this event is 15 UAH. - So much is a ticket for one day. Last year, the festival has been recorded about 50 thousand visitors. We expected the same result. Similar rates and ТрипіÐ»ÑŒÑького cola, although he had the audience too - about 12 thousand people.
Anyway, as the success of the festival depends on whether it be a popular draw to the attention of investors, and most importantly - their willingness to cooperate with the organizers for a long period. In the Ukrainian realities sponsors such events do not count on the return of invested money. Typically, they have other purposes - depending on the type of organization that serves the investor. The largest cash infusion exercise political power. Mostly it happens in the elections and quietly becoming part of the campaign.
According to Sergey Harchuka, the most consistent and reliable partner of all festivals - embassies and cultural centers in different countries, which have been partially or fully cover the costs relating to their national teams. The most serious investors - commercial companies, manufacturers of alcoholic and nonalcoholic beverages, food and cigarettes. To be a sponsor of the festival for them is a large-scale advertising, because in all that relates to an event, be it a scene, tent, or an invitation booklet, read their logo. But according to specialists, such advertising is more effective than placing on bigborde in the city center or on the journal.
In addition, no matter how ambitious or a festival, the sponsorship fee will be much smaller advertising budget any more or less advanced companies. Another motivation - to promote the festival production of the sponsoring company, its promotion and sales in large volumes.
During the festivals we hold special studies, which analyze the effectiveness of the partnership with an event that traces the degree of loyalty to the company, - says the experience Olesja Zhulinskaya, Director of Public Relations of the Coca-Cola Ukraine.
This company is the third year of sponsoring the festival Country mriy. By the way, this year was the sole producer of beverage sponsor of the event, the remainder to abandon the затеи because of the financial crisis. Perhaps the company has decided to stay because of the fact that, in terms of economic dislocation advantage over sponsorship advertising has become more evident. On the other hand, it is possible that the Coco-Cola, see the festival of good earnings potential. Who knows, maybe in a few years it will sverhpribylnym or at least go to the level of the Hungarian Sziget.
Darius Isakova
Warren Buffet is richer for 5 billion through Goldman Sachs
Poll: For the transfer of disputed islands are Japan's 4% of Russians
What should not be worn in the office
Forbes named the best capital for shopping
Prices of fruit will not fall
Ukrainians chose Eastern European universities
Obama will cure Americans
Economist: Russia may remain without a reserve in 2010
In London robbers stole cash along with a piece of wall