Dive summary:
- Some of the biggest brands in the world (American Express, Pizza Hut, etc) now attend Austin's SXSW festival and drop big marketing bucks; to keep up a wave of startups spent more than ever to stand out to the crowd. [see full list of examples at Digiday]
- Throwing a party, a popular option for brands at SXSW, will start at $40,000 for 500 people; add in entertainment like a hot band or popular DJ and the bill increases to around $100,000.
- Building a street team seems like a inexpensive way to market at the festival, but looks can be deceiving; with the costs of team captains, t-shirts, and other materials, a street team of just 10 could end up costing $75,000 over the course of the festival.
From the article:
"A big difference this year from years past is the dearth of startups doing splash (and expensive) initiatives. The reason is simple: Some of the world’s biggest brands now come here. Their budgets overwhelm startups. After all, how can a startup compete with American Express, which brought Jay-Z to do a full concert last year?"
