Marketing Magic: How Taylor Swift’s Eras Tour Revolutionised the Experiences Economy
Image credit: Natalia Matic
The Eras Tour has left an indelible mark on cities across the globe — and nowhere was that more evident than in Toronto and Vancouver. With millions of ‘Swifties’ flocking to these cities, the economic effects of Taylor Swift’s final shows in Canada were nothing short of remarkable.
In a bid to learn how this cultural phenomenon became a marketing and economic powerhouse, LBB’s April Summers sits down with Karim Hassam, senior principal of strategic business development at Mastercard Canada, to dive into the data behind the incredible spending surges in hospitality, restaurants, and tourism.
If you’ve ever wondered how a single event possesses the power to create a ripple effect across entire industries, this collaboration between Mastercard and Weber Shandwick Toronto reveals deep industry insights as part of their ongoing exploration into the intersection of major events and economic trends.
LBB> This new data reveals significant increases in spending at hotels and restaurants in both Toronto and Vancouver during The Eras Tour. How do you think brands and businesses can better leverage large-scale events like this to amplify their own marketing strategies and drive consumer engagement?
Karim> Part of the ‘experiences economy’ – which has been a consumer spending trend recently – large-scale events offer a unique opportunity for brands and businesses to leverage cultural moments to boost their brand ethos and connect with a large community of consumers.
Strategic partnerships, promotions and targeted social media content are some key ways to reach new audiences during moments like these. Partnerships give you access to demographics you might otherwise not be connecting with, while social content has the ability to reach very large audiences. When engaging with these audiences during cultural moments, it’s important that brands maintain engagement with the new audience and continue to invest in the leveraged event once it has come to an end.
LBB> “Synthetic control” methodology was used to measure the economic impact of the tour. Can you explain a bit more about how this methodology works and why it’s particularly effective for isolating the incremental spending effects generated by The Eras Tour in these cities?
Karim> The ‘synthetic control’ methodology that the Mastercard Economics Institute (MEI) developed refers to a machine learning technique that helps create a parallel universe using data, simulating a scenario where the event (in this case, The Eras Tour) never took place.
The reason why this methodology is particularly effective is because it allows for a clear and
straightforward comparison. By juxtaposing the actual scenario (where the tour took place) with the synthetic control (where the tour did not take place), we can measure the expected impact of the tour. The timeliness and high frequency nature of Mastercard’s aggregated and anonymised data uniquely positioned us to conduct this research.
MEI has studied the economic impact of meaningful events around the world using the synthetic control methodology, and it can have varying use cases from seeing the economic impact of large-scale concert tours, to analysing how spending at local businesses along a marathon route fluctuates on race day. It’s part of our ongoing exploration into the intersection of major events and economic trends, and the research demonstrates how major events can be powerful drivers of economic activity. Ultimately, it can reveal how local economies benefit from events of this scale, contributing to the prosperity of consumers
and businesses.
LBB> With a notable increase in global travelers coming to Canada to see the final shows, how should tourism boards and local businesses adjust their branding and advertising efforts to capitalise on such an influx of international visitors during major cultural events?
Karim> The MEI studied spending levels at restaurants near the stadiums where the concerts took place, as well as hotels in Toronto and Vancouver, and noticed an increase in spending across the board.
In Toronto, there was a 64% increase in spending at hotels, and 90% increase in spending at restaurants near the arena from those who travelled from outside of Canada. There was an even greater lift in spending from those travelling to Vancouver from outside Canada, with a 130% increase in spending at hotels and a 127% increase in spending at restaurants near the stadium from this cohort.
We also saw a lot of businesses preparing for Taylor’s arrival by sourcing Swift-inspired outfits and memorabilia. This was a great way for businesses to connect with fans. For cultural moments like this, ensuring your brand is vocal about your interest in the moment is crucial.
LBB> What lessons can marketers take away from the spending patterns associated with The Eras Tour in Toronto and Vancouver when planning for future events, particularly in terms of targeting both local and international audiences to maximise revenue and brand awareness?
Karim> Understanding consumer spending behaviour around past events can help businesses plan for the future. Uncovering insights about where consumers choose to spend their dollars can tell us a lot about their habits, tendencies and mindset, and digging deeper to identify corridors of spend (where consumers are travelling from, and what they’re spending on), can further help businesses understand their customers.
In the example of The Eras Tour, the boost in spending at restaurants and accommodations during the span of the tour was significant, and consumers made it clear that they were ready to deploy their purchasing power for an event they felt personally connected to.
LBB> And finally, in your opinion, what would you say is the key driving force behind the immense success of the Taylor Swift ‘brand’? And how can other brands learn from the immense economic and cultural impact of The Eras Tour?
Karim> Taylor Swift’s ability to create a genuine and personal connection with her fans is a driving force behind her, and her brand’s success. Her authenticity, talent, and consistent engagement with her fanbase through various platforms have made her not just a pop star, but a global icon.
The Eras Tour was engaging – each show was unique to that audience, so even when Taylor was performing for sold-out stadiums, her fans felt like they were getting a unique, one-on-one night from Taylor. She knows her fans, and that comes through in everything she does. To emulate this for brands, it comes down to understanding your consumer and their preferences.
References to Taylor Swift, the Eras Tour and Swift’s albums in this report are not intended to suggest an endorsement, sponsorship or affiliation with Mastercard.
