Valuation of SXSW’s sponsorship tiers revealed significant growth potential, advising strategic digital engagement to boost market value.

The Situation

For SXSW, successful sponsorships hinge on a robust connection between the sponsor and the festival’s brand. Through this, sponsors effectively engage festival attendees, shaping their perceptions and actions. SXSW’s Association Rights are vital for the success, holding significant value which has sometimes been underestimated. Optimising these rights is essential for SXSW’s growth until FY24.​

While the industry recognises the value of traditional assets, there’s more to the right value SXSW can tap into. Originating in 1987, SXSW has become a global brand merging tech, film, music, education, and culture over 35 years.​

Sponsorships are pivotal for funding SXSW, with brands investing heavily to associate with its brand and integrate into the event. SXSW’s 2023 collaboration with alacria identified a potential under-valuing of these rights and the luck of a robust methodology to understand their value and articulate it to brands.