Summerfest's Attendance and Revenues Were Up Again This Year

As you might have predicted based on the perfect weather the event enjoyed this summer, Summerfest's attendance and revenues increased by this year, the festival announced in a press release this afternoon. I'll post the whole release at the bottom of this post for business wonks to comb over, but here are the key stats: Revenues from ticket sales and food and beverage commissions were up by 8%, while overall attendance was up by 2.6% from last year's attendance of 856,254, "squarely within the range of 825,000 to 900,000 that Milwaukee World Festival, Inc. planned for the 11-day run."

One line in the press release stood out in particular; the bold emphasis is mine: "This year's overall results are consistent with the 2011 objectives and business plan, which called for profitability while maintaining comfortable attendance levels for Summerfest fans."

I suspect how to control attendance is going to be a continued debate for Milwaukee's signature event, which at points this year was crowded past the point of comfort (and arguably safety). The festival faces a tricky balancing act: Spend less on entertainment or book boomer-friendly acts over youthful draws, as CEO Don Smiley did during his first years piloting Summerfest in the mid-2000s, and the festival's attendance and cache suffers. But book too many popular, big-draw acts and the grounds begin to feel very tight, which can in turn scare off older festivalgoers (Smiley effectively argued that boisterous, young crowds had turned the festival in a roving frat party, impugning its reputation—there is, of course, some truth to that assessment). Summerfest's challenge in coming years is going to be finding ways to maximize revenue while keeping attendance around that 900,000 mark.

Here is Summerfest's full press release:

SUMMERFEST INCREASES REVENUE, ATTENDANCE AND SPONSORSHIPS

New approaches in 2011 keep THE BIG GIG customer friendly, quality-oriented and profitable.

MILWAUKEE — July 18, 2011 – Milwaukee World Festival, Inc. officials announced preliminary data indicating its mega-music event, Summerfest, the World's Largest Music Festival, increased revenue in key categories, grew attendance, sponsorships and achieved profitability for another consecutive year in 2011.

Combined revenue totals derived from gate ticket sales as well as food and beverage commissions, exceeded last year's totals in the same categories by 8%, while again increasing attendance by 22,382 to 878,636 or 2.6% over last year's attendance of 856,254, squarely within the range of 825,000 to 900,000 that Milwaukee World Festival, Inc. planned for the 11-day run.  Summerfest's 2011 attendance surpassed 2009's attendance of 835,679 by 42,957.  This year's overall results are consistent with the 2011 objectives and business plan, which called for profitability while maintaining comfortable attendance levels for Summerfest fans.  

“We are very pleased with our 2011 preliminary results. The talent lineup, new improvements on the south end, new operating dates, promotions, food and beverage offerings, and of course favorable weather, collectively generated a very positive response from our customers,” said Milwaukee World Festival, Inc. President and Chief Executive Officer, Don Smiley.  “We are thankful to everyone who supported and attended Summerfest this year and look forward to completing additional renovations to Henry Maier Festival Park as we prepare for the 45th Anniversary of Summerfest in 2012.”     

Milwaukee World Festival, Inc. is currently renovating approximately 22-acres of the 75-acre site, Henry Maier Festival Park, located on the shores of Lake Michigan, with a 2-phased $35 million construction project.  Phase One of the redevelopment project was completed for Summerfest 2011, featuring a newly redesigned outdoor stage/venue titled, “the Briggs & Stratton Big Backyard”, a new South Gate and Box Office, as well as new food and beverage buildings and restrooms.  Over 1,000 individuals worked on one aspect or another of this construction project.  Over 600 skilled trade laborers worked onsite throughout fall, winter and spring to complete the first phase of the project, equating to the creation of approximately 250 full-time new jobs.  Phase Two of the project will commence in fall of 2011, after the festival season, and include another new stage/venue as well as food and beverage buildings, restrooms and unique lakeshore amenities for festival-goers.

“I could not be more pleased with the preliminary results of Summerfest 2011 and to see Milwaukee World Festival, Inc. once again achieve the core objectives set forth by the Board of Directors,” stated Dan Minahan, Chairman of the Board of Milwaukee World Festival, Inc. “This mega-event continues to deliver quality and entertainment value for patrons and helps differentiate Milwaukee as a great place to live, work and play.”  

Summerfest tested a new configuration of operating days for the 11-day celebration which eliminated Monday's operation and added Wednesday, June 29, as the opening day, providing 11 customer-friendly and quality-oriented days of Summerfest. This adjustment was based on attendance and sales data from previous years, customer feedback and the premise that, in general, if given the choice, people prefer to attend entertainment events, like Summerfest, on a Wednesday versus a Monday. The results were strong.  Revenue estimates and attendance on Opening Day (Wednesday) far exceeded those of Mondays' on record.

Summerfest deployed an integrated marketing campaign featuring grassroots initiatives and social media in March to create excitement, engagement and participation among fest-fans and the community.  To promote and celebrate its new opening day, Wednesday, June 29, Summerfest introduced a new limited edition, Commemorative Opening Day Ticket and promoted Summerfest's Biggest Bang Ever, a fireworks show that featured custom shells, a larger open and a massive, “can't miss” spectacle salute finale that was heard in Michigan.  Additionally, Summerfest let fans “be first to know” which bands would perform through new Summerfest Headliner Release Parties that occurred in April and May.  These grassroots events took place at selected locations all over town and Summerfest and its sponsors exclusively announced one stage's headliner line-up, “live” at each event, prior to releasing the information via social media or press releases to the media.  The Headliner Release Parties were free to the public and those in attendance received a Commemorative Opening Day Ticket and had a chance to win headliner merchandise, Summerfest tickets and prize packs, including Marcus Amphitheater concert tickets, VIP access and more.

Summerfest aggressively worked to improve its business to business revenue during the extended challenging economic climate.  Overall sponsorships of stages, various areas throughout the grounds and ticket promotions increased from 74 to 80 in 2011, including new marketing partnerships with Kohl's Corporation, Tap Milwaukee, Frontier Airlines, Jockey and others.  Most notably, Summerfest successfully grew its account base in Business Group Sales from 631 accounts in 2010 to 755 accounts this year to help drive corporate ticket revenue.

This year's marketing strategy continued to focus on quality and value. Summerfest's Marcus Amphitheater line-up included Peter Gabriel with the New Blood Orchestra, Kanye West with special guest Kid Cudi, Toby Keith with special guest Eric Church, Jason Mraz with special guest Guster, Kid Rock with special guests Sheryl Crow and Leroy Powell and The Messengers, Def Leppard with special guest Heart, The Black Keys with special guests Florence + The Machine and Cage the Elephant, Katy Perry with special guest Marina and The Diamonds, Jason Aldean with special guests Chris Young and Thompson Square, Britney Spears with special guest Nicki Minaj and Sugarland with special guest Sara Bareilles.  

The organization increased spending on talent on ground stages by 4.2%. Other performers on the grounds stages included The Flaming Lips, Rise Against, George Clinton, 311, Edward Sharpe and the Magnetic Zeros, Alkaline Trio, O.A.R., Girl Talk, Third Eye Blind, Phil Vassar, Alejandro Escovedo, Wiz Khalifa, G. Love & Special Sauce, Maroon 5, The Jayhawks, Civil Twilight, The Wailers, Musiq Soulchild, Red Jumpsuit Apparatus, Sick Puppies, Owl City, Amos Lee, Buddy Guy, Los Lonely Boys, Los Lobos, Stephen Marley, Ben Harper, Hinder, Crash Kings, Morris Day and the Time, Switchfoot, Goo Goo Dolls, Gaelic Storm, Meat Loaf, Dropkick Murphys, Danny Gokey, Cory Chisel, Old 97's, Grupo Niche, Hall and Oates, Panic! At The Disco, Saving Abel, The Spinners , Wanda Jackson, REO Speedwagon, Styx, My Darkest Days, Loretta Lynn, Cinderella, The Airborne Toxic Event, Peter Frampton, Kansas, Fuel, Leon Russell, Jackyl, Matisyahu, Better Than Ezra, Paul Rodgers, Here Come The Mummies, Michael Franti, Michelle Branch, Blue Oyster Cult, Parachute, The BoDeans, Max Weinberg Experience, Taj Mahal, Cowboy Mouth, Don Felder, Toots and the Maytals, Indigenous, Taking Back Sunday, Yonder Mountain String Band , Sharon Jones and the Dap Kings, De La Soul, Todd Rundgren, Blackberry Smoke, Urge Overkill, Pop Evil, Finger Eleven, Sevendust, Buckcherry, Ten Years, Hollywood Undead, The Ike Reilly Assassination, Jack's Mannequin, Neon Trees, Anberlin, Young The Giant, Tonic, Middle Class Rut, America, The Gufs, Willy Porter, The Meat Puppets, AWOLNATION, The Bravery and hundreds more.

New in 2011, Summerfest launched the Summerfest Rock 'n Sole Half Marathon and 10K Run on July 10 at 8:00 am.  A total of 6,567 runners from across the world participated in the race, representing 46 states and 12 countries including Germany, Canada, Mexico, China, Ethiopia, Morocco, UK, Venezuela, Brazil, Kenya, Austria and the United States.  The Half Marathon consisted of 3,762 runners while the 10K had 2,805.  Runners had the unique opportunity to run over the Daniel Hoan Memorial Bridge, a Milwaukee landmark, something that has not been previously allowed for a race this size.  A total of $22,000 in cash prizes was awarded to the top 20 male and female runners in each race, with the top half marathon and 10K payouts starting at $2,500 and $1,250, respectively.  

A recent study conducted by a third party research firm indicated Summerfest generates approximately $180,000,000 in direct and indirect economic impact for our community.  Excluding independent restaurant, exhibitor and vendor staff, Summerfest employed approximately 2,000 workers in preparing and operating the event, equating to a payroll of nearly $1,600,000.  In addition, Summerfest was supported by over 400 volunteers who donated time and energy to assist patrons and operations staff before, during and after the event.  

2012 will mark the 45th Anniversary of Summerfest.  Next year's operating dates will be June 27 – July 1 and July 3 – July 8.  Summerfest will be closed on Monday and open on Wednesday, July 4.

Milwaukee World Festival, Inc. is the non-profit organization that plans, promotes and produces Summerfest, The World's Largest Music Festival. Milwaukee's cornerstone summer celebration attracts the music industry's hottest stars, emerging talent and local favorites.  The 23,000 capacity Marcus Amphitheater and 10 additional stages, along with a diverse selection of food and beverage vendors, marketplaces and interactive exhibits, are set against the Lake Michigan and downtown backdrops, creating a festival experience like no other.  Patrons can also enjoy Miller Lite, the Great Taste of Summerfest.  For more details visit Summerfest.com.