AOL Lands Madonna Sponsorship

America Online Inc. is gearing up to sponsor Madonna’s new
world tour, in an effort that will promote the Material Girl on its service,
while aiming to boost its own membership through the arrangement.

Through terms of an undisclosed agreement with Madonna’s touring company,
Bhakti Tours, America Online is set to be the lead sponsor of her new tour
in Europe and the U.S., titled “Madonna Drowned World Tour 2001.”

Clearly, the show will be a hot ticket: it’s Madonna’s first live
concert tour in eight years, and is being eagerly awaited by fans and music
industry insiders alike.

Just as salient is AOL Time Warner’s hand in the effort: since the
merger’s formal approval in January, the
online-offline media giant has been busy striking cross-property deals for
advertisers and internal promotions.

Existing clients Cendant Corp., Continental Airlines and Nortel Networks
all recently penned new deals expanding their ad buys to other media in
the AOL Time Warner empire. Likewise, through pop-ups and other promotions,
AOL has made a brisk business of encouraging users to subscribe to Time,
Inc. magazines.

In much the same vein, America Online is now preparing to milk its new
tour sponsorship through initiatives that target the sprawling fan base of
Madonna, a Warner Bros. recording artist.

“This tour promises to be a blockbuster,” said Kevin Conroy, who heads
AOL’s Music unit. “Participating in the Madonna Drowned World Tour 2001
will bring tremendous benefits to the millions of users of AOL’s brands who
love everything about Madonna.”

In an effort to leverage the sponsorship into attracting members, AOL
will offer tickets to new subscribers before they go on sale to the general
public. Beginning May 6, new members will have the opportunity to purchase
up to two tickets.

AOL also aims to set up a presence at the concerts to win new
subscribers. Through the sponsorship agreement, the online service receives
the right to host interactive promotions and signups at concert venues on
the tour. AOL also will be featured in the official tour book.

Existing America Online members won’t be left out in the cold, however:
they’ll have a chance to buy a limited number of tickets online, starting
May 7. The online service also said it would give away additional tickets
through a series of online contests, and in other promotions throughout the
tour.

Meanwhile, the company is promoting itself as the chief source for
information and content from the performances. The company says it plans to
offer members an “exclusive virtual backstage pass” to the tour — including
concert highlights, photos, video, news and chats.

AOL also said its Music Channel would offer online content related to the
tour, including special downloads from the concerts, tour pictures, video
clips and interviews.

“Now, AOL members who are Madonna lovers will have a one-stop destination
to get advance tickets to concerts, online access to the performances, chats
and interviews and much more,” said AOL President Jonathan Sacks. “This is
the kind of exciting event programming that is the hallmark of our brands
and is certain to be enjoyed by our millions of members.”

Conroy added that AOL hopes to launch similar promotions with other
artists, but spokespeople from the company declined to elaborate.

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