At 50, Summerfest aims to expand brand, while not mimicking higher-profile festivals

Milwaukee Journal Sentinel

After its second year in 1969, Summerfest was already in major debt. Three years later, one of its star performers, George Carlin, was arrested for performing an "obscene" act. The following year, 300 people were arrested for inciting a riot.

And yet, despite what could have been debilitating setbacks, Summerfest has made it to the 50-year mark, with no end in sight. It is the world’s largest music festival, featuring more than 800 acts playing across 11 days, drawing between 800,000 and 900,000 people to the Milwaukee lakefront.

Employees at Maier Festival Park on Saturday morning prepare for Summerfest. The Milwaukee music festival's 50th edition begins Wednesday.

In the coming half-century, it has a new goal: to become "an international phenomenon," said Sarah Smith Pancheri, vice president of marketing and sales for Summerfest's nonprofit parent company, Milwaukee World Festival Inc.

That's a tall order.

Summerfest attracts visitors from all 50 states and other countries, said Don Smiley, CEO of Milwaukee World Festival.

But Summerfest isn't a widespread household name like Coachella in Palm Springs, Calif., or Lollapalooza in Chicago.

Those fests, and other A-level events like Glastonbury in England or Outside Lands in San Francisco, tout big stars and buzz acts condensed into action-packed three-or-four-day spans. Fans — and music journalists — know they can take a long weekend and see one top performer after another. The gatherings become social media trending topics.

Summerfest, on the other hand, builds up each day from local and regional acts to headliners that range from Huey Lewis & The News to Andy Grammer to Los Lonely Boys. It fills out its lineup with tribute acts and often leans heavily on nostalgia groups — booking the likes of REO Speedwagon and the Spin Doctors — that never trend on Facebook or interest many major media outlets.

The biggest draws are spread out across the duration of the festival. On paper, a festival featuring both Paul Simon and Bob Dylan could attract music-loving out-of-towners and press. But those artists are playing this year's festival nine days apart. Zac Brown Band is followed by Pink; the Chainsmokers are followed by Tom Petty & the Heartbreakers.

“It's not a destination festival," said concert promoter Peter Jest, owner of Milwaukee club Shank Hall and a former Summerfest assistant talent booker and stage manager.

"They have to fill 11 days from noon to midnight on seven stages, so (Summerfest) uses a lot of local bands," he said. "That kind of format helps everyone. It’s a festival that works really well for Milwaukee, and it makes a lot of money. But you can’t say you’re a national festival and have (cover bands).”

Nevertheless, Summerfest is trying to strengthen its appeal with consumers and booking agents by spending nearly $60 million on capital improvements through 2020.

Fest officials are also striking deals with national entertainment companies and brands to extend its outreach.

"Jimmy Kimmel Live!" will stream sets from Summerfest to kick off its new website, JimmyKimmelLiveMusic.com. Don Smiley, Milwaukee World Festival's CEO, said he's met with executives at Universal Music Group, one of the world's three largest record label conglomerates, about a possible marketing partnership.

Smiley wants to expand the festival's economic impact in the city by 10% over the next five years. In 2013, a study by Tourism Economics concluded the festival’s annual economic impact was a hefty $187 million in Milwaukee, with an additional $39 million filtering throughout the state.

“The surrounding ZIP codes in southeastern Wisconsin carry the day, and they will for the foreseeable future,” Smiley said. “However, we will never stop bringing our festival to the attention of a national audience. There is no reason not to.”

Defying the odds

If Summerfest's aspirations seem lofty, it is nevertheless a festival that's accustomed to defying the odds. Only a small handful of American festivals attracting national talent — including the Monterey Pop Festival and Newport's jazz and folk festivals — have endured as long.

Widespread community support was — and still is — critical to Summerfest's survival. Milwaukee's late mayor Henry Maier initiated the concept for a city-unifying festival during the turbulent 1960s, rounding up business and government allies to get it off the ground.

When Summerfest relocated in 1970 to an abandoned Army Nike base on the lakefront, where it’s still held today, the Harbor Commission leased the land for just a dollar a year. Today, rent's still a steal, an average $1.9 million a year through 2030.

Bo Black, Summerfest's director from 1983 to 2003, solidified Summerfest's foundation, increasing annual sponsorship revenue by more than 600% by 1996, according to the Milwaukee Journal Sentinel's 2007 Summerfest book, "Cooler by the Lake: 40 Years of Music and Memories."

Under Black's leadership Summerfest opened the Marcus Amphitheater, now known as the American Family Insurance Amphitheater, in 1987. And the festival has benefited from having a well-connected talent buyer, Bob Babisch, since 1978. He's built relationships and booked the likes of Prince, Paul McCartney, Whitney Houston, Kanye West, Lady Gaga and the Rolling Stones.

Along the way, Summerfest's biggest calling card has been its something-for-everyone programming and affordable pricing, making it one of the most unusual festivals in the world. Milwaukeeans are known for planning summer vacations and reunions around the festival, and other entertainment options in the city all but shut down rather than fight a losing battle.

“When you look at the festivals in the country they're almost all the same," Babisch said. Case in point: Chance the Rapper, Lorde and the xx are all highlights at Lollapalooza, Bonnaroo in Tennessee and Austin City Limits in Texas.

On Summerfest's opening day, festgoers can choose from an eclectic mix, including the Red Hot Chili Peppers, en vogue EDM artist Flume, classic rock band the Moody Blues, country artist Frankie Ballard, synthpop act MisterWives, and soul man Black Joe Lewis.

"We’ve always been a festival for the people,” Babisch said. “There’s something here for you if you’re 18 or 75.”

While the amphitheater shows are priced separately — the best available seat for Paul Simon this year is $117.90 through Ticketmaster — general admission is at most $20 for access to seven stages featuring national headliners. Additionally, the fest offers free or discounted promotions each day, and about 90,000 free tickets are papered throughout the city.

"To get in for $20 is such a deal. It's mind-boggling," Jest said. "Only an idiot would say it's too expensive."

VIP offerings

This year’s 50th celebration follows what Ted Kellner, chairman of the board for Milwaukee World Festival, touted as the best financial year in the festival’s history, with close to $150 million in sponsorship revenue and infrastructure investment in 2016.

Since August, fest officials have added or renewed sponsorship deals with MillerCoors, Harley-Davidson, U.S. Cellular, BMO Harris Bank and Roundy’s. They brought on Madison-based American Family Insurance as Summerfest's first title sponsor, a deal that includes naming rights for the amphitheater.

About $59.5 million will be spent on capital improvements through 2020, covering a remodeled Miller Lite Oasis opening this year; a new U.S. Cellular Connection Stage in 2018; and a reconstructed American Family Insurance Amphitheater and north entrance, anticipated for 2020.

The enhancements won’t drive up the general admission costs, Smiley insists, but new upgrades will create revenue opportunities through more VIP experiences, an in-demand option at festivals. The refurbished Miller Lite Oasis this year features a $100 “Level Up” experience that includes access to an elevated viewing platform, equipped with restrooms, a private bar, seating and flat screen TVs. Two drinks and an appetizer are included with the cost.

“Today’s customer is very demanding,” Smiley said. “The vision going forward revolves around the fan experience. This is not a camping festival in a park with temporary facilities. We pride ourselves on the restrooms we built, the restaurants we built, the stages. When our fans see we’re doing everything we can to improve their experience, this event creates a fan that will keep coming back.”

New partnerships

One way that Summerfest is seeking new fans is with partnerships like the “Jimmy Kimmel Live!” deal. Last year, festival officials, with help from its music-specializing publicity firm Shore Fire Media, made contact with the show’s longtime talent booker, Scott Igoe, Smiley said.

Igoe and other show executives checked out the festival last year. The same month, Igoe was promoted to an executive role at the show’s network, ABC, paving the way for the “Kimmel” deal.

The Summerfest lineup was teased on the show in April and exclusively announced through ABC’s website. Show producers will be at Summerfest throughout the run, and stream pre-recorded and live sets on the show’s YouTube channel, and on the Jimmy Kimmel Live Music site, for six hours a day July 7 to 9. The 20 featured acts include hip-hop stars Future and Big Sean; EDM acts Steve Aoki and Touch Sensitive; pop projects DNCE and Bleachers; singer-songwriter veteran Sheryl Crow; and Milwaukee band Vinyl Theatre.

The “Kimmel” deal won’t inspire fest fans “to just up and drive to Milwaukee from six states away,” said Gary Bongiovanni, editor-in-chief of concert trade publication Pollstar.

But Bongiovanni still sees the partnership, and the festival’s desire for broader outreach, as a smart strategy.

“Having Jimmy Kimmel on a national stage, promoting your event, you can’t ask for better,” Bongiovanni said. “I’m not sure how much money it will put in the bank, but it builds on the brand reputation, and that’s important. Maybe it (broadens its core audience radius) by an extra hundred or 200 miles.”

Greater competition

About 32 million people attend at least one festival a year, according to Billboard. The glut of festivals has led to record live music ticket sales in North America for five consecutive years, according to Pollstar, reaching an estimated $7.3 billion in 2016.

The country’s two top concert promoters — Live Nation and AEG — have invested heavily in festivals. The former has major ownership stakes in Lollapalooza, Bonnaroo, Austin City Limits and others, while AEG oversees Coachella, Hangout in Alabama and Firefly in Delaware.

Compared with the independent Summerfest, the two companies have deeper pockets and connections.

“With more festivals that have come up, the price has gone up,” Babisch said. “There’s a bidding war to get the biggest names. Bands are getting four or five times as much compared to playing markets in the winter, because the festivals have to have content.”

Summerfest nevertheless is holding its own, thanks to its long history, both with booking agents and area music lovers. Further, artists like to come. They almost always perform for large crowds at Summerfest, which can increase their fan base in the market, and boost ticket sales for subsequent Milwaukee shows.

Some Summerfest amphitheater shows have fizzled, but generally those concerts are hits, grossing an average $1.4 million and selling 17,876 seats, according to Pollstar.

So while Summerfest is enhancing the grounds and aspiring for greater recognition, its format — from the wide scope of genres to its low admission costs to its 11-day run time — isn't going to change, Smiley said.

From Bongiovanni's perspective, it shouldn't.

“I don’t see (Summerfest) expanding into a worldwide event,” he continued. “It’s not going to be Glastonbury or Coachella. It’s going to be its own thing, and it’s already very successful. They need to just keep doing a good job.”