The Economy of Taylor Swift

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I’m not a Swiftie. I never have been.

Yet, I have to give her some credit.

Taylor Swift might be one of the most impressive people in the world right now.

2023 Time’s Person of The Year. 14 Grammies. Billionaire. Cultural Icon.

The list could go on and on.

Yet, what I find most fascinating about her though is not that she writes all of her own songs or that she has accomplished these feats by 34.

What’s bewildering is the fact that everywhere she seems to go turns into gold.

Swiftonomics

At the Grammy’s this past weekend, Swift was strolling towards her table, and host Trevor Noah, who was on-air, saw the perfect opportunity.

“As Taylor Swift walks through the room, the local economy around the tables improves…look at this magic!”

And what he is saying is exactly true. It is magic. What Taylor is doing to several industries, from local tourism to the NFL, is frankly staggering.

For those who have been under a rock for the past year, Swift just completed the U.S. leg of her Eras Tour that ran from March through December of 2023.

The Tour was the first Swift held since 2018, and to say her fans were excited was an understatement.

When tickets initially went on sale on Ticketmaster, more than 2 million were sold in the first 24 hours, with thousands more unable to acquire tickets after the platform crashed.

Across the 140+ scheduled shows, ticket sales alone have reportedly brought in more than a billion dollars in revenue already.

Nonetheless, the real economic impact in the U.S. was to be seen in local markets.

Every city Swift visited in 2023 saw massive jumps in dining, retail, and hotel spending.

An analysis at STR found that of the 20 U.S. cities on the Eras tour, more than half experienced city-wide hotel occupancy rates above 90%.

In Chicago, the event brought the city’s hotel industry to all-time highs, and the the head of the tourism group, Visit Tampa, compared the city activity to that of a “SuperBowl weekend”.

Regardless of the city, Swifties were shelling out huge sums of cash to experience their favorite artist live.

On average, every attendee spent 1,300 dollars on goods and services in local economies where concerts were held.

Now that all is said and [Taylor is] done singing, it’s estimated that the total economic impact of the Eras Tour in the U.S. alone has reached 10 billion dollars. Billions more in spending is expected as Taylor’s tour moves into Japan, Singapore, and Europe.

To put this in perspective, the value of the Eras Tour just in the U.S. will be greater than the annual GDP of more than 40 countries globally.

While Trevor Noah may have just made an innocent joke for laughs, there is an indispensable truth found in what he said.

Taylor Swift is a money-printing machine.

What nobody expected, however, was how powerful her influence could be in an industry that couldn’t be farther from her fanbase: football.

A Match Made in Kansas City

When Taylor Swift started dating Kansas City tight end Travis Kelce, it wasn’t just Swifties or People’s Magazine who took notice.

Since appearing at her first Chiefs game in September, it is as if the entire U.S. forgot that there was even football being played at all. All eyes have been on Swift, including the NFL’s.

If you have watched a Chiefs game in the past 6 months, you know what I am talking about. Every time they have the chance, the NFL cameras cut to the singing sensation.

When asked about the impact of Swift on the league, commissioner Roger Goodell made the following comment:

Well said, Roger.

For the Chiefs alone, it is estimated that Swift’s association with KC across social media, radio, and news has generated the Kansas City Chiefs more than 331 million in new brand value.

According to Front Office Sports, since Swift started attending games in week 3, the league as a whole has seen its highest regular-season viewership among women on record.

Just look at the NFL viewership stats from NBC.

Women watching aged 18-24? Up 24%.

Women above 35? Up 34%.

Girls aged 12-17? Up 53%!

Across the board, women are flocking to football.

The mere fact that Taylor is sitting somewhere in a box on gameday has prompted tens if not hundreds of thousands of her fans to tune in.

This has already translated into a massive jolt for the NFL’s brand, making advertising the country’s biggest sport even more lucrative.

As we move into the Superbowl between none other than Swift’s Chiefs and the San Francisco 49ers this Sunday, we are seeing how advertisers are jumping on this golden opportunity.

Traditionally, Superbowl ads have been tailored to the beer-drinking, truck-driving, ex-high school football star who “almost went D-1”.

Not anymore.

Over the past week, it was announced that 3 unexpected brands would shell out more than 6.5 million each for a 30-second ad slot to reach the largest cohort of women the NFL has ever seen.

Beauty brand e.l.f. Cosmetics will hold a minute-long commercial boasting their low-price, high-value products, featuring none other than Judge Judy and the popular ‘Suits’ Cast.

L'Oreal's NYX Professional Makeup has partnered with Cardi B on a 30-second ad to promote “powerful women at the forefront”.

Dove, the personal care brand, will be making a return to Super Bowl advertising after 18 years, showcasing a commercial focused on body confidence and empowering women in sports.

It’s absolutely crazy to me that a single individual, who had no relation to football 6 months ago and who may not even attend the ‘Big Game’ this weekend, is reshaping America’s most prolific sport at the highest level.

That being said, I think there is a bigger story at play here.

Influencers Influencing Action

While Taylor Swift was certainly a global phenom before the advent of Instagram or TikTok, it seems like her ability to compel such a large group to action today is due to these platforms.

As of 2024, Swift is one of the 5 biggest celebrities on social globally, with more than half a billion followers spread across her IG, Twitter, TikTok, and more.

With such a large audience and the proliferation of short-form media, you practically can’t go online and not see something about her.

This constant exposure is what has propelled her and her fan base to disrupt industries from regional hotel markets to football to advertising.

While Swift isn’t the first celebrity to garner huge attention or create change outside of her primary industry, her influence on the NFL pointedly shows the colossal economic impact celebrities can make.

As social media continues to grow fanbases and create fandoms, I wonder where and when these network effects will take place in other industries, by other superstars.

For now, whether you (or I) like it or not, we are all Swifties.

This is Taylor’s world. We’re just living in it.

-John Henry

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