Swiftonomics: How Taylor Swift is boosting the US economy by billions

The Taylor Swift Effect

Taylor Swift is now officially a billionaire with an astonishing fortune of $1.1 billion (£906m). Her staggering net worth makes her the second-richest woman in music, ranking just behind popstar-turned-business mogul Rihanna. Unlike Rihanna, Swift is one of the few people to reach billionaire status exclusively through a music career.

But Swift is so much more than a music icon. In what's been dubbed "Swiftonomics". the singer single-handedly boosted the US economy by billions in 2023, bolstering everything from the hospitality industry to the NFL with her apparent Midas touch. The Eras Tour completed its South American leg in December and will hit Japan, Australia, Singapore, Europe, and Canada this year, with other countries hoping to benefit from similar boosts.

In the wake of Taylor Swift's phenomenal 2023, it comes as no surprise that she clinched the fifth spot in Forbes' annual list of the world's most powerful women. But that's not all – she also snagged the coveted title of Time's Person of the Year 2023. Read on to discover the mind-blowing financial impact of the "Taylor Swift Effect" on America and what the countries lucky enough to play host to the star can expect.

All dollar amounts in US dollars.

The Eras Tour

Taylor Swift's surge to world domination began when The Eras Tour launched with a bang on 17 March 2023 in Glendale, Arizona.

The monumental tour celebrates Swift's career and features a mammoth 44-song setlist, including hit tracks from all 10 of her studio albums.

It will allow the superstar to Shake It Off on over 140 stages across five continents – and while the first US leg concluded in Los Angeles in August, the landmark tour won't officially wrap until December 2024 in Vancouver, Canada.

The Eras Tour has earned over $1 billion (£800m) to date, making it the highest-grossing concert tour of all time and the first to cross the 10-digit threshold.

Rocketing resale prices

During the first US leg of The Eras Tour, each concert saw an estimated turnout of 54,000 fans. Devoted Swifties forked out an average of $254 (£209) for their tickets, with resale prices rocketing to tens of thousands of dollars in some instances.

According to Bloomberg, each concert generated an average of $13 million (£11m) in revenue.

Swiftie spending

According to software company QuestionPro, the average Swiftie has splurged an incredible $1,327.74 (£1,093) to attend The Eras Tour. This substantial figure includes everything from tickets and travel to outfits and merchandise.

On average, concertgoers have admitted to exceeding their planned budget by a jaw-dropping $720 (£593). However, this hasn't stopped 91% from saying they'd be willing to spend the same amount again to relive the experience.

Swift's fanbase is diverse, with 58% of Eras attendees falling into the 35-64 age bracket and 37% in the 18-34 category. Surprisingly, just 5% were under 18.

Brand impact

Despite most Swifties breaking the bank to attend, The Eras Tour achieved a very impressive Net Promoter Score (NPS) of 68. NPS is a metric that spans from -100 to +100 and gauges how likely someone is to recommend a brand or product to a friend.

This stellar rating places Taylor Swift among America's top five brands, with the self-proclaimed Miss Americana joining the prestigious ranks of Costco, Apple, the Ritz-Carlton Hotel chain, and Southwest Airlines.

Chris Leyden, director of growth marketing at ticket and events platform SeatGeek, recently told CNN, "Taylor Swift’s Eras tour is rewriting the playbook of entertainment economics.” He added, “She’s not just a performer; she’s an economic phenomenon".

Boosting the US economy by billions

The Eras Tour is projected to generate an astonishing $5 billion (£4.1bn), according to data from QuestionPro. To put that into perspective, it's higher than the gross domestic product (GDP) of 50 countries.

Certain US states have been particularly Enchanted by the tour gracing their cities. For example, Swift’s epic six-night residency in California back in August boosted Los Angeles County's GDP by $320 million (£264m) and increased local earnings by $160 million (£132m), according to a California Centre For Jobs report.

Meanwhile, Swift's shows in Denver, Colorado in July not only boosted the state's GDP by $140 million (£115m) but also brought in a whopping $201 million (£165m) in direct spending, according to the Common Sense Institute.

Her concerts in Pittsburgh, Pennsylvania added a cool $46 million (£38m) to the local economy in June thanks to direct spending, according to data from QuestionPro.

Revitalising the hotel industry

Swift's tour has also bolstered hotel revenues. Year on year (and compared to the national average), revenues generated per room were higher in cities during the months Swift visited them, with revenue per room rising by an average of 7%.

The surge is primarily due to increased room prices, although a boost in bookings also played a role. In Nashville, for instance, hotel occupancy surged by over 30% on nights when Taylor Swift was in town, with room rates shooting up by more than 50%.

Pittsburgh's hotels reached 95% occupancy when The Eras Tour came to visit, while Philadelphia experienced its strongest month for hotel revenue since the onset of the pandemic.

Uber and others benefitting from the Taylor Swift Effect

Yet another company benefiting from the economic impact of Taylor Swift is Uber.

In a recent interview with CNBC's Squawk Box, Uber CEO Dara Khosrowshahi stated, "Uber definitely ups its game for Taylor when she comes to town." He added that the company prepares for a higher volume of ride requests during her concerts.

And Uber isn't the sole beneficiary of the Taylor Swift Effect. A recent Mastercard report revealed that within a 2.5-mile radius of the stadiums in cities Swift visited, daily spending growth at restaurants surged by 68%, and spending growth at accommodations increased by 47%.

Could Taylor Swift save cinema?

Swifties who missed out on tickets for The Eras Tour need not fret as the event has been turned into a concert film. Taylor Swift: The Eras Tour hit the silver screen on 13 October 2023.

Long before the movie's much-anticipated release, it was suggested it might serve as a "knight in shining armour" for the struggling cinema industry. While global box offices enjoyed a lucrative summer thanks to blockbusters Barbie and Oppenheimer, ticket sales once again started to slump, with big-budget flicks such as The Flash and Indiana Jones and The Dial of Destiny failing to make a splash.

Less than 24 hours after tickets for Swift's concert film went on sale, it had shattered box office records. The film now stands among the top 10 best first-day presellers for the online ticket seller Fandango. It also broke records for cinema chain AMC, pulling in the highest single-day ticket sales total for a film.

Taylor's blockbuster

The film swiftly recovered its estimated $10-$20 million (£8m-£16m) production budget from presale ticket revenues alone.

Just 24 hours after presale tickets went live, Taylor Swift: The Eras Tour had pulled in a sensational $37 million (£31m). It surpassed $100 million (£82m) worldwide in advance ticket sales at the international box office.

A sensational opening weekend

Taylor Swift: The Eras Tour earned an incredible $261 million (£207m) globally, with $180 million (£143m) generated in the US alone.

This sensational sum secured the film's position as the highest-grossing concert film ever.

Shortly after its silver screen release, the movie became available to rent on streaming services. However, criticism arose as Swift opted to charge $19.89 to rent her movie for just a 48-hour period. Several fans expressed disappointment, arguing they had already spent $19.89 to see it in theatres and expected it to be available for free or to buy. Some even labelled the star a "true capitalist" for her controversial business decision.

Disney banks on the Taylor Swift Effect

Taylor Swift: The Eras Tour will finally be available to stream on Disney+ starting 15 March. The Disney+ version of the film will feature the concert in its entirety for the first time and will include extra songs such as Cardigan and acoustic covers of fan-favourite hits.

Disney CEO Bob Iger said: "The Eras Tour has been a true phenomenon that has and continues to thrill fans around the world, and we are very excited to bring this electrifying concert to audiences wherever they are, exclusively on Disney+."

Adding the concert film to Disney+ is part of a series of moves by Iger aimed at driving "significant growth" for the entertainment giant. The streamer suffered a loss of 1.3 million subscribers following price hikes in October. However, Disney is now among the many companies hoping to reap the financial benefits of the Taylor Swift Effect.

NFL era

Taylor's latest Love Story is with Kansas City Chiefs player Travis Kelce. As a result, Swift firmly stepped into her American football era in 2023 by showing up at numerous games to cheer on Kelce.

Her attendance at an NFL game on 24 September triggered a viewing frenzy for the Fox sports show America’s Game of the Week, with 24.3 million people tuning in. The surge made the broadcast the most-watched of the week on any network, with a notable uptick in female viewers in the 12-17 and 18-49 age brackets.

On 1 October, Swift – along with a squad of famous friends including Blake Lively, Ryan Reynolds, and Hugh Jackman – attended an NFL match between the Kansas City Chiefs and the New York Jets in NYC (pictured). Swift's presence saw a massive spike in viewership, peaking at a staggering 29.4 million people watching across TV and streaming platforms. This made it the most-watched Sunday football game since the Super Bowl in February 2023 and NBC's most-streamed regular season NFL game ever. The surge included an increase of more than two million female viewers, with a remarkable 53% rise in female teenage viewers, a testament to Swift's Red hot star power.

The NFL didn't hold back in capitalising on Swift's presence either, as the camera panned to her and her star-studded entourage numerous times throughout the game. Her hit song Welcome to New York was also used in a promotional ad for the game.

NFL is in Style

NFL ticket sales and prices have reportedly jumped since Swift started showing up at games, with fans eager to catch a glimpse of the superstar. Meanwhile, football jerseys sporting the name of Kelce (pictured) are very much in Style, with sales spiking by an incredible 400%.

And that's not all. The New Heights podcast, hosted by Travis and his brother Jason who's also an NFL star, has gained one million viewers on its YouTube channel since Travis has been linked to Taylor. It's also taken the #1 spot among all the podcasts on Apple.

Meanwhile, the Kelce documentary, which follows the Super Bowl face-off between Travis and Jason, became America's most-watched documentary on Amazon Prime Video.

As endorsed by...

Brands endorsed by Kelce have also reaped the rewards of the Taylor Swift Effect. Pfizer, for instance, rolled out a campaign starring Kelce in September, urging people to get the COVID-19 booster shot. After Swift's appearance at an NFL game, there was a 32% increase in searches related to Pfizer, with its ads featuring Travis generating 27% more search activity compared to ads that didn't include him, according to marketing firm EDO.

In a similar vein, according to EDO's data, a Campbell's Soup ad featuring Kelce that debuted in August experienced a 4% increase in search activity. Marci Raible, VP of Integrated Marketing at Campbell's, noted that since the rumours about Swift and Kelce dating first surfaced, the brand has also witnessed a remarkable 600% surge in engagement with its non-paid media.

Star of the Super Bowl

Taylor Swift's hotly anticipated appearance at the Super Bowl on 11 February undoubtedly stole the show after she jetted from Toyko to Las Vegas to support her beau. Accompanied by her famous friends, including Blake Lively and Ice Spice, the star was seen cheering on Kelce in the crowds and later celebrating his epic Super Bowl victory with the Chiefs (pictured).

Her presence at the event saw Super Bowl ads benefit from the famed Taylor Swift Effect. Typically, companies invest $7 million (£5.6m) in 30-second Super Bowl ads, reaching an audience of approximately 115 million. However, Taylor's attendance at the Super Bowl was expected to drive viewership to record levels, particularly among teen and tween girls. It's predicted that her presence offered a significant boost to brands with advertisements targeting young women, such as NYX makeup and Dove soap.

Despite making waves at the Super Bowl, Swift declined to headline the 2024 halftime show. Sources suggest she is in "no rush" to perform on the iconic stage, indicating that she does not view the Super Bowl as a "defining moment" in her career at this time.

Political power

Swift's remarkable Midas touch even extends to politics. In September, she posted a call to action on her Instagram account, urging her legion of loyal followers to register to vote. Afterwards, there was a surge of 35,000 new registrations, which marked a whopping 25% increase compared to 2022's National Voter Registration Day.

However, it wasn't all smooth sailing for Swift, who faced backlash from some Republican voters. The Bad Blood was likely due to her past vocal opposition to Donald Trump.

In 2020, Swift endorsed Joe Biden as president. Recently, she's been a vocal supporter of feminism, LGBTQ+ rights, and gun control and a critic of police brutality, racism, and white supremacy.

Wanted: a Taylor Swift reporter

Swift's cultural impact is so strong that media outlet Gannett hired a "Taylor Swift reporter" last year for its USA Today and Tennessean brands to cover news related to the music icon.

Undoubtedly the job of one lucky Swiftie's Wildest Dreams, the ad read: "Swift’s fan base has grown to unprecedented heights, and so has the significance of her music and growing legacy. We are looking for an energetic writer, photographer, and social media pro who can quench an undeniable thirst for all things Taylor Swift with a steady stream of content across multiple platforms."

The listing continued: "Seeing both the facts and the fury, the Taylor Swift reporter will identify why the pop star’s influence only expands, what her fanbase stands for in pop culture, and the effect she has across the music and business worlds."

Breaking records (with records)

The Eras Tour isn't just boosting the US economy; it's also cranking up Taylor Swift's album sales.

As of July 2023, Swift boasts more number-one albums than any other female musician in history. The staggering feat occurred when Swift's re-recording of her Speak Now album soared to the top of the charts in the summer, marking her 12th number-one album and breaking her former tie with the iconic Barbra Streisand, who has 11 top-spot records under her belt.

In December, Swift made history when she became the first-ever living artist with five of the top 10 albums on the Billboard 200 chart. The albums are 1989 (Taylor's Version), Midnights, Folklore, Lover, and Speak Now (Taylor's Version). Music icon Prince is the only other artist to have five albums on the chart simultaneously, but he achieved the feat posthumously in 2016.

The star of Spotify

In September, Swift once again made history as the first female musician with over 100 million monthly listeners on Spotify. In fact, in 2023 alone, the music mogul earned a staggering $100 million (£79.4m) in streaming royalties from Spotify.

The spike in listeners has been attributed to her ongoing tour and the re-recording of her chart-topping Speak Now album, which features fan favourite tracks such as Back to December, Dear John, and Enchanted.

In October, Swift re-released her beloved 1989 album. The re-recording not only includes some of Swift's biggest hits, like Style, Blank Space, and Shake It Off, but also features five new songs.

VMA victory

Swift also dominated the MTV Video Music Awards (VMAs) last year, receiving nine gongs (pictured).

Her catchy pop anthem, Anti-Hero, won Best Pop Video and Song of the Year. Taylor's other notable wins at the glitzy event included the coveted Video of the Year and Artist of the Year trophies.

This makes Swift the second most-awarded musician in the history of the VMAS, with 23 trophies. Beyoncé is the current reigning queen, having scooped up 30 of the prestigious awards throughout her career so far.

A record-breaking Grammy win

Taylor Swift also achieved success at this year's Grammy Awards, making history as the first artist to win the prestigious Album of the Year award four times.

Previously, she had been tied with Stevie Wonder, Paul Simon, and Frank Sinatra for the most wins in this category, each having won three times. However, Swift surpassed them all when her latest album, Midnights, clinched the victory (pictured).

During her acceptance speech, Swift delighted fans by announcing a new album titled The Tortured Poets Department, set to release in April. Could the ambitious star have her sights set on a fifth Album of the Year win?

Taylor's big heart

The newly crowned billionaire is actively using her wealth to make a positive impact on the world. Most recently, she donated $1 million (£800k) to the Tennessee tornado relief fund following a series of tornadoes that struck the state. Swift's generosity extends to various other noble causes, such as cancer research, food banks, and support for assault survivors.

In one remarkable act of kindness that made headlines, Swift donated over $6,000 (£4.8k) to pay one fan's college tuition. Ayesha Khurram, a young student and Swiftie, desperately needed help paying her tuition fees and launched a fundraising campaign that Swift generously donated to.

It's not the first time Swift has supported fundraising efforts. In 2020, she donated $13,000 (£10.4k) to two mothers' GoFundMe accounts to help them with rent. Additionally, in 2019, she gifted $10,000 (£8k) to a fan to assist with medical bills

Social media giant

With a staggering 280 million followers, Swift is also one of the most-followed stars on Instagram. For some degree of comparison, this mammoth figure is larger than the populations of Pakistan (240 million), Brazil (216 million), and Russia (144 million).

There's no denying it: it's Taylor Swift's world, and we're all just "Swiftizens" living in it.

Now find out how Rihanna became the richest female musician on the planet