North American-based companies will spend $1.28 billion to sponsor music venues, festivals and tours in 2013, a 5.4 percent increase from 2012, according to IEG Research.

The increase lags the projected 5.5 percent increase in overall sponsorship spending but outpaces the 5.1 percent for the entertainment category.

Spending is driven by new activity from both traditional and emerging categories. Recent deals include Citibank and the Rolling Stones, blu eCigs and the Sasquatch! music festival and Fruttare and the Coachella Valley Music and Arts Festival.  

In addition, JBL this year returned to Coachella following a one-year absence while T-Mobile expanded its partnership with sponsorship of the event’s Webcast.

One growing trend: Companies using music to support customer loyalty programs. Citibank is leveraging the Rolling Stones by offering presale tickets for Citi Private Pass members, while Starwood Hotels & Resorts Worldwide, Inc.activates Live Nation by offering one-of-a-kind experiences for its Starwood Preferred Guest Loyalty program.

Beer, bank and spirits companies are the most active non-media categories sponsoring music festivals, with Anheuser-Busch InBev the most active company in terms of number of deals.