Royalnomics: How William and Kate's Wedding Is Worth $1 Billion

The media has been buzzing about the Royal Wedding for months. News reporters have called the April 29th event the Wedding of the Century. According to ABC News, the wedding itself is expected to cost between $20 and $70 million.

In spite of concerns about a double-dip recession and a belief by some that the monarchy is out of touch, some economists predict that the wedding between Kate Middleton and Prince William could bring in over $1 billion in increased tourism and merchandise. A story from Marketing Week estimates the boost to retail sales alone will be £620 million ($1.024 billion USD at current conversion rates). If the estimates prove accurate, that is a hefty return on British taxpayers' investment.

Marketing Britain

The British tourism industry is working hard to make sure these big numbers are achieved, expecting to invest an $150 million ad blitz after the wedding. Mark DiToro, spokesperson for Britain's official promoter Visit Britain, told CBC.com, "this is a fantastic opportunity to market Britain." Zaid Al-Zaidy, from the U.K. office of TBWA Worldwide, also told CBC.com, "The royal wedding is a gift - it's an accelerator. It takes the brand of Great Britain up people's consideration list."

Free Assist from World News Media

Thanks in part to the relentless coverage by the media, the wedding itself is expected to be a huge television and internet video event, drawing more than 35% of the world's population - the largest audience in history (plus another 800,000 crowded around Buckingham Palace.)

Congratulations Britain! If there ever was effective marketing of an event, this is it. By comparison, Victoria (the oldest child of the current King of Sweden and next in line to the throne) was married on June 19, 2010, and most of the world does not even know about it.

Lifting people's spirits

Those that are pro-monarchy in Britain believe that the Royal Wedding will lift the spirits of Britons that are weary from job cuts and the recession. They are also hoping that the economic predictions of large returns will increase employment and give the British economy a much-needed boost.

Royal Pain

Many have serious concerns about the Royal Wedding.

• Security: In addition to al Qaeda, British security experts are worried about a splinter group that calls itself the Real IRA (no relation to yours truly). It is responsible for 40 attacks over the past year.
• Unmet Expectations: While London is a great city, it is also very expensive. The weather can be unpredictable, and at least some Britons may not be so friendly if the economy does not improve. There is also a concern that some locals may resent visitors that crowd transportation systems, restaurants, and shops.
• Taxation: Many Britons are not happy that British tax payers spend over $124 million per year to support one of the wealthiest families in Britain. The large sum that will be spent on the Royal Wedding has annoyed, and even angered, many that are hurting from a persistently weak economy.
• Wedding Weary: Many are weary from the incessant news about William and Kate's doings.

What can marketers learn?
Leveraging big events is a great way to market a country, region, company, or product line. The following are examples of events BNET readers might consider leveraging:

• Trade Shows
• Sporting events
• Concerts
• Movie premieres
• Political contests
• Holidays
• Seasons
• Disasters (China Syndrome movie got a boost from the Three Mile Island accident)

Related:

• How Steve Jobs Turned the iPad 2 "Cover" Into a Hot Item
• Marketing Lessons from the NCAA's March Madness
• How Do You Know If Your Social Media Marketing is Working?

Ira Kalb is president of Kalb & Associates, an international consulting and training firm, and professor of marketing at the Marshall School of Business at University of Southern California (USC). Follow him on Twitter.