How Chicago-area small businesses can capitalize on local events

There’s a reason that cities compete to host popular festivals, concerts, and sporting events.

From Lollapalooza in Grant Park to NASCAR’s downtown street race and year-round programming at venues like Allstate Arena and NOW Arena, fan engagement at live events helps support spending in local economies.

In fact, live events create a “halo effect” that extends well beyond the gates of the venues, boosting local economies and benefiting surrounding businesses.

The numbers speak for themselves.

Last fall, the Bank of America Chicago Marathon generated a $683 million economic impact, driven by attendee spending on hotels, restaurants, retail, and transportation. Lollapalooza contributes more than $300 million annually to the Chicago economy, while last year’s NASCAR Chicago Street Race brought in $128 million in additional economic activity.

These figures underscore what’s at stake if the Chicago Bears relocate to Arlington Heights — taking with them not just games, but the millions in event-driven spending that a world-class stadium could generate for surrounding suburbs.

These events fill hotels, pack restaurants, and increase retail foot traffic across the city and suburbs. But high-profile events aren’t the only ones with economic ripple effects. Even smaller-scale events — regional music festivals, street fairs, and theater productions — can contribute to the local economy in meaningful ways. Capitalizing on these opportunities to enhance visibility and leverage revenue potential is a must for business owners.

Here are three strategies for business owners interested in tapping into local events to boost revenue.

Set measurable goals and build in time to plan

Marketing around events starts with clear goals. A restaurant near a stadium might aim to increase foot traffic by 20% on game days. To get there, it may need to hire staff, extend hours, and promote specials to fans — ideally starting several months in advance.

Even businesses without a direct tie to the event can benefit. Hosting a watch party or offering themed promotions can attract new customers and generate buzz. Post-event, owners should evaluate success by tracking foot traffic, sales, and engagement.

Planning ahead also gives businesses time to create promotional materials, train staff, and generate excitement across marketing channels.

Explore a variety of channels

Event-related marketing works best when it’s multichannel. Physical signage along event routes or near venues can boost visibility and drive traffic, particularly when strategically placed to catch the eye of attendees en route.

Audio platforms like radio and podcasts offer another way to reach targeted audiences. A 2024 report from Acast and Edison Research found 84% of podcast listeners take action after hearing a brand mentioned, and 44% make a purchase. These channels may also be more affordable and accessible than large digital ad campaigns.

Pairing in-person activations with digital engagement can further extend reach. A hardware store could host a woodworking demo at a local renaissance fair and invite customers to share their projects online using a branded hashtag — building both community and brand recognition. Creativity is key.

Think beyond revenue benefits

Increased revenue is just one part of the equation. Sponsorships and event partnerships can enhance a business’ reputation and deepen its roots in the community. According to a March 2025 survey, 82.5% of event professionals say sponsorships improve brand exposure.

Smaller businesses can explore partnership options by connecting with event organizers via their local convention and visitors bureau 12 to 18 months out. With enough lead time, they can build meaningful campaigns that align with their values and audience — creating lasting impressions and future opportunities.

As the Chicago region competes to keep — and attract — major events, businesses that stay engaged will be better positioned to benefit. From massive festivals to community block parties, every event is a chance to connect with new customers, reinforce brand values, and grow.

By planning strategically, choosing the right channels, and thinking long-term, local businesses can turn event season into a year-round revenue and reputation win.

• Timothy Little is a managing director and business banking Midwest region executive for Bank of America.