A poster adorning the streets of Austin, Texas, boasts a famous image: Lord Kitchener, with his waxed moustache, pointing into the middle distance. Underneath the portrait, however, the slogan has been changed. Instead of a call to enlist, the legend reads: "I bet YOU look good on the dancefloor".

Combining images of empire and lyrics from Arctic Monkeys, the poster is but one flank of the British assault on South by Southwest, perhaps the most influential music industry event in the world. And while many other countries are showcasing their artists here in the hope of international exposure, none can match the intensity of the British invasion.

As well as the posters, the parties, the brochure and the barbecue (you're nothing in Austin if you can't offer cooked meat), there is even a British Music Embassy at South by Southwest this year - albeit an embassy that's really just a pub painted red, white and blue.

It's such a sizeable, serious undertaking that even Her Majesty's government are involved.

"It's the strongest opportunity we have to market the music industry", said Pip McEvoy, project manager at UK Trade and Investment. "This event has exactly the profile we're looking for. South by Southwest is an international event which serves a dual role of helping us to market British music but also achieve meaningful business outcomes. It would also be hugely expensive to do this on our own."

The record industry continues to be an important cog in the wheels of the UK economy. Despite recent turbulence, sales of music are worth nearly £5bn a year to the country and, at the last count, the record business was responsible for 126,000 full-time jobs in Britain. Protecting that industry, and the cultural associations that follow when marketing Britain abroad, are a priority in Austin.

The best way to do that is to break new artists, preferably in America, and while Amy Winehouse may not be a role model for young children, she is for the industry, which readily cites her recent success in the United States, where she won five Grammys this year, as an example of what they claim to be the South by Southwest effect.

"We first got interested in bringing Amy to Austin before the UK release of [her album] Back to Black," says McEvoy, who works with record industry organisations and promotional groups over the year to develop their Texan strategy. "At that time she didn't even have a deal to release it in the States.

"We worked heavily with her from January through to March and by the time she played South by Southwest she had a deal. The week after her showcase the album came out, and it went straight to No...#8239;7 in the chart."

Another success, albeit one less frequently mentioned, is James Blunt, whose Back to Bedlam album sold 2.6m copies in the US but who only got a deal after performing at South by Southwest to 15 people in a hotel function room.

As for the bands actually playing the event this year, few seem to realise they have been charged with flying the flag. These New Puritans are one, a band who have received positive reviews at home and form part of the UK's promotional literature in Austin. But they are bemused as to why they are currently playing twice daily in the heat of the Texan spring.

"The label gives you money to do it and so you go," said singer Jack Barnett. "But we have come from playing some amazing gigs in France only to return to playing in front of small, docile crowds.

"That said, we get $40 a day to spend and our hotel has an indoor/outdoor swimming pool."