The activation, delivered by brand experience agency Initials, is part of The Strongbow Yard which has a DJ booth made out of speakers and a bar created with shipping containers.
At night, the structure has a huge pyrotechnic display to accompany the DJ sets.
Emma Sherwood-Smith, cider director for Strongbow, said: "For the second year running, the tallest and biggest Isle of Wight brand activation was back – the Strongbow Archer, which towered over The Strongbow Yard."
The Strongbow Yard will also be at Kendal Calling and Victorious festivals.
Rachel Bateman, head of live engagement at Initials, said: "The Isle of Wight Festival was the perfect place for The Archer’s return, especially as festival crowds were dressed in gold to celebrate the festival’s 50th birthday."