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As the 2025 baseball season kicks off in the U.S., many teams will play in stadiums named by sponsors who shell out big bucks for the naming rights to the venue. But how do brands know if the investment is effective?
Marketers assess the effectiveness of costly naming rights deals through several key metrics and methodologies:
- Brand exposure and visibility: Marketers evaluate the amount of exposure the brand receives through signage, media coverage, and event attendance. This includes measuring impressions during games, events and broadcasts.
- Audience engagement: They analyze fan engagement through social media interactions, attendance figures and participation in events held at the venue. Surveys and feedback from attendees may provide insights into brand perception.
- Sales impact: A direct correlation between the naming rights deal and sales performance is usually sought. Marketers may track sales data before and after the deal to evaluate any increases in brand sales or market share.
- Media value: The equivalent promoting value (EAV) is calculated by estimating how much it will cost to attain similar exposure through traditional promoting channels.
- Brand association and image: Marketers consider how the naming rights deal aligns with the brand’s values and audience. They may conduct brand health studies to measure shifts in brand perception.
Conventional wisdom on effectiveness
The conventional wisdom surrounding naming rights deals suggests they may be effective in enhancing brand visibility and prestige, particularly if the venue is well-frequented and has a powerful fan base.
However, the effectiveness can vary significantly based on aspects akin to the market size, the popularity of the team or event and the overall marketing strategy of the brand. Critics argue that the return on investment (ROI) may be difficult to quantify, and a few studies indicate the impact on sales may not all the time justify the high costs involved.
Dig deeper: Is the way we construct and measure brands changing?
First naming rights deal in history
The first well known naming rights deal is usually attributed to the 1970 agreement between the Houston Astrodome and the Astrodome’s naming sponsor, which was the Houston-based company, “AstroTurf.”
However, the first major business naming rights deal is continuously cited as the one for the “Rich Stadium” in Buffalo, N.Y., which was named after Rich Products Corporation in 1973. This set a precedent for future naming rights agreements in sports and entertainment venues.
In summary, while naming rights deals can offer significant branding opportunities, their effectiveness is contingent upon strategic execution and alignment with broader marketing goals.
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