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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 can also provide insights into brand perception.
- Sales impact: A direct correlation between the naming rights deal and sales performance is often sought. Marketers may track sales data before and after the deal to assess any increases in brand sales or market share.
- Media value: The equivalent advertising value (EAV) is calculated by estimating how much it would cost to achieve similar exposure through traditional advertising channels.
- Brand association and image: Marketers consider how the naming rights deal aligns with the brand’s values and target 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 can be effective in enhancing brand visibility and prestige, particularly if the venue is well-frequented and has a strong fan base.
However, the effectiveness can vary significantly based on factors such as 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) can be difficult to quantify, and some studies indicate the impact on sales may not always justify the high costs involved.
Dig deeper: Is the way we build and measure brands changing?
First naming rights deal in history
The first widely recognized naming rights deal is often 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 commercial naming rights deal is frequently 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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