Naming rights partnerships result in 30 per cent uptick in brand awareness after first year
As marketers consider how to get bang for buck on their budgets in 2023, new research into the effectiveness of naming rights partnerships reveals that brands experience a 30 per cent increase in brand awareness after just one year.
The research, which conducted by AEG Global Partnerships over a period of six years, covering seven partnerships across Europe, also reveals that brands who engage in naming rights partnerships see an average 20 per cent uplift in brand consideration, with experts suggesting that the success ties back to on-site brand engagement.
Taking Luno, the cryptocurrency exchange platform, and its new naming rights partnership of Luno presents All Points East at the end of Summer 2022 as an example, early indications show that 93 per cent of visitors had on-site recall of the brand, and 44 per cent of attendees said they were likely to recommend Luno to a friend based solely on their experience of the brand at the festival.
Speaking about the partnership, Sam Kopelman, Country Manager UK at Luno, said: “After an incredible festival in the summer where we engaged with existing and potential customers through our on-site activations, guest area and fast-track lanes, we’ve seen an uplift in brand awareness and users in the UK. We’re excited to see what the future brings, specifically in how we can continue to build trust and value for our customers while highlighting cryptocurrency’s potential to revolutionise the music industry”
The study suggests that the uplifts experienced after the first year of a partnership are not a one-off. Instead, the researchers found compounded annual growth rate (CAGR) increases of 15 per cent in brand awareness, and 12 per cent in brand consideration.
While the name alone has a significant impact on the brand, a more in-depth look at the data suggests that delivering engaged activations can shift the needle on favourability and net promoter score (NPS). These engaged activations, which can be anything from augmented reality experiences to exclusive content or VIP access, can generate a 60 per cent increase in favourability and NPS uplift of 25-35 points, showing the difference between aware attendees and engaged attendees.
Commenting on the research, Georgina Iceton, Vice President – Partnership Activation, at AEG Global Partnerships, said: “Naming rights partnerships can and should be so much more than a badging exercise. Right from the start, when we first set up our partnership withThe O2 for The O2 – more than 15 years ago – we have focused on how we can support brands to offer additional value at our venues and festivals.
“We’ve shown that the brands that integrate their naming rights partnerships with content strategies, on-site activations and other channels experience significant uplift, above and beyond what they could expect from the naming rights alone. With such value, it is unsurprising that we’re starting to see similar partnerships for specific products and traditional theatres – and as brands seek ways to increase return and value this is only likely to increase.”
About AEG Global Partnerships
AEG Global Partnerships oversees the worldwide sales and servicing of sponsorships for AEG’s entire portfolio of assets. Creating customised and innovative marketing programs for established and emerging brands it has created some of the most iconic brand partnerships in the entertainment industry, including The O2 in London and Coachella Music Festival.
Overall, the division manages naming rights deals, premium seating and other strategic partnerships. Through its worldwide network of venues, portfolio of powerful sports and music brands and its integrated entertainment districts, AEG entertains more than 160 million guests annually. More information about AEG Global Partnerships can be found at aeggp.com.