Naming rights partnerships result in 30% uptick in brand awareness

New research into the effectiveness of naming rights partnerships has indicated that brands can experience a 30% increase in brand awareness after just one year.  The research, 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% 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% of visitors had on-site recall of the brand, and 44% 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% in brand awareness, and 12% 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% 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 with 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.”