Eye on the Esplanade: Understanding the world of sponsorship and what a naming right really is
By medicinehatnews on March 12, 2021.
With the recent renaming of the event centre to Co-op Place, one of the questions I have been asked is if South Country Co-op now owns the event centre? This article should clear this up. Let’s start by understanding what a naming right sponsorship is.
Wikipedia defines naming rights as “a financial transaction and form of advertising whereby a corporation or other entity purchases the right to name a facility or event, typically for a defined period of time.”
Businesses have come to realize that naming rights give them “bang for their buck”. It is the top tier of marketing exposure, community involvement, and fostering the privilege of association.
Naming rights may or may not target a specific audience, however, for broader cross-section demographic marketing plans; it gets the job done. In most cases, companies that opt for naming rights as a part of their marketing plan understand this and are fine with having their name reach a wider audience.
Whether it is the daily foot and vehicle traffic, exposure via an event or the added ability to provide a giveaway now and then to enhance the consumer experience, naming rights offer exposure that is hard to beat.
The business of naming rights within Medicine Hat is relatively new beyond commemoratively named buildings. Naming rights within municipalities in Western Canada are also a fairly new concept, so understanding this unfamiliar type of sponsorship can be confusing.
Back to the original question, does South County Co-op own the event centre? No, the City of Medicine Hat still owns and operates the facility. South Country Co-op recognized the value in the association with the building, and the audience it reaches and paid a fee to re-name it.
Furthering their marketing plan, they chose to increase their brand awareness through the renaming and as such, increase their investment in the community. For the City of Medicine Hat, this is an additional form of revenue, as well as connecting its facility to a well-recognized community organization, so a winwin for all.
A naming rights sponsorship offers a substantial return on advertising/marketing dollars that is above what can be achieved through traditional media channels. The sponsor’s name will be mentioned at every event or activity that happens within the facility creating top-ofmind awareness about the sponsor and a return on investment that is hard to attain through other forms of promotion.
Successful execution of naming rights, as part of a marketing strategy, takes considerable commitment from both sponsor and venue operator and is not something that can work for every business. For those it does work for, the benefits and value found in a competitive marketplace, such as maintaining relevance and visibility, can be very beneficial for the sponsor.
Bottom line, the sale of the naming right for a facility is a way to generate revenue for the facility and give the sponsor years of perpetual exposure… a win-win for everyone.
If you would like to learn more about naming rights or other sponsorship and partnership opportunities with the City of Medicine Hat, feel free to contact me anytime at josdol@medicinehat.ca.
Josie Doll is the corporate partnership co-ordinator for the City of Medicine Hat
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