Over the past year, venue naming rights sponsorships have been a prominent topic generating buzz across the sports and entertainment industry. In May, the highly anticipated Co-Op Live Venue opened its doors in the Northwest, instantly becoming the region’s premier indoor entertainment destination. More recently, one of the UK’s oldest and most historic sports venues, Twickenham, announced a landmark £100m 10-year naming rights partnership with Allianz, sparking a lively industry debate.
The high-profile deals beg the question – what valuable benefits can these venue partnerships offer brands, and why are they becoming an increasingly popular strategy? To unpack this compelling question, Damien Gillman, Chief Strategy Officer, leveraged the Luscid platform to build a comprehensive case, examining the multifaceted value of venue sponsorship opportunities in the dynamic sports and entertainment sector.
The Booming Live Events Landscape
Consumer passions are vast in number, and brands have greater access than ever before to authentically engage with diverse interests. This is largely driven by our digitally connected world, which provides a 24/7 feed of content catering to a broad range of passions. The pandemic saw the world starved of genuine, in-person experiences and social interaction – a void that the revitalised live events industry is now rushing to fill.
In fact, Live Nation reported record-breaking ticket sales and attendance figures in early 2023, a trend expected to continue its upward trajectory as we move through 2024. The runway of Taylor Swift’s Eras Tour was a major success – being the highest-grossing tour in history (Billboard). This coupled with the UK’s anticipation surrounding the Oasis reunion, underscores the irrepressible appetite for immersive live experiences.
What is the opportunity for brands, and how does the data provided by the Luscid platform define this?
Identifying the Sweet Spots
- Live Events – 180.5 (85% stronger than the average of 89 genres)
- 90s Music – 168.5
- Rock Music – 165
- Disney – 161
- Gastronomy – 156
- Hip Hop / Rap – 152.5
- 00s Music – 149.9
- Fantasy Films – 138.9
- Sports (Gaming) – 138.4
- Soccer – 113.9
Live music events dominate this ranking, reflecting their immense popularity and impact. Half of the top 10 passion points directly relate to live music across various genres, while film/entertainment and gastronomy additionally highlight the potential of venue sponsorships.
Bridging the Physical-Digital Divide
While live music’s mass appeal is unquestionable, the genre faces a unique challenge when pitted against sports – the relative lack of tangible activation assets makes it harder for brands to fully realise the sponsorship value on tap. This is where the physical environment of live entertainment venues comes into its own, providing a rich tapestry of high-visibility, consumer engagement and experiential touchpoints.
Our Luscid client, Oak View Group, is well-positioned to cultivate a robust portfolio of sponsors for the new Co-Op live venue in Manchester. Delving into our proprietary Brand Value Index, we have uncovered some powerful engagement points for brands associating with the venue – insights that transcend the mere number of visitors through the doors.
The following brand values highlight some significant uplifts versus our average of 9,000 sponsorable properties when Co-Op Live is under the microscope:
- Sustainability – 1058.8 (over 10 x stronger than the Luscid average)
- Innovation – 725.8
- Sociable and Friendly – 480.5
- Ethnic Diversity – 519.9
- Gender Diversity – 207.3
- Enthusiasm – 740.7
The Twickenham Trifecta
Live Music venues offer a compelling canvas, however, sporting arenas present their own unique opportunities. The Luscid platform has over 1,300 soccer properties alone, showcasing the depth of options for brands seeking the right fit.
We replicated a hypothetical Allianz brief into the Luscid platform to crunch the numbers – which considered the importance of event/hospitality activation for a B2B partnership:
As a starting position, the top 10 ranked passion points are dominated by sports:
- Soccer – 181.9
- Rugby Union – 169.6
- Tennis – 149.2
- Skiing – 145.9
- Golf – 142.6
- Cricket – 140.2
- Horse Racing – 136.5
- Sailing – 136
- Cycling – 129.3
- Marathon -127
Rugby Union is strong for Allianz, but what benefits does sponsoring a venue like Twickenham offer?
As a starting point, 43.1% of their target audience follows the England Rugby Union team or other home nations competing in the Six Nations tournament. Layering in the two club teams that reached the most recent Premiership final, the addressable audience grows to 43.5%.
The true power of Twickenham lies in its ability to transcend the rugby union sphere. The stadium regularly hosts at least 5 major concerts per year, in addition to numerous B2B conferences. This diverse programme expands Allianz’s potential reach to an estimated 73.2% of its UK target audience:
- Rugby Union (England): 413,710 – 43.1%
- Northampton / Bath: 416,940 – 43.5%
- Live Events / Music: 631,390 – 65.8%
- Work Conferences: 701,232 – 73.2%
In this case, Allianz’s sponsorship not only secures the brand’s association with the storied rugby union heritage. It also unlocks a wealth of incremental audience access that no other rugby property can offer. Furthermore, the venue itself provides additional brand value synergies around, Heritage & Tradition (433.4), Expertise (232.3), Integrity (193.2), Community (293.3) and Reliability (172.2).
The Data-driven Advantage
Whether it’s an iconic outdoor stadium or a state-of-the-art indoor music venue, the benefits of venue sponsorships are vast, spanning a wide range of brand audiences and partnership briefs. With 89 passion points to navigate within the Luscid platform, harnessing the power of data-driven insights has never been more essential to identifying the right strategic fit.
By leveraging sophisticated analytics, brands can unlock the true potential of venue partnerships, forging deep, meaningful connections that transcend traditional marketing metrics. It’s not just about slapping a logo on a programme; it’s about becoming an integral part of an unforgettable cultural experience that resonates with millions.
The stage is set, the audience is primed, and the opportunity is ripe. Are you ready to elevate your brand through the power of venue sponsorships with data? Visit our website.
