Would You Pay $220 Million on Marketing?

Companies are always looking at ways they can distinguish themselves from their competitors, whether it is through their product or marketing tactics. One of the most unique ways that large corporations do this, is venue sponsorship. A few examples in California includes, Sleep Train Amphitheatre, Verizon Amphitheatre, Staples Center, QUALCOMM Stadium and Levi’s Stadium. 

With football season here, QUALCOMM is a global corporation that designs and markets wireless telecommunication products and services. The company is currently sponsoring the NFL’s San Diego Chargers home stadium. Since 1997, QUALCOMM paid $18 million for naming rights to the City of San Diego and the Chargers, which is in effect until 2017. In 2013, Northern California’s San Francisco 49ers awarded the naming rights to Levi’s Strauss & Co., which paid $220.3 million to the City of Santa Clara and the 49ers for a 20-years contract with the option to extend.

These two organizations are examples of venue sponsorship and branding. So why do corporations feel the need to spend a large amount of money on venue sponsorship? Is it really worth the investment?

 As a branding and advertising agency, we look at what the brand can bring to their customers and the venue. Yes, the brand name becomes more memorable to the customer and it serves as a representation of who they are as a brand. Levi’s Strauss & Co., not only purchased the naming rights when they signed the contract, they purchased the rights to host worldwide events, such as:  WWE’s WrestleMania in 2015, the NHL Stadium Series with the Los Angeles Kings and San Jose Sharks in 2015, Super Bowl 50 in 2016 and the Pacific Coast Conference. These events will be covered by media all over the world, benefiting the stadium and Levi’s Straus & Co.

 In the end, the venue sponsorship exposes the Levi’s Strauss brand to a wide array of markets that they may not have reached otherwise. So is it really worth it to spend millions and millions of dollars? Our opinion is yes, it can turn out to be the biggest return on investment.

We understand that not every company can allocate such a large budget. However, there are many other unique advertising and marketing tactics that smaller corporations can utilize. Oster and Associates can help you create some of the most unique advertising campaigns that fit your company’s parameters. Whether it is a radio campaign, editorial story, or billboard, we have over 28 years of experience. Our talented team and award-winning ideas can help support all of your needs.  

Skip to content