IBJNews

Lucas Oil gets brand boost from Super Bowl venue

Back to TopCommentsE-mailPrintBookmark and Share

Any company with its name attached to the Super Bowl is about to score one of its biggest marketing bounces of the year. And none will realize a bigger victory than California-based Lucas Oil Co.

In 2008, native Hoosier and company founder Forrest Lucas paid $121.5 million for a 20-year naming rights deal for the Indianapolis Colts’ new home stadium. Some sports marketers scoffed at the price and Lucas’ strategy of attaching itself to a football venue. Until then, the company mostly had been involved in motorsports.

Today, the deal looks like a bargain.

Based on the exposure that Lucas Oil Co. will get from Sunday’s NBC telecast alone, Philadelphia-based Front Row Marketing Services projects the company will get $33.8 million in branded media value.

The average annual payment of Lucas’ naming rights deal is less than $6.1 million.

“The more than $33 million value that Lucas Oil Stadium is projected to receive from the NBC broadcast is proving that corporate naming rights partners are right,” said Eric Smallwood, a senior vice president at Front Row, a division of Comcast-Spectator.

Front Row based its numbers on the estimated $3.5 million that NBC was asking marketers for a 30-second commercial during the game. Lucas Oil is expected to get visuals from signage outside and inside the stadium, including scoreboards; verbal mentions during the broadcast and some on-screen graphics.

“Lucas Oil is not an official partner of the NFL, but as part of their corporate naming rights deal, the signage they have in place stays in place,” said Smallwood.

During the Olympics and some other high-profile events, companies that are not partners of the official sanctioning body generally have their signs removed, Smallwood added.

“Lucas’ deal, with the Colts games, Final Fours and all the other events was a slam dunk even before the Super Bowl,” said Milt Thompson, president of Grand Slam Cos., an Indianapolis-based sports marketing consultancy. “Clearly the fact that the stadium will host the Super Bowl makes this deal a runaway success for Lucas Oil.”

Lucas Oil should expect to see an immediate bump in sales, traffic to its website and inquiries to the company, Thompson said. More than 110 million Americans are expected to watch the game on TV.

“It’s all about impressions, and market research proves if consumers have a choice in products, they’ll most often go with the one they’ve heard of more times,” he said.

The exposure from pre-game and post-game coverage by other TV networks and by myriad radio, print and web publications easily could send the Super Bowl-related brand value for Lucas Oil beyond $50 million, sports marketers said.

Consider that the company will get more than $10,000 value in brand exposure just from having its name on the 68,000 Super Bowl tickets, according to Front Row Marketing.

And Lucas Oil isn’t the only winner this week.

Front Row Marketing projected that JW Marriott hotel will get more than $250,000 from brand exposure during Sunday’s Super Bowl telecast and Papa John’s pizza will get about $10,000 in brand exposure from its presence in the Super Bowl Village.

“It’s not surprising that so much value is being driven out of this one event,” Thompson said. “The Super Bowl is by far the most popular sporting event in America and any commercial property that attaches its name to it is coming up a winner.”

ADVERTISEMENT

  • Unfortunately, not sure I agree
    I opened the message to read this article because it cut off at "Lucas" so I thought LucasFilm had paid sponsorships in the Superbowl yesterday that I watched every second of and couldn't recall (save for a couple Star Wars 3D trailers)? Then I saw Lucas Oil in the article and thought - I've never heard of that company... and then when the article went on to explain it was the stadium sponsor - I was a bit embarrassed that their brand never registered on my radar and I still do not recall any brand association from my personal Superbowl viewing experience (let alone recall their logo). Most likely because it is so far out of my contextual references I didn't make the link in my viewing-to-post experience... but I do think it is a stretch to make broad assumptions that other viewers embraced the tie-in more easily? I''m in the mktg/ ad field so I usually pay close attention to these details

    Then again, I still say Candlestick Park, so stadiums may just not be the best vehicle to reach my representative demo...
  • naming rights
    agree that his is specious. Many companies that bought naming rights for stadiums have gone bankrupt.
    http://www.cnbc.com/id/34960125/The_Stadium_Curse_Naming_Deals_Gone_Bust
  • The Premise is Bogus
    Sorry, but I think the premise that this was a winning deal is a bit bogus. First of all, comparing the value of the passive brand exposure Lucas Oil will get versus the active brand exposure of commercials is comparing apples to oranges. It's not the same at all, especially taking into account all of the people who watch the Super Bowl for the commercials. No one watches the game for the naming rights holder. Well, no one perhaps except for Forrest Lucas.

    Secondly, the idea that what Lucas Oil paid for branding rights looks like a "bargain" only works if you compare what they paid this one year to what brand exposure value they get from the Super Bowl. Paying out $6+ million and receiving $33+ million seems like a good deal. But the Lucas deal isn't just for one year. They paid $121+ million. Lucas obviously feels they will get more than $121 million in branding value over 20 years, but at the moment it just looks like they paid $121 million for $33 million in branding value. That doesn't really look like a bargain.

    Post a comment to this story

    COMMENTS POLICY
    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
     
    You are legally responsible for what you post and your anonymity is not guaranteed.
     
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
     
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
     
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
     

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by
    ADVERTISEMENT

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
     
    thisissue1-092914.jpg 092914

    Subscribe to IBJ
    ADVERTISEMENT