Can White Space Opportunities Make NFL Sponsors, Teams Whole?

BY ADAM GROSSMAN

Tuesday’s JohnWallStreet headline, “NEW WHITE SPACE OPPORTUNITIES UNLIKELY TO MAKE TEAMS, SPONSORS WHOLE” seems both clear and concerning for sports industry professionals. He states, “While the [NFL’s] teams await the valuation research needed to go to market with the white space inventory, doubts remain that the new signage opportunities (16 in total) will be enough to make up for the pandemic-induced losses.”

This one of the few times that we disagree with JohnWallStreet (and its author Corey Leff). More specifically, the white space that the NFL is focused on should deliver significant value to many sponsors. In addition, NFL teams should already have information on how valuable these assets are to go to market.

The white space featured in the JohnWallStreet post refers to the fact that “NFL owners approved a plan that permits clubs to place sponsor logos on tarps that will cover the first 6–8 rows at every stadium.” Prior to the 2020 season, “only sideline sponsors such as Microsoft, Bose, Gatorade and Oakley enjoy brand exposure on the field and other spots TV cameras generally focus.”

Multiple NFL sponsors and teams have used Block Six Analytics Media Analysis Platform (MAP) to determine the value of stadium signage. In general, NFL signage is on screen primarily on kickoffs, field goals / extra points, and scoring plays when cameras pan up towards the middle or upper bowls. This typically means seconds (if that) of exposure each game.  

The only team that had a comparable activation to the new tarps is the digital LED tunnel cover activation created by the Dallas Cowboys in AT&T Stadium for the 2016 season with Pepsico as its partner. While larger in height than 6-8 row signage, the end zone signage demonstrates the value of a similar activation.

We discussed the value of this signage in a case study in Sports Business Journal highlighting our work with PepsiCo. One of the biggest value drivers in this case was how close the tunnel cover was to the field. Because the tunnel cover sign was behind the end zone, however, the camera only caught the signs primarily during the plays mentioned previously in this post. If signs could be visible for more standard plays and are close to the field then that would maximize logo value.

That is functionally what the new tarps on the first 6-8 rows should accomplish. They are as close (if not closer) to the field as was the Cowboys tunnel cover and visible during much more typical game action. Because they are tarps (rather than digital rotational signage), the new static signs should enable companies to maximize logo exposure (because they are always visible unlike digital signage that rotates logos) to the large audiences that NFL games generate.

The other concerning part of the JohnWallStreet analysis is that NFL teams do not already have value analysis of these tarps completed to take to market. The news was publicly reported that teams would have this asset available on June 24th (which likely means that NFL teams knew this was a possibility before that time). The JohnWallStreet post happened on July 7th or about two weeks after the information was publicly reported.

Our work with PepsiCo in 2017 demonstrates that sponsors and teams should not have to wait two weeks to get this type of information. As stated in our case study, “By having near real-time information from MAP at its disposal, Pepsi was quickly able to validate its decision to build the tunnel cover sign and optimize creative on a game-to-game basis. More importantly, Pepsi had the confidence to know it was making the best choice for its business and its brands more quickly than it had typically done in the past by using the results from B6A MAP to determine the value of in-venue signage.”

It is true that some sponsors could not recoup all of the value from in-venue activations or generate the same value that PepsiCo did with the Cowboys. That will depend on the fit of signage to company’s specific revenue and brand goals. For example, business to business (B2B) companies that focus on activations like gameday hospitality could fail to recoup value since signage is typically not the best approach to engage enterprise customers.

For business to consumer (B2C) companies looking to maximize customer awareness at scale, however, the tarps would potentially be one of the most valuable assets in sports if NFL games occur. Not only will tarps enhance the time company logos are on screen but also it is likely that the audiences for NFL games will be larger than previous years. More specifically, multiple other sports have seen with increased in television ratings since their initial returns to competition. The NFL should at least replicate this success with additional value also being generated from social and digital media content created showing the tarps.  

Not every sport has the opportunity to do what the NFL is doing with the new tarps because they typically already have much more signage on or near playing surfaces. The one “good” thing from COVID-19 for NFL teams and sponsors, however, is that they can finally have near-field signage that is comparable to these other sports.