What?s in a name? Lots of money, that?s what.
Name recognition is a major factor for big business. When M&T Bank, a Buffalo, N.Y.-based bank, acquired Allfirst Bank and its 269 Maryland locations in 2003, no one knew of the M&T brand. Striking a $75 million, 15-year stadium naming rights deal with the Baltimore Ravens for the team?s stadium in south Baltimore, M&T Bank put itself on the tips of everyone?s tongue.
“We went from zero name awareness to tied for second place [in bank name recognition] within three months of us announcing the deal,” said William Mabee, senior vice-president of marketing and communications for M&T Bank.
Aside from having its name in huge letters on the front of the stadium, M&T Bank also sponsors the Marching Ravens band and helps with the All-Community Team, which brings financial and volunteer support to many Ravens community service projects.
With its logo plastered everywhere, M&T Bank has become the second most recognized banking name in Baltimore, according to a name recognition survey conducted in recent years. The bank also cites 33 percent growth in operating income from its mid-Atlantic locations since entering the Maryland market.
But M&T Bank isn?t the only business taking advantage of a naming rights opportunity.
In 2000, cable provider Comcast Corp. agreed to a 25-year deal with the University of Maryland to have Comcast?s name hung above the entrance to the Terrapins new basketball home in College Park.
While Comcast declined to comment on the financial aspects of the deal, business and political magazine publisher Corridor Inc. reported that the deal is worth $25 million.
One point, however, is undeniable. When Comcast agreed to the naming rights deal in 2000, it had no customers in Washington, D.C. As of today, it has around 1.1 million subscribers.
“Our sponsorship of the Comcast Center coincided with our growth in the area, as Comcast acquired a number of [cable] systems in the area,” said John Lamontagne, a spokesman for Comcast. “Comcast?s partnership with the University of Maryland to name the Comcast Center has been integral in branding our business locally.”
