In the old days of sports-arena advertising, a static sign was the standard.

Now advertisers have options, from having an electronic banner ad to bestowing the company name and logo on a luxury-suite zone. Detroit venues have an ever-increasing menu of high-tech or niche marketing options.

“The change has been incredible,” said Dan Hauser, executive vice president of the Detroit Pistons. “In the last five years, there has kind of been a revolution in how advertisements are presented.”

Hauser said much of the change comes from advertisers' desire to convey their messages via the latest technology.

Electronic banner screens that span arenas have become extremely popular. Of the Pistons' 500 advertising clients, about 20 of them each game can promote their products and services on the banner screen, changing their messages with little effort.

“It provides them with exclusivity while their signs are up and dominance in the building versus being one of many,” Hauser said.

Jay Colvin, a Bodman L.L.P. partner who has been involved in negotiating naming rights and advertising contracts for Ford Field and the Detroit Lions, said banner screen advertisements usually aren't sold a la carte and depend on the type of contract sponsors have with a sports organization.

He said marketing packages range from hundreds of thousands of dollars to millions, meaning sponsors could pay from $2,500 to $8,000 a game for banner ads. Contracts are negotiated based on the amount of exposure offered.

During televised Pistons games, Hauser said, sponsored elements, such as the player of the game and polls that pop up on-screen sending viewers to pistons.com, are incorporated into broadcasts, allowing advertisers a “TiVo proof” way of reaching viewers, Hauser said.

Marketers in college sports arenas are taking advantage of high-tech trends, too. Mark Riordan, assistant athletic director of marketing and promotions at the University of Michigan, said the prevalence of cell phones and video boards has spurred more interactive promotions at UM's sports venues.

During a game, fans might be asked to send a text message to vote for a song they'd like to hear at halftime or attempt to answer a trivia question. The question is posted on a video board. The promotions all carry a sponsor's name.

“We try to make it relevant to the game,” Riordan said. “More interactive things are nonintrusive because they keep the fans engaged while keeping products in front of people.”

The UM athletics Web site, www.mgoblue.com, is an interactive tool for advertisers, with sponsored fan polls, special sections and banner ads. Riordan said the outcome has been the ability to offer comprehensive packages.

“We provide a combination of exposure through tickets, signage, promotions and our Web site,” he said.

The price of a name

Naming-rights deals remain a huge moneymaker for sports teams. Corporate names on sports arenas aren't a new trend: Comerica Park and Ford Field each carry corporate names. But the amount of money companies are willing to pay has grown tremendously, said Colvin.

“The trend isn't in the naming,” he said. “It's the sheer escalation in dollars. It's not just your name on a building anymore; it gives you access to players, suites, product placement in the stadium and exclusivity. You're not going to see a Chevy sponsorship at Ford Field.”

Colvin said that at the lower end, corporations pay no less than $5 million to $10 million a year for arena naming rights, with some paying more than $20 million a year. About 10 or 15 years ago, $1 million to $1.5 million a year was the norm, Colvin said.

Steve Harms, vice president of corporate sales for the Detroit Tigers, said sponsorships and naming rights of luxury suites and clubs, such as the Chevrolet Champion's Club at Comerica Park , attract interest because the arrangements provide visibility to a specific affluent demographic group.

Some sports venues even name seating sections, something that isn't done at Comerica Park now but may be done in the future.

“Sponsors are starting to grab those too,” Harms said. “Advertisers are looking for the best ways to reach people, and sports teams are looking for the best ways to give them what they want.”

(Source: Crain’s Detroit Business)