NBA Jersey Patch Sponsorships: Premium Pricing Isn’t Always a Slam Dunk
![image](https://elevent.co/wp-content/uploads/2024/11/1jerseycollage_823.jpeg)
NBA jersey patch deals have emerged as one of the league’s most prestigious assets, priced at an average of $10.9 million per deal. Brands investing at this level expect exceptional visibility and strong returns, yet findings from our 2024 Sponsorship Performance Survey indicate that high price tags don’t guarantee high fan recall or engagement.
Rather, the data underscores the complexities of jersey patch sponsorships, suggesting that brands should integrate these investments into a broader strategy to maximize impact. This new data is based on responses from over 2,400 NBA fans, who were part of our larger Sponsorship Performance Survey of more than 5,000 adults. It is the first-of-its-kind research into a relatively new sponsorship asset, the NBA Jersey patch.
Here’s a look at what this could mean for brand sponsors and where opportunities exist to improve engagement:
Price vs. Performance: A Surprising Disconnect
According to our most recent research, only 26% of NBA fans can accurately identify their favorite team’s jersey patch sponsor, while 52% didn’t know the sponsor and 21% guessed the wrong sponsor. Fans who primarily follow teams on TV have the lowest recall rates, with only 29% able to recall the patch sponsor. Surprisingly, those who follow teams on social media demonstrate a significantly higher recall rate of 43%. This finding highlights a potential strategic misalignment for brands expecting TV visibility to drive awareness, as is typically the case with premium-priced sponsorship assets.
Breaking down the survey further, the data shows that the recall for in-market fans, while slightly higher, still falls short of expectations. In-market fans following teams on TV had only a 32% recall rate, only a minimal increase over the general population. Low recall for TV viewers likely stems from the challenges inherent in viewing small, moving patches on players during live games or broadcasts. By contrast, social media provides fans more opportunities to engage with close-up visuals and still images, where patches are more visible and memorable.
Team-by-Team Patch Recall: Uneven Performance
The effectiveness of jersey patch sponsorships also varies widely by team and sponsor. For example, some of the highest-performing teams in terms of patch recall include:
- Oklahoma City Thunder and patch sponsor Love’s Travel Stops: 63% of fans correctly identified the partnership established in 2017.
- Golden State Warriors and patch sponsor Rakuten: 43% of fans correctly identified the partnership established in 2017.
- New Orleans Pelicans and patch sponsor Ibotta: 40% of fans correctly identified the partnership established in 2017.
Conversely, the teams with the lowest patch sponsor recall include:
- Charlotte Hornets and patch sponsor Feastables: 7% of fans correctly identified the partnership established in 2023.
- Sacramento Kings and patch sponsor Dialpad: – 11% of fans correctly identified the partnership established in 2020.
- Indiana Pacers and patch sponsor Spokenote: 14% of fans correctly identified the partnership established in 2023.
This variability suggests that brand recognition for jersey patches can vary dramatically by team, potentially influenced by team popularity, market size, and the length of the partnership.
Comparing Performance: NBA Jersey Patches vs. Stadium Name Rights
When comparing patch sponsorship to stadium naming rights – a more established sponsorship asset – the performance disparity becomes even more evident. While only 26% of fans recall jersey patch sponsors, 53% correctly identify the stadium sponsor. This trend holds even for newer stadium deals, showing a stronger association between team venues and brand names than with jersey patches.
However, the level of investment is not really comparable, as stadium naming rights deals tend to be considerably more expensive. The data from this study simply suggests that jersey patches may require more strategic support to reach similar levels of fan recall and recognition.
The Role of Social Media on Patch Performance and Value
As noted above, our study showed that fans following teams on social media platforms such as Instagram, TikTok, and Facebook have the highest recall rate at 43%, compared to just 29% for TV viewers and 30% for radio listeners. However, despite social media’s importance, it captures a smaller slice of the NBA fanbase, with only 21% of fans following on these platforms.
To better understand the actual value of an NBA jersey patch, we used our broadcast and social media tracking and analysis tool, Spot™, to monitor the Sphere patch worn by the New York Knicks. Our detailed analysis revealed a total sponsorship value of $9.2 million, with social media delivering nearly $6.8 million, or 73.6% of its total value.
Consequently, while effective, social media alone may not deliver the full brand exposure that patch sponsors seek. To enhance awareness and engagement, sponsors may need to invest in additional visibility assets and activation strategies, particularly if they aim to gain traction in the local market.
Willingness to Engage: An Opportunity for Brands
While brand awareness is an important indicator of sponsorship performance, it’s not the only metric brands need to consider. Our study also reveals that 63% of NBA fans express openness to engaging with sponsors, a rate significantly higher than the general population’s openness at 47%.
For brands, this data offers a potential roadmap to increase engagement by offering interactive experiences or promotions tailored to this audience’s higher propensity for sponsor engagement.
Recommendations for Brands
Maximize Patch Performance with Complementary Strategies
The results of the 2024 Sports Sponsorship Performance survey suggest that while NBA jersey patches provide valuable visibility, brands should view them as just one piece of a larger engagement and visibility strategy. To truly maximize the impact of their jersey patch investment, sponsors should adopt a well-rounded, integrated approach that combines multiple channels and touchpoints to optimize fan recall and brand recognition.
Here are a few key takeaways for sponsors aiming to maximize the impact of their NBA jersey patch investment:
- Combine Digital and In-Arena Assets: Pairing the jersey patch with additional assets like digital signage, branded content, and in-arena placements can significantly boost visibility, especially among TV viewers who may miss the small patch during live broadcasts. Digital ads displayed during game highlights, social media posts, or in-arena screens ensure more opportunities for fans to connect with the brand.
- Prioritize Activations: Engaging fans through on-site, social media, and community-based activations can strengthen the association between the brand and the team. Creating interactive opportunities, such as fan contests, giveaways, or virtual events, not only drives recall but also fosters brand loyalty among fans who feel more connected to sponsors.
- Leverage Social Media for Close-Up Brand Exposure: Social media is a powerful tool for maximizing the visibility of jersey patches, particularly through high-quality images and videos that showcase the patch in a memorable way. Brands should consider exclusive content on platforms like Instagram, TikTok, and Facebook, where fans can see the patch up close and engage with branded posts.
- Play the Long Game: Fan recall tends to improve over time, especially with well-established sponsors. Long-term sponsorships, like that of Oklahoma City Thunder’s Love’s Travel Stops, show that building recognition requires consistency and patience. Brands should view jersey patches as part of a sustained effort to build brand familiarity over multiple seasons.
By adopting a comprehensive approach that integrates jersey patches with digital, social, and in-arena activations, brands can enhance both recall and engagement. With NBA fans showing a high willingness to connect with sponsor brands, a strategic combination of visibility assets will allow sponsors to achieve meaningful brand exposure and deeper fan connections.
To learn more about Elevent, delve into this survey on consumer perspectives regarding the impact of sports sponsorship, or arrange a demo of our Sponsorship Lifecycle Management platform, please contact us.