There's lot of money in a name

Every consumer sees 5,000 ads per day on an average, according to a study. It's not surprising. Advertisements are impossible to avoid. They're everywhere. You see them slapped on elevator walls, buildings, park benches, buses and taxis. They appear on TV, movies, at petrol stations, in washrooms. Even air space is not spared from commercialisation: blimps and balloons flashing brand names are launched into the air.

And soon, consumers in the UAE will see a plethora of more commercial messages. The eagerly awaited Dubai Metro is offering naming rights to at least 27 stations and a couple of lines to raise money. With this initiative, companies can put their brand on a station, or on any of the two lines of the network, giving them the opportunity to attract consumers' attention.

According to Mattar Al Tayer, chairman of the board and executive director of Roads and Transport Authority, the naming rights project is unique. "No other government in the world has planned naming rights as part of its transport infrastructure at conception stage. We expect this innovation to make its mark worldwide, and kick start a new marketing concept that sees governments raising funds to improve services, while giving companies a totally new platform for marketing, sampling and customer interaction."

Others call it a new-wave corporate thinking, but selling of naming rights has actually been there for quite some time. For example, it's been a tradition for some institutions like hospitals and schools to name facilities after donors in exchange for contributions. One time, a brewery bought the rights to name a stadium built in Foxborough, Massachusetts in 1970s. The practice has spread to Australia, Canada, Japan, Israel and China, among others, where naming rights to public venues have been sold to companies.

One of the most expensive naming rights deal in history was bagged by Citigroup for the Mets ballpark in New York City. The deal to name the facility "CitiField" is worth $20 million every year for at least 20 years.

The Dubai Metro naming rights project is indeed innovative. As advertising in traditional media gets increasingly crowded with brands fighting for consumers' attention, marketers are pressed to find more inventive ways to reach out to their targets. The Metro stations would be a good alternative venue to advertise. And considering there are a number of firms vying to be noticed, the government could reap hefty revenues from the sale of naming rights, apart from the fare box.

The challenge, however, is how to avoid over-commercialisation and whether consumers will be enamoured by the thought of getting to "X brand" station or hopping over to "Y brand" point. Many consumers are already critical of the trend to plaster ads on everything, so it is essential to use public spaces sparingly for corporate promotion. It is a good idea then to let other stations retain geographical names or landmarks that speak of the city's heritage.

The challenge, however, is how to avoid over-commercialisation and whether consumers will be enamoured by the thought of getting to "X brand" station or hopping over to "Y brand" point.