The Power of Naming Rights: A Game-Changer for Brand Visibility
Corporate branding is a competitive space, and companies are constantly seeking innovative ways to stand out and capture consumer attention. One strategy that has gained traction in recent years is the acquisition of naming rights for public transit stops. This approach not only provides brands with prolonged visibility but also integrates them into the daily lives of millions of commuters. By placing their names on transit infrastructure, such as stations, maps, and announcements, brands achieve a level of exposure that surpasses traditional forms of advertising. For instance, in cities like Jakarta, where millions of people rely on public transportation daily, the impact of such branding is immense.
The Advantage Over Traditional Advertising
According to marketing expert Yuswohady, managing partner of the research firm Inventure, naming rights offer a significant edge over conventional advertising methods like billboards. While billboards may only capture a brand’s message for a limited time—and often share space with competitors—naming rights agreements can last for years. This longevity ensures that a brand becomes an integral part of a location’s identity, making it a household name. Moreover, when a brand is embedded into the name of a transit stop or station, it naturally becomes part of everyday conversations and even appears on platforms like Google Maps, amplifying its reach far beyond the physical location itself.
Massive Exposure Through Transit Ridership
The numbers speak for themselves. In Jakarta alone, the sheer volume of public transit users creates a fertile ground for brand exposure. For example, in 2024, TransJakarta recorded an impressive 371.4 million passengers, with an average of one million riders per day. The MRT Jakarta and LRT Jakarta systems also served 40.8 million and 21 million users, respectively, last year. These statistics highlight the immense potential for brands to reach a vast and diverse audience through naming rights. By associating themselves with transit stops, brands can ensure that their names are seen and heard by millions of people every single day.
Commuters’ Perspective: Leaving a Lasting Impression
The impact of naming rights extends beyond raw numbers; it creates a lasting impression on commuters. Jakarta commuter Tasya shared her experience, noting how the name of a coffee shop, Tuku, became synonymous with her daily routine. “Whenever I want to buy coffee, I automatically think of Tuku,” she said, referring to the Cipete Raya Toku Station. This anecdote underscores how naming rights can subconsciously influence consumer behavior, making brands a natural part of people’s daily lives. For commuters who pass through these stations regularly, the brand’s name becomes a familiar and trusted presence, fostering brand loyalty over time.
Case Study: Paragon’s Strategic Branding Move
One company that has harnessed the power of naming rights effectively is Paragon Technology and Innovation, the parent company of popular cosmetic brands Wardah and Kahf. By securing the naming rights for the Swadarma TransJakarta stop, Paragon has seen a noticeable increase in brand awareness. While the company has not directly measured the impact on sales, Dwi Suci Candraningsih, its corporate communication executive, confirmed that digital conversations and public engagement with the brand have significantly improved. The five-year agreement not only cements Paragon’s presence in the public domain but also reinforces its position as a leader in the cosmetics industry.
The Value of Owning the Public Domain
Yuswohady emphasizes another crucial benefit of naming rights: entering the public domain. When a brand becomes part of a transit stop’s name, it transcends the realm of advertising and becomes a shared cultural reference point. “A brand that holds a position in the public domain is highly valuable,” he said. This sentiment is echoed in the success of companies like Paragon, which have managed to weave their identities into the fabric of urban life. By doing so, they not only build trust and familiarity but also create a sense of ownership among the public. In a crowded marketplace, this approach offers a unique way for brands to stand out, leaving a lasting legacy that resonates with millions.
