Sports sponsorship (I) The National
Association for Stock Car Auto Racing, Nascar, will become the
increasingly popular advertising platform. In 2004, it achieved a turnover of three billion dollars - and an even higher advertising value. America's biggest movie stars seem to have a
have found a new favorite meeting place: It's no longer just the
red carpets of the Oscar and Emmy ceremonies, where celebrities like
John Travolta, Britney Spears or Ben Afflek. Recently
they often romp around on the black tar surface of the Daytona
International Speedway in Florida, where some of the competitions of the
Nascar racing circus. They not only sing the
national anthem or give the famous start command "Gentlemen, start
your engines". They also come to present their new films or albums.
and because they get just as much publicity there as on the
Couch from Jay Lenos' "Late Night Show". Nascar benefits from the fact that
the famous faces attract even more viewers to the television than
the current 5.5 million TV households in the USA when the races
be transferred. However, the cross-promotion deals in
usually no money. "We have a good relationship with Hollywood and
now also have an office in Los Angeles," says Andrew Giangola, the
Director of Business Communications at Nascar.
entertainment companies to do marketing through Nascar."
And vice versa: this summer, Nascar was one of the main sponsors of the
movie "Herbie: Fully Loaded" with teen star Lindsay Lohan, in which the
Film motif of "Herbie", a vintage model of the VW Beetle, revived
was. "Herbie" is to compete in a Nascar race in the movie, and
During the filming in Daytona, it just came naturally,
that star racing drivers such as Jeff Gordon and Tony Stewart play supporting roles.
were given. "Nascar is thus becoming part of pop culture," says Giangola.
The Nascar racing circus has become one of the most popular and
most prestigious sports in the USA. After
American football as the sport most frequently shown on television.
is seen. According to a survey by the sports business agency Turnkey
50 percent of the top managers surveyed in the industry believe that
Nascar is a "rising star with even more growth potential".
The figures speak for themselves. The annual turnover is estimated at three billion
dollars and is made up as follows: 50 percent
from sponsorships (1.5 billion US dollars), around 15 percent from each of the
Revenue for broadcasting rights (USD 543 million) and tickets (USD 429 million)
million US dollars), merchandising (322 million US dollars) and food and beverages (322 million US dollars).
drinking (184 million US dollars). The value of free advertising alone
for the Nextel Cup series increased sevenfold between 1995 and 2004
- from 0.6 to 4.2 billion dollars.
Fans with high brand loyalty
Nascar is considered cool. Not only for the visitors and spectators at the
TV screen, but also with the advertisers and car manufacturers who
are represented on site. The events provide fans with "a
brand awareness at the highest level," says Terry Dolan, Nascar
Marketing Manager at Chevrolet. The message is: "If you want a car
that could be produced at such a high speed.
performance, then it must already be of a pretty good quality.
have." In its early years, i.e. after the Second World War, this meant
this strictly that all brands that participated in this form
were also driven by the public on the road. About the
years, certain extras were permitted, for example with tires, suspension and
Safety equipment. Although the Nascar racing cars today are equipped with the
models in the shop windows of brand retailers have little in common.
cars that win races will continue to sell well. "The
Fans like to associate themselves with a winner," says Dolan. On
In this way, the old truism from the 1950s, "Driving
Race on Sunday, sell cars on Monday", still has a certain
Validity to: The probability that a Nascar fan will find one there
participating car is, according to the Chevrolet manager
five times higher than for other brands. The purchase decision is made
fans by so-called mini car shows, which take place before every
races are reeled off in front of the arena to give them hours of
waiting time until opening.
High advertising value guaranteed
The broadcast of the races is of particular value to Nascar marketers
on television, for which the two networks NBC and Fox and their
cable channels together 400 million dollars annually over a period of
of six years. "This gives the cars endless possibilities,
their logos," says Eric Wright from the research institute
Joyce Julius & Associates, which analyzes the effectiveness of brand advertising.
calculated on television. "And because the presenters like the cars
compare, they also get free entries." Chevrolet,
one of the most frequently exhibited brands, was thus given the
year "free" TV advertising in the amount of 414 million dollars.
Ford, Dodge and Pontiac also recorded similar nominal values.
But it is not only the car manufacturers who benefit from the transmissions.
Event sponsors in particular benefit from the same advantages. Is
It is common practice for the races on air to be labeled with their sponsors' names.
such as the "Nextel Cup" or "Nascar Busch Series". And the
Companies are asked to pay massively for their sponsorships: Alone
Nextel secured a total of 750 million dollars for Nascar in 2004 for a ten-year
years of commitment. Even companies that are familiar with the
not directly involved with the automotive industry are
Space bookings such as perimeter advertising. Over 100 of the
Fortune 500 companies such as Hewlett & Packard, Coca-Cola and UPS,
drive in the sponsor entourage of the high-profile Nascar events
with.
A unique community
And that's not all. Even the Nascar fans, of whom there are 75 million
in the USA - over a quarter of the total population - are considered to be
unique. "They feel like they belong," Giangola enthuses. One
Study by the Center for Sports Sponsorship at the
James Madison University in Virginia found that Nascar fans are more likely to use the
buy Nascar sponsor brands than other population groups. "96
percent of those who call themselves 'big' fans know that
Budweiser is the sponsor of Nascar racing driver Dale Earnhardt Jr,
says Larry DeGaris, director of the center. "I have conducted similar surveys
made in other sports, and none of them even come close to
these figures," he says. The fans also think it's good that
companies invest money in their sport: 93 percent of those surveyed said that
stated that sponsors are "very important". Given these figures, it is surprising
not when DeGaris, an avowed non-fan, summarizes: "A
Sponsorship with Nascar is the best investment in marketing."
Gerti Schön