VROOOM!
Top brass from mars inc. may well have been reaching for the champagne during the final minutes of the Daytona 500: The candy-colored Toyota the company sponsored was leading the pack and speeding toward the finish line, which meant that during its final laps television cameras focused on the car — and the M&Ms logos that covered it.
But when the checkered flag finally waved, it was a blue-and-white Dodge that blew past the finish line first. And sponsor Alltel was featured prominently as driver Ryan Newman took his victory lap.
Was it worth the $20 million primary sponsors pay for a hood logo, or the $10 million associate sponsors fork over for space on a rear panel or above a back tire? Considering that the Daytona 500 offers a three-hour-plus televised showcase for cars in the lead — to say nothing of footage of the winner played over and over on the news — some might consider it a bargain.
In a contest where the name of the game is speed (this year’s winner averaged more than 152 miles per hour during the entire race), one could be forgiven for wondering if both the cars and the logos registered as little more than blurs.
But that’s before one considers the 200,000 fans at the event, many of whom were clad in souvenir team jackets honoring drivers such as Dale Earnhardt Jr. (and the greens-and-blacks of Amp Energy, his primary sponsor), Jeff Gordon (and the blues and reds of patron DuPont), or even the orange outfits of Tony Stewart and Home Depot.
NASCAR’s own research indicates that 70% of its attendees consistently purchase products by brands that put their logos on those race-car hoods, door panels and bumpers.
But those are NASCAR fans for you — die-hard racing enthusiasts who will plunk down $90 for the privilege of entering a brand-saturated arena such as the Daytona International Speedway.
Once inside the gates, they find themselves in Sprint Fan Zone plaza, where they can buy refreshments from Coca-Cola or Budweiser kiosks while listening to bands playing on a Sprint-branded stage, or pick through a variety of NASCAR and Daytona literature at a centrally located covered promenade. A Goodyear-sponsored covered promenade, that is.
But the day’s focus is the race, and those obsessed with things automotive can spend their time watching cars being given their final tune-ups in garage areas — again, sponsored by Goodyear — separated from the crowds by Plexiglas shields. (The shields are a necessity. This close to race time, the last thing pit crews want is overenthusiastic fans getting too close. Brand interaction has its limits, even at a NASCAR event.)
The cars themselves are covered bumper-to-bumper in brand decals. The average NASCAR team pulls down $12.3 million in annual profit — about 15% of its revenue. And roughly 75% of that revenue is driven by sponsorships.
In contrast, the average Major League Baseball team produces a profit margin of $16.5 million — 10% of its revenue, according to Forbes magazine.
In short, the $100 million brands spent on sponsorships at Daytona was well on display. And that’s just one event. NASCAR’s 75 million fans, and the advertisers that want to reach them, put profits of nearly $3 billion in the pockets of teams, tracks and the governing body itself, Forbes notes.
At the Daytona 500 the big kahuna brand was Sprint, making a splash at its inaugural event as title sponsor of the NASCAR cup series (having supplanted its sister Nextel brand in that role). Sprint signage framed the entrance to the Fan Zone, with a branded billboard nearby reading, “So close you can smell the speed.”
Even enthusiasts who didn’t pony up nearly a C-note to enter the main event were exposed to sponsors; the huge parking field that fed into the speedway was jammed with sampling and interactive opportunities.
For the price of the gas burned to get them to the track, these folks could try out the latest tools at the Sears Craftsman tent. Or they could learn about the benefits of enlistment at a U.S. Army exhibit (or test their basic training skills in rope climbing).
They could even get their thirst quenched. In the shade of a bright-red Coca-Cola tent, fans lined up to receive samples of Coke Zero, the soft drink firm’s featured product for the current racing season.
Leading up to the race, Coke ran a promotion in Florida offering stock-car mavens tickets to the upcoming Coke Zero 400 Powered by Coca-Cola race in Daytona in July if they found one of the golden soda cans planted in 50 six-packs. An additional 50 people can enter a competition on the MyCokeRewards.com site to win tickets while voting for one of two logos Coke designed for the race.
Coca-Cola North America will cement the link between Coke Zero and NASCAR at events throughout the season in hopes of building the brand’s identity, says Ben Reiling, the company’s director of motorsports marketing.
As part of the deal, a dozen drivers will make personal appearances on behalf of Coke at the races.
“Their accessibility is extremely strong for the sport,” says Reiling. “You don’t get a chance to go into a Major League Baseball locker room. And fans of the sport recognize that the people who participate in it are just like them.”
As if to prove it, driver Greg Biffle took two MyCokeRewards contest winners fishing with him in Mexico last season. The contest was popular, and Coke will be repeating it. But the brand’s most unusual promotion to date was giving away lug nuts used during a race. Reiling says fans snapped up every last one of them.
Sprint’s heavy presence was evident outside the speedway as well. A football field away from the Coke tent lay the Sprint Experience trailer, where visitors could take a drive in a racing simulator or get a primer on how a race car works. The stripped-down car was demonstrated hourly, and viewers with an extra few minutes on their hands could also check out the latest Sprint phone technology.
What’s more, Sprint tailored its offerings to reflect fan interests. The NASCAR Sprint Cup Mobile product enabled users to personalize their handset content to stream broadcast race coverage and monitor live in-car audio of their favorite driver. The service is free for any Sprint customer who buys a special data pack.
“The business proposition for us is how we can get fans closer to the sport,” says Dean Kessell, director of NASCAR Nextel Cup Series marketing.
At Daytona, Sprint also pushed its handheld FanView product, which resembles an oversized BlackBerry with an antenna and is capable of delivering a choice of live in-car camera angles or DirecTV video channels. The device also offers color graphics of race standings and lap times in a 12-ounce package that sold at the track for $415. Sprint works with Octagon to plan its NASCAR activations.
Later this season the telco will reward 20,000 of its most avid NASCAR customers with tickets to the Sprint All-Star Race at Lowe’s Motor Speedway in Charlotte, NC and autograph sessions with drivers.
“Title sponsorship is the sport’s equity,” says Kessel, who cites NASCAR as a prime driver for customer acquisition and retention. “It’s a great place to put your investment, and it works.”
But the best way to build bridges to fans’ hearts is through links with individual drivers. This season, Office Depot is playing on that emotional tug in a contest developed with Harlequin Enterprises Ltd. The winning fan will get to post a marriage proposal on the rear panel of Carl Edwards’ No. 99 Office Depot Ford Fusion during the All-Star Race. (Harlequin has used the eligible Edwards as a character in some of its romance novels.)
Since Valentine’s Day, fans have been invited to submit their proposals online at GetYourHeartRacing.com for a chance to have their words emblazoned on the back of Edwards’ car, as well as a shot at a $10,000 VIP prize package, including a diamond ring.
“What really appealed to us is that it’s a differentiator,” says Jeff Owen, Office Depot’s senior sponsorship manager.
It’s not a big leap from individuals to small business owners — these entrepreneurs match up well with the NASCAR audience.
The office-supply company is reviving a program in which small business owners can register at Office Depot retail outlets for a random drawing that would designate them the “Small Business of NASCAR,” a distinction that comes with a $10,000 Office Depot makeover, a sponsorship spot on Edwards’ car, and permission to use the NASCAR logo for a year.
Edwards makes several personal appearances annually, including events at which backpacks are given to students in need through the Office Depot Foundation; some 2 million have been distributed to date. And he records a weekly podcast on OfficeDepotRacing.com that has a “ping-pong” effect, as Owen puts it, of increasing his popularity and drawing more people to the podcasts.
But the biggest payoff is the relationships built through the NASCAR B2B Council. Office Depot has formed alliances with Coke, Ford and others. “We’re talking about Fortune 500 companies in this sport,” Owen observes. Wunderman Sponsorship & Events assists with Office Depots NASCAR’s activations.
In some cases, Fortune 500 companies are stepping up their involvement without needing the allure of partnerships. After years of associate sponsorships with the Penske Racing team, Exxon Mobil moved to another level of involvement this year with its Mobil 1 brand — the official oil of NASCAR — sponsoring a Penske driver, Sam Hornish Jr. Half of the NASCAR teams use Mobile 1.
“We thought moving up to a primary sponsorship was a way to raise that identity higher and make Mobil 1 an everyday item,” Ryan comments.
Starting in March, customers making a product purchase at any retailer or Exxon Mobil station will receive a NASCAR Hero Card, which features Hornish and others. Such giveaways create store traffic, according to Dermott Ryan, Americas communications manager for Exxon Mobil lubricants and specialties. The campaign is expected to give Mobil 1 a significant lift at Wal-Mart and other retail outlets.
Some brands, such as Goodyear, have been involved since the sport’s beginnings as a Southeastern-centric phenomenon. “This isn’t a sponsor relationship. This is a partnership,” says Joe Viselli, Goodyear’s director of marketing.
Goodyear’s logo on the cars’ tires is a ubiquitous promotional focal point. “It’s all about building affinity among NASCAR fans for Goodyear tires,” Viselli continues. “We need to show there’s relevance to them in their daily life.” Wunderman also lends Goodyear its expertise in planning its NASCAR activations.
Any fans who might momentarily forget about Goodyear’s presence on the track at Daytona are reminded by the famous blimp hovering serenely over the speedway.
The Daytona 500 provided a platform for Goodyear’s “Get There” TV and print ad campaign, emphasizing the brand’s leadership role in the sport. The race, like all NASCAR events, also helps with manufacturer-dealer relationships; Goodyear brought 100 of its dealers to Daytona as its guests.
Daytona provides a similar platform for DuPont. Its paint, lubricants, fire retardant in drivers’ fire suits and the Kevlar belts supporting Goodyear tires are used in abundance at the tracks. DuPont has 15 of its brands involved in racing now, and Larry Deas, manager of DuPont Motorsports, says the company aims to bring more of its 400 brands into the fold.
Deas sees the event as a “relationship-building time” with customers and an opportunity to repay their loyalty. Company research shows that its customers typically attend six to eight of its NASCAR tent events each season.
At Daytona, a DuPont pre-race luncheon brought together 1,000 attendees under a large tent on the raceway’s infield. DuPont’s guests included contest winners and competitors’ dealers who were being wooed by DuPont. All were on hand to meet star driver Jeff Gordon, a four-time Daytona winner.
Deas characterizes Gordon as a “differentiator” for DuPont. “None of our competitors can offer Jeff Gordon.” And Daytona, for the motor oil company, “is bigger than the Super Bowl.”
During the lunch, a relaxed and personable Gordon told his audience, “We’re gonna steal the race.”
In fact, his car headed the pack throughout most the race before dropping out 50 laps from the end.
RACING LEGEND RESURFACES AS MOONSHINE MARKETER
Junior Johnson has come full circle.
Johnson, 76, won 50 NASCAR races during his legendary career and eventually moved into ownership.
As a young moonshiner in North Carolina, he honed his driving skills by escaping revenuers on dimly lit rural roads. This served him well when he hit the stock car circuit in the 1950s, winning the second Daytona 500 in 1960.
“The track was not as exciting as it was running from the revenuers,” he recalls. “If you got caught, you knew you was going to jail.”
Now he’s part owner of Piedmont Distillers and serving as front man for its Midnight Moon moonshine, a libation based on an old family formula.
Johnson launched the brew, “the best shine ever,” at last month’s Daytona 500. Midnight Moon was primary sponsor of the No. 70 Chevy driven by Jeremy Mayfield. “Daytona 500 is the biggest event,” he says. “I think it’s bigger than the Super Bowl as far as return for the money.”
Already in 27 Winn Dixies, Midnight Moon is an 80-proof blend selling for $19.95 a quart. Sampling in bars around Daytona gave it some traction.
Johnson plans to use driver sponsorships in other NASCAR races this year to push the regionally distributed product and a sweet, spicy version dubbed CatDaddy to appeal to feminine tastes.
He points out that he is part of a sponsorship tradition that also includes brands likeJack Daniels and Jim Beam.
Meanwhile, a film is being produced about Johnson’s life called “Whiskey Beginnings.” It’s slated to start shooting in the fall. How’s he feel about his career? “It’s a dream come true,” he says.
— Richard Tedesco
ALLTEL’S WINNING AMBUSH
When Ryan Newman drove his Alltel-branded stock car past the competition to win the Daytona 500, it mirrored his sponsor’s off-track activity that week. Alltel, too, had to come from behind. The telco was effectively shut out of participating in the corporate branding activities at the track. As title sponsor of the NASCAR cup series, Sprint enjoyed mobile category exclusivity on-site.
But Alltel had the last laugh when Newman won.
The week before the race, a 36-foot Alltel trailer was parked across the street from the corporate displays crowding the raceway concourse.
Newman signed autographs inside the vehicle, which doubled as a location to tout the wireless carrier’s services.
And in the run-up to the big race, Alltel mounted a major promotional presence just north of Daytona at the Dirt Car Nationals in Volusia Speedway.
That included a Ryan Newman Night on the Friday preceding the event, with Newman waving the green starter’s flag for that night’s race, and signing autographs while the show car of his Alltel racer was on display.
“We wanted to find a way to be present with the fans,” says Samira Zebian, Alltel’s director of sponsorship marketing. “There’s a nice overlap between the dirt car circuit and the NASCAR circuit.”
At both locations, if Alltel subscribers showed their phones, they received benefits in the form of additional minutes and other perks. And prospects received special offers to sign up.
The venue fits Alltel’s customer “footprint,” as does the entire NASCAR circuit, according to Zebian, with Alltel holding a major presence in rural markets.
Among Alltel’s promotional ploys this season is “My Circle 500,” with 10 winners of the sweepstakes taking an all-expenses-paid trip to Charlotte, NC, in late May to train with the Alltel team and compete as pit crews for a $500,000 grand prize.
— Richard Tedesco
