Corporate sponsors spend huge
amounts of money for NASCAR related advertising. Mars, Inc. has been paying large sums of
money to have their products advertised in various ways with NASCAR. Mars Inc. reports that they get back $4 for
every $1 spent on NASCAR sponsorships.
No wonder they keep on doing it year after year!
How does NASCAR consistently
attract large crowds, television broadcast fees, and corporate sponsors who pay
six figure sponsorship fees? The short
answer is that they attract and include celebrities in their events, treat
people well, and maximize the return on investment for their sponsors.
Why? Celebrities are celebrities in part due to
achievement. As strange as it seems,
sometimes celebrities are famous because they are well known for some
association they share with other celebrities.
Don't fail to understand that people pay attention to celebrities, and
it doesn't seem to matter much whether they even like the celebrity. Famous people attract the attention of the
poor and the wealthy; of the 'Larry Lunch-bucket' crowd and the Wall Street
insiders; of people from Red States and Blue States; and of blue collar, white
collar, and no collar people.
Association with celebrities
seems to lend a celebrity status to ordinary people who are seen spending time
with those people, even when it may be manufactured, scripted event. For
example, Kevin Harvick fans are more likely to drink Pepsi since their favorite
NASCAR driver is associated with the brand.
The power of
association is much greater than we may realize.
NASCAR started in 1948 as an
association for dirt-track racing in the southern United States. The
family-owned company has grown to more than 200 employees, and annual revenues
have risen to over $1.3 Billion.
Marketing research indicates NASCAR has 75 million fans, with over 40%
earning $50 thousand per year. Research also indicates that 40 million of those
fans spend an average of $700 per year on NASCAR merchandise. Web sites, viewing of races on television,
and reading magazines that report on NASCAR activity are quite popular among
this sizable group of fans.
Because of the mix of celebrities
in attendance, the drivers, sponsors, cars, television exposure, and wide fan
demographics, and sponsor loyalty of 75% plus NASCAR has real staying
power. Primary race-team sponsors get to
choose the color of the car, and get preferred placement and size of their
advertising images on the car. For those privileges, primary sponsors pay
somewhere between $5 million to $7 million per year. With significant revenues, NASCAR gives
excellent service focused to maximizing the return on investment for their
sponsors.
So What Can
Your Business Learn From NASCAR Marketing?
First, NASCAR keeps a clean, family image. Second, they make sure they appeal to
people from all walks of life. Third,
NASCAR provides excellent service to sponsors and fans alike. Fourth, NASCAR involves celebrities in
promoting the sport, and ensures that the celebrity sightings are shared among
sponsors, who gain credibility with their own customers.
If your marketing helps your
clients and customers to feel valued, you are emulating NASCAR. If you
understand the power of association with one or more celebrities, and also know
that the appearance fees of some celebrities can be affordable, you are on
track to grow your business. If you make sure that no one needs to blush when
seeing your product or your advertising, the same goes.
When you make sure that those who
contribute significantly to your bottom line receive excellent Return On Investment, and
want to continue doing business with you year after year, you may be learning
from the great example set by the marketing strategies employed by NASCAR.
Top NASCAR Sponsors
After some research, we came up with the top
three sponsors known for their placement on NASCAR vehicles and merchandise.
