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Bob Pockrass, NASCAR
As Hendrick Motorsports seeks a sponsor for Jimmy Johnson next year, NASCAR says it’s ready to help.
That is, if the team wants it.
As NASCAR teams attempt to navigate difficult waters when it comes to finding sponsors, the sanctioning body says it works with teams on request as they seek help retaining or attracting sponsors. He can tailor specific searches to the needs of the team or sponsors (he completed more than 90 search requests on behalf of teams last year), provide data on the sport as a whole, help with creative presentations to sponsors and will provide someone to participate. a conference call or an in-person sales call.
Over the past 12 years, NASCAR has designated people to help teams on the marketing side and also added staff to offer help to drivers as well.
“Not every team wants to use these resources, and that’s fine — some of the more sophisticated teams may not use these things,” said Steve Phelps, executive vice president and global head of sales and marketing at NASCAR, at ESPN.com. “Most of them want some analysis and information because the research is very compelling.
“Hendrick Motorsports probably won’t rely on NASCAR to build a pitch for them for the 48 (Johnson’s car) in the future. They’ll tell us, ‘Hey, help us sell the sport on a large scale and what’s next. is going on in the sport and the vision of where the sport is going. Every sponsor, every team is different, but we make the resources available.”
When Lowe’s announced last week that it would leave Hendrick and the seven-time Cup champion after this season, it put the focus back on NASCAR, its health and its role in helping teams.
This is not a simple subject nor a simple solution. Attendance and television audiences reflect a sport in decline. NASCAR says its research shows it provides value to sponsors and that more sponsors are involved now than in the past.
“In my opinion, (Lowe’s departure) has nothing to do with sports,” Phelps said. “It has everything to do with the economic model in which they operate.
“And that’s okay… The number of sponsors involved in our sport is at an unprecedented level. How they operate and what they do in the sport continues to change.”
Lowe’s isn’t the only major retailer to leave NASCAR in recent years. Target, Dollar General and Best Buy are also among them.
“Obviously, retail is under a lot of pressure and we’ve seen some defections,” Phelps said. “The defections, to me, including at Lowe’s, it’s not a NASCAR problem. It’s a retail problem.
“We wish Lowe’s nothing but the best (after) the two decades of sponsorship they’ve had in this sport and the seven championships they won with Jimmie. But you could see some sort of cracks in that system because they weren’t buying on TV, they weren’t doing in-store promotions, they weren’t doing NASCAR-themed designs. … The business model is a challenge for them. We wish them well.”
Among other companies that have dropped team sponsorships in recent years: Farmers Insurance, Great Clips, GoDaddy, Ortho, Aaron’s, Subway, KFC and Aspen Dental. MillerCoors significantly reduced its investment this year.
Among those that have increased their investments in recent years are Busch, First Data, CreditOne and Love’s Travel Stops.
NASCAR claims that more than 25 percent of Fortune 500 companies (including nearly half of Fortune 100 companies) invest in NASCAR in some way.
“There’s no specific category that’s going to replace (retail), whether it’s pharmaceuticals, or technology, or data, or online retail,” Phelps said. “The answer is, ‘Yes, it’s going to be all of those things.’
“It’s not going to be one for one (when it comes to business types). We’re going to continue to make announcements over the next few weeks that just continue to show the strength of the sport, why brands want to be present. involved.”
Andrew Campagnone, who helped negotiate Farmers Insurance and AARP sponsorships with Hendrick in recent years, said it’s likely no company would be willing to invest to the tune of 20 to 25 million dollars (per year) and that Johnson’s deal will likely be split among several sponsors, including some currently in the Hendrick stable.
The Farmers’ last deal he made with Hendrick for 2015-17 was $8 million for 12 carries. There are 36 races in a season. The National Guard spent $32 million to sponsor 20 races and activate Dale Earnhardt Jr. in 2014.
As for track sponsorships, Texas Motor Speedway President Eddie Gossage said his track has been going well in recent months. He said it is difficult for teams to find sponsors because they are trying to match what other teams have in sponsorship and make sure they are not outpaced in areas that could find momentum. .
“Sponsors are spending so much money sponsoring the car that they can no longer spend money in the marketplace (like they used to) with point-of-sale merchandise,” Gossage said. “It’s just changed because the nature of the business has changed. … It’s difficult.
“It’s not that the sport has trouble finding sponsors. It’s just that the cost of poker is so high that there aren’t many people qualified to play poker at that level.”
If NASCAR and its teams want to attract more sponsors, it’s essential that they work to change the narrative, Campagnone said.
“The biggest challenge is the perception that the sport is in decline and the car culture is disappearing and the pay to play is a huge amount of money,” Campagnone said. “Until we get a different narrative in the market, this will be a very difficult challenge.”
Public companies that own runways reported a 2.7 percent decline in admissions in 2017, the 10th consecutive year of declining admission revenue, although a much smaller decline than that of 7.4 percent in 2016. According to International Speedway Corp. annual reports, NASCAR Cup races on television averaged 4.1 million viewers per minute in 2017, down 10.9% from 4. 6 million viewers in 2016.
On the other hand, according to ISC, NASCAR digital platforms (NASCAR.com and its applications) averaged 1.7 million unique visitors per race day, a growth of 7%. NASCAR’s social metrics averaged about 23 million impressions on race day, which it said is also an increase.
NASCAR points to recent research that shows its value to sponsors that it is the most important sport in the United States in terms of fan loyalty to sponsors and fans who socially promote sponsors. A 2015 survey of millennial fans showed that 73% speak positively about NASCAR sponsors and 55% change brands because of NASCAR sponsorship.
Campagnone said it will be critical for NASCAR and sponsors (and the sports industry in general) to find a better way to leverage social media and for companies to learn how to monetize it.
NASCAR said its research shows consumption is increasing and its fans are more in tune with the role of sponsors, continuing to lead other sports in supporting the brands involved in the sport. Phelps said his fans — including many who may not be part of Monster Energy’s demographic — have purchased the product in significant numbers because he sponsors the series.
He added that NASCAR’s new fans are younger, Hispanic and female – all key demonstrations for sponsors.
In addition to data, NASCAR offers workshops to help train teams and marketers on best practices. It also provides additional credentials and things like pace car rides and access to driver meetings for current and potential sponsor executives visiting the tracks. Additionally, it integrates teams into NASCAR promotions and across NASCAR platforms.
Sometimes it will depend on the driver and personal relationships. Johnson said he will be part of the sales team when it comes to finding a sponsor.
“I’ve met a lot of people along the way and have some great connections myself,” Johnson said. “And as Hendrick Motorsports gets behind them, I know they would love for me to get involved and I know I want to be involved. … Maybe one or two relationships that I’ve made over the years years will come to fruition and perhaps help with sponsorship.”
Lowe’s, in its statement, said it is investing in other strategic initiatives. He had been in the sport for over 20 years and with Johnson since his debut in 2001.
“It’s a team responsibility,” Gossage said. “I’m sure if they were really in trouble, NASCAR would try to do what they can to help. Hendrick Motorsports and Jimmie Johnson will have no trouble finding a sponsor.
“You’re talking about an unprecedented opportunity for a seven-time champion who is a free agent with a sponsor. … (If new sponsors are) added to the sport, that’s a net gain. But if he “It’s a sponsor of another team, which happens a lot, so it’s a net loss.”
