Business of Speed

The Money Behind the Motorsports Industry

By: Tim Frost

Date: March 4, 2018

WILMETTE, Ill. —   As the sports and entertainment industry continues to evolve, so does the data and insights around consumers, enabling a deeper understanding of the fan.

This month, we will take a look back at the past year in motorsports from a media, sponsorship and consumer insights perspective.

Nascar:

Last season was a period of transition for Nascar. They introduced the stage racing format and new series entitlement sponsor. These changes along with new younger drivers created an opportunity for Nascar to innovate using social media to raise their profile. Initially their awareness levels are below several retiring drivers but they have high appeal levels and are well liked by fans.

Monster was not new to motorsports sponsorship. A highly successful relationship with SuperCross served as a foundation for the Nascar Cup Series. One key focus was sponsorship activation at the local market level for race markets.

Neilson Sports estimated the Monster’s media value in 2017 was up 5% over the previous series sponsor Sprint. In the energy drink category, Monster had over a 6% growth rate, almost 3 times that of its competitors.

The stage racing format presented a unique opportunity in which to engage with the race fans. The breaks were longer then a typical commercial allowed for additional interaction.

When comparing the “pre” to “during” segment breaks, there were spikes in social media activity. Nascar related activity on Twitter rose over 38% and Facebook 6%.

The modern fan seeks social connection. Nascar and other forms of motorsports are on all social media platforms. Sponsorship partners will consider their objectives against spectator demographics along with getting fans tune in, view ancillary programming and engage on social media. Media rights holders will seek to leverage commercials and stage breaks as another opportunity to engage and connect with existing and prospective fans.

IndyCar:

Open wheel racing’s competitive balance provided compelling racing. This resulted in a 12% increase in the average number of minutes watched during IndyCar broadcasts. Technology with an enhanced perspective of the action provided sponsors with a 14% increase in on-screen time.

In-car cameras are providing visability all over the race cars resulting in additional value for sponsors. They are capturing logos on the mirror, roof, rear wing, and visor of participating race cars. This has unlocked new opportunites across sponsorship assets.

The key to success will be delivering content to viewers in order to keep them engaged. That material must evolve with shifting viewing habits and offer the best platform for their partners.

Trends:

Consumers are embracing more programming and platforms. Overall viewership is up over 50% in the last fifteen years. The majority of the increase is attributed to tablets, smart phones and computers. Sports are embracing these platforms by creating more specialized content for these devices.

Sports still drives television audiences. There is fragmentation to alternative viewer habits, but sports continue to have the majority of the largest ratings numbers each year.

The media leadership of sports continues reflect the ongoing richness of the sports sponsorship environment and its ability to create new brand opportunities.

Social media exposure compliments the at track experience. Exclusive material developed to create a direct connection to fan is the new norm.