How NASCAR helps teams land (and keep) sponsors

[FLRacingFan]

A very good piece by Bob Pockrass.

As Hendrick Motorsports seeks a sponsor for Jimmie Johnson next year, NASCAR says it is ready to help.

That is, if the team wants it.

As NASCAR teams try to navigate what can be tough sponsorship-seeking waters, the sanctioning body says it works with teams by request when they seek help retaining or landing sponsors. It can tailor research specific to the team or sponsor needs (it did more than 90 research requests on behalf of teams last year), deliver data about the sport as a whole, help in creative presentations to pitch sponsors and will provide someone to be on a conference call or in-person sales call.

For the past 12 years, NASCAR has had people designated to help teams on the marketing side and has added staff to offer help to drivers as well.
...

Full: http://www.espn.com/racing/nascar/story/_/id/22861999/how-nascar-helps-teams-land-keep-sponsors

 

[FLRacingFan]

From last year:

The sanctioning body has taken an increasingly active role over the last 12 to 18 months to stretch sales efforts beyond just selling league assets to identifying joint selling opportunities with stakeholders.

As the sanctioning body of the sport, NASCAR doesn’t own teams or tracks (aside from Iowa Speedway), but it has sought ways to package league, team, track and media assets into one bundle to make the sport easier to navigate for sponsors.

The strategy provides a way for sponsors to expand relationships to different stakeholders whereas previously a relationship with NASCAR would have forced the sponsor to strike several separate deals.

Sources said the sanctioning body is talking to some of its official sponsors about backing or incorporating Wallace in marketing programs, ranging from TV advertising to digital and social media. It’s also trying to entice official sponsors to run several paint schemes next year on Wallace’s car, another move that could piece together enough funding for the year.

NASCAR has worked on joint-selling opportunities before. For example, Eli Lilly’s program in the sport grew to include an official NASCAR sponsorship on top of its pre-existing team deal with Roush Fenway Racing.

https://www.sportsbusinessdaily.com...0/02/Leagues-and-Governing-Bodies/NASCAR.aspx

NASCAR helped bring in Click n' Close, also the official mortgage provider of NASCAR, for RPM.

 

[Charlie Spencer]

NASCAR helped bring in Click n' Close, also the official mortgage provider of NASCAR

Is that what Click 'n' Close does? It thought it was an app to help my wife with the bedroom door.

 

[StandOnIt]

A very good piece by Bob Pockrass.



Full: http://www.espn.com/racing/nascar/story/_/id/22861999/how-nascar-helps-teams-land-keep-sponsors

yeah it is a good article, most of us know this knowledge, and the others there isn't any convincing to be of use.

 

[StandOnIt]

Lowes for instance lost 20% in the first quarter. Many of their products that they sell can be bought online from others. I know I have bought many items on line that they carry from others. It saves me a 50 mile round trip to the city.

 

[AtomicPunk55]

"The biggest challenge is the perception that the sport is dwindling and the car culture is disappearing and the pay to play is an enormous amount of money," Campagnone said. "Until we get a different narrative going out in the marketplace, ... that's going to be a very difficult challenge."

I think a fair question would be how did the marketplace come to the conclusion that Nascar is dwindling and that car culture is disappearing? In what ways can that narrative be changed?

"Among those increasing their investments in recent years have been Busch, First Data, CreditOne and Love's Travel Stops."

I suppose it is technically correct that Busch Beer has increased its spend on Nascar in the last couple of years but if they are still part of AB then the overall spend is way down as they were primary sponsors on cars for years. It is that type of marketing gobbledygook that causes major SMH.

"It's not that the sport is struggling to find sponsors. It's just the cost to play poker is so high, there's not many people that qualify to play poker at that level."

This statement reminds me of someone saying "we can sell cars all day long but we just can't get anyone financed." If the buy in to join the poker game is too high to fill the table perhaps the buy in should be lowered. I think that is what is happening as some teams would be lucky to get an 8 million a year sponsor as opposed to the 8 million HMS was getting for 12 races from Farmers.

 

[2 Sweet]

I'm surprised Skoal hasn't mentioned the Velveeta sponsorship of the 31 yet

 

[AtomicPunk55]

I'm surprised Skoal hasn't mentioned the Velveeta sponsorship of the 31 yet

I forgot about Kraft Foods and the sponsorship of Ryan Newman's 31 car last year. I wonder if they re-upped for 2018 or if they are going to save the couple of thousand they were spending per race.............

 

[Team Penske]

Is that what Click 'n' Close does? It thought it was an app to help my wife with the bedroom door.

Before you leave or after??

 

[Allenbaba]

The problem is that very few in the garage know how to sell a sponsorship these days. They still live in a world of paint & patches & one size fits all decks (Andrew Campagnone is a great example of that...really good guy, but still living off his reputation 15 years ago when it was easier to show up with ratings & logo placements, and leave with a check). People need to get WAY more creative. Very few are good at putting themselves in a potential sponsors' shoes and designing a full blown program that helps fix their real time marketing challenges. Most just say "here's where your logos will go, here's how many people we think will see them, and here's what that costs." It's no longer that simple.

 

[Allenbaba]

As for NASCAR's help, I honestly don't doubt Steve Phelps' intentions, but they ("NASCAR") has a very bad reputation of trying to TAKE team sponsors. I have personally been pitched by NASCAR to take one of my clients away from a team, so I know that reputation comes with some meat. Like I said, I don't doubt Steve's intentions, I think he's a trustworthy guy...but there's just a lot of "trust" that would need to be won back by NASCAR as an industry before teams would be willing to seek help from them. Right now they are viewed as competition.

 

[LewTheShoe]

Preach it, @Allenbaba

I would think that the Hendrick empire would be rich with B2B opportunities. Other than Axalta, and maybe a few associate deals, HMS doesn't seem to have gone for B2B.

 

[Towmater]

The problem is that very few in the garage know how to sell a sponsorship these days. They still live in a world of paint & patches & one size fits all decks (Andrew Campagnone is a great example of that...really good guy, but still living off his reputation 15 years ago when it was easier to show up with ratings & logo placements, and leave with a check). People need to get WAY more creative. Very few are good at putting themselves in a potential sponsors' shoes and designing a full blown program that helps fix their real time marketing challenges. Most just say "here's where your logos will go, here's how many people we think will see them, and here's what that costs." It's no longer that simple.

It might help if the networks that televise the race would shoot the cars in a way where you can see the sponsor. Why anyone sponsor would be interested in putting their logo on the hood verses the quarter panel has to be an issue for the Teams. The quarter panel shows us better on TV and costs a sponsor a lot less.

 

[AtomicPunk55]

Wow! Nascar attempting to steal sponsors from teams sure doesn't sound like the basis for a trusting relationship.
While I don't expect Nascar's mouthpieces to badmouth their employer it is interesting that a lot of the sponsorship problems are being blamed on poor performing retailers. It would be interesting to know if anyone inside of Nascar shoulders any of the blame for their current situation or if they see themselves as victims of changing tastes and other things they believe out of their control. I doubt we will ever know.
I agree with Towmater that knowing who the sponsors are is challenging for a lot of reasons and each car has so many of them it gets crowded. Gone are the days of knowing Jimmy Means Alka-Seltzer Pontiac from a mile away.

 

[pjmolo]

It might help if the networks that televise the race would shoot the cars in a way where you can see the sponsor. Why anyone sponsor would be interested in putting their logo on the hood verses the quarter panel has to be an issue for the Teams. The quarter panel shows us better on TV and costs a sponsor a lot less.

I've often wondered how it is that they determined a sponsor's logo on the hood of the car should cost substantially more than on the quarter panel.

Granted, the hood is a much larger area but it's not nearly as easy to see as the quarter panel.

Of course, once upon a time putting a sponsor's logo on the hood apparently never even entered their mind.

go figure . . . .

 

[StandOnIt]

Primary Sponsors are on the rear quarters and the hood of the car. There are exceptions. Kurts car splits Monster and Haas sponsorship and it flips back and forth

 

[pjmolo]

Primary Sponsors are on the rear quarters and the hood of the car. There are exceptions. Kurt's car splits Monster and Haas sponsorship and it flips back and forth

I see that now.

Thanks for the head slap . . .

 

[StandOnIt]

I see that now.

Thanks for the head slap . . .

I don't think it is set in stone but most of the primary sponsor packages are that way, The secondary sponsors are under the primary sponsor on the rear quarters if there is one.

 

[Formerjackman]

As for NASCAR's help, I honestly don't doubt Steve Phelps' intentions, but they ("NASCAR") has a very bad reputation of trying to TAKE team sponsors. I have personally been pitched by NASCAR to take one of my clients away from a team, so I know that reputation comes with some meat. Like I said, I don't doubt Steve's intentions, I think he's a trustworthy guy...but there's just a lot of "trust" that would need to be won back by NASCAR as an industry before teams would be willing to seek help from them. Right now they are viewed as competition.

This is nothing new either, as car owners were accusing NASCAR and ISC of this at LEAST as far back as the mid 1980's. I know one former independent Cup car owner that asserts that NASCAR/ISC stole not one but two potential sponsors from him during the 80's. He and his people cultivated the potential sponsors, brought them to a race to show them around and to meet the NASCAR staff, and all of the sudden, the sponsors were doing deals with them and ONLY them, and the car owner was left out in the cold.

 

[Towmater]

Primary Sponsors are on the rear quarters and the hood of the car. There are exceptions. Kurts car splits Monster and Haas sponsorship and it flips back and forth

There are others. I believe they put the sponsor they negotiated the deal with to have the logo put there. Not from this year but I think you'll see what I writing about:

Bowyer has Rush Truck Centers on his hood and Mobil on the quarter panel:

Larson has Target on the hood and Axe on the quarter panel

 

[jws926]

There are others. I believe they put the sponsor they negotiated the deal with to have the logo put there. Not from this year but I think you'll see what I writing about:

Bowyer has Rush Truck Centers on his hood and Mobil on the quarter panel:

Larson has Target on the hood and Axe on the quarter panel

SHR did that when Tony was driving during the Old Spice/Office whatever it was days, and the Office whatever it was and Mobil One .