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1 SECTION TITLE HERE ©CSM SPORT & ENTERTAINMENT
Insights into the complex industry from CSM, a sport and entertainment agency with an expertise in motorsports
WHY MARKETING THROUGH MOTORSPORTS DRIVES
BRANDS FORWARD
2 EXECUTIVE SUMMARY ©CSM SPORT & ENTERTAINMENT
Motorsports as a sponsorship and marketing
platform has seen significant changes in recent
years. There are more brands in motorsports than
ever before, and with a number of entry points
for brands looking to work within their budget,
motorsports is a valuable breeding ground for
brands that want to grow.
In this report, we’ll provide a top-down view
of motorsports, dive in to what it means to
be a sponsor in motorsports, and showcase
the opportunity for brands: using motorsports
as a platform to launch, achieve and sustain
business objectives.
The growth of motorsports is seen in several
areas: global and domestic revenue, audiences,
consumption of the sport, its ecosystem and
the evolution of the sponsorship model.
For brands who have entered, expanded and
extended their investment in motorsports in
recent years, they know and understand that
motorsports fans are among the most brand-loyal
fans in the industry. Brands with large primary
target audiences have also seen value in investing
in two or more motorsports series or using tent
pole events like the Daytona 500, Indianapolis
500 or Rolex 24 Hours at Daytona to enhance
their overall marketing strategy.
Multiple series in motorsports, in recent years,
are producing strong live-event numbers and
experiencing growth in television viewership even
though overall, viewers are watching less free-to-air
television. Motorsports produces engaging and
authentic content for digital and social channels
watched by millions of fans and followers.
In some series, fans are attending races in numbers
that, average more than the big four U.S. sports
leagues. Even grassroots racing series are seeing
growth and record numbers in attendance. Beyond
attendance and television numbers, the makeup
of motorsports fans is changing with a greater
participation and following from both women
and minorities.
Sports leagues are designing content development
strategies to hit the increased number of
touchpoints with a consumer because of their
evolved consumption habits. Across the industry,
sports leagues are developing business models to
meet the massive audiences in esports and electric
racing, and experiential marketing is pivotal for
brands to have genuine interactions with consumers.
Marketing through motorsports is about much
more than the placement of a logo. Instead, it is
about brands strategically connecting with their
audiences through an authentic consumer journey
to drive results.
3 SECTION TITLE HERE ©CSM SPORT & ENTERTAINMENT
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YOU ARE HERE!MOTORSPORTS 101BEING A SPONSOR IN MOTORSPORTSMOTORSPORTS MYTH BUSTERSINSIGHTSCONCLUSIONHELLO! WE ARE CSM SPORT & ENTERTAINMENT
4 MOTORSPORTS 101 ©CSM SPORT & ENTERTAINMENT
Motorsports is a $5.75 billion global industry.
In the past five years alone, motorsports in overall
revenue has grown by 12 percent, and since 2011,
overall revenue has increased by $1 billion.A
THE INDUSTRYAT A GLANCE
MOTORSPORTS REVENUE
Globally, motorsports generated nearly
$6 billion in annual revenue in 2017.B
Across the sports industry, revenue
is generated from a number of factors,
but the key elements that make up global
motorsports revenue include sponsorship,
advertising, media and broadcasting
and tickets and merchandise.
SPONSORSHIP
Sponsorship is noted as “the lifeblood of
the sport.” From endemic to non-endemic
sponsors, there are several entry points
within motorsports where brands can
connect with their fans including investing
in a series, a team, a driver, a track or
broadcast media.
Motorsports has a passionate fan
base that recognizes the value sponsors
provide, making them the most brand-
loyal fans above other forms of sport
and entertainment.
ADVERTISING
Beyond direct investment with a
league, team, track or event, brands
have the opportunity to buy race
broadcast rights or inventory, such
as commercial advertising or branded
content around motorsports events.
These can be broken out into a general
time buy or broadcast sponsorship.
Coupling a time buy or broadcast
sponsorship with a motorsports program
can amplify results, such as increased
awareness or call-to-action responses.
MEDIA AND BROADCASTING
Some of the largest deals in motorsports
are dollars spent by broadcasters to
own the right to air motorsports events.
For example, NBC and FOX combine to
pay NASCAR nearly $800 million a year
in rights fees, which are then divided
between the tracks, the teams and the
league. INDYCAR recently announced
its new partnership with NBC, which
will see races carried with one partner
across broadcast – free-to-air – and cable
for the first time since the inception of
the series.
The evolution of traditional broadcast
measurement and second-screen
experiences are impacting viewership
numbers, and brands should develop
a strategy for distribution of content
to their target audiences. Strategies
may include the capture and delivery
of unique content, creating a partnership
with content providers and assessing
engagement with their target audience
to constantly lean into the methods that
offer the most return.
TICKETS, MERCHANDISE AND FAN EXPERIENCE
Tickets and merchandise revenue is the
investment made directly by consumers.
Millions of fans attend motorsports events
every year, and fans are quick to buy up
the latest team or driver-centric hat, shirt
2013
2014
2015
2016
2017
$5.12B
$5.26B
$5.43B
$5.58B
$5.75B
$3.75B $4B $4.25B $4.50B $4.75B $5B $5.25B $5.50B $5.75B
or general merchandise item. Millions of
fans also require tickets, and tracks have
continued to evolve their approach to
pricing and packaging for their respective
race events, such as with family and kids
packages, offering the best experience
at an affordable price.
The ticket itself is only part of the
fan experience. Motorsports offers
opportunities to fans that no other sports
provide. For as little as $50, fans can get
close to the action of their favorite teams
through purchasing pit and garage passes.
Alongside exclusive access, motorsports
venues are amplifying fan experiences
through unique viewing locations, creating
an experience within an experience, and
offering fans digital access to information
to plan their best experience prior to
arrival. As with all sport and entertainment
venues, there is opportunity to enhance
the fan experience through technology
and additional content.
5 MOTORSPORTS 101 ©CSM SPORT & ENTERTAINMENT
MOTORSPORTS AUDIENCE
PEOPLE ARE MOTORSPORTS FANSC
GENDERD
OF MOTORSPORTS FANS ARE 18 - 34F
AVERAGE AGEF
PERCENTAGE OF THE GENERAL NORTH AMERICAN POPULATION ARE VERY OR SOMEWHAT INTERESTED IN THE FOLLOWING SERIESG
63% MEN 37% WOMEN
25%
51%41%36%34%
NASCAR |INDYCAR |
FORMULA 1 |NHRA |
OF THE GLOBAL ADULT POPULATIONARE INTERESTED IN MOTORSPORTSE43%
Among adult motorsports fans, 63 percent
are men and 37 percent are women. In the
United States, NASCAR has the highest
percentage of women fans, followed
by INDYCAR. Outside of sports like the
Olympics and the WNBA, motorsports is
aligned with major sports on the split of
men and women fans.
The average age of motorsports fans is 48
years old. This is on-par with the general
population as well as the average age
of an NFL and MLB fan. More than 1 in 3
motorsports fans are under 40 years old,
and more than 1 in 4 motorsports fans
are 18-34. The reach of motorsports to
Millennials is the same as MLB and is on-
par with the NFL and other major sports.
Interest in motorsports in North America
among the general population shows
that: 51 percent are very or somewhat
interested in NASCAR, 41 percent are very
or somewhat interested in INDYCAR, 36
percent are very or somewhat interested
in Formula 1 and 34 percent are very or
somewhat interested in NHRA.H
With the wide array of fans interested
in motorsports, brands are using
multiple motorsports series to reach
their audiences simultaneously or as
an evolution of their brand marketing
strategy. Brands that reach a wider
audience, such as Total Lubricants, DHL,
Mercedes-AMG and Rolex, cross over
into two or more series to hit multiple
touchpoints with their audiences. Brands
that evolve their marketing strategy, yet
continue to use motorsports as a platform,
include UPS, BP Castrol and Verizon.
Motorsports offers a unique and compelling opportunity for brands to interact with a loyal and experience-driven fan base. Learn more on page 11.
What opportunity exists with the emergence of esports? 43 percent of motorsports fans are interested or very interested in esports. Learn more on page 20.
IN NO OTHER SPORT
MOTORSPORTS AND BEYOND
6 MOTORSPORTS 101 ©CSM SPORT & ENTERTAINMENT
FORMULA E
Formula E is the first all-electric
international single-seater street racing
series in motorsports inherently promoting
sustainability. The Championship boasts one
of the most diverse line-ups in motorsports
with a calendar of international host cities
and increasingly innovative technology
on the track.
FORMULA 1
F1 is the sanctioning body of technologically
advanced open-wheel racing. Each
season of Formula 1 consists of a series
of international races, called grand prix,
which are held around the world in diverse
locations as well as historically significant
international venues.
IMSA
IMSA, the International Motor Sports
Association, is known for its exotic cars
and premier road course and street circuits.
IMSA features American-made and imported
high performance vehicles as well as
custom-built racing machines. It includes
North America’s greatest endurance races
including the Rolex 24 At Daytona, the Mobil
1 Twelve Hours of Sebring and Petit Le
Mans at Road Atlanta.
INDYCAR
INDYCAR is a North American open-wheel
racing series that features a diverse group
of drivers and style of races including:
superspeedways, short ovals, road
courses and temporary street circuits.
The global motorsports market comprises a variety of races involving cars,
motorbikes and other vehicles. By design, this report considers the sanctioning
bodies popular in the United States including IMSA, INDYCAR, Formula E,
Formula 1, NASCAR, NHRA, USAC and the World of Outlaws.
NASCAR
NASCAR, the National Association for
Stock Car Auto Racing, is a stock car racing
series that uses standard conventional cars
for races, and races are held on oval, roval
and road course tracks. NASCAR oversees
several series including three national racing
series and three international racing series.
NHRA
NHRA, the National Hot Rod Association,
is the world’s largest motorsports
sanctioning body and the foremost
promoter of drag racing in the world.
The top series of NHRA, the NHRA Mello
Yello Drag Racing Series, races on drag
strips in major U.S. markets.
USAC
USAC, the United States Auto Club,
serves as the sanctioning body for a
number of racing series including the
Silver Crown Series, National Sprint Cars,
National Midgets, .25 Midgets, Pirelli World
Challenge, TORC Off Road, Speed Energy
and American Rally Cross.
WORLD OF OUTLAWS
The World of Outlaws sanctions two major
national series, the Craftsman Sprint Car
Series and the Late Model Series. Races take
place around the country on dirt oval tracks
ranging in size from a 1/4-mile to 5/8-mile.
7 MOTORSPORTS 101 ©CSM SPORT & ENTERTAINMENT
To a general sports fan, the ecosystem of motorsports
may seem one or two dimensional and they may think only
of NASCAR, INDYCAR or Formula 1. However, the makeup
of the motorsports industry is unique and complex.
Below is a sampling of the ecosystem in the U.S.
SANCTIONINGBODIES
BROADCASTPARTNERS
TENTPOLEEVENTS
IN THE U.S.
SERIES
NASCAR NHRA USACFORMULA 1FORMULA E IMSA INDYCAR WORLD OFOUTLAWS
Verizon IndyCar Series
WeatherTech SportsCar
Championship
World of Outlaws Craftsman Sprint
Car Series
Mello Yello DragRacing Series
ABB Formula EChampionship
Monster Energy NASCAR Cup Series
PanasonicJaguar Racing
Mercedes F1 Team Penske Tony StewartRacing
AndrettiAutosport
Chip GanassiRacing
John ForceRacing
Joest Racing
Ricky Taylor,IMSA
Nelson Piquet Jr,Formula E
Sebastian Vettel,Formula 1
Bubba Wallace,NASCAR
Brittany Force,NHRA
Chris Windom,USAC
Josef Newgarden,INDYCAR
Kyle Larson,NASCAR
Knoxville Nationals,WORLD OF OUTLAWS
Rolex 24 Hours,IMSA
U.S. Grand Prix,FORMULA 1
U.S. Nationals,NHRA
Brooklyn E-Prix,FORMULA E
Daytona 500,NASCAR
Grand Prix ofLong Beach,
INDYCAR
Indianapolis 500,INDYCAR
FOX NBCESPN 2 Sirius XMABC CBS Sports ESPNDIRTVision.com
IndianapolisMotor Speedway
Lucas OilRaceway
KnoxvilleRaceway
Streets ofLong Beach
EldoraSpeedway
TEAMS
DRIVERS
TRACKS
Daytona International
Speedway
Charlotte MotorSpeedway
Circuit of theAmericas
8 BEING A SPONSOR IN MOTORSPORTS ©CSM SPORT & ENTERTAINMENT
BEING A
IN
Brands that outshine their competitors
are creating campaigns that enhance fan
experiences. The values and congruent
messages between the brand and
property must be portrayed in content
and campaigns.
Motorsports drives more than awareness
and impression numbers. With a proper
strategy, they impact consideration,
loyalty and product trial. Motorsports
can provide business-to-business
opportunities, employee engagement
opportunities, customer hosting platforms,
unique content marketing campaigns and
once-in-a-lifetime experiences.
Unique to motorsports is the flexibility
for sponsorship investments. Brands
have a history of finding longevity in
motorsports because they can sustain
long-tenured agreements that are catered
to the evolving needs and objectives of
the brand. Brands from many categories
are intertwined within the race itself. From
logo placements and campaign calls-to-
action on vehicles and signage to product
integration within the sport, brands create
connections with the fans on-site and
through broadcast and digital channels.
BRAND INVESTMENT
Motorsports’ major championships may be on traditional live broadcast feeds, but new options
are opening up for rights holders to deliver content directly to the consumer. Learn more on page 19.
DID YOU KNOW?
9 BEING A SPONSOR IN MOTORSPORTS ©CSM SPORT & ENTERTAINMENT
BRANDS IN MOTORSPORTS*
OVER 25% OF FORTUNE 500COMPANIES INVEST IN NASCARI
YEAR-OVER-YEARI
IN THE NUMBER OF SPONSORSIN MOTORSPORTS SINCE 2008
ENDEMIC
NON-ENDEMIC
AUTO MANUFACTURERS | APPAREL/GEAREQUIPMENT | OIL AND GAS | EDUCATIONTECHNOLOGY | AUTO PAINT | LOGISTICS
FOOD AND DRINK | RETAIL | TECHNOLOGYFINANCIAL | CONSUMER PACKAGED GOODSHEALTHCARE | DEVELOPEMENT/CONSTRUCTIONMEDIA TRAVEL/TOURISM | INSURANCETELECOMMUNICATIONS
HONDA | CHEVROLET | GOODYEARRACING ELECTRONICS | SIRIUS XM RADIODHL | ROLEX | NAPA | MENARDSMILLER COORS | SHELL PENNZOILMAZDA | FORD | TOYOTA | TOTALMOTUL | MERCEDES-AMG | MICHELINTAG HAUER | VISA
TOP CATAGORIES IN MOTORSPORTSSPONSORS BRANDS IN MULTIPLE SERIES
*Does not include all brands
By the 2019-20 season, 10 auto manufacturers will be invested in Formula E. Learn more on page 22.
DID YOU KNOW?
10 BEING A SPONSOR IN MOTORSPORTS ©CSM SPORT & ENTERTAINMENT
For each track around the United States and the world,
brands have the opportunity to bid for naming rights
to the track, to be the title sponsor for each event
the track hosts, to be a presenting sponsor for each
event, to be a sponsor to the entertainment events
at the track, to sponsor hospitality events and
to be a sponsor for brand activations at the track.
For every driver, brands have the opportunity to
sponsor the driver and appear on their fire suit,
contract the driver for official sponsor endorsements,
which would be separate from appearing on their
fire suit, as well as to contract them for public service
announcements as an ambassador or spokesperson
of their brand.
Through a media buy, broadcast integration or
through traditional communications brands can enter
motorsports without having to be on-site at the event.
With teams under each series, brands can enter with
team naming rights, as a primary sponsor for multiple
or all races as an associate sponsor for multiple or all
races, or as a technical sponsor.
Within each series under a sanctioning body, there
is an opportunity to be the title sponsor, an official
partner, a non-exclusive partner, a technical supplier
of the series or a sponsor of one or multiple assets.
TRACKDRIVER MEDIA
SERIES TEAM
In a cluttered sponsorship environment, brands must apply fully-integrated programs with a clarity of message and a focused channel to hit every touchpoint of the consumer journey. Learn more on page 21
Points of entry should be rooted in strategy, not based on a list of assets.
Motorsports is continuing to search for ways to control costs and enhance the fan experience, which in turn has created new categories for sponsors. Learn more on page 18.
APPLY A STRATEGY
EXPANDING THE LANDSCAPE
11 BEING A SPONSOR IN MOTORSPORTS ©CSM SPORT & ENTERTAINMENT
Brands with a corporate social responsibility story will find a home among sports fans in general and Formula E fans in particular. Learn more on page 22.
While viewership of sporting events still rules when it comes to most watched content on live television, connecting to consumers through multiple touchpoints generates a more loyal fan. Learn more on page 19.
APPLY A STRATEGY
THINKABOUT THIS
EXPANDING THE LANDSCAPE
PRIMING THELOYAL FAN
Motorsports fans continue to rank as the highest fan base for brand loyalty and consideration among the major U.S. sports.
2XAS LIKELY TO CLAIM THEY CHANGE
BRANDS DUE TO NASCAR SPONSORSHIPSJ
SOCIAL MEDIA FOLLOWERS
FANS STATE THAT A COMPANY’S SPONSORSHIP OF IMSA MAKES THEM FEEL GOOD ABOUT THE
SPONSOR, DRIVING A PURCHASE AND/OR REFERRALK
NASCAR
IMSA
F1 FANS ARE
THAN NON F1 FANS TO BE THE FIRSTTO TRY A NEW PRODUCT OR SERVICEM
80%
OF INDYCAR FANS ENGAGED* WITH A SPONSOR AFTER SEEING THEM
ON TV/IN-PERSONL
FOR BRAND LOYALTY AND CONSIDERATION AMONG
MAJOR U.S. SPORTS
MOTORSPORTS HAS THE
85%
OF FORMULA E FANS AGREETHAT A HIGH DEGREE OF
CORPORATE SOCIAL RESPONSIBILITY (CSR) IS KEY IN THEIR DECISION
WHEN CHOOSING A BRANDN
FORMULA 1
FORMULA E
INDYCAR
12 MOTORSPORTS MYTH BUSTERS ©CSM SPORT & ENTERTAINMENT
Whether it is in the weekly headlines or general chatter, myths are born
from the ebbs and flows of the sport.
Myths to discuss and bust include: motorsports television ratings are
eroding; the only fans of the sport are older white men; race attendance
is low; motorsports content can’t compete online; brands are leaving the
sport; brands don’t have the right budget to get into motorsports.
Perhaps the most repetitive story that seems to be in the headlines is that
motorsports ratings are falling. However, the narrative behind the myth
isn’t necessarily that ratings are declining, but instead, that the product
of motorsports is becoming less of an interest to a television audience.
THESE ARE THE FACTS.
People are watching television differently. Viewership has shifted dramatically
from broadcast and cable networks to subscription-based streaming services.
The popularity of these services, as well as cord-cutting and cord shaving are
changing the television industry. Events that traditionally draw in the biggest
audiences, the Super Bowl, the Grammys, the Oscars and the Olympics, are all
seeing a shift and decline of viewership on free-to-air television.
However, digital and social consumption continues to grow. In 2018, the 60th
Running of the Daytona 500’s social content generated 1.7 million race day
engagements which was up 48 percent compared to 2017. Video views on
digital platforms totaled 1.2 million, up 76 percent.
While measuring viewership across channels is a challenge, in this new era of
television viewing, sports and motorsports are still in high demand on traditional
live television and are producing strong numbers.O
Fox Sports networks aired more than 500 hours of NHRA programming in recent
years and the first non-stop broadcast of IMSA’s Rolex 24 Hours of Daytona in
January 2018. With the biggest growth in attendance and television viewership
among many major sports, IMSA is primed to continue to grow with a new six-
year television deal with NBC beginning in 2019.
INDYCAR announced that starting in 2019, NBC Sports Group will put eight races,
including the 103rd Running of the Indianapolis 500, on NBC. This is an increase
from five races on broadcast television in 2018.
MOTORSPORTS TELEVISION RATINGS ARE ERODING
ONE
13 MOTORSPORTS MYTH BUSTERS ©CSM SPORT & ENTERTAINMENT
Contrary to the myth that the only fans of motorsports
are older white men who don’t make much money,
the fact is that motorsports draws a diverse fan-base
and compares closely to other sports in the United
States. The number of women participating and
following motorsports is significantly growing.
TWO
THE ONLY FANS OF MOTORSPORTS ARE OLDER WHITE MEN
MOTORSPORTS TELEVISION RATINGS ARE ERODING
ONE
INDYCAR
INCREASE IN RATINGS OVERTHE LAST FOUR SEASONSQ
38%
NASCAR
AVERAGE NUMBER OFVIEWERS AMONG MAJOR
SPORTS, BEHIND ONLY THE NFLT
#2
IMSA
INCREASE IN UNIQUEVIEWERSHIP IN 2017R
33%
NHRA
IN VIEWERSHIP SINCE MOVINGBROADCAST RIGHTS TO FOXSPORTSS
72%
FORMULA E
CUMULATIVETV AUDIENCEP
55M
FORMULA 1
INCREASE IN TOTALAUDIENCE VIEWERSHIP IN 2017P
6.2%
MOTORSPORTS FANS ARE 18-34U U.S.-BASED MOTORSPORTS FANS ARE WOMENU
ABOVE
AVERAGE HOUSEHOLDINCOME OF MOTORSPORTS FANSU
$70K24%
NASCAR FANS ARE LATINO, ASIAN,BLACK AND OTHER ETHNICITIESU
14 MOTORSPORTS MYTH BUSTERS ©CSM SPORT & ENTERTAINMENT
FORMULA E
68.3MCOMBINED FORMUAL E
AND TEAM VIDEO VIEWSWThe average American spends 24 hours a week
online. Smartphones are used by 84 percent of
the American population to browse social media,
streaming services and the internet.V
Despite the growing amount of time spent online,
there is still a limit to how much people can consume.
People are consuming relationships with brands as
much as they are with people through social networks,
and every piece of content determines if and how
much a person will engage.
Motorsports have impressively developed content that
their fans and prospective fans are not only interested
in, but are engaged in, which is crashing the myth that
motorsports content can’t compete online.
CONSIDER THE FOLLOWING STATISTICS FROM 2017 >>>
MOTORSPORTSCONTENT CAN’TCOMPETE ONLINE
THREE
DATA CONTINUED ON NEXT PAGE >>>
EXAMPLE CONTENT:
Formula E car vs cheetah, YouTube
15 MOTORSPORTS MYTH BUSTERS ©CSM SPORT & ENTERTAINMENT
110K
HIGHEST
TIMES #ROLEX24 WAS USED DURINGTHE MONTH OF JANUARY 2018Z
FROM 2017 SOCIALMEDIA ACTIVITYZ
OF SOCIALMEDIA FOLLOWERSY
50%INCREASE
49%GROWTH
400K 237%NEW FOLLOWERS IN 2017AA IN TOTAL ENGAGEMENTS ACROSS
ALL SOCIAL MEDIA PLATFORMSAA
IMSA
150% 2800IN TOTAL VIDEO VIEWSAA
MORE THAN
VIDEOS WERE PRODUCEDON INDYCAR PLATFORMSAA
GROWING SPORTON SOCIAL MEDIAX
INCREASE IN MINUTES OFVIDEOS VIEWED ON FACEBOOKX
55%
IN FOLLOWERSX
INCREASE
4.0BSOCIAL MEDIA IMPRESSIONSBB TOTAL ENGAGEMENTSBB
DIGITAL CONSUMPTION RATEAMONG ALL MAJOR SPORTS PROPERTIESCC
463M
421,000,000 SOCIAL MEDIA VIDEO VIEWSOF NASCAR-OWNED CONTENTDD
2018 ROLEX 24
SOCIAL DIGITAL
STREAMING
FORMULA 1
INDYCAR
NASCAR
EXAMPLE CONTENT:
An eight-episode series created by NASCAR launched the
2018 season. The series featured driver Bubba Wallace and
received more than 5.5 million views on Facebook Watch
EXAMPLE CONTENT:
Streaming video from a driver’s Nose Cam
EXAMPLE CONTENT:
Qualifying and race
highlights on Facebook
EXAMPLE CONTENT:
Fernando Alonso Onboard
Camera, Facebook Live
16 MOTORSPORTS MYTH BUSTERS ©CSM SPORT & ENTERTAINMENT
Perhaps a result of the changing viewing and consumption habits of fans, we see that
with a number of variables, there has been a decline in fan attendance at live events
across all sports leagues.
However, the classic American experience, though shifting, is still seeing strong numbers
in motorsports, and in some cases, motorsports is leading in average attendance among
major sports in the United States.
INDYCAR continues to post record numbers and increased attendance every year.
The Grand Prix of Long Beach in California alone brings in more than 180,000 attendees
throughout the event weekend. The Indianapolis 500, the largest single day sporting
event in the world, has averaged more than 300,000 attendees for the past several years.FF
So far in 2018, NHRA has recorded sellout crowds including the Arizona Nationals and
the AMALIE Motor Oil Gatornationals. Overall, NHRA has already seen several sellout
days, when in 2017, NHRA had seven sellout days throughout the entire season.GG
Like youth programs in other sports, grassroots racing series point to the authenticity of
motorsports fan loyalty. Local tracks at the grassroots level, racing throughout many series,
draws consistent growth and attendance with sellout crowds, and the demand is only
getting higher. Short tracks account for more than 400 tracks that see 7,000 events and
17 million fans.HH
The Chili Bowl Midget Nationals, indoor dirt track midget car racing, has sold out for
27 straight years. The World of Outlaws World Finals at the Dirt Track at Charlotte Motor
Speedway has seen sellout crowds for the past five years. The World Finals averages
70,000 fans, who come from all 50 states and around the world, over the three-day event.II
MOTORSPORTS FANS AREN’TATTENDING RACES ANYMORE
FOUR
AVERAGE ATTENDANCE* PER PROFESSIONAL SPORT EE
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
HOCKEY
BASKETBALL
SOCCER
BASEBALL
FOOTBALL
NASCAR
INDYCAR**
17,000
18,000
22,000
30,000
67,000
70,000
89,000
*Rounded to the nearest whole number **Denotes multi-day events
17 MOTORSPORTS MYTH BUSTERS ©CSM SPORT & ENTERTAINMENT
The narrative of this myth isn’t that sponsors are simply
leaving motorsports, but instead, that sponsoring motorsports
is no longer an effective platform.
While recent announcements from brands exiting may seem
like heavy hits to motorsports, including brands Lowe’s and
Target, other well-known brands have recently entered,
returned or expanded their partnerships in motorsports,
including Anheuser-Busch, PNC Bank and Coca-Cola.
More importantly, however, is understanding that the
marketing investments brands are making in motorsports
are producing results. Monster Energy, title sponsor of the
NASCAR cup series, has seen double-digit growth versus
their competitors. PNC Bank, a long-time supporter of Chip
Ganassi Racing, recently announced an expanded partnership.
Large-scale events held every weekend throughout the year
create a natural opportunity for a beer partner to reach its
audience, including Anheuser-Busch, who has invested their
brands in motorsports for years.
SPONSORS ARE LEAVING MOTORSPORTS
FIVE
OF FORTUNE 500 COMPANIESINVEST IN NASCARJJ
OVER
25%
OF THE WORLD’S BIGGESTBRANDS ARE IN MOTORSPORTSKK
44%
PNC BANK INDYCAR
ANHEUSER-BUSCH NASCAR
ACURA IMSA
DELL F1
ABB FORMULA E
DODGE NHRA
P1 INSURANCE USAC
NOS ENERGY DRINK WOO
COCA-COLA INDYCAR & NASCAR
ACURA IMSA
NAPA WOO & NASCAR
PNC BANK INDYCAR & NASCAR
SMITHFIELD FOODS NASCAR
TWITTER NASCAR
NBC SPORTS GROUP INDYCAR & IMSA
NEW SPONSORSHIP DEALS*
*PER SERIES, IN THE LAST 18 MONTHS
U.S. AIRFORCE INDYCAR
SPORT CLIPS INDYCAR
NOS ENERGY DRINK WOO & USAC
IONOMY WOO
U.S. CONCRETE INDYCAR
YETI NASCAR
THE WEATHER COMP. NASCAR
TICKETGUARDIAN NASCAR
MOBILE 1 USAC
BRANDS ENTERING MOTORSPORTS*
*PER SERIES, IN THE LAST 18 MONTHS
BRANDS THAT HAVE EXTENDEDOR EXPANDED PARTNERSHIPS
OF FORTUNE 500 COMPANIESINVEST IN NASCARJJ
OVER
25%
OF THE WORLD’S BIGGESTBRANDS ARE IN MOTORSPORTSKK
44%
PNC BANK INDYCAR
ANHEUSER-BUSCH NASCAR
ACURA IMSA
DELL F1
ABB FORMULA E
DODGE NHRA
P1 INSURANCE USAC
NOS ENERGY DRINK WOO
COCA-COLA INDYCAR & NASCAR
ACURA IMSA
NAPA WOO & NASCAR
PNC BANK INDYCAR & NASCAR
SMITHFIELD FOODS NASCAR
TWITTER NASCAR
NBC SPORTS GROUP INDYCAR & IMSA
NEW SPONSORSHIP DEALS*
*PER SERIES, IN THE LAST 18 MONTHS
U.S. AIRFORCE INDYCAR
SPORT CLIPS INDYCAR
NOS ENERGY DRINK WOO & USAC
IONOMY WOO
U.S. CONCRETE INDYCAR
YETI NASCAR
THE WEATHER COMP. NASCAR
TICKETGUARDIAN NASCAR
MOBILE 1 USAC
BRANDS ENTERING MOTORSPORTS*
*PER SERIES, IN THE LAST 18 MONTHS
BRANDS THAT HAVE EXTENDEDOR EXPANDED PARTNERSHIPS
18 MOTORSPORTS MYTH BUSTERS ©CSM SPORT & ENTERTAINMENT
There is no one-size-fits-all approach to any sponsorship.
Asset-based agreements are in the past and should be
replaced with conversations on how to drive opportunity
to meet a particular brand’s challenges. In motorsports,
because there are vast opportunities that can stretch any
budget to have a big impact and meet brand objectives,
it starts with an understanding of how brands advance
their impact metrics, such as brand, business, internal
or a combination of each.
There are many price ranges for the many assets associated
with entry points into motorsports. The following are
examples within each entry point that can be achieved à la
carte or packaged based on the desired results and budgets.
I DON’T HAVETHE RIGHT BUDGET
SIXINVESTMENT LEVEL*
SOCIAL/INFLUENCER CAMPAIGN SHORT-TERM
SWEEPSTAKES PROMOTION SHORT-TERM
HOSPITALITY SINGLE EVENT
CONSUMER DISPLAY SINGLE EVENT
TEAM SPONSOR ASSOCIATE SINGLE
$
$
$
SOCIAL/INFLUENCER CAMPAIGN SEASON-LONG
HOSPITALITY MULTI OR SEASON-LONG
CONSUMER DISPLAY MULTI OR SEASON-LONG
TEAM SPONSOR HALF ASSOCIATE
TEAM SPONSOR HALF PRIMARY
TRACK SPONSOR
BROADCAST RIGHTS SINGLE EVENT
TEAM SPONSOR FULL PRIMARY
EVENT TITLE SPONSOR
SERIES TITLE SPONSOR
BROADCAST RIGHTS SEASON-LONG
*Sample of assets, not all assets of entry points are represented
No matter how large or small the marketing channel, always take a step back to root your activation in strategy.
An awareness objective may require more branding, less activation; whereas consideration requires a connection with the consumer.
START WITH STRATEGY
19 INSIGHTS ©CSM SPORT & ENTERTAINMENT
Sports fans’ interest in online video
subscriptions continues to increase as
more options and content become available.
Fans have evolved their viewing habits,
and therefore they expect quality content
to be available on-demand.
The evolution of viewing habits has had
its share of winners and losers, but among
the winners are viewers and brands.
VIEWERS HAVE IT ALL.
Viewers have the options. In the last 15
years, our society has experienced a dynamic
consumption revolution with the explosion
of social media, online shopping and the
introduction of numerous “tools” that people
use to consume media and information.
Viewers have an increased interest to
spend their time consuming more content.
This is also referred to as more distraction,
but perhaps a more “distracted” viewer
produces more loyal consumers. The ability
to consume more content allows for viewers
to have multiple engagements with content
and brands.
THIS IS WHERE BRANDS CAN WIN.
Since the introduction of smart phones and
social media, the time we spend consuming
media has significantly increased. In 2002,
the average person 18+ consumed about 51
hours a week of content, primarily through
radio, live television and personal computers.
In 2017, the average person 18+ consumed
more than 79 hours of content per week.LL
This means that with the introduction
of social media, smartphones, non-linear
television and more, the average adult
consumes an additional 28 hours of
content a week.
THE OPPORTUNITIES FOR SPORTS TO CONNECT WITH CONSUMERS HAS NEVER BEEN GREATER.
While viewership of sporting events still rules
when it comes to most watched content on
live television, with sports accounting for 86
of the top 100 telecasts in 2017MM, connecting
to consumers through multiple touchpoints
and platforms generates a greater quality
viewer and loyal fan.
Motorsports’ major championships may be
on traditional live broadcast, but new options
are opening up for rights holders to deliver
content directly to the consumer.
Beginning in the 2018 season, all 88 of the
World of Outlaws Craftsman Sprint Car Series
races stream live on DIRTVision.com.
IMSA and INDYCAR’s new multi-year
television deals with NBC Sports Group
launch in 2019. With INDYCAR’s new
deal, it will join NASCAR in having every
practice, qualifying and race available on
their streaming services giving fans an on-
demand network to view race activity.
In a cluttered sponsorship environment,
brands must apply fully-integrated programs
to employ an approach, a clarity of message,
and a focus of channel to hit every touchpoint
of an evolved consumer journey.
BRANDS ADAPT TO EVOLVED VIEWING HABITS
Motorsports brings the raw power of the platform combined with a multitude of ways to activate sponsorship that other platforms do not have.
IN A LEAGUE OF THEIR OWN
20 INSIGHTS ©CSM SPORT & ENTERTAINMENT
With the aforementioned evolution of consumption and
viewing habits, one of the most intriguing developments
is the esports industry and how brands may use it
effectively.
In 2017, esports emerged with a banner year. The size
and attractiveness of the global esports fan base is
at the forefront of conversations, and in the long-
term, established sports may come to see esports
teams and tournaments as competitors for fans and
sponsor acquisition. With esports still maturing as a
commercial entity, many organizations in established
sports, motorsports included, currently view it as a way
to engage a younger, sought-after audience and are
experimenting in various ways.
The crossover opportunity is here, because 43 percent
of motorsports fans are interested or very interested
in esports.NN Esports is as much a lifestyle as it is a sport.
It encompasses all existing forms of sports and a
multitude of fantasy landscapes that exist only in the
digital world.
The esports industry is growing at an exponential
rate year-over-year. The League of Legends World
Championship, esports’ marquee annual event, had
60 million unique viewers in 2017, which is a significant
increase from 43 million in 2016.OO
FOR BRANDS IN ESTABLISHED SPORTS, ESPORTS PRESENTS AN INTRIGUING OPPORTUNITY TO ACCESS A POTENTIALLY VALUABLE NEW DEMOGRAPHIC.
Motorsports series, and the brands involved, need to
take a similar approach to engaging with esports fans.
The goal is not to introduce motorsports fans to esports,
but rather esports fans to motorsports. The lifestyle, and
gaming parallels to motorsports are what can attract
esports fans to the space.
Brands can alienate new audiences quickly if they don’t
take an authentic approach to developing relationships
with the fan base. Media rights, advertising, merchandise
sales, sponsorship opportunities and revenue streams
are increasing by double digits each year. With hundreds
of millions of streaming hours viewed and revenue
generated in this space, motorsports should be looking
to invest in esports as an area with a significant potential
for brands to participate.
RESPONDING TO THEEMERGENCE OF ESPORTS
The goal is not to introduce motorsports fans to esports, but rather esports fans to motorsports.
TARGETING AN AUDIENCE
21 INSIGHTS ©CSM SPORT & ENTERTAINMENT
On-site events are increasingly being
fueled by experiential opportunities and
relationship-focused fan experiences.
Brands need to go where the audience
is and enhance their experience to be
integrated in the overall event.
The ability to create emotional
connections with fans on-site is the real
opportunity to move down the sales
funnel. We live in an experience economy.
The demand for more experiences is
increasing across generations, and brands
need thoughtful strategies to implement
an authentic experience.
Brands can start by segmenting their
audience and their passions to develop
a true meeting ground. Marketers have
known this for a long time, and 77 percent
of brands view experiential marketing as
a vital piece of their marketing strategy.PP
When a consumer interacts with a brand
that connects with their passions, they are
33 percent more likely to purchase from
CREATING SPONSORSHIP SOLUTIONS THAT FUEL THE CONSUMER JOURNEY
that sponsoring brand. After a hands-on
experience with a brand, 32 percent of
consumers have an improved opinion
of the sponsoring brand.QQ Experiential
marketing taps into this through consumer
experiences that attempt to develop
brand affinity, brand loyalty, brand
advocacy and brand evangelists.
Motorsports offers unique and compelling
opportunities for brands to interact
with a loyal and experience-driven fan
base. Creating fully integrated programs
reinforces the brand’s call-to-action. One-
on-one consumer engagements created
by brands that carry across digital, social,
retail, television, second devices, OOH and
on-site all need to be considered when
developing amazing experiences for fans
to engage with their products.
Brands need to go where the audience is and enhance their experience.
77 percent of brands view experiential marketing as a vital piece of their marketing strategy.
EXPERIENCE COUNTS
DID YOU KNOW?
22 INSIGHTS ©CSM SPORT & ENTERTAINMENT
Formula E has quickly established itself as a major
motorsports series. It has positioned itself uniquely
as “The Electric Street Racing Series,” and it has
major investors in Liberty Global and Discovery
Communications. Formula E has the full support
of FIA President, Jean Todt, who wants to
demonstrate the potential of electric vehicles.
This coincides with an electrification tipping point
for major auto manufacturers and governments
around the world.
By the 2019-20 season, 10 auto manufacturers will
be invested in Formula E, including new arrivals
Jaguar, BMW, Mercedes-Benz and Porsche. The
series has attracted a healthy roster of global brands
dominated by automotive, energy, engineering and
tech brands, which has led to increasing rights fees.
Brands with a corporate social responsibility story
to tell will find a home among sports fans in general
and Formula E fans in particular. Brands without
a corporate social responsibility agenda may be
increasingly less likely to achieve success with sports
fans. As with other forms of marketing through
sport, authenticity is paramount. With 75 percent
of global consumers expecting brands to contribute
to our well-being and quality of lifeRR and the
potential Formula E fan base being 362 million
across major markets, with a young, affluent
and gender balanced profileSS, sustainability
and efficiency need to be part of the platform
for brands that want to invest in the series.
Touted as the hottest property in motorsports,
Formula E has made a strong entrance in the
ecosystem since its debut in 2014. Brands are racing
to join the series, including Porsche, Audi and BMW,
and the new wave of the racing experience is a
breath of fresh air to teams, fans and brands alike.
BRANDS ARE SPEEDINGINTO ELECTRIC RACING
Brands without a corporate social responsibility agenda may be increasingly less likely to achieve touchpoints with sports fans.
MAKE A DIFFERENCE
23 INSIGHTS ©CSM SPORT & ENTERTAINMENT
As the economics of the sport continue to evolve, sports
leagues and sponsors have found more creative ways to
deliver value to each other and to the fans.
This is an example of how motorsports delivers new ways
to control costs, which in turn has created new categories
for sponsors. Mandatory equipment, such as the air guns
in NASCAR, has created a new entry point for brands
while also reducing costs for the teams. This example
is how motorsports delivers new or additional value
back to current or prospective partners.
LEAGUES AND TEAMS ARE NOT THE ONLY ENTITIES LOOKING TO REDUCE COSTS.
Sponsorship budgets are constantly under scrutiny,
and brands have had to evolve their approach to
valuation, activation and measurement. The valuation of
sponsorships has changed over time as brands have found
added value without an increase in costs. The changes in
cost structure have helped grow activation, as any savings
in rights can be applied to find creative ways to engage
with the passionate motorsports fan base.
As activation continues to be an important consideration
for any successful sponsorship, setting objectives
and measuring impact will allow sponsors to quantify
sponsorship effectiveness and define a successful ROO
or ROI, and use those metrics to evolve their programs
for greater results.
Leagues, teams and tracks have developed new
opportunities creating more inventory than in the past.
Brands have tremendous influence and are in a position
to work with their current or prospective partners to find
ways to drive down costs while optimizing value.
There is no denying the level of brand loyalty that
motorsports fans display for those that invest in their
favorite sport. What makes motorsports such a valuable
opportunity is the ability for brands to create tailored
sponsorships to fit their specific needs at their specific
budgets found within the motorsports landscape.
MOTORSPORTS DELIVER VALUE FOR THE MONEY
Brands have tremendous influence and are in a position to work with their current or prospective partners to find ways to drive down costs while optimizing value.
UNIQUE OPPORTUNITYFOR BRANDS
24 CONCLUSION ©CSM SPORT & ENTERTAINMENT
Motorsports as a sponsorship and marketing platform has seen significant transformation in recent
years. The branding heavy “sticker on a car” model has evolved to a model that prioritizes rights
and benefits customized to meet sponsorship objectives.
Whether a brand is launching, achieving or sustaining business objectives, motorsports is proving an
effective platform to reach multiple audiences. Tapping into these brand loyal fans through the right
methods is key. Ongoing evaluation and evolution of those methods will ensure a return.
As with all investment decisions, a simple yet thoughtful approach will mean success. Starting with
the destination in mind is paramount. Whether it be property evaluation and selection, sponsorship
negotiation, development of an integrated marketing plan or putting the elements to work in the
environment, marketing through motorsports drives brands forward.
25 HELLO ©CSM SPORT & ENTERTAINMENT
SPORT & ENTERTAINMENT
CSM is an agency of entrepreneurs, brand innovators, knowledge seekers
and business leaders from across the sport and entertainment industry.
If you’re looking for a partner to help you begin or expand your journey
in sport and entertainment, CSM is ready to drive your brand forward.
WE BELIEVE IN MOTORSPORTS!
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SOCIAL
26 SECTION TITLE HERE ©CSM SPORT & ENTERTAINMENT
Source: IEG
Source: IEG
Source: CIE/CSM Global Fan Survey, 2017 |
Sample of 1,000 adults aged 16+ per market
Source: Nielsen Scarborough (Release 2 Total,
June 2016 - Nov 2017)
Source: CIE/CSM Global Fan Survey, 2017 |
Sample of 1,000 adults aged 16+ per market
Source: Nielsen Scarborough (Release 2 Total,
June 2016 - Nov 2017)
Source: CIE/CSM Global Fan Survey, 2017 |
Sample of 1,000 adults aged 16+ per market
Source: Nielsen Scarborough (Release 2 Total,
June 2016 - Nov 2017)
Source: NASCAR, 2017
Source: NASCAR Fan Engagement 2015
(conducted by Toluna and commissioned
by NASCAR)
Source: IMSA Corporate Partner Overview, 2018
Source: Nielsen Sports SponsorLink USA 2017.
Fans defined as self-identifying between 6-10 on
Fan Avidity Scale of 0-10. *Engagement refers to
visiting the brands website, researched reviews
of the brand, bought the brand, talked to friends/
family about the brand, connected with the brand
on social media, blogged about the brand, tweeted
about the brand or posted on Facebook about
the brand.
Source: CIE/CSM Global Fan Survey, 2017 |
Sample of 1,000 adults aged 16+ per market
Source: CIE/CSM Global Fan Survey, 2017 |
Sample of 1,000 adults aged 16+ per market
Source: Twitter Analytics, Facebook Analytics
Delmondo, and Adobe Analytics
Source: FOM, Nielson Sports
Source: INDYCAR, https://www.indycar.com/
News/2018/03/03-21-INDYCAR-NBC-Sports-
rights-deal
Source: IMSA 2017 Year End Key Metrics
Source: NHRA Year End Report
Source: The Nielsen Company
Source: Nielsen Scarborough (Release 2 Total,
June 2016 - Nov 2017)
Source: MIT Technology Review, https://www.
technologyreview.com/the-download/610045/the-
average-american-spends-24-hours-a-week-online/
Source: Why Formula E, CSM, 2018
Source: CIE/CSM Global Fan Survey, 2017 |
Sample of 1,000 adults aged 16+ per market
Source: IMSA Partner Overview, 2018
A /
B /
C /
D /
E /
F /
G /
H /
I /
J /
K /
L /
M /
N /
O /
P /
Q /
R /
S /
T /
U /
V /
W /
X /
Y /
Z /
AA /
BB /
CC /
DD /
EE /
FF /
GG /
HH /
II /
JJ /
KK /
LL /
MM /
NN /
OO /
PP /
QQ /
RR /
Source: IMSA, Rolex Marketing Deck 2018
Source: INDYCAR Year End Report, 2017
Source: Twitter Analytics, Facebook Analytics,
and Delmondo
Source: comScore
Source: Twitter Analytics, Facebook Analytics,
and Delmondo
Source: SBJ RG Live, INDYCAR 2017 Verizon
IndyCar Series Season in Review, NASCAR 2017
Source: INDYCAR, 2017 Verizon IndyCar Series
Season in Review; IndyStar.com
Source: NHRA
Source: ESPN | http://www.espn.com/racing/nascar/
story/_/id/22761122/went-wrong-how-save-
grassroots-motorsports-local-regional-series-
speedways-nascar-connections
Source: World of Outlaws
Source: NASCAR 2017
Source: Brands ranked within the 2017 BrandZ Top
100 Most Valuable Brands and/or Interbrand Best
Global Brands lists.
Source: Nielsen, 2018
Source: Nielsen, 2018
Source: https://dotesports.com/league-of-legends/
news/lol-worlds-final-viewership-18796
Source: EMI: via http://www.cmo.com/opinion/
articles/2017/3/31/how-experiential-marketing-fits-
into-the-customer-experience.html#gs.o1C_GLs
Source: GMR Marketing Experiential EQ
Source: 2016 Global Strategy Group: http://www.
adweek.com/brand-marketing/infographic-what-
consumers-expect-of-brands-when-it-comes-to-
issues-they-care-about/?platform=hootsuite
Source: CIE/CSM Global Fan Survey, 2017 |
Sample of 1,000 adults aged 16+ per market