Promo - March 2008 - (Page 25)

Sports Marketing Brand marketers at the Daytona 500 By Richard Tedesco photos by Brian Minnich Top brass from mars inc. may well have been reaching for the champagne during the final minutes of the Daytona 500: The candy-colored Toyota the company sponsored was leading the pack and speeding toward the finish line, which meant that during its final laps television cameras focused on the car—and the M&Ms logos that covered it. But when the checkered flag finally waved, it was another Toyota, a blueand-white entry, that blew past the finish line first. And sponsor Alltel was featured prominently as driver Ryan Newman took his victory lap. Was it worth the $20 million primary sponsors pay for a hood logo, or the $10 million associate sponsors fork over for space on a rear panel or above a back tire? Considering that the Daytona 500 offers a three-hour-plus televised showcase for cars in the lead—to say nothing of footage of the winner played over and over on the news—some might consider it a bargain. In a contest where the name of the game is speed (this year’s winner averaged more than 152 miles per hour during the entire race), one could be forgiven for wondering if both the cars and the logos registered as little more than blurs. But that’s before one considers the 200,000 fans at the event, many of whom were clad in souvenir team jackets honoring drivers such as Dale Earnhardt Jr. (and the greens-andblacks of Amp Energy, his primary sponsor), Jeff Gordon (and the blues and reds of patron DuPont), or even the orange outfits of Tony Stewart and Home Depot. NASCAR’s own research indicates that 70% of its attendees consistently purchase products by brands that put their logos on those race-car hoods, door panels and bumpers. But those are NASCAR fans for you—die-hard racing enthusiasts who will plunk down $90 for the privilege of entering a brand-saturated arena such as the Daytona International Speedway. Once inside the gates, they find themselves in Sprint Fan Zone plaza, where they can buy refreshments from Coca-Cola or Budweiser kiosks while listening to bands playing on a Sprintbranded stage, or pick through a variety of NASCAR and Daytona literature at a centrally located covered promenade. A Goodyear-sponsored covered promenade, that is. But the day’s focus is the race, and those obsessed with things automotive can spend their time watching cars being given their final tune-ups in garage areas—again, sponsored by Goodyear—separated from the crowds by Plexiglas shields. (The shields are a necessity. This close to race time, the last thing pit crews want is overenthusiastic fans getting too close. Brand interaction has its limits, even at a NASCAR event.) The cars themselves are covered bumper-to-bumper in brand decals. The average NASCAR team pulls down $12.3 million in annual profit—about 15% of its revenue. And roughly 75% of that revenue is driven by sponsorships. In contrast, the average Major League Baseball team produces a profit margin of $16.5 million—10% of its revenue, according to Forbes magazine. In short, the $100 million brands spent on sponsorships at Daytona was well on display. And that’s just one event. NASCAR’s 75 million fans, and the advertisers that want to reach them, put profits of nearly $3 billion in the pockets of teams, tracks and the governing body itself, Forbes notes. At the Daytona 500 the big kahuna brand was Sprint, making a splash at its inaugural event as title sponsor of the NASCAR cup series (having supplanted its sister Nextel brand in that role). Sprint signage framed the entrance to the Fan Zone, with a branded billboard nearby reading, “So close you can smell the speed.” Even enthusiasts who didn’t pony up nearly a C-note to enter the main event were exposed to sponsors; the huge parking field that fed into the speedway was jammed with sampling and interactive opportunities. For the price of the gas burned to get them to the track, these folks could try out the latest tools at the Sears Craftsman tent. Or they could learn about the benefits of enlistment at a U.S. Army exhibit (or test their basic training skills in rope climbing). They could even get their thirst quenched. In the shade of a brightred Coca-Cola tent, fans lined up to receive samples of Coke Zero, the soft drink firm’s featured product for the current racing season. Leading up to the race, Coke ran a promotion in Florida offering stockcar mavens tickets to the upcoming Coke Zero 400 Powered by Coca-Cola race in Daytona in July if they found one of the golden soda cans planted in 50 six-packs. An additional 50 people can enter a competition on the MyCokeRewards.com site to win tickets while voting for one of two logos Coke designed for the race. Coca-Cola North America will cement the link between Coke Zero Continued on page 26 Promo / WWW.PROMOMAGAZINE.COM / March 2008 25 http://MyCokeRewards.com http://www.promomagazine.com

Table of Contents Feed for the Digital Edition of Promo - March 2008

Promo - March 2008 Editor's Note Girls' Club New Eco Regs? They're Not Going Anywhere Spreads Easily RFID Ramp-Up From Backyard to Broadcast Commentary VROOOM! Stuff We Can't Do Here Yet Q&A: Measuring Up Free Ink The Agency Center Resource Center Promotions 2.0 Index of Advertisers

Promo - March 2008

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