NASCAR Sponsorships and COVID Challenges
Our previous motorsports article looked at NASCAR sponsorships through the years, along with how & why they evolved, including product placement, race day access, and a unique way to reward clients and coworkers. However, budget cuts, layoffs, and other uncertainties about how 2021 will look at the track are the reality during the ongoing COVID-19 pandemic. How do we get past these challenges, and how does the sport continue to race ahead? Our thoughts and strategies will pave your path to success.
Money moves the Needle
While there are reduced crowds at the track, NASCAR viewership has held its own. There continues to be upside for sponsors but hurdles remain. Two notable industry trends are that marketing budgets are ranging 5-8% lower than 2020, while there is a continued shift to digital marketing. Therefore, motorsports are competing for shrinking pieces of a smaller pie.
Ultimately, the allocation of marketing dollars varies based on what the company is seeking to accomplish. A sponsor that has a “business-to-consumer” (B2C) focus could be looking for product placement; in that situation, NASCAR is a great platform. Stable viewership numbers, increasing diversity, and the return of at-track attendees will allow for more activation efforts as the 2021 season progresses.
Pandemic Policies
For all of motorsports, the challenges continue and the disconnects can be mind-numbing. Early reports are that Formula One will postpone the opening race weekend of the 2021 season, which is currently scheduled for Melbourne. NASCAR has already announced schedule changes and cancellations for the 2021 season, as has IndyCar.
The one thing that a company should not do is abandon this market out of frustration. There are ways to bridge the gap to 2022 and beyond. Short-term alternatives can include meeting with the drivers and team away from the track and providing suite access for your guests. Additionally, with seven road courses on the Cup schedule, these sites can accommodate larger groups with the appropriate precautions, bringing a new and exciting opportunity to your guests.
What can ExoConsulting do for you?
Sponsorship agreements are business partnerships with each side vested in the other’s success. This is highlighted through collaborative marketing, activation, and understanding each other’s goals. Single- and multiyear contracts can be structured to provide cost flexibility and also demonstrates a commitment to each other.
In these uncertain times, ExoConsulting is able to structure a sponsorship deal to achieve your marketing goals. We have the connections and expertise to make these racing dreams a reality. We customize your sponsorship to meet the unique needs of your business. No other company provides what we do with regard to excellence, oversight, and attention to detail.
Reach out today and let’s find ways to work together.
Since 2003, ExoConsulting’s founder, Dr. Aaron Studwell, has been providing weather support to the NASCAR community, building his reputation as an effective communicator with a passion for the sport and the people in it. Marketing and Social Media Coordinator Stevie Thompson brings her insight and artistic flair to engage our client base. Together, we provide technical expertise and business insights for client success on and off track. Let’s find ways to work together.
Written by Aaron Studwell, January 12, 2021
If you have made it this far, kudos! And thank you!