Companies sponsor racing because it is good for their business. Sponsorship of a team, driver, series or event should provide clear marketing opportunities and generate tangible marketing benefits.

Today, auto racing is regarded as a well developed and powerful marketing medium that has to provide a wide range of marketing benefits.  The most significant benefits are detailed here and naturally vary according to the nature and scale of a sponsorship.

IMAGE

Companies use racing to help build, develop and enhance their public image.  Sponsorship sends a clear and positive message to the audience that views the sponsorship. Audiences tend to be more sympathetic to the companies that support their team or driver.   Through sponsorship, companies become associated with the qualities, attributes and values of the sport or the team or driver that they sponsor.  Sponsors also become associated with the images of other sponsors. A sponsor can then use an enhanced public image in product advertising and promotion.  Appropriate ways in which to describe the image of racing include: upscale, quality, exclusive, technical, exciting, fun, glamorous, fast and sporting.

ADVERTISING

Most sponsors use of their association with a racing team, driver or series in advertising campaigns.  A sponsorship can form the basis for a new media campaign or can be integrated into existing advertising campaigns.  Campaigns need not be restricted to specialist racing-related medias. Racing sponsorships are now used throughout all advertising medias including television, newspapers, magazines, internet and point of sale materials.  Campaigns are run nationally and internationally and focus on the images projected by the sponsorship.  Sponsorship provides many companies with ready-made content for media campaigns which can also cut conventional media production costs.

HOSPITALITY

Entertaining guests at race events is one of the best ways to make use of a sponsorship. It is also one of the most widely used marketing support activities and as such options at events tend to be quite sophisticated and well organized.  It is not unusual for the basis of a whole sponsorship program to be built around corporate hospitality at race events. Sponsorship of a team or driver provides guests with an unprecedented level of access at race events - access that cannot simply be bought, for example, through a hospitality company.  Direct access to a team or driver helps build interest and an emotional tie with those entertained.  This helps increase the loyalty to the sponsor who has provided the access. Few other sports offer the level of access for guest hospitality that racing can.

AUDIENCE

Racing fans and spectators provide an ideal target audience for many companies.  Fans and spectators are extremely brand loyal and sympathetic to the companies and brands that support their favorite drivers and teams.  Sponsors are therefore presented with an excellent opportunity to address an extremely receptive and captive target audience.  Audience demographics can play a key role in determining the racing series chosen by a sponsor.

BUSINESS TO BUSINESS

Sponsorship can lead to new business opportunities.  There are three clear possibilities.  Firstly, new business can be generated directly through the success of the program.  Secondly, sponsorship can bring businesses together to develop new relationships with other businesses.  Racing provides an ideal environment in which to develop commercial and technical relationships.  Finally, racing also can provide the mechanism for joint sponsorships and promotional activity between businesses. In recent years this benefit has become more and more significant as sponsors look to provide tangible quantification for the effect of a sponsorship.

POINTS OF DIFFERENCE

Sponsorship often provides a business with an important point of distinction from its competitors.  This can be especially important in the image-building process as sponsorship sends out a different message to conventional advertising.  Any company can purchase conventional media advertising but only so many companies can be involved in sponsorship.  This is why many companies align themselves with selected series, teams or drivers.

MEDIA ACTIVITIES

Racing provides sponsors with an opportunity to positively  influence the media.   Most medias are generally sympathetic to sport and also to those companies involved or associated with the sport.  Sponsors also have the opportunity to undertake dedicated media campaigns and promotions based around a sponsorship to increase their level of media exposure.

SALES PROMOTION

Sponsorships are widely used as a basis for sales promotional activity.  This can include promotions at the point of sale, staff and consumer incentive schemes, motivation campaigns, merchandising, competitions, displays, direct mail campaigns, printed materials, web marketing, conferences and exhibitions.

ENDORSEMENT

A number of brands and services can benefit from professional endorsement of their use. Technical and commercial endorsements are widely used throughout racing as a way in which to communicate a positive message to consumers.  Racing fans and spectators are brand loyal and knowledgeable about the products and services used in their sport. Endorsement provides a statement of credibility for a brand or service.  Often drivers are regarded as ambassadors of the sponsor.

PERSONAL APPEARANCES           

Racing drivers attract attention whenever they make public appearances or appear in the media.  Drivers are some of the most sought-after and highly regarded sports stars in the world.  People listen to them and are keen to learn of their experiences.  As such, many sponsors arrange public appearances for drivers as part of their promotional activities both at and away from the race track.