There are many factors that need to be considered when evaluating sponsorship opportunities. Many of these factors go on to form the basis for establishing the objectives of a sponsorship.
AUDIENCE & DEMOGRAPHICS
Different categories of racing tend to be followed by different demographic groups. For example, it is probably fair to say that F1 and Champ Cars are followed by an upscale and above-average demographic, while NASCAR and the IRL tend to be supported by a more average demographic. This is also evidenced through the types of brands sponsoring each series. Therefore, a sponsor needs to decide what type of audience they want to be presented to through the sponsorship.
NATIONAL OR INTERNATIONAL
This is probably the most obvious consideration. If a sponsor is looking for worldwide exposure, the only real choice is F1 or the World Superbike Championship, while Champ Cars receive a high level of international attention in Mexico, Canada, Australia, and Europe. If a sponsor is just interested in a domestic market, then a national series would be more appropriate. In the US, NASCAR is the obvious choice, while in the UK, the British Touring Car Championship always attracts a large following. However, there is little point in sponsoring a national series like NASCAR if the main consideration is international exposure, as the series is only popular in the United States.
MEDIA EXPOSURE
The level of media exposure a sponsor receives is an important aspect of any sponsorship. Media exposure is dominated by television, but coverage in other media also provides valuable exposure. F1 is the world’s largest televised sport, yet receives little exposure in the US compared to the national sport. F1’s TV audience is also diminishing. NASCAR regularly draws a television audience in the US of around 4 million households on network TV, while Champ Cars draws less than 1 million households on Cable. The level of media exposure has a direct bearing on the value of any sponsorship.
IMAGE
This is closely related to audience and demographics, as the series that a sponsor participates in reflects its image. F1 is high-tech and glamorous and perceived as the highest level of racing in the world. Champ Cars are fast and exciting, while NASCAR is perceived as being followed by the average man in the street. Superbikes are fast and furious, while saloon car championships are always regarded as exciting and competitive.
COST
The cost of a sponsorship is an important factor in making a decision about which series to become involved with. There is a close relationship between the cost of a sponsorship and the level of benefits a sponsor is able to achieve. Sponsors need to ensure that they receive value for money in terms of benefits and investment.
MARKETING OPPORTUNITIES
All racing series offer excellent opportunities to build marketing programs around a sponsorship. However, some series are more sympathetic to the marketing requirements of their sponsors. F1 is extremely well organized, and its image is tremendously powerful worldwide. Champ Cars, the IRL, and Superbikes are probably the most sponsor-friendly, allowing sponsors a wide degree of freedom to implement their marketing programs. NASCAR is more similar to F1. It is extremely well organized, but quite regimented compared to other series in the US.
BUSINESS TO BUSINESS
Over the past few years business to business opportunities have become an important reason for certain sponsors to select a particular racing series. For example, one of the key reasons Federal Express is involved in racing is to acquire additional business from the blue-chip companies involved in F1. Many companies work closely together on sponsorships and on their business relationships, for example, Mercedes and Mobil, Honda and Motorola, Toyota and Castrol, Shell and Ferrari.
SUITABILITY
Of course, there are many companies for whom auto racing may not be appropriate. Traditionally, many airline companies have felt racing was not appropriate for their image, and many products that appealed to women tended to avoid racing because of its masculine image. Brands aimed at a young demographic are also not appropriate for racing. However, this is changing as more and more companies understand that racing can be an important part of their marketing mix.
