How NASCAR created a winning integrated marketing communications strategy

David Higdon Vice President Integrated Marketing Communications NASCAR @HigNASCAR 2 How NASCAR created a winning integrated marketing communications strategy

David Higdon Vice President Integrated Marketing Communications NASCAR @HigNASCAR 1. We work in silos

“Not my job.” 2. The world has changed and we don’t know it

“Isn’t Instagram for taking photos of your food?” 3. The world has changed and we won’t accept it

“What if we don’t change at all… and something magical just happens?”

Copyright 2004 by Randy Glasbergen www.glasbergen.comCONFIDENTIAL – FOR NASCAR USE ONLY “Willingness to change is a strength, even if it means plunging part of the company into total confusion for a while.” ~Jack Welch Integrated Marketing Communications (IMC)

What is IMC? A holistic approach to delivering carefully coordinated messages efficiently through all channels

Why IMC? An organization’s unified message will have a greater impact on a consumer than a number of disjointed messages delivered inconsistently, without alignment to each other What makes IMC unique?

• Breaks down silos Depends on complete integration • Keeps you informed Relies on multidirectional interaction • Maintains your relevance Establishes meaningful connections with specific consumer groups, influencers, media

CONFIDENTIAL – FOR NASCAR USE ONLY Case Study: NASCAR

December 2009 • Bad economy/revenue pressures • Rapidly shifting media landscape • Industry looking to NASCAR to lead a rapid evolution Case Study: Hard and Unbiased Assessment

Findings 1. Lack of integration 5. Need for clear voice 2. No strategic approach to 6. Behind curve in digital and social communications media/Turner rights 3. No clear fan engagement 7. Self-defeating approach to strategy measurement 4. Defensive position

Recommendation Build an IMC structure with a versatile and integration-minded roster of talent Finding 1: Lack of Integration

Entertainment Internal Communications Reputation Management Multicultural Digital TouringStakeholder Development RacingBrandBusiness Innovation Technology ContentBroadcast Production Racing Operations Public Affairs WeeklyConsumer Marketing NASCAR Foundation Social Finding 2: No Strategic Approach to Communications

Integrated and Proactive vs. Disconnected and Reactive Communication Planning • Daniel Suarez’s first national series victory was on Saturday, June 11, 2016. • The communications plan for this historic event was drafted and approved in 2015. Finding 3: No Clear Fan Engagement Strategy

Fan and Media Engagement Center Finding 4: IndustryDefensive Collaboration Position

Drivers Tracks

Council Council

Council Council OEMs Teams

CONFIDENTIAL – FOR NASCAR USE ONLY Finding 5: Need for Clear Voice

Sunday Monday Tuesday Wednesday • takes the • Media outreach in • media tour • Ricky Stenhouse, Jr. on checkered flag at support of Stewart win in NYC The Golf Channel’s Sonoma • Windshield Tribute • Daniel Suarez in Miami Morning Drive • Press conference media outreach • Kasey Kahne NASCAR • NASCAR: An American • QRT (Quick Response • Distribute race previews Snapchat takeover Salute promotion on Team) meets following for Daytona social/digital press conference • Darrell Wallace NASCAR Plaza car wash

Thursday Friday Saturday • Media reception • All-Driver Mid-Season • Media availabilities • Jr. Meeting at track media availabilities • Media ride-along • NBC Weekend Today • with at track media availabilities • Weather Channel • NBC Crisis Communications hits from track Meeting • Green flag drops in Daytona Finding 6: NASCAR Digital and Social

2001 - Turner Sports fully managed NASCAR.com and all online content. Approvals were required for new mobile applications, social media handles, all videos shot at a track during race weekends, and more. Today - NASCAR regained social media rights and editorial control of NASCAR.com. NASCAR now manages the sport’s online image and has introduced a new array of content which are in alignment with brand messages. Finding 7: Self-Defeating Approach to Measurement

Lesson 1: Barriers to Entry

• Growing and maintaining staff interest, focus and performance • Lack of cross-functional thinking • Enculturating new model to stakeholders

CEO CFO Business Units

Less difficult More difficult

Strategic Tactical Operational

22 Lesson 2: Bumps in the Road

Right-sizing the department – “Seed the business” 1. Plant the team 2. Grow the team 3. Transplant the team Right-sizing expectations - Selling concept

“What is Integrated Marketing Communications?” “Why are you going to a new model?” “How is this going to be better than before?” “What can I expect from the new IMC team?” “Who am I supposed to go to when I need something?” Lesson 3: The Dreaded “U”

SVP, SVP, Marketing Broadcast

Marketing Broadcast Communications Communications Successes

Six winning attributes of NASCAR’s integrated marketing communications team

1. Integration with core media 2. Aggressive pitching versus passive catching 3. Storytelling 4. Integration with key business units 5. Proactive communications planning 6. Pursuit of non-endemic media

25 Example: Phil Johnson

“Short story. I went to Chicago and met some guys from a NASCAR team. I told them I thought NASCAR was boring.” ~Phil Johnson CEO of PJA Advertising + Marketing Example: Phil Johnson

“The drivers are gladiators, and you feel some real electricity … they’re notably accessible … and although they’re getting ready to risk their lives, or at least their cars, they acted like meeting me was the highpoint of their day. It must be the culture. . . The entire day is a great spectacle.”

“It’s the business side that really got my attention. I may be late to the NASCAR party, but I see a gold mine for smart brands.” (2/20/12) ~Phil Johnson CEO of PJA Advertising + Marketing Example: Phil Johnson

Impact: Phil’s clients are now being counseled by an advocate, not a ‘hater’ Pre-IMC: Car of Tomorrow

“I’m still not a very big fan of these things. I can’t stand to drive ‘em. They suck.”

~Kyle Busch FOX Broadcast LIVE Post-IMC: Project Ignition

Strategy • Sixth generation stock car = “Gen-6 Car” • Consumer-facing messaging around benefits of new car • Secured commitment for “one voice” via industry integration 2013 Gen-6 Launch

“The car has really awesome potential … It really gives me a lot of sensations that are similar to the old car that we ran 10 years ago.” ~Dale Earnhardt Jr.

“Fans … will be fixated on the sleeker cars, which are designed to resemble their , Ford and showroom counterparts with more distinctive character lines and shapes than the previous COT model that was much maligned for its homogenized appearance.”

~Nate Ryan USA Today I would say the coolest part of this #daytonatesting is the way these cars look! @ and all the manufacturers did a great job! “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” ~Charles Darwin