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Daytona 500 the Nascar Barometer

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Daytona 500 the Nascar Barometer MARCH 2013 MARKETING INSIGHTS FROM MOTORSPORTS INSIDERS PRODUCED BY WELCOME TO REFUEL, JMI’s e-newsletter designed to highlight the best from our world of motorsports marketing. In each edition we will share our latest client work and hear from industry experts, marketing communications leaders, and sports business personalities. Each edition looks at new trends and gives assessments and perspectives on the opportunities and challenges within our industry. With the Daytona 500 now in the rear view mirror and the Australian Grand Prix set to start the 2013 Formula 1 World Championship, this year’s global motorsports season is underway. From a series standpoint, Formula 1 continues to dominate as one of the most successful global sporting series, entering new and developing markets and drawing major brands. NASCAR started its season in the best possible way with TV ratings for the Daytona 500 up by 24 percent. The quest for NASCAR to ink the rest of their television contracts will be an area to watch, while many marketers anticipate seeing the full potential of the series’ enhanced digital and social media initiatives. It’s going to be an exciting season for one the best sports and live entertainment platforms in the world. Cheers, Zak Brown, Founder & CEO JMI helped Farmers Insurance launch a cutting-edge website ahead of this year’s Daytona 500. The website represents a recalibration of its digital and social media agenda for the 2013 NASCAR season. See how Farmers Insurance is leveraging their sponsorship of the No. 5 Farmers Insurance Chevrolet, driven by Kasey Kahne. UPS made a splash as JMI helped them enter the world of Formula 1 with Scuderia Ferrari. Accompanied by a launch viral – UPS capitalized captured the essence of the partnership masterfully. CLICK HERE TO SEE THE VIRAL LAUNCH CLICK HERE TO READ THE PRESS RELEASE NEWS NASCAR television ratings for the Daytona 500 were released illustrating the best start to any NASCAR season since 2008. This is a great early indicator of interest in the 2013 NASCAR season. Sunday’s race earned a 9.9 rating and 22 share on FOX; a 24 percent increase from the 2012 Monday night prime-time race. CLICK HERE TO VIEW Danica Patrick also played a part in creating the highest rated Daytona 500 in recent memory. The first woman to win the pole and lead a lap at the Daytona 500 was a watershed moment in NASCAR history. The fact that Danica Patrick is an emerging global figure with immense marketing power created the perfect promotional scenario in the week leading up to the Daytona 500. CLICK TO VIEW NASCAR gave UPS the green flag in sustainability in Daytona as it upgraded its Trackside Services operation for the 2013 racing season. CLICK TO READ MORE Discussion of a Formula 1 Grand Prix in Mexico City was confirmed. The race would take place at Mexico City’s Autodromo Hermanos Rodriguez, which last hosted an F1 Race in 1992. CLICK TO READ MORE THE DIGITAL CANVAS STEPHEN GILLESPIE SENIOR DIRECTOR, DIGITAL, JMI CRAFTING A DIGITAL STRATEGY IS AS MUCH A SCIENCE AS IT IS A WORK OF ART. WHILE NO ONE PERSON OR AGENCY CAN HONESTLY SELF- PROCLAIM THEMSELVES A DIGITAL REMBRANDT, THERE IS A RAPIDLY GROWING KNOWLEDGE BASE. OVER THE PAST FEW YEARS, DIGITAL MARKETING HAS PROGRESSED FROM A PAINT-BY-NUMBERS TO A MUST-HAVE ON THE PALETTE OF ANY MARKETING STRATEGY. OF GLOBAL MOTORSPORT FANS INDICATE THAT THE INTERNET IS THE MAIN SOURCE OF INFORMATION ABOUT SPORT. THIS NUMBER IS 63% FOR THE GENERAL POPULATION. THE HIGHEST USAGE NUMBERS ARE SEEN IN ASIAN MARKETS. MOTORSPORT FANS ARE MORE LIKELY THAN THE GENERAL POPULATION TO USE MOBILE DEVICES FOR SPORTS INFORMATION (SUCH AS IPAD, SMARTPHONE AND APP USAGE). OF ALL MOTORSPORT FANS INDICATE THEY USE SOCIAL MEDIA SITES SUCH AS FACEBOOK, TWITTER AND YOUTUBE FOR INFORMATION ABOUT SPORT. WHILE SMALLER PERCENTAGES OF FANS OVERALL INDICATED RELIANCE ON TEXT (SMS) AND OR PICTURE (MMS) MESSAGING FOR SPORTS INFORMATION, MOTORSPORT FANS OVER-INDEX THE GENERAL POPULATION. Sources: SDNA – May Wave 2012, aggregate of 18 global markets OPPORTUNITIES Consumers today have a plethora of screens constantly at their disposal – mobile, tablets, laptops, desktops and televisions – and can use them to watch, interact with or supplement their sports entertainment event of choice. It’s commonly referred to as the potential of multi-screen and it presents one of the biggest opportunities in digital today. SENIOR DIRECTOR, DIGITAL, JMI Brands have the opportunity to be in front of consumers with an unprecedented degree of frequency with digital because everyone is within range of a device – but brand loyalty goes deeper than ‘liking’ or ‘following’ or subscribing to a branded microsite. Great strategies are born of pragmatic ideas that serve the fans’ desires to constantly enhance their sports entertainment experience at their venue of choice. CHALLENGES Creating integrated digital platforms that serve a purpose while being compatible across all devices is an important step, but it is certainly not the end. Today, consumers are at the forefront of the market; this makes content vitally important, and the quality of that content must resonate with the fans’ perception of their sport. Every sport or entertainment venue possesses its own unique micro-culture with its own rituals, languages and truths. The content, especially in social media platforms, was first created by the members of the micro-culture; they have a sense of ownership and a demand for authenticity that must be met. Frauds and commercial entities distributing inauthentic content will be ignored at best and publically exposed and flogged at worst. So yes, authentic content matters. Companies that speak the unique dialect of a given sports micro-culture and truly become a part of the sport can win over fans and effectively communicate their brand messaging. THE FUTURE The bandwidth to supplement sports entertainment is now enhanced. New assets are developing and will continue to open opportunities in sports entertainment. Sporting series are rushing to develop these assets for the future because they need to offer sponsors a platform. They also need to be the first to secure the rights and develop the space within the consumers’ rapidly evolving habits. Sponsors will play a key role in uncovering the topics that fans want and delivering original content that resonates with the audience. At a local level tracks will look to incorporate digital into their facilities – better Wi-Fi and mobile networks, more televisions throughout the facility, and location aware technology will play a key part in underpinning fans awareness of activities at events, like car speed, position and standings. The possibilities are endless for an industry like motorsports; that’s what makes it exciting – keeping brands on the cutting edge and always pushing the needle to unlock the next great development. The most successful Daytona 500 since 2008, the race saw a 24 percent increase in ratings over last year. DAYTONA 500 THE NASCAR BAROMETER WITH JOIE CHITWOOD, PRESIDENT OF DAYTONA INTERNATIONAL SPEEDWAY SUPER BOWL OF NASCAR 1ST 14%2ND 8TH BRAND TOTAL CANNOT HIGHEST EXPOSURE SEASON MISS RATED VALUE EXPOSURE ON TV PROGRAM AMONG ALL MAJOR LEAGUE COMES FROM THIS SPORTS FANS SAY SUPER BOWL ACROSS ALL SINGLE EVENT SPORTS MARQUEE EVENTS SINGLE RACE EVENT AND DAYTON ARE TOP EVENTS TELECAST FOR THE YEAR Sources: Repucom QI Exposure Database, Repucom SponsorLink Study, Nielsen WHAT TYPES OF ENHANCEMENTS ARE CURRENTLY UNDERWAY AT DAYTONA INTERNATIONAL SPEEDWAY Q FOR 2013 AND BEYOND? We now have a relationship with American Tower; they are providing an additional antenna system on our property. That will enhance cellular coverage, which is a big deal for us because of the capacity we have. We hope to gain approval for improvements at Daytona, which may include upgrades to the front stretch grand stand area and amenities – points of sale, social zones, seating amenities – to enhance the fans’ experience overall. Competing with the increasing quality of in home theatres is a challenge; we’re improving technology, but we’re also getting the basics right with seating comfort, food and beverage, parking and traffic lights. A WILL THE SIMILARITY BETWEEN THE RACECAR AND PRODUCTION CAR OFFER A BETTER MARKETING Q PLATFORM FOR MANUFACTURERS? Years ago, before the car of tomorrow, you had as many fans of the manufacturer as you did of the drivers; when the car became uniform, that aspect went away a little. Having fans of the manufacturers is as important as having fans of the drivers; it’s something that people want and I’m happy that NASCAR listened and responded appropriately. A WHAT WENT THROUGH YOUR MIND LAST YEAR AS THE CHECKERED FLAG DROPPED ON AN EPIC Q MONDAY NIGHT DAYTONA 500? Relief. We had never rained out an event and that was the first time we ran on a Monday; running under the lights in prime time for the Daytona 500 was pretty big – then we had the jet dryer blow up. It’s an emotional event anyway and when you add the weather, the reschedule and then a major incident; relief was the one thing on my mind when the checkered flag waived. A Q HOW HAS SOCIAL MEDIA CHANGED THE WAY YOU MARKET? I don’t know if anybody thought that Brad Keselowski’s Daytona Tweet would have generated this social storm. It’s an opportunity to engage our customer in a one to one manner; we’ve never had that before. You have to step up to make the transaction or engagement, which requires unique content and the ability to keep fans focused on your brand. We can incorporate our partner into our messaging when it’s appropriate and that is key; but we struggle with how it will satisfy our business goals, which is selling tickets.
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