Maximising Sponsorship ROI in an Omni-Channel World

Norris Scott is Vice President of Analytics & Insights for the National Association for Stock Car Auto Racing (NASCAR), leading the league’s Analytics & Insights team. As a valued resource for the NASCAR industry, the A&I team manages the measurement and analytics of data across broad and varied verticals including: social and digital media, broadcast, traditional consumer and category research, fan engagement, and sponsorship valuation. The A&I team cultivates insights and then provides strategic guidance across a range of different business channels. Specifically, cross-platform data analysis helps the entire NASCAR ecosystem glean more meaningful insights related to fan consumption patterns, social and digital engagement, sponsorship activation efficacy, and ROI best practices. NASCAR effectively uses data to drive, measure, and prove ROI for teams, tracks, official partners, and media partners. Prior to this role, Scott managed the NASCAR Partnership Marketing Department (including the relationships with the league’s most prominent sponsors for 11 years) and the NASCAR Commercial team (a cross-functional strategic group focusing on optimizing Official Partner sponsorships). Before joining NASCAR in 2005, Scott was Senior Director, Sports Management at ESPN/ABC Customer Marketing and Sales, where he developed and managed the integrated sponsorship sales of several marquee properties, including the National Football League, College Football and the Bowl Championship Series. He previously served in the Corporate Sponsorship group at the NFL, as well as managing ABC Sports’ marketing rights for the first-ever College Football BCS and sponsorship sales for ABC’s Triple Crown TV. He holds a BS in Corporate Communications from Ithaca College.

Norris Scott, Vice President, Analytics & Insights, 550 South Caldwell, Charlotte, NC 28202, USA

Abstract Many big brands use sports marketing as an important ingredient in their overall marketing mix. As today’s sports marketing landscape is constantly evolving, rights holders need to adapt to meet the new demands of clients. Conversely, big brands need to adapt to stay current with consumers and fans. This paper showcases NASCAR’s progressive approach to meeting these changes through relationship management that focuses on social and digital initiatives. Omni Channel strategies using data are a focal point for NASCAR in their effort to drive value to partners.

KEYWORDS: sports, sponsorship sales, analytics, omni-channel marketing, social media, digital, relationship management, mobile, fan engagement

Introduction entertainment, winning the crowd means In the 2000 action-adventure Gladiator, winning the crowd in the arena, plus the Proximo tells Maximus that a great gladiator crowd watching on television, plus the is one who wins the crowd and, by doing so, crowd engaging on mobile, plus the crowd he will also win his freedom. I have found on Twitter/Instagram/Facebook/Snapchat Proximo’s advice to be spot on throughout etc, plus the crowd wearing a virtual-reality my career in sponsorship at NASCAR. One headset, plus the crowd streaming via OTT, needs to focus on the consumer and the fan plus the crowd sending gifs . . . you get the first in order to win in the sports business. idea. The new buzzword to describe this In ancient Rome, winning the crowd was phenomenon is omni-channel marketing. done in the arena. But in today’s world of

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Omni-channel marketing is much more use 3 of those devices daily, winning the than just a buzzword for cross-channel crowd can be challenging. marketing with finesse. It is about delivering Another report by Adobe states that a true, consistent, and continuous experience roughly 1 in 3 consumers watch live sports across all channels and devices. Put simply, on something other than a traditional it means delivering the right content to the television. Adobe found that 50 per cent right audience with the right message on of millennials polled watch live sports on the right platform at the right time. The smart televisions, mobile devices, or gaming onus is on properties and brands alike to consoles. As a result, according to AOL’s meet the crowds on the channels they are State of Video Advertising report, nine in 10 choosing to consume. Consumers want this, media buyers are shifting dollars from linear they expect this, and they definitely notice television to digital channels, reallocating when it does not happen—and aren’t shy an average of 10 per cent of their television about expressing their feedback on social budgets.2 More specifically, since 2012 media. over 300 per cent more buyers have shifted According to a study by Adobe, 66 11–20 per cent of their company’s or per cent of device owners get frustrated clients’ broadcast or cable television budget when content is not synchronized across to better support their digital efforts. Case devices.1 Adobe also found that 90 per in point is Under Armour which will cent of millennials polled switch devices turn to digital communication like it has mid-activity, higher than Gen X (76 per never done before. In an interview with cent) and those 55 and older (58 per cent). Business Insider3, Under Armour’s SVP of Altogether, 79 per cent of those polled by Brand Marketing, Adrienne Lofton, said Adobe move from one device to another the brand is moving from a 70/30 split during an activity. Considering that in its TV-to-digital advertising mix to an consumers, on average, own 7 devices and even 50/50 split. The move was based

Figure 1: Omni-Channel Marketing

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on research into its target customer—an fans purchase at a higher rate than the NFL 18-year-old aspiring athlete who consumes (14 per cent), NHL (14 per cent), NBA media primarily on mobile devices, rather (13 per cent) and MLB (11 per cent). than television. This adds up to real revenue for our brand partners. Omni-Channel Marketing and Sports When it comes to live sports, property rights Maximizing Sponsorship with holders must think omni-channel in order Digital and Social Media to maximize viewership and value for their Brands focusing on digital and social sponsor partners. We face that challenge media activation around their NASCAR every single day at NASCAR and work sponsorship enjoy equally large volumes extremely hard to provide our sponsor of active fans who engage with them partners with fully integrated solutions. In as part of the NASCAR experience. the past, NASCAR had been perceived Sunoco, for example, would likely have as highly conventional when it came to far fewer Sunoco Racing Facebook fans sponsorship; we used to place the logo of our than its current 1.7 million without the sponsor partner on the car, the driver, the pit extensive content opportunities NASCAR crew, and the television broadcast, and then generates. Sunoco Racing’s engagements call that the end of the integration. However, are highest during NASCAR events, as the media and league landscapes have thereby providing insight into the strong changed, so too has NASCAR in delivering connection fans make between Sunoco meaningful ways for sponsors to reach and and the sport they love. connect with fans. When it comes to petrol, it is hard to Today, sponsors seek partners that get consumers engaged and sharing on provide creative ideas that leverage their social media about higher octane and brand thematic and key attributes. Sponsors cleaning solvents—which, besides price, still want logos in relevant places, but the is what most fuel companies have at a main value in a sponsorship is in offering product level to differentiate themselves immersive and additive experiences to fans. from competitors. Brand building becomes Digital and social media have been huge paramount for those in the business of focal points for NASCAR when it comes commodity sales. Research indicates to incorporating our sponsor partners Sunoco’s efforts have been effective in and offering fans increasingly important generating brand affinity among NASCAR immersive and additive experiences. fans. In fact, Nielsen Social5 found that Providing fans with a consistent stream of consumers who tweeted about NASCAR engaging content and behind-the-scenes Racing are nearly four times more likely access has enabled our partners to to tweet about Sunoco than US brands on authentically and effectively interact with average. our fans. Furthermore, these interactions and There are currently 2.31 billion active engagements drive real return. According to social media users with 1.97 billion using Wasserman’s Social Media Scoreboard4 panel social media on mobile devices. Facebook study of 10,000 sports fans, 18 per cent of and Snapchat both generate billions of NASCAR fans have purchased a product or video views each day (which is just a few a service from a sponsor as a direct result of more people than would watch Maximus’ a social media post. Furthermore, NASCAR gladiatorial battles).

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Figure 2: Sunoco Racing Social Media Posts

It quickly becomes clear that mobile on-site signage and category exclusivity. is now truly competing with television Content integration across digital, social, and any other screen as America’s ‘First and mobile notably ranked ahead of more Screen’ – we are becoming a ‘mobile first’ historical value drivers such as usage rights world. Approximately three-quarters of our to property marks and logos, as well as entire digital audience is on mobile. Using tickets and hospitality. The same survey also this data, we made changes to our website found that social media are the top channels design to be a ‘mobile first’ platform, which sponsor partners use to leverage their almost instantaneously resulted in increased sponsorship investment. user engagement. For both properties and sponsor partners, social media has the ability to unlock doors to new audiences and Omni-Channel Teams provide a truly unique way to engage with At NASCAR, one solution that we have potential brand advocates 24/7, 365 days a created to support our sponsorship efforts year. Companies have always tried to reach in this omni-channel world is a Partnership younger demographics, and with 90 per cent Marketing Commercial Team of experts of those between the ages of 18 and 29 on across key areas: social, digital, events, social media, it is the perfect place for brands research, partner analytics, brand, etc. This to build deeper relationships. team takes an enterprise approach with Not surprisingly, in NASCAR and across leaders in certain departments ‘embedded’ all major sports leagues, partners want into the sponsorship business to maximize digital and social media benefits and services sponsorship dollars and return for our with their sponsorship package. According sponsor partners. There are so many to the IEG/ESP Properties 2015 & 2016 opportunities for sponsors due to the Sponsorship Decisions-Maker Survey,6 ever-evolving media landscape. We have a presence in digital, social, and mobile found that mixing and matching ideas and media ranked in the top four as a valuable opinions from leaders and problem solvers benefit in a sponsorship package, along with across our organisation leads to the best and

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most creative business-building sponsorship and storytelling so that we can provide solutions for our partners. In addition to our fans (ie ‘the crowd’) with a constant collaboration and joint brainstorming, we calendar of new experiences. World class share actionable data and insights with each brands tell captivating stories in their other. We use data available from various marketing programmes, and properties parts of our business to constantly optimise should as well because people connect our sponsorship strategy and improve results to narratives. That is why it is crucial to for our sponsor partners. first identify a sponsor partner’s brand NASCAR also created an Analytics & attributes and objectives. Once we identify Insights department to inform multi-channel the thematic and key attributes, we can marketing strategies. This group signals our start to develop a customised sponsorship League’s commitment to elevating the role package that maximizes the value of the of data in our sport. From ROI analysis opportunity across all channels. To put to developing a new enterprise CRM together an omni-channel sponsorship to developing advanced social listening package, properties and brands must capabilities, we are looking to build a culture understand the roles of each platform to with more proactive analytical thinking. maximize success. Specifically, we merged four disparate We know that fans in the crowd interact analytic groups into one team: social, with the various platforms for different digital, traditional research, and sponsorship reasons. It follows that a single piece of valuation are now under the same sponsored content or a certain experience umbrella. From a high level, this change should not necessarily be used across all might seem cosmetic or operational. channels. While content access is key to a However, it was a strategic move that will successful sponsor partnership, there are a few reap benefits for the entire industry. Our goal questions we have learned to ask ourselves in through this restructuring was to completely developing an omni-channel strategy: redefine our enterprise relationship with research and data, and to elevate it from • Who are we developing this content for? essentially a support function into a key What are the fan personas? collaborative revenue driver. • Why are we producing the content? What This new structure will allow for goal will it achieve? Why would our fan traditionally silo-ed areas of data to be layered want to watch, read, engage, click, and/or over each other and analysed in a more share this content? holistic way. Integrated, cross-platform data • Which platform will help us reach the fan analysis will allow us to glean more and our goals? meaningful insights related to fan consumption patterns, social and digital engagement, Sponsored content is most likely to be sponsorship activation efficacy, and best successful if it contains these attributes: practices. Our ultimate goal is to use data to drive, measure, and prove ROI for teams, • Authenticity: To the crowd, the platform, tracks, official partners, and media partners, the property and the brand and this approach supports each channel to • Story: A beginning, middle and end make better decisions to engage fans. • Context: The crowd should never have to ask why they are seeing something • Creativity: Concepts must be exciting, Driven by Data imaginative and emotive—something that This data-driven approach has enabled us inspires curiosity and interest, which leads to hone in on our commitment to content to action

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No longer can we take a one-size-fits-all Just by the nature of our sport, we are approach for the masses; instead, we need able to capture amazing content, and we to focus more on a singularly customized are committed to delivering that content in experience that comes in a wealth of unique fun, innovative, and unique ways, straight ways. The increasingly fragmented landscape to our fans. NASCAR has the most success is difficult to navigate and can quickly drain when we behave like the crowd on each resources. However, when it is done right, it platform in an authentic manner, and with can have a major positive impact on business better and more engaging, more valuable objectives. content. Otherwise, we risk being intrusive At NASCAR, we recognise there is and causing frustration among the crowd much more to do with our sponsorship rather than engaging the crowd. The and marketing initiatives. We have evolved ultimate victory is to convert them into our approach to place a much greater advocates. emphasis on fan engagement and delivering Our omni-channel strategy development a more immersive, connected, multi-screen starts with segmentation, with specific experience—at home, in person, online content and distribution plans for each and on the go. We have invested significant crowd: resources to make NASCAR races available on more platforms than ever before, enabling • Platforms: Which channels should fans to experience the sport in ways that we focus on, including emerging and complement the television broadcast. long-term opportunities? On race day, we have our own ‘command • Data: What first-party data do we have center’ for live digital coverage similar to access to (ie email, website visitors, that of a live TV production. Between our app downloads, etc) and how can live video race coverage and competition platform-specific data fill in the gaps? coverage across all three NASCAR series, • Content: What stories are we telling we cover more than 100 live events per and how do they relate back to business year, on average, and work across more than objectives? 20 vendors and partners to manage our • Voice: How do we ensure that we have experiences among 25 different browser and a distinct tone that is authentic to our operating system combinations. No other consumers, each platform, and our brand? sport comes close to NASCAR in garnering such a dependable and durable audience for We then execute our strategy to win the 10 months a year, and NASCAR fans have crowd using the specific voices and content an insatiable appetite for content. planning for each channel.

Figure 3: NASCAR.com Digital Race Day Control Center

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Figure 4: The Hashtag 500, aka #Daytona500

PICKING CHANNELS We even put the content in the drivers’ For example, having NASCAR drivers hands with our NASCAR Goes West interact directly with our fans on platforms campaign during the NASCAR West like Facebook Live has been extremely Coast swing to Las Vegas, Phoenix, and successful. Facebook Live contributes to Fontana, including a Snapchat takeover higher engagement and delivers a younger featuring Monster Energy NASCAR Cup audience. We have seen 15 per cent more Series driver, Ryan Blaney, and NASCAR impressions and over 30 per cent higher XFINITY Series driver, Darrell Wallace Jr. engagement on our Facebook Live videos The resulting content not only engaged fans compared to our non-live videos. Live video on that platform but also created significant connects a fan to our brand in real-time, conversation on Twitter, as well as media which can be even more powerful than coverage and inclusion in the Fox/FS1 well-produced recorded content. pre-race TV broadcasts that weekend. For the 2016 DAYTONA 500, NASCAR Snapchat helps NASCAR create touch- and Twitter partnered for a cross-promotional points with a massive audience mostly campaign to create and share fun, interactive comprising millennials, which aligns with content including The Hashtag 500 (aka our growth strategy. Content on the platform #Daytona500)—the first-ever NASCAR tends to focus on what is happening off the fan race on Twitter. During the DAYTONA track, including lifestyle and entertainment 500, the five-hundredth fan to tweet custom elements that are not usually featured during hashtags won actual memorabilia from race broadcasts on television. Using takeovers the race, including NASCAR driver Dale with NASCAR drivers and celebrity selfies Earnhardt Jr’s fire suit and a piece of metal to doodles and behind-the-scenes tours, we from Chase Elliott’s racing car. Fans were look to create stories that show a unique also able to use DAYTONA 500-themed side of our sport. Through a partnership with emojis. The DAYTONA 500 also featured a Snapchat, NASCAR has at least doubled the Snapchat live story through the partnership number of Live Stories that will occur this NASCAR has with the platform. It was one season. Through this, Snapchat users around of our biggest days on social media. the world have an inside look at our sport.

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Figure 5: NASCAR & SnapChat

In addition to social media, the NASCAR amassed 11 million followers, 1.9 billion Mobile App is a major part of our omni- social impressions, and 127 million total channel strategy for partners like Toyota and fan engagements in 2016.7 On Monster XFINITY. We continue to add new enhance- Energy NASCAR Cup Series race days, the ments and features for our fans including NASCAR Facebook page reaches an average optimised news and media experiences of 13 million users, while all tweets about with greater multimedia support. Content a NASCAR race reach an average of 2.5 for each series is front and centre on the app million users. During the 2016 DAYTONA homepage with race highlights and lifestyle 500, we had the most NASCAR-related content for all three national racing series of social conversation that we have ever had in NASCAR accessible throughout the week. a single day, and conversation was up 44 per cent compared to the 2015 race. The NASCAR website draws more The Data avid fans than any other NASCAR news Through digital and social media, we are able site, posting more than a hundred new to engage our core fans while also reaching pieces of content every week. Additionally, new audiences and introducing them to a dedicated section of the site provides key the sport. NASCAR social channels have terms, educational videos, and a history of

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Figure 6: NASCAR’s Fan Media Engagement Center monitoring social activity

NASCAR for new fans. During the 2016 To win the crowd, our investment in race season, the NASCAR website’s digital omni-channel marketing has resulted platforms received more than 56 million in record levels of fan engagement and unique visitors, 325 million video views, success for our official partners. According and over 1 billion page views for the third to brand affinity scores from Nielsen consecutive season. In tracking usage patterns Social, 87 per cent of people who tweet over the past year, the NASCAR.com website about NASCAR also tweet about brands. tops all other major league sites for user This is nearly 20 per cent more than all consumption—the amount of pages or videos people who tweet about TV. This speaks a consumer engages with per visit to the site. to how authentic and relevant NASCAR Critical to our success has been the ability sponsors are to the overall NASCAR to annually track the billions of engagements experience. From the logos on the cars from fans and sponsors in the entire to the promotions and giveaways to the NASCAR ecosystem. The NASCAR Fan behind-the-scenes experiences and content and Media Engagement Center (FMEC) is a that each sponsor delivers for its target state-of-the-art social listening and analytics audiences, NASCAR sponsors are clearly platform that allows NASCAR to analyse part of the sport’s DNA, and it is reflected the extensive social media conversation in fan social content and commentary around the sport. The system ingests content about the sport. NASCAR fans are just from more than 700 social media accounts as passionate about the sponsors that and more than 3,000 keywords related to participate in—and contribute to—the the sport of NASCAR in real-time, enabling sport they love as they are about the racing the sanctioning body to track and measure on the track. trends in the social space as well as provide With this in mind, the results Mars Inc. business-impacting insights to NASCAR has experienced in the sport offer great stakeholders. Through the FMEC, race teams, insight into the loyalty of NASCAR fans tracks, and sponsors have access to analytics to sponsors in the sport. Mars generates custom-tailored to their specific business substantial returns for its M&M’s brand needs—we are making the data actionable. through a fully-integrated NASCAR Located in NASCAR’s offices in downtown platform. To date, using its M&M’s characters Charlotte, the FMEC is staffed seven days for image building and promotional a week and live for all 92 of NASCAR’s activation across channels, Mars has garnered national series races. millions in media impressions value and

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Figure 7: NASCAR Official Partner Mars Inc.

strong brand loyalty over similar products not metrics) prior to the start of a campaign activated with NASCAR. helps ensure success. NASCAR aims to integrate all sponsors throughout our omni-channel marketing executions. Rather than being shoehorned CONCLUSION into available advertising signage, NASCAR Authenticity is paramount to an effective takes the time to understand the needs of its omni-channel strategy. Those who are most sponsors and ensures that a sponsorship will successful have learned how to be authentic enhance our already successful sport. With to the sport, authentic to the fan, authentic each sponsorship opportunity, the ‘win-win’ to the channel, and authentic to the brand is for NASCAR to determine: how the partner. Sponsors should establish their potential sponsor will benefit the NASCAR credibility within the sport; otherwise it fan experience and how the potential is merely a paid opportunity. To become sponsor will benefit from the NASCAR truly successful in leveraging NASCAR to sponsorship. achieve business objectives, it is important Thanks to data, we have extraordinary that a sponsor has something meaningful insight into how the crowd is engaging with to contribute to the sport and the fans. the sport and how it is interacting with our The uniqueness comes from marrying the sponsor partners. Every click, event, and power of the fans with the value of the transaction can be measured, attributed, sponsors. aggregated, and optimised. The availability As mentioned earlier, NASCAR brand of useful data enables NASCAR to advance affinity scores from Nielsen Social state towards our partners’ business goals. To that that 85 per cent of people who tweet end, while it sounds obvious, having clear about NASCAR on FOX also tweet about objectives and measurement models in place brands. The reason this is so high is because (for determining valuation and other ROI the sponsors play such an important role

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the NASCAR ecosystem, and the fans not wherever they may be. Win the crowd and you only recognise the role of sponsors, but will win with your partners – together!” they appreciate and support the sponsors who support their sport. This is why Authors’ note NASCAR fans are widely known as brand Supporting contributors to this article advocates. They are happy to talk about and include members of the NASCAR support important initiatives of sponsors, as Partnership Marketing Commercial Team and these initiatives often help grow the sport Analytics & Insights Team. and provide additional value to the overall NASCAR experience across all channels. References and notes While omni-channel marketing and 1. Adobe 2016 Get Personal Report sponsorship activation are the strategy kings 2. AOL 2015 State of the Video Industry Report 3. ‘Under Armour says when its star brand ambassadors of today, NASCAR is constantly looking play well, its sales go up — now it’s going big on for what is next. I will always keep in mind soccer’, available at: http://uk.businessinsider.com/ Proximo’s advice as we continue to innovate under-armour-what-you-do-in-the-dark-puts-you- in-the-light-holiday-campaign-2016-2?r=US&IR=T and invest in new technology to grow our (last accessed on 14th March, 2017) sport, elevate fan experiences, and increase 4. Wasserman Social Media Scoreboard Report available the return on investment for our Official at: http://www.thesocialmediascoreboard.com/ (last accessed 14th March, 2017) Sponsor Partners. 5. Nielsen Social Brand Affinity Report, 2015 NASCAR If Proximo were here today, he would Season probably tell you: 6. IEG/ESP Properties 2015/2016 Sponsorship Decisions-Maker Survey 7. 2016 NASCAR Fan Media Engagement Center “Sponsorship and Marketing Gladiators, I salute which reports on industry traditional, social and digital you! Listen to me. Tweet at me. Send me a media consumption. Additional Data Sources include Snap. Learn from me. Make the crowd love you Nielsen Social, ComScore, Adobe, Scarborough.

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