location, location, location: engaging the changing face of 'nascar nation' with new media
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Engaging the Changing Face of „NASCAR Nation‟ with New Media
Lane Errington
MPSM900
June 17, 2010
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RUNNING HEAD: LOCATION, LOCATION, LOCATION 1
Location, Location, Location:
Engaging the Changing Face of „NASCAR Nation‟ with New Media
Lane Errington
Georgetown University
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EXECUTIVE SUMMARY
Once regarded as a bucolic sport reserved for Southern whites, NASCAR has penetrated
the masses to become a force in the American sporting landscape. The demographics of
„NASCAR Nation‟ have grown from the stereotypical “beer drinking, Confederate battle flag-
waving, and catcalling white southern good ol‘ boys‖ to encompass a fan base upwards of 75
million that is remarkably reflective of the American population (Hurt, 2005). As stock car
racing becomes a national phenomenon amidst the explosion of new media, NASCAR has
worked tirelessly to create numerous digital initiatives geared toward engaging the sport‘s
changing fan base. In the process of attracting new fans, NASCAR is also charged with the task
of retaining the existing fan base that has fostered perhaps the most unique regional culture in
American sports. This paper will serve as a commentary on how the iconic NASCAR brand and
its stakeholders can continue to embrace and develop an evolving fan demographic to further
engage fans in the new media space, specifically using location-based mobile technology.
Before any discussion of the use and implementation of location-based social networking
with NASCAR, this technology must be justified as compatible and appealing to its constituents,
both on the business and consumer sides. As such, the case will be presented through the
following set of objectives.
Analyzing the NASCAR brand, discussing brand characteristics, brand value,
stakeholders, and success factors.
Understanding both the traditional and contemporary NASCAR fan from a
demographic and consumer perspective as well as looking at factors influencing
recent demographic shifts.
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Examining the NASCAR Digital team and their collective efforts as part of NASCAR
Media Group and Turner Sports Interactive to create touch points that engage fans
and drive revenue streams.
Finally, the paper will offer an overview of location-based social networking with the aim
of growing the NASCAR brand in the digital and mobile spaces, and discuss applications of this
technology to NASCAR. The goal herein is to leverage NASCAR‟s unparalleled brand loyalty
by creating a new partnership with Foursquare, the leader in location-based social networking,
designed to enhance the race day experience and add value to NASCAR-affiliated sponsors.
INTRODUCTION/BRAND AUDIT
NASCAR has proven to be a brand that reaches and influences millions of fans and
consumers worldwide. In the 2009 NASCAR Brand Brochure, the auto racing is recognized as:
The #1 spectator sport, with 17 of the top 20 highest-attended sporting events in the
U.S. and an average of nearly 120,000 spectators attending each NASCAR Sprint
Cup Series event.
The #2-rated regular-season sport on television. NASCAR also ranks #2 in
viewership by women and youth. With broadcasts in more than 150 countries in 20
languages, NASCAR sanctions more than 1,200 races at 100 tracks in more than 30
U.S. states, Canada and Mexico [See Appendix 1].
The #1 sport in fan brand loyalty. NASCAR fans are three times as likely as non-fans
to try and purchase sponsors‘ products and services, and more Fortune 500®
companies (over 100) use NASCAR as an avenue to build their brands than any other
sport (Schwartz, 2009).
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Regarded by many as a sport with a fractured set of stakeholders, NASCAR relies on this
web of partners to make the sport go. Considered as members of a family rather than individuals
playing a zero-sum game, NASCAR‘s major stakeholders include:
Fans
Drivers
Teams
Sponsors
Auto manufacturers
Tracks
Media
Licensees
A family-owned-and-operated business since 1948, the sport is driven by a strong sense of
community between and ownership among members of the NASCAR family.
NASCAR fans embrace sponsors at a level unparalleled by any other sport – its 75
million followers are true brand ambassadors. In 2008 alone, licensing revenues exceeded $2
billion (Badenhausen, 2010). A study conducted for NASCAR by the market research firm of
Edgar, Dunn, & Company in 2000 and 2001 reported that ―92 percent of ‗hardcore fans‘ and 89
percent of ‗casual fans‘ believed that ‗NASCAR drivers could not run their cars without
sponsors‘ support‘.‖ In comparison to other professional sports leagues, the study also found that
NASCAR fans are ―94 percent more likely to have ‗positive feelings‘ about sponsors than fans
from other leagues‖ (Newman, 2007).
The level of passionate fan engagement through purchasing of licensed product, event
attendance, and media consumption (among other factors) demonstrates NASCAR‘s successful
positioning as a lifestyle brand embodying the values and culture of its constituents (NASCAR
Brand Brochure, 2009). Fans are drawn to the family-friendly environment, speed, power,
heritage, and drama of NASCAR. Andrew Giangola, Director of Business Development for
NASCAR, noted that perhaps one of the greatest draws for fans is access to drivers – if you want
to meet your hero, chances are you‘ll meet him (personal communication, May 27, 2010). This
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level of driver availability is a traditional cornerstone unmatched by any other major professional
sport that adds to the brand values of family, community, aspiration, and authenticity. One fan
noted after seeing about a dozen drivers signing autographs before a 2009 Sprint Cup Series race,
―you can‘t put a price tag on that‖ (Ryan, 2009).
As indicated in the official 2009 NASCAR Brand Brochure, major brand attributes of the
sport can be broken down into two categories: functional equities (more tangible and associated
with quality) and emotional equities (emotional responses to the intangibles of the brand).
Functional Equities Emotional Equities
Edge-of-Seat Action Admired Athletes
Intense Competition Athletes who are ―Regular People‖
None-Stop Action Down to Earth
Performance Genuine
Skillful Competitors Honorable
Speed and Power Like a Big Family
Thrilling and Exciting Straight Up and Honest
DEMOGRAPHICS
Scarborough Research (2010) indicates the newest set NASCAR fan base demographics
to follow the following statistics and trends, on average [See Appendix 2]:
Gender NASCAR fans are gender neutral – 60% male and 40% female.
Age
Distribution
NASCAR fans are just as likely as the U.S. population to be between the
ages of 18-44.
Income
Distribution
NASCAR fans are middle/working class, indexing to be just as affluent as
the U.S. population with 45% earning $50,000 or more.
Presence of
Children
NASCAR is a sport for the whole family. A reported 39% of fans have
children under the age of 18.
Geographic
Distribution
NASCAR fans are regionally distributed in a manner reflective of the U.S.
population to within 3 percentage points in each of four measured regions.
Minorities One out of five NASCAR fans is a member of a minority group.
While these measurable are largely indicative of the average American, NASCAR fans are
reporting higher incomes and education levels than ever before. The traditional white, southern,
‗redneck‘ male is no longer the predominant NASCAR fan. Scarborough data confirms that
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40% of fans are women and 60% live outside the south (2010). A recent study conducted by
ESPN Sports Poll further proves the increasing levels of education and purchasing power.
According to the 2008 study, ―since 2000, the number of fans making $100,000 or more has
doubled from 7% to 16% of its fan base, and those with incomes of $50,000 or more has risen
from 35% to 48%. College graduates in the fan base have swelled to nearly one in four, up 33%
since 2000‖ (Ryan, 2009).
Factors Influencing NASCAR’s Evolving Fan Base
Several factors have influenced the demographic shift, including geographics,
sponsorship strategy, and globalization.
Geographics
From a geographic perspective, the regional location of tracks utilized by NASCAR has
undergone a significant shift over the past 50 years. In the 1960‟s and 1970‟s, tracks in the
southeast accounted for 72 and 75 percent of NASCAR‟s total, respectively. The number of
tracks has since been consolidated, and although tracks remain concentrated in the southeast,
locations outside of the region have steadily increased over the previous three decades. Southern
tracks decreased to 60% of the total in the 1980‟s, and that number dwindled to 47% in the
1990‟s and 2000‟s (Hurt, 2005).
Construction and opening of new tracks has typically occurred outside of the south.
While some southern tracks have undergone renovations, the last twenty years have seen
NASCAR expand to new venues in markets outside the southeast at the expense of some of its
long-time track partners including North Wilkesboro, North Carolina (1996) and Rockingham,
North Carolina (2003). The NASCAR Sprint Cup Series circuit has recently added stops in
Phoenix (1988); Sonoma, California (1989); Loudon, New Hampshire (1993); Indianapolis
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(1994); Fontana, California (1997); Fort Worth (1997); Las Vegas (1998); Homestead- Miami
(1999); Chicago (2001); and Kansas City (2001). Furthermore, NASCAR has pursued a
―realignment‖ strategy that effectively weakens the traditional supremacy of southeastern tracks
and allows for newer, larger (and large-market) tracks to host more events in what amounts to
geographic redistribution of the Sprint Cup Series [See Appendix 3] (Hurt, 2005).
Geographic expansion has not only occurred with track locations, but drivers have come
from increasingly nationally distributed (and global) backgrounds. Joshua Newman (2009)
articulates how the geographic redistribution of tracks has affected the regional identity of
NASCAR drivers:
―Further, while between 1956 and 1980 every Winston Cup Champion was born in North
Carolina, South Carolina, or Virginia, just one of the past fourteen champions of
NASCAR‘s top division hailed from a state inside the geographic boundaries of the
American South. Moreover, 2007 marked the first time that a driver born in North
Carolina, long considered the birthplace of NASCAR, failed to record a single victory on
NASCAR‘s premier circuit. For the 2008 season, just eleven out of 46 full-time drivers in
NASCAR‘s Sprint Cup Series claimed hometowns in states lying in the American
South.‖
The geographic shift of drivers, track locations, and DMAs has contributed not only to a shift in
fan demographics, but in providing access to new sponsors and other revenue streams.
Sponsorship
It is well documented that more Fortune 500® companies activate sponsorship with
NASCAR than any other sport. Sponsorship accounts for 70% of all team revenues, which in
2009 were $92 million on average (Badenhausen, 2010). Over the years, no sponsor has been
more synonymous with the sport than the title sponsor of NASCAR‟s flagship series. Nextel
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replaced Winston as the title sponsor in June 2003 with an investment of $750 million over 10
years to rename the signature series as the Nextel Cup Series. At the time, this was the largest
sports sponsorship in U.S. history (Sporting News, 2008). In comparison, R.J. Reynolds (parent
company of Winston) spent $30 million annually to sponsor the Winston Cup for the 32 years
prior to Nextel. Since that time, Sprint has taken over Nextel‘s sponsorship rights in 2008 as a
result of their merger. According to Amato, Okleshen Peters, and Shao (2008), ―This change in
sponsorship will allow NASCAR to aggressively target teenagers—something prohibited by the
restrictions R. J. Reynolds faced in advertising to youth. Furthermore, the change in sponsorship
will likely expand the number of Fortune 500 companies seeking NASCAR sponsorships by
attracting companies with target markets that are more aligned with those of communications
companies than those of cigarette producers.‖
Globalization
A new frontier for NASCAR helping to initiate the demographic shift has been attracting
and engaging the Hispanic community, America‘s fastest-growing demographic. According to
the U.S. Census Bureau, Hispanics have accounted for 50% of the U.S. population growth since
2000. According to Scarborough research, ―approximately 8.9 percent of NASCAR fans are
Hispanic, a 10% increase over 2001, when Hispanics comprised 8.1% of the NASCAR fan base‖
(―NASCAR.com launches Spanish-centric website,‖ 2007). A recent study conducted by
rEvolution and KnowledgePanel Latino found that 38% of Hispanics are NASCAR fans, as
compared to 42% of the U.S. population as a whole. While this is a strong base to start from, the
number of avid fans among that group is only 7%. Casual fans (two-thirds) make up the majority
of Hispanic NASCAR followers; these respondents list themselves as only “a little bit interested”
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in the sport (Marshall & Tice, 2009). The challenge, then, becomes engaging these casual fans
in a meaningful and measurable way. Other key findings from the study include:
Hispanics are not entrenched in the NASCAR community the way traditional fans are
– they are more isolated traditionally experience the sport through television or video
games. Accordingly, marketers are tasked with making the sport more social for this
demographic in order to bring Hispanics into the NASCAR family.
Most Hispanic NASCAR fans – unlike NASCAR fans in general – do not have a
favorite driver. Instead, they tend to gravitate toward winners.
Confirmation from other sports surveys that indicate Hispanics as having a “higher-
than-average emotional attachment” to sponsors and a “greater-than-average desire to
reward them with their business” (Hispanic PR Wire, 2009).
Juan Pablo Montoya, an extremely popular Hispanic driver of Colombian descent, joined
NASCAR in 2006 after successful stints Indy Racing League and Formula One. Currently the
driver of the #42 Target Chevrolet for Earnhardt-Ganassi Racing, Montoya has enjoyed
tremendous popularity and success since his arrival to NASCAR just four years ago.
NASCAR has initiated several other highly-visible globalization tactics over the past
several years, including the introduction of foreign auto manufacturers and drivers. Once a sport
reserved solely for U.S. auto manufacturers, NASCAR has since introduced Japanese automaker
Toyota into the sport in 2007. At a time when domestic auto manufacturers were dealing with
bankruptcy and bailouts, in addition to a decrease in sponsor dollars as a result of the economic
downturn, Toyota was able to step in and subsidize the operating costs of several NASCAR
teams, providing a valuable inroad into the sport (Newman, 2009). International celebrity
drivers have been lured away from competing racing series to act as entry points into new
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cultural markets; these include not only Montoya, but Dario Franchitti (Scotland), Marcos
Ambrose (Australia), Max Papis (Italy) and Jacques Villenueve (Canada) as well as former open-
wheel drivers Scott Speed, A.J. Allmendinger, and Sam Hornish. The global appeal of these
drivers certainly helps raise the brand equity of NASCAR on a worldwide scale as well as
opening up new international revenue streams (Newman, 2009). These new international drivers
join a crop of young up-and-comers that, coupled with the retirement of perennial fan favorites
such as Dale Jarrett, Ricky Rudd, and Rusty Wallace, contribute to the shift in fan allegiance.
It is clear that NASCAR is now focusing on a much broader constituency than before.
The processing of attempting to reach out to fans in new markets while maintaining its
traditional southern roots is not one without risks. This is a classic example of retaining current
customers versus acquiring new customers. NASCAR executives understand the significance of
satisfying avid/hardcore fans, estimating that “for every core fan lost, it must attract at least five
casual fans to compensate for member consumption” (Amato, Okleshen Peters, & Shao, 2005).
In order to preserve stock car racing‟s local/regional cultural brand identity and associations
while maximizing national/global revenue streams, NASCAR must remain aware of its
traditional customers in digital and new media efforts and incorporate the desires of all
constituents across digital platforms.
THE ROLE OF NEW MEDIA AND DIGITAL MEDIA IN NASCAR
Overview
NASCAR is fortunate to have built up an iconic brand over the years, one that is only
bolstered by a partnership with Turner Sports Interactive (a Time Warner company), who
acquired NASCAR‟s interactive rights in October 2000, later becoming the exclusive producer
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of NASCAR.com (the official online destination of NASCAR) in January 2001. Working with
such strong brands as Turner Sports and now Sprint gives NASCAR the tools and resources to
continue to build a successful digital and new media presence. NASCAR merged its broadcast,
digital and images divisions into one central media hub in 2008 to form NASCAR Media Group
(Smith, 2009). NASCAR and Turner have together spent the past decade assembling a strong
portfolio of digital assets. In 2006, David Levy, President of Turner Sports, stated ―We‘re just
aggregating consumers. We really don‘t care what devices they use. It‘s about creating touch
points. Ultimately, brands will win across all technologies.‖ It is true that brands win. Rather
than discussing every piece of technology implemented by NASCAR and its stakeholders, it is
best to discuss some success stories and statistics that demonstrate where the technology is going
before offering some strategic recommendations for the future.
NASCAR.com
NASCAR.com was built to aggregate consumers by the same Turner Sports Interactive
team that built PGA.com, PGATOUR.com, NBA.com, and CNN.com. In the last decade,
NASCAR.com monthly viewership has grown to nearly 7 million fans – nearly 1 million more
than the average TV audience for Cup Series races ten years ago (Ryan, 2009). NASCAR Sprint
Cup Series live race streams on NASCAR.com generate a following of (on average) roughly
60,000 fans per event (Ryan, 2009). Moreover, NASCAR.com interactive features have proven
to be engaging, with 2.9 million video plays per month (―Metrics: NASCAR.com‖, 2010). The
site not only generates high traffic volume, but has a unique following, even among other sports-
centric web sites. According to Turner Sports and Entertainment Digital (2010), the percentage
of NASCAR.com users who do not visit other sites is remarkable:
NFL.com: 81% NHL.com: 97%
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ESPN.com: 57%
CBS Sports.com: 91%
MLB.com: 85%
Fox Sports on MSN: 79%
The average NASCAR.com user is a 42-year-old white married male from the South or Midwest.
After completing some college education, he earns about $64,000 per year (mid-high income),
owns a home, and does not have children in the household [See Appendix 4] (―NASCAR.com
User Profile‖, 2010). NASCAR Digital is able to measure numerous relevant behavioral
patterns, including television and radio, free time, shopping behavior, tech behavior, reading, and
online habits to understand and target their online consumer.
NASCAR.com also was re-launched in 2007 with several critical new features.
TrackPass RaceView is a paid 3-D consumer interactive application that puts users in the middle
of the action, following along with live racing in a virtual ‗video game‘ style format. Exclusive
access to a variety of user-controlled live features, including multiple views of each car, in-car
audio, and instant race statistics, provides the sought-after access to drivers in a whole new way.
Fans can choose their favorite driver or follow the entire field. The re-launch also marked the
introduction of the NASCAR.com Infield Community, ―a social networking site within
NASCAR.com to connect race fans with shared interests.‖ Designed to be a ―track away from
the track,‖ this free feature allows fans to create their own personalized pages, upload photos and
videos, and join ‗crews‘ based on affiliations with drivers, teams, tracks, series, geography, or
otherwise. As outlined by EyeTraffic Media‟s Andrew Bates, the Infield Community caters to
the four C‟s of social velocity – content, connections, community, and conversations (personal
communication, June 7, 2010). Users provide content, connect with one another in meaningful
communities, and engage each other in conversation through NASCAR.com challenged between
crews throughout the season. One of the crews is “NASCAR Says,” the official blog of
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NASCAR public relations. The Infield Community was positions not as a replacement to other
social networking sites, but as a destination for specific NASCAR-related social networking.
Advertisers are also able to host pages in the community as well as individual crews, tying into
other sponsored content on the website (“NASCAR site set for first…,” 2007).
Social Media
Social Networking
NASCAR social media outlets have taken off in the last several years. NASCAR drivers,
teams, tracks, sponsors, and the league itself all maintain active presences in social media
platforms, including Facebook, Twitter, and MySpace. Some introductory statistics are below:
NASCAR 573,483 fans
Miss Sprint Cup 99,781 fans
MySpace 375,692 friends
@NASCAR 18,728 followers
@MissSprintCup 10,516 followers
@JPMontoya 149,128 followers
@KevinHarvick 41,134 followers
@KaseyKahne 35,113 followers
NASCAR‘s Facebook page generates over 70,000 page views per week. Highlights of
the site include regular discussion topics, exclusive videos, and weekly photo galleries.
Discussion topics posted by NASCAR are highly interactive, regularly yielding hundreds of
comments and ―likes‖ [See Appendix 5]. The page also links to the official Facebook pages of
all active drivers, teams, and tracks. To give an example of just how much new media is
changing the way people receive information, after a controversial wreck at Atlanta Motor
Speedway, Carl Edwards updated what essentially amounted to a public statement to Facebook.
―The update was quoted and referenced by media across the world in the days after the race.
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Over 6,500 people commented on the status within the first 24 hours, with almost 15,000
commenting in the first week‖ (―Social Media in NASCAR,‖ 2009).
NASCAR‘s Twitter page is another key communications avenue to interact with fans,
drivers, and media. The page contains lists of personalities (owners, crew chiefs, and former
drivers), tracks (28), drivers (49), teams/team reps/sponsors (56), and league feeds (11). At least
ten drivers have followings of 15,000 or more. Twitter has been used by NASCAR officials as a
breaking news source, an outlet for promotions and giveaways, and even a platform for live
interviews.
Miss Sprint Cup, the Sprint-branded ambassador who travels to NASCAR races across
the country almost every weekend, has become a social media fixture for the Sprint Cup Series
since 2008. Miss Sprint Cup's Twitter account currently has over 10,000 followers, while her
Facebook page has attracted over 99,000 fans. Her blog, currently the most popular on the
community page of NASCAR.com, has generated 82,500 followers and more than 3.2 million
profile views. Whether it is interviewing drivers, hanging out in the garage area, or joining the
post-race celebration in the winner‘s circle, Miss Sprint Cup ―…enables [Sprint] to reach an
audience less endemic to [auto] racing,‖ said Tim Considine, general manager, NASCAR Sprint
Cup Series sponsorship (Schwartz, 2009). Considine goes on to elaborate on this strategy:
"We're not out there having Miss Sprint Cup talk about the latest sale price on the new
BlackBerry device. But, let's say Miss Sprint Cup takes a picture with her new
BlackBerry Tour, uploads it to Facebook and mentions the device in the photo caption.
The handset gets mentioned in a very real way, and we've shown some of the device's
capabilities without it feeling like a product pitch…What‘s amazing is the levels of
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response; every time she posts there‘s 80, 90, 120 responses from fans, 98 percent
positive‖ (Schwartz, 2009).
Social media is also driving sponsor dollars. JR Motorsports co-owner Kelley Earnhardt,
the sister of superstar driver Dale Earnhardt Jr. and daughter of the great Dale Earnhardt, said of
the power of social media: "It used to be you could talk about (traditional media) impressions
and TV ratings, but now they want actual physical people they can touch. Now we sit in
meetings with potential sponsors and talk about Facebook and Twitter. They ask, 'How many
Facebook friends do you have?' They want actual bodies to touch‖ (Associated Press, 2010).
Following this idea, many prominent NASCAR sponsors are working to engage fans via highly
visible and interactive social media programs. In addition, external organizations have created
social networking communities; in 2007, Dale Earnhardt Jr. helped launch InfieldParking.com as
a community specifically devoted to auto racing.
Citizen Journalism
In July 2009, NASCAR embraced another forward-looking social media trend by
creating the NASCAR Citizen Journalists Media Corps. This conglomerate of 28 blogs
embraces the changing media landscape by bringing together the best independent sources of
NASCAR information with the largest audiences under one umbrella. The review process for
invitation to the corps evaluated web sites on factors including professionalism, reporting and
commentary, and use of social networking tools. Members receive access to NASCAR‟s media-
only site, media-driven events and other inside information as well as the opportunity to apply
for credentials at races. With the stated goal of increasing the depth of knowledge of the fan
base, NASCAR is not only able to provide greater fan access to the sport but also to generate
more media exposure. Although NASCAR still focuses the lion‟s share of its investment on
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traditional media, incorporating the blogosphere into their media portfolio looks to be a strong
asset going forward (“NASCAR announces…,” 2009).
Fan Council
Embracing another trend first popularized by European soccer clubs, NASCAR took
great steps toward channeling the voice of the fan by beginning the 12,300 member NASCAR
Fan Council in 2008. With members from all 50 states and 20% of the membership consisting of
bloggers, NASCAR uses this “advisory board” as an efficient channel to connect with and better
understand some of its best consumers through online opinion surveys (Ryan, 2009). This tactic
seems one of the best ways to complete a two-fold objective: (1) engaging fans through new
media and (2) listening to the avid, traditional fans that helped build the sport into the spectacle it
has become. Regular consultations with this groundswell of supporters led to two important
strategic changes in 2009: the “double-file restart” rule following cautions as well as “earlier and
consistent TV start times” (“NASCAR honored with…, 2009). NASCAR‟s willingness to listen
to and implement fans suggestions as de facto consultants has led to the receipt of two national
awards: the Forrester Groundswell Award in the Business-to-Consumer Listening category and
the Vision Critical 2009 Panel of the Year Award (“NASCAR honored with…, 2009).
Digital and New Media User Research
The NASCAR Fan Council and the Ipsos NASCAR Brand Tracker have both provided
valuable research for the NASCAR Market and Media research team. According to a study from
the NASCAR Brand Tracker, fans spend an average of 80 minutes per week following NASCAR
on the internet and 30 minutes on mobile devices; 30% watch streaming race highlights, and
28% follow NASCAR online while watching NASCAR on TV, exhibiting second-screen
behavior [See Appendix 6]. One in five fans is active on Twitter, while over half use Facebook
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(“NASCAR Fans and Digital/Social Media,” 2009). A 2009 NASCAR fan survey conducted by
Taylor PR found that 57% of fans want news about their favorite driver through online or new
media sources, including NASCAR-generated online media (40%), driver and team web pages
(11%), and social media outlets such as Facebook and Twitter (6%) (Sporting News, 2009).
Additional results from an August 2009 NASCAR Fan Council study revealed that
contrary to the Brand Tracker study, 39% of avid fans use Facebook and only 10% are active on
Twitter. This may lead marketers to target casual fans in social media as opposed to avid fans.
Of those who responded positively to using Facebook and Twitter, 97% access social media
through their home computer, 27% via work computer, and 28% through a mobile phone.
Female and respondents under 35 years old were more likely to access and want informative
updates from social media in all forms than males and those over 35 years of age. Fans also
responded mostly favorably to potential ideas for Twitter updates from the track on race
weekend, including ticket and merchandise promotions, photo/video, trivia and other contests for
prizes, as well as live race updates (“NASCAR Fans and Digital/Social Media,” 2009).
Furthermore, SBRnet Market Research provides additional insight into the demographics
of NASCAR‟s online computer and mobile users. Computer users are 80% male, 71% of which
are 16-49. A striking 80% of computer users have household income of over $50,000, and 62%
reside in either the south or west regions (“Online computer viewers,” 2009). Mobile users are
82% male predominantly between the ages of 16 and 49 (83%) and making $50,000 or more.
Respondents from the south region alone represent 56% of mobile users (“Online mobile
viewers,” 2009).
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SWOT for NASCAR Digital
The following SWOT analysis was developed from a personal interview with Geoff
Lester, Director of New Media, NASCAR Media Group (personal communication, June 4,
2010).
STRENGTHS
• Turner Resources
• No overhead, risk on capital
• Quality as opposed to speed
• Numerous partners to work with
• Connection to other stakeholders
WEAKNESSES
• Limited control
• Inability to react quickly
• Reactionary approach
• Inability to directly promote ticket
sales (tracks own rights)
• Limited mobile platforms (Sprint)
OPPORTUNITIES
• Leverage existing partnerships
• Educating rest of company
• Focus on the future
THREATS
• Measurement of new media
• „Traditional‟ fan backlash
• Existing sponsor deals prevent
asset optimization/breadth/depth
Operating under the Turner Sports Interactive portfolio certainly has its advantages for
the NASCAR Digital team. The group enjoys a world-class web site built on the backbone on
some of the most successful sites in the world (i.e. CNN.com, NBA.com, PGA.com). Since
Turner owns NASCAR‘s interactive rights, the league is able to benefit from Turner‘s top-notch
resources while avoiding overhead costs as well as risk on capital, expenses, and said resources.
The combined forces of two devoted teams (NASCAR in-house and Turner) leads to the ability
to generate a high-quality product offering, and NASCAR‘s formidable field of sponsors help
drive a great deal of revenue via interactive advertising and branded digital content. Turner
Sports works with NASCAR‘s affiliates to improve their digital presence and connect a fractured
industry in the online space as well. In 2008, Turner worked with Roush Fenway Racing,
NASCAR‘s second-most profitable team, to produce the team‘s web site (Fisher, 2008). Finally,
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NASCAR Digital has benefitted from the recent consolidation of NASCAR‘s broadcast, images,
and digital groups into the NASCAR Media Group in 2008 (Smith, 2009).
Although NASCAR benefits greatly from working with Turner Sports Interactive, there
are also weaknesses to their „subordinate‟ position, first and foremost being limited control over
their own digital destiny. Since Turner is such a large company that owns so many web sites,
NASCAR‟s ability to be nimble and react quickly is sometimes hampered as they are just one of
many Turner Sports and Entertainment Digital properties. Lester also discussed that NASCAR
prefers the strategy of „don‟t necessarily be first, but get it right‟; this reactionary approach can
sometimes be a negative if an organization waits too long to respond to market changes. Sprint‟s
title sponsorship of the NASCAR Sprint Cup Series also limits the platforms on which NASCAR
can spread digital content, namely on mobile devices, where iPhone and Android applications
may not be able to be created. Finally, NASCAR has run into problems in not being able to sell
tickets on its website; in stock-car racing, the tracks sell tickets and maintain their own
relationships with ticket providers and brokers. The digital team, with an obviously strong
interest in making sure tickets are sold, looks to use their media inventory to support ticket sales
through banner advertising driving users to track websites. Turner would prefer that tracks pay
them directly to advertise in those spaces. This is an example of the type of negotiation that
must occur in order to support what on the outside seems like an obvious collaborative move.
Opportunities lie in leveraging the Sprint title sponsorship and being in such close
proximity to a leader in the communications industry. The digital team also intends to do more
in the way of educating the rest of the company executives and constituents, regarding the
technology they develop and its importance in driving revenue. A continued focus on the future
LOCATION, LOCATION, LOCATION 20
and maximizing upcoming media rights renegotiations is also a critical opportunity for the
NASCAR Digital team.
The major threat to new media continues to be accurate measurement of programs. As
mentioned before, the partnership with Sprint, while providing access to the strong asset base of
a digital leader, prevents relationships with other leading companies such as Apple and Google,
who could potentially further optimize digital/new media initiatives for NASCAR (Aumann,
2009). Finally, a threat to the success of NASCAR Digital is the backlash from „traditional‟ fans
that come from a different culture and era.
LOCATION-BASED TECHNOLOGY AND MOBILE SOCIAL NETWORKING
Overview
NASCAR fans have clearly demonstrated a trend toward connectivity to digital and
mobile platforms, and location-based technology is widely regarded as the next logical step in
this direction. Taking this trend to the next level involves the incorporation of location-based
technology, and specifically location-based social networking (LBSN), to NASCAR‟s mobile
product offering. This technology can add value to sponsors and encourage digital fan
engagement, providing an additional touch point particularly in the mobile space. LBSN is not
to be positioned as a simple profit-and-loss marketing initiative; this is a fundamental shift in the
way people connect with each other and with brands. As a new, cutting-edge technology, it is
critical here to demonstrate how LBSN can help NASCAR and its stakeholder network to better
understand their fans and customers, target them more accurately, and use this information to
drive revenue and ultimately increase the bottom line.
LOCATION, LOCATION, LOCATION 21
Value of LBSN
There has been much hype about the potential of location-based technology in the past
year. The real value to advertisers remains the ability to reach the “on-the-go user, who is ready
to buy and consume” near the point of sale (Nakao, 2010). Location-based check-ins provide
more accurately targeted advertising for businesses large and small. Platforms such as
Foursquare, Gowalla, and Yelp allow for check-ins at places, rather than map coordinates,
making data more valuable for highly targeted advertising and promotions and also worth the
potential privacy headaches for many early adopters of the technology (Betancourt, 2010).
Inherent to the technology is the ability for businesses to reward frequent customers.
Knowledge@Wharton, the online business journal of the Wharton School of Business, describes
the value for business users as follows:
“Although Foursquare and competitors like Gowalla are the subject of most of the current
headlines, experts say the true potential lies in companies knowing exactly where
customers are and pitching offers or offering services based on the spots these customers
frequent. As smart phones become more common and social networking gains a broader
audience, consumers are consciously sharing more information than ever about their daily
routines. That information makes it easier for businesses to advertise or offer special
discounts that fit what someone is doing at a given moment” (2010).
The goal for businesses, such as NASCAR, should be to have a strong LBSN infrastructure in
place that engages consumers, drives revenue, and is easy to scale up as the base of users
continues to grow and ultimately reaches a critical mass.
LOCATION, LOCATION, LOCATION 22
Usage Trends
A recent Nielsen study indicates that, currently, “21% of American wireless subscribers
are using a smart phone as of the fourth quarter 2009 compared to…14% at the end of 2008.”
Almost half of the respondents (45%) indicated that their next device purchase will be a smart
phone. Roger Entner, Senior Vice President, Research and Insights, Telecom Practice, further
comments that “with falling prices and increasing capabilities of these devices along with an
explosion of applications for devices, we are seeing the beginning of a groundswell. This
increase will be so rapid, that by the end of 2011, Nielsen expects more smart phones in the U.S.
market than feature phones” [See Appendix 7] (2010).
A 2010 survey conducted by research firm GroundTruth found that social networking
sites maintain a 60% share of U.S. mobile traffic (with the next closest category garnering only
13.65%) (Dredge, 2010). The Mobile Marketing Association‟s latest Mobile Consumer Briefing
survey also found that while only 10% of those surveyed use mobile location services at least
once a week, this number spikes to 63% among smart phone users (Betancourt, 2010). A new
report from eMarketer extrapolates that by 2013, there will be 56.2 million mobile social
networkers in the U.S. alone of an estimated 607.5 million worldwide (“Location-based social
networks…,” 2010). Furthermore, a 2009 report from Gartner, Inc. indicates the expectation that
mobile advertising will grow exponentially from about $500 million in 2009 to $13.5 billion in
2013 (Moore, 2010).
One important consideration for would be location-based social networking providers is
that should Facebook or Twitter find a valuable entry point into the location-based market, they
will benefit from their already built-up networks of mobile users. Facebook‟s status as a
looming category killer is the location-based battlefield is evident; with more than 100 million
LOCATION, LOCATION, LOCATION 23
mobile users as of April 2010, Facebook‟s share of the current 400 million overall users is bound
to increase (Dredge, 2010). The rapid growth of mobile social networking is further illustrated
by comScore research findings that Facebook showed an increase of 112% in its mobile user
base (up to 11.8 million users) from January 2009 to January 2010. Twitter increased its own
mobile user network to 4.7 million, raising its base by 347% in the same year time period
(“Location-based social networks…,” 2010).
Success Factors
Location-based mobile technology is clearly the next “battleground” for mobile operating
systems (Nakao, 2010). But a variety of success factors must materialize to bring this
technology to the mainstream. Developing a business model for LBSNs is not without its
challenges. Kevin Nakao, VP of Mobile & Business Search for WhitePages, targets four key
factors as critical to the expansion of location-based social networking (2010):
A dramatic increase in user base. Even a million global users translates to a minute
share of a given local market; most games and location-based applications still reach
only a small percentage of the population. Circumventing this „long tail‟ of local user
adoption is vital to achieve scale and attain return on investment.
Increased frequency of user check-ins (revealing location and other information).
Interest from business looking to embrace LBSN as a new revenue stream
Users must become more comfortable with the privacy issues inherent in this
technology and ways to overcome said issues
Furthermore, the mobile space is still developing standardized methods of revenue generation
and building scale with location-based services. Accurate measurement continues to be a
priority. Finally, developing broadened awareness of LBSNs and their value will be necessary;
LOCATION, LOCATION, LOCATION 24
Edison research indicates that “Only 7% of Americans are aware of location-based social
networks‖ (Betancourt, 2010).
Foursquare
As one of the top LBSNs available, Foursquare focuses on aggregating location
information for networks of friends. Users check-in at a restaurant, mall, stadium, bar, or other
location and broadcast their location to friends. Points and badges are earned for checking-in
regularly or at specified times – with the ultimate goal of earning enough points to become
“mayor” of a given location. This gaming model adds value because it has the “potential to gain
broader appeal because the services tap into a person's natural desire to belong to a community,
and to gain social status by becoming a recognized "expert" in knowing the hot spots in his or
her home turf” (“Location-based social networks…,” 2010).
Combining friend finders and social city guides with an added layer of fun gaming
mechanics on top, Foursquare has found footing mostly in areas of high density. The application
has exhibited tremendous growth in its first 15 months, “and now has 1.2 million users, who
have checked in 40 million times” (Treadaway, 2010). As of March 2010, Foursquare had over
1.5 million venues logged into its system, with an expanding network of over 1,200 businesses
offering special deals to Foursquare users, perhaps most notably Starbucks (“What is
Foursquare,” 2010). The sporadic check-in system of “geo-triggers” also works to address the
concern of location-based features‟ drain on battery life of the mobile device (Nakao, 2010).
Foursquare users treat location information differently than other types of social
networking content; in contrast to Facebook or Twitter, keep their networks small, typically
around 6 or 7 friends (Wong, 2010). Foursquare founder Dennis Crowley uses the analogy of a
birthday party to describe the pattern of intentionally small friend networks. "If you were going
LOCATION, LOCATION, LOCATION 25
to invite people to your birthday party, you wouldn't invite your 5,000 Twitter friends. You'd
pick the 20 friends you'd want to invite. Each check-in is like a mini version of that” (Wong,
2010). As such, Foursquare has developed a number of features to mitigate privacy controls,
such as choosing whether you want to send check-in information to Facebook friends and/or
Twitter followers in additional to Foursquare friends.
From a business perspective, Foursquare has the potential to redefine the way companies
execute customer loyalty programs. Information provided from this application can help craft
targeted advertising and special promotional discounts. For example, in August 2009,
Foursquare executed a partnership with 8coupons, a “hyper-local” mobile coupon vendor, to
offer discounts at trendy New York City venues. As Foursquare users came within a three block
radius of a relevant deal, the application automatically served up location-aware coupon, driving
targeted business at the point of sale (Van Grove, 2009). Other promotions include mayor
specials and frequency specials.
Measurement
One of the most critical pieces of location-based technology is determining the best
metrics for ensuring a positive return on investment and return on objectives. Now more than
ever, firms need a valid return on investment for their marketing spending; brand exposure and
increased awareness are often not enough to justify the expense. While a discussion about
marketing as an investment, not an expense, could prove valuable, providing meaningful
measurement statistics can be just as effective. According to Mashable writer Chris Treadway
(2010), some potential user metrics to consider include:
What is the percentage of users who have checked in during the last
day/week/month? What about inactive users?
LOCATION, LOCATION, LOCATION 26
How often do people check in? Is this figure improving or declining?
What is the average time spent per day using the application (per user)?
How does a check-in turn into revenue for the LBSN application provider,
advertisers, and/or businesses?
In early 2010, Foursquare rolled out an analytics dashboard to business users in order to
track who is coming into their stores. Some of the data available includes total check-ins, unique
visitors, male-to-female ratio, social media-sharing (i.e. how many users send check-ins to
Twitter/Facebook), top visitors, and check-in time breakdown [See Appendix 8]. Possible future
opportunities could include tying purchase information (on top of check-ins) to customer
rewards. For large-scale businesses, this would be a valuable tool (providing increased scale of
user base) to determine what works on a location-by-location basis as well as a source of
consumer behavioral information (Van Grove, 2010). As of now, Foursquare is mostly looking
to build its business analytics dashboard with the best features possible in order to build its
business client base.
The prevailing metric for monetizing Foursquare is thought by many to be a new model:
cost per check-in. Foursquare users can receive promotions, coupons, or other rewards by
checking in to a business. The premise of cost per check-in is that “the business owner would
pay for that check-in if, and only if, the consumer redeems that offer…The performance-based
model would better align incentives – encouraging businesses to offer special deals to
Foursquare users – and value – as businesses only pay for actual conversions” (Goldman, 2010).
Furthermore, cost per-check-in “[differs] from the click-through model that only directs an
online user to visit a web site, check-ins actually get real „live‟ bodies to walk through a
[business‟s] door where they are more than likely going to spend money, solving the age-old
LOCATION, LOCATION, LOCATION 27
return-on-investment (ROI) issue that a brand requires on an ad spend” (Callari, 2010). This
new model could ostensibly provide the elusive direct link to ROI that many social media
marketers covet.
NASCAR Application of LBSN
NASCAR is an organization that could see a great deal of benefit from the value of
location-based social networking. As the NASCAR fan community trends toward embracing
social networking, LBSN is the logical next step. With several marquee sponsors (Allstate,
DEWALT, Jack Daniel‟s, Jim Beam) choosing to exit after the 2009 season, demonstrating
added value for is necessary to retain NASCAR‟s laundry list of remaining sponsors (Miller,
2009). Geoff Lester, Director of New Media for NASCAR Digital, indicated that his group had
not looked into location-based technologies, but was aware that they need to get up to speed
quickly (personal communication, June 4, 2010). Since NASCAR currently does not use any
location-based technology in its marketing, implementing such a campaign could provide
additional revenues for tracks, sponsors, and in turn, NASCAR at the league level.
Leveraging location-based technology to engage fans accomplished several goals for
NASCAR. First of all, it brings social networking to the track. With the proposed plan for
track-side check-ins, social media enthusiasts can interact with fellow fans and sponsors as part
of their race day experience. Tracks could use location-based technologies to set up check-in
points at different seating sections; under this scenario, Kasey Kahne fans or Carl Edwards fans
could connect with one another. This capitalizes on the aforementioned ability of LBSN to “tap
into a person's natural desire to belong to a community, and to gain social status by becoming a
recognized "expert" in knowing the hot spots in his or her home turf” (“Location-based social
networks…,” 2010).
LOCATION, LOCATION, LOCATION 28
Another recent sports-centered Foursquare partnership with the NBA focuses on the
classic rivalry between the Los Angeles Lakers and Boston Celtics. Fans are encouraged to
shout “Go Lakers!” or “Go Celtics!” upon checking in to any location, and receive a custom
team badge indicating their association. This is somewhat of a different value proposition in that
the game is based on content, rather than location, but initial fan feedback has been extremely
positive [See Appendix 10] (Spoon, 2010). NASCAR could adopt this „shout-out‟ game to
encourage fans to earn badges from their favorite drivers, teams, or sponsors. This could be yet
another way to encourage social community among NASCAR Foursquare users and connect
rewards from sponsors to driver loyalty/association.
Perhaps more importantly would be using location-based social networking to tap into
NASCAR fans extreme brand loyalty. The use of an application such as Foursquare would be
ideal to this end. In a NASCAR race day setting, where dozens of sponsors activate experiential
marketing programs and teams sell merchandise outside the track, there are numerous potential
check-in points available [See Appendix 9]. A map of Michigan International Speedway‟s Fan
Plaza reveals a myriad of opportunities. For example, a fan could visit activation displays from
brands such as McDonald‟s, Heluva Good, Best Buy and Ford, while also visiting merchandise
trailers for drivers #14 Tony Stewart and #11 Denny Hamlin.
As listed on his personal website, Stewart alone has sponsorship deals with Office Depot,
Burger King, Old Spice, Chevrolet, Coca-Cola, ArmorAll, Bass Pro Shops, Oreo Cookies, Ritz
Crackers, and Oakley. Research has shown NASCAR fans to be loyal customers of the brands
that sponsor their favorite driver. Therefore, location-based technology provides the opportunity
to capitalize on this brand affinity. Through Foursquare, just by checking in to Tony Stewart‟s
merchandise trailer, a fan could automatically receive bar-coded coupons for a percentage off
LOCATION, LOCATION, LOCATION 29
their next trip to Office Depot, a free value menu item from Burger King, or a notification that
Old Spice deodorant is sold nearby with a link to a commercial starring Tony Stewart.
NASCAR could broker deals with league sponsors, track sponsors, and driver sponsors to
incorporate the interests of each into this interactive game. Even sponsors who do not have the
budget to spend on the full activation display or footprint could feasibly set up a virtual check-in
location at the track for a reduced price.
Tracks could also encourage fans to check-in to multiple areas of the fan plaza by
offering a badge for checking in at a certain amount of locations. NASCAR could also offer a
ticket discount off a fans next ticket purchase at that track for each Foursquare check-in point
visited. In this case, fans could become the mayor of the Michigan International Speedway by
visiting more check-in points than anyone else – and in the process, get the full NASCAR race
day experience. They could be rewarded with passes to tour the pit area or a priority parking
space at the next Sprint Cup Series race (tracks typically host two races per season).
Rewarding repeat attendees is a great way to build loyalty, connect with fans, and show
that you care; particularly at a time where it is more of an economic drain on the average fan to
attend a race. NASCAR could even reward fans with virtual tickets in targeted geo-locations to
leverage expiring or unused inventory. Sprint could act as the sponsor/advertiser of the
Foursquare themed race day game, providing an added benefit to the title sponsor of the series
and generating more mobile exposure for the aspiring category leader. Sprint could also
ostensibly also provide national mayor specials for the mayors of every track, creating an
element of social status to the social networking game. Of course, it becomes the responsibility
of the staff to engage the consumer once he or she checks in to their activation display. But the
goal of getting potential customers to the point of sale is realized through this Foursquare model.
LOCATION, LOCATION, LOCATION 30
Sponsors or partners that engage in this campaign, as well as NASCAR on a corporate
level, receive several key benefits from this proposed program. First of all, Foursquare user data
provides a better understanding of their consumers, especially those in the mobile space – who
they are, what they like, where they go, etc. Users could update geo-tagged photos to Facebook
or Twitter that capture the NASCAR race day experience and leave feedback about the various
locations they visit, offering further intelligence to NASCAR partners. Secondly, companies are
able to offer more accurately targeted promotions and advertising to their most loyal customers.
Away from the track, fans could add sponsors as friends on Foursquare and receive tips or
notifications if they are close to a participating location. Finally, and likely most important to
NASCAR and sponsors, is the element of revenue generation. For companies partnering with
NASCAR, the game gets some of their most brand-loyal users to the point of sale (or to the point
of brand interaction) both at the track and, later, away from the track. Sales in conjunction with
Foursquare promotions could be tracked and noted for each retail location (take Burger King, for
example). And of course, intangible elements such as brand loyalty tied to future purchase
decisions could be an indirect revenue consideration.
Measurement and data collection are two key elements of this proposed framework.
Foursquare can let NASCAR know who is attending races, where they go before and after the
race and their thoughts on the overall experience. This could lead to partnerships with in-market
hotels, restaurants, or even gas stations (Shell is an official NASCAR sponsor) providing
additional fan touch points. Based on the earlier assertions that the NASCAR fan base
demographics is, in fact, a microcosm of the American population, comparative calculations
have led to an estimated 2.38 million NASCAR fans using the Foursquare application by Q3
2011 [See Appendix 10]. This is a group that, simply, cannot be ignored. Operating under the
LOCATION, LOCATION, LOCATION 31
previously discussed cost per check-in model, costs for one check-in from each of this
population would lead to the following costs.
Rate (per check-in) Cost (per check-in)
$0.10 $238,000
$0.25 $595,000
$0.50 $1,119,000
While these figures may appear high to some, it is critical to remember that each check-in brings
a customer already demonstrated as being extremely brand-loyal to the point of sale. Depending
on the product or service offered by the sponsors, returns on this investment will be nothing short
of exponential.
CONCLUSION
NASCAR is in an excellent position to implement location-based mobile technology.
They have a massive fan base that already uses digital and new media technology, a portfolio of
brands unmatched by any other professional sport, and a set of second-to-none organizational
partners, most notably Turner Sports Interactive. The proliferation of location-based social
networking is not just an idea – it is a certainty. While the program may not be an immediate
starter, now is the time to begin strategic conversations relative to this technology and how it will
impact NASCAR‟s business model. NASCAR can do well by being forward-looking and
engaging Foursquare in a partnership that effectively leverages its brand portfolio to better
understand the end consumer, target him or her more accurately, and ultimately drive revenue.
LOCATION, LOCATION, LOCATION 32
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Mashable. Retrieved from http://mashable.com/2010/03/09/foursquare-business-
dashboard/
Van Grove, J. (2009). Foursquare: Check in, tweet … and now save money on beer. Mashable.
Retrieved from http://mashable.com/2009/08/07/foursquare-partnership/
“What is Foursquare?” (2010). The Week. Retrieved from http://theweek.com/article/index/
200751/what-is-foursquare
Wong, W. (2010). Online trail fraught with risks. The Baltimore Sun. Retrieved from
http://www.baltimoresun.com/business/technology/bal-online-trail-0319,0,3702519.story
LOCATION, LOCATION, LOCATION 38
APPENDIX 1
LOCATION, LOCATION, LOCATION 39
APPENDIX 2
LOCATION, LOCATION, LOCATION 40
APPENDIX 3
NASCAR Sprint Cup Tracks – Geographic Distribution
1960-1969
1970-1979
1980-1989
1990-2003
LOCATION, LOCATION, LOCATION 41
APPENDIX4
LOCATION, LOCATION, LOCATION 42
APPENDIX 5
LOCATION, LOCATION, LOCATION 43
APPENDIX 6
LOCATION, LOCATION, LOCATION 44
APPENDIX 7
LOCATION, LOCATION, LOCATION 45
APPENDIX 8
LOCATION, LOCATION, LOCATION 46
APPENDIX 9
LOCATION, LOCATION, LOCATION 47
APPENDIX 10
Engaging the Changing Face of „NASCAR Nation‟ with New Media
Lane Errington
MPSM900
June 17, 2010
LOCATION, LOCATION, LOCATION
2
Roadmap
• Brand audit
• Demographic analysis
• NASCAR Digital
– Overview
– Research
– SWOT analysis
• Recommendations
– Location-based social networks
– NASCAR-specific applications
3
Brand Overview
NASCAR is the…
• #1 spectator sport
– 17 of the top 20 highest-attended sporting events in the U.S.
– 120,000 spectators (average) attend each SCS race
• #2-rated regular-season sport on television
– 75 million fans worldwide
– Broadcast in more than 150 countries in 20 languages
• #1 sport in fan brand loyalty
– Fans 3x as likely as non-fans to try and purchase sponsors products and services
– More Fortune 500® companies sponsor than any other sport
Source: 2009 NASCAR Brand Brochure
4
Brand Attributes
Source: 2009 NASCAR Brand Brochure
Functional Equities Emotional Equities
Edge-of-seat action Admired athletes
Intense competition Athletes who are “regular people”
Nonstop action Down to earth
Performance Genuine
Skillful competitors Honorable
Speed and power Like a big family
Thrilling and exciting Straight up and honest
5
The NASCAR Family of Stakeholders
• Fans
• Drivers
• Teams
• Sponsors
• Auto manufacturers
• Tracks
• Media
• Licensees
6
NASCAR Fan Base Demographics
Source: Scarborough Research USA+ 2009
60% male
40% female
Just as likely as the U.S.
population to be ages 18-44 As affluent as the U.S. population
7
2010 NASCAR Fan Base Demographics
Source: Scarborough Research USA+ 2009
A sport for the entire family
60% of fans outside the South 1 in 5 fans is a member of a minority group
8
Factors Influencing Changing Demographics
• Geographic expansion
– Tracks
– Drivers
– DMAs
• Title sponsorship change
– Winston
– Nextel
– Sprint
• Globalization
– Hispanic markets
– International drivers
– Auto manufacturers
1960-1969
1970-1979
1980-1989
1990-2003
Track Distribution
9
NASCAR Digital
• Turner Sports Interactive
• NASCAR Media Group
– Digital
– Broadcast
– Images
• NASCAR.com
– 7 million monthly viewers
– 60,000 live streams per race
– 2.9 million video plays per month
– Unique viewership
10
NASCAR.com User Profile
The NASCAR.com user is…
• Male
• Age 42
• White
• South/Midwest
• Some college
• $64K income
• Married
• Homeowner
Source: NASCAR Digital
11
0.80.8
1.11.1
0.70.6
2008 2009
0.8 0.8
1.11.1
0.50.5
2008 2009
Q. For each of the following types of media, please indicate about how much time you spent following NASCAR in that media type in a typical week.
Source: Ipsos, NASCAR Brand Tracker
Average Number of Claimed Hours Spent
Following NASCAR in the Media Among Fans
Base: NASCAR Fans
Means include 0
3.9
4.3
5.5
6.0
3.1
2.7
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2008 2009
1.31.1
1.61.6
1.0
0.7
2008 2009
0.30.50.5
0.40.3 0.4
2008 2009
Total Fans
Avid Fans
Casual Fans
On television On the radio On the Internet On newspapers/
magazinesOn mobile device*
12
Fan
(n=334) (A)
Avid Fan
(n=190) (B)
Casual Fan
(n=144) (C)
MySpace
Twitter.com
Skype.com
Flickr.com
Blogger.com
Other
I have not used any of these
websites in the past month
Q. Have you used any of the following websites in the past month?
Letters indicate the value is significantly higher than the value in the corresponding column at the 95% confidence level.
Source: Ipsos, 2009 NASCAR Brand Tracker Base: Follow NASCAR on the Internet
Social Media Websites Visited
(not specific to following NASCAR)
53%
41%
20%
9%
9%
4%
4%
2%
32%
56%
45%
20%
12%
8%
6%
4%
-
29%
52%
38%
19%
7%
9%
3%
4%
4% C
35%
13
Q. You mentioned in a previous survey that you participate in the social media/networking websites Facebook and/or Twitter.
How do you access social media/networking websites?
Source: NASCAR Fan Council Survey, Fielded August 11-17, 2009 *Significant difference between gender/age
14
Q. What NASCAR information do you want to receive updates on from the social media/networking websites (i.e. Facebook, Twitter, etc.) you use?
Source: NASCAR Fan Council Survey, Fielded August 11-17, 2009
*Significant difference between gender/age
Females & those under 35 more likely to want
information compared to males & those 35+
15
Engaging the Power of the Groundswell
• Website re-launch
– TrackPass
– Infield Community
• Social media
– Citizen Journalism
• Fan Council
16
SWOT Analysis – NASCAR Digital
STRENGTHS
• Turner Resources
• No overhead, risk on capital
• Quality as opposed to speed
• Numerous partners to work with
• Integration with stakeholders
WEAKNESSES
• Limited control
• Inability to react quickly
• Reactionary approach
• Inability to directly promote
ticket sales (tracks own rights)
• Limited mobile platforms
OPPORTUNITIES
• Leverage existing partnerships
• Educating rest of company
• Focus on the future
THREATS
• Measurement of new media
• „Traditional‟ fan backlash
• Sponsor deals prevent asset
optimization/breadth/depth
Source: NASCAR Digital
17
Location-Based Social Networking
• Three main goals
1. Gain a better understanding of fans and customers (data collection)
2. Create more accurately targeted advertising and promotions
3. Drive sales and add value to sponsors as well as the race day experience
“Although Foursquare and competitors like Gowalla are the subject of most of the current headlines,
experts say the true potential lies in companies knowing exactly where customers are and pitching
offers or offering services based on the spots these customers frequent. As smart phones become
more common and social networking gains a broader audience, consumers are consciously sharing
more information than ever about their daily routines. That information makes it easier for businesses
to advertise or offer special discounts that fit what someone is doing at a given moment.”
Source: Knowledge@Wharton (The Wharton School of Business)
18
Location-Based Social Networking
• The next battleground for mobile operating systems
• Challenges
– Increase in user base (personal and business)
– Increased frequency of check-ins
– Consumer education
– Standardized methods for revenue generation,
measurement, and building scale
19
Smart Phone Usage
• 21% of Americans own
smart phones as of Q4 2009
• More smart phones than
feature phones in the U.S.
market by Q4 2011
• Social networking sites are
60% of U.S. mobile traffic
• Estimated 56.2 million
mobile social networkers in
the U.S. alone by 2013
(607.5 million worldwide)
Sources: Nielsen; GroundTruth; eMarketer
20
Foursquare
• “A cross between a friend-
finder, a social city-guide and
a game that rewards you for
doing interesting things”
• “On-the-go” user
• 1.2 million users
• 40 million check-ins
• Business applications
• Measurement is key
Sources: Foursquare.com, Mashable.com
21
NASCAR LBSN Strategy
• Social interaction with other fans
• Fan plaza areas
– Experiential marketing displays
– Merchandise trailers
– Virtual check-in locations
• Integration with sponsors, tracks, drivers, etc.
• Reward repeat attendees for brand loyalty
• Results
– Revenue generation
– Brand exposure/awareness
– Added digital touch point
22
Foursquare at the Track
23
Foursquare at the Track
24
25
“We‟re just aggregating consumers.
We really don‟t care what devices they use.
It‟s about creating touch points.
Ultimately, brands will win across all
technologies.”
David Levy, President, Turner Sports
April 2006, World Congress of Sports
Source: Fisher, E. (2006). Crossing media borders. Sports Business Journal.
26
Recap
• Iconic brand
• Changing fan demographics
• Increasing digital fan engagement
• Location-based social networking model
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Lane Errington
lerrington@nascar.com 123.456.7890
NASCAR ANNOUNCES FOURSQUARE PARTNERSHIP
LOCATION-BASED SOCIAL NETWORKING INITIATIVE TO DEBUT IN 2011
CHARLOTTE, NC (June 21, 2010) – NASCAR has announced a partnership with mobile application provider Foursquare to create a new location-based social networking program. Set to debut in the 2011 season, the program will create check-in points in strategic locations at partnering tracks throughout the year. These locations could include sponsor activation displays, driver merchandise trailers, and virtual check-in locations. Under the Foursquare model, fans who download the free application to their mobile phone can gain access to exclusive offers, information, and media content from the NASCAR family of sponsors by „checking-in‟ at locations of their choice. Fans can then use Foursquare as an avenue for further interaction with their favorite brands away from the track. Several prominent drivers and sponsors have already committed to the Foursquare race day program, including Tony Stewart and his group of sponsors, including Office Depot, Old Spice, and Burger King. “NASCAR fans are increasingly active in the new media space and are proud of their status as the most brand-loyal fans in sports,” said Geoff Lester, NASCAR Director of New Media. “Foursquare is an industry leader that will provide us with the resources to create programs that enhance the race day experience for our fans and foster more impactful with our second-to-none group of sponsors.” “Partnering with NASCAR is a monumental opportunity for Foursquare,” commented Dennis Crowley, Foursquare CEO. “We look forward to demonstrating the full value of our applications in the best business-to-consumer marketing environment in American sports.” For more information, please visit www.nascar.com/foursquare. About NASCAR: The National Association for Stock Car Auto Racing Inc. (NASCAR) is the sanctioning body for one of North America's premier sports. NASCAR is the No. 1 spectator sport -- with more of the top 20 highest-attended sporting events in the U.S. than any other sport -- and is the No. 2 rated regular-season sport on television. NASCAR races are broadcast in more than 150 countries and in 20 languages. NASCAR fans are the most brand loyal in all of sports, and as a result more Fortune 500 companies participate in NASCAR than any other sport. NASCAR consists of three national series (the NASCAR Sprint Cup Series, NASCAR Nationwide Series, and NASCAR Camping World Truck Series), four regional series and one local grassroots series, as well as two international series. Also part of NASCAR is Grand-Am Road Racing, known for its competition on road courses with multiple classes of cars. NASCAR sanctions more than 1,200 races at 100 tracks in more than 30 U.S. states, Canada and Mexico. Based in Daytona Beach, Fla., NASCAR has offices in New York; Los Angeles; Charlotte, N.C.; Concord, N.C.; Conover, N.C.; Bentonville, Ark.; Mexico City; and Toronto. About Foursquare: Foursquare is a mobile application that aims to encourage users to explore their neighborhoods and then reward people for doing so. We do this by combining our friend-finder and social city guide elements with game mechanics - our users earn points, win mayorships and unlock badges for trying new places and revisiting old favorites. Foursquare was launched in March 2009. For more information, visit http://www.foursquare.com.
# # #
TEXT FROM POST UPLOADED TO GEORGETOWN BLOG
https://digitalcommons.georgetown.edu/blogs/jle37/
CAPSTONE PROJECT – Location, Location, Location: Engaging the Changing Face of ‘NASCAR Nation’ with New Media
The capstone project has been a challenging, grueling, and rewarding experience for me. From the outset, I was aware of the challenge that balancing my first full-time job, starting in early May, would present with regard to completing my Capstone project. As a result of working full-time, including some weekends, I was forced to be meticulous with my free time and focus my efforts on time management and creating self-imposed deadlines with relation to the project.
My project, in a nutshell, is a commentary on how the iconic NASCAR brand and its stakeholders can continue to embrace and develop an evolving fan demographic to further engage fans in the new media space, specifically using location-based mobile technology. NASCAR has been demonstrated as maintaining the most brand-loyal fan base in professional sports, with more Fortune 500 companies using NASCAR as a brand-building avenue than any other American sport. My plan is to leverage that loyalty and create a new partnership with Foursquare, the leader in location-based social networking, to enhance the fan’s race day experience and add value to sponsoring brands. Three main goals of the program include:
1. Gain a better understanding of fans and customers (data collection) 2. Use that information that create more accurately targeted advertising and promotions 3. Drive sales and add value to the NASCAR race day experience and sponsor network
When I began my research in early May, I reached out on Twitter to anyone who had connections to NASCAR that might be able to help me with my project. I received a response from NASCAR’s official account within a minute’s time. This was an early indication that I was dealing with an organization who was clearly dialed in to the voice of the fan in the digital space. Through this single tweet, I was able to connect with two great NASCAR executives that provided me with valuable first-hand knowledge as well as documents that have proven to be some of my most valuable resources.
My capstone project has evolved from a set of strategic recommendations for NASCAR Digital to a much more focused program in an discipline that I have been forced to learn on the fly. I knew going in that I needed to be more knowledgeable in the digital/new media space, as this is where much of today’s marketing programs are taking place. My topic has stretched and challenged me in ways that may have been frustrating at the time, but now I can appreciate the struggles and successes of a month spent expanding my personal brand to new heights. Perhaps one of the toughest challenges was finding ways to monetize a technology that does not have a proven standard method for revenue generation, measurment, and building scale.
This was an incredible opportunity to apply my learnings from a year in the Georgetown SIM program to a topic that I was clearly passionate about. I look forward to sharing my findings with others, including perhaps reviewing my final product with members of the NASCAR Digital team, and I am confident my passion for this topic will stand out.
NASCAR Foursquare at the Track
Check in and connect
with your favorite
NASCAR drivers and
sponsors this weekend
in Sonoma, CA at
Infineon Raceway!
Get in on the action at
www.foursquare.com
___ People Like This
Photos
ADS
FROM
NASCAR
SPONSORS
Events
(Upcoming races)
Take a look a list of check-in locations for this
weekend’s race http://nascar.com/foursquare
Goodyear, the Official tire of NASCAR, becomes
first sponsor to offer virtual check-in option [LINK]
To get in on the Foursquare at the Track
program, sign up for an account at
http://www.foursquare.com
COMMENTS
What was your favorite check-in location at
Michigan International Speedway’s Fan Plaza this
past weekend?
COMMENTS
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