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1 SECTION TITLE HERE ©CSM SPORT & ENTERTAINMENT

Insights into the complex industry from CSM, a sport and entertainment agency with an expertise in motorsports

WHY MARKETING THROUGH MOTORSPORTS DRIVES

BRANDS FORWARD

2 EXECUTIVE SUMMARY ©CSM SPORT & ENTERTAINMENT

Motorsports as a sponsorship and marketing

platform has seen significant changes in recent

years. There are more brands in motorsports than

ever before, and with a number of entry points

for brands looking to work within their budget,

motorsports is a valuable breeding ground for

brands that want to grow.

In this report, we’ll provide a top-down view

of motorsports, dive in to what it means to

be a sponsor in motorsports, and showcase

the opportunity for brands: using motorsports

as a platform to launch, achieve and sustain

business objectives.

The growth of motorsports is seen in several

areas: global and domestic revenue, audiences,

consumption of the sport, its ecosystem and

the evolution of the sponsorship model.

For brands who have entered, expanded and

extended their investment in motorsports in

recent years, they know and understand that

motorsports fans are among the most brand-loyal

fans in the industry. Brands with large primary

target audiences have also seen value in investing

in two or more motorsports series or using tent

pole events like the Daytona 500, Indianapolis

500 or Rolex 24 Hours at Daytona to enhance

their overall marketing strategy.

Multiple series in motorsports, in recent years,

are producing strong live-event numbers and

experiencing growth in television viewership even

though overall, viewers are watching less free-to-air

television. Motorsports produces engaging and

authentic content for digital and social channels

watched by millions of fans and followers.

In some series, fans are attending races in numbers

that, average more than the big four U.S. sports

leagues. Even grassroots racing series are seeing

growth and record numbers in attendance. Beyond

attendance and television numbers, the makeup

of motorsports fans is changing with a greater

participation and following from both women

and minorities.

Sports leagues are designing content development

strategies to hit the increased number of

touchpoints with a consumer because of their

evolved consumption habits. Across the industry,

sports leagues are developing business models to

meet the massive audiences in esports and electric

racing, and experiential marketing is pivotal for

brands to have genuine interactions with consumers.

Marketing through motorsports is about much

more than the placement of a logo. Instead, it is

about brands strategically connecting with their

audiences through an authentic consumer journey

to drive results.


03040812192425

YOU ARE HERE!MOTORSPORTS 101BEING A SPONSOR IN MOTORSPORTSMOTORSPORTS MYTH BUSTERSINSIGHTSCONCLUSIONHELLO! WE ARE CSM SPORT & ENTERTAINMENT

4 MOTORSPORTS 101 ©CSM SPORT & ENTERTAINMENT

Motorsports is a $5.75 billion global industry.

In the past five years alone, motorsports in overall

revenue has grown by 12 percent, and since 2011,

overall revenue has increased by $1 billion.A

THE INDUSTRYAT A GLANCE

MOTORSPORTS REVENUE

Globally, motorsports generated nearly

$6 billion in annual revenue in 2017.B

Across the sports industry, revenue

is generated from a number of factors,

but the key elements that make up global

motorsports revenue include sponsorship,

advertising, media and broadcasting

and tickets and merchandise.

SPONSORSHIP

Sponsorship is noted as “the lifeblood of

the sport.” From endemic to non-endemic

sponsors, there are several entry points

within motorsports where brands can

connect with their fans including investing

in a series, a team, a driver, a track or

broadcast media.

Motorsports has a passionate fan

base that recognizes the value sponsors

provide, making them the most brand-

loyal fans above other forms of sport

and entertainment.

ADVERTISING

Beyond direct investment with a

league, team, track or event, brands

have the opportunity to buy race

broadcast rights or inventory, such

as commercial advertising or branded

content around motorsports events.

These can be broken out into a general

time buy or broadcast sponsorship.

Coupling a time buy or broadcast

sponsorship with a motorsports program

can amplify results, such as increased

awareness or call-to-action responses.

MEDIA AND BROADCASTING

Some of the largest deals in motorsports

are dollars spent by broadcasters to

own the right to air motorsports events.

For example, NBC and FOX combine to

pay NASCAR nearly $800 million a year

in rights fees, which are then divided

between the tracks, the teams and the

league. INDYCAR recently announced

its new partnership with NBC, which

will see races carried with one partner

across broadcast – free-to-air – and cable

for the first time since the inception of

the series.

The evolution of traditional broadcast

measurement and second-screen

experiences are impacting viewership

numbers, and brands should develop

a strategy for distribution of content

to their target audiences. Strategies

may include the capture and delivery

of unique content, creating a partnership

with content providers and assessing

engagement with their target audience

to constantly lean into the methods that

offer the most return.

TICKETS, MERCHANDISE AND FAN EXPERIENCE

Tickets and merchandise revenue is the

investment made directly by consumers.

Millions of fans attend motorsports events

every year, and fans are quick to buy up

the latest team or driver-centric hat, shirt

2013

2014

2015

2016

2017

$5.12B

$5.26B

$5.43B

$5.58B

$5.75B

$3.75B $4B $4.25B $4.50B $4.75B $5B $5.25B $5.50B $5.75B

or general merchandise item. Millions of

fans also require tickets, and tracks have

continued to evolve their approach to

pricing and packaging for their respective

race events, such as with family and kids

packages, offering the best experience

at an affordable price.

The ticket itself is only part of the

fan experience. Motorsports offers

opportunities to fans that no other sports

provide. For as little as $50, fans can get

close to the action of their favorite teams

through purchasing pit and garage passes.

Alongside exclusive access, motorsports

venues are amplifying fan experiences

through unique viewing locations, creating

an experience within an experience, and

offering fans digital access to information

to plan their best experience prior to

arrival. As with all sport and entertainment

venues, there is opportunity to enhance

the fan experience through technology

and additional content.


MOTORSPORTS AUDIENCE

PEOPLE ARE MOTORSPORTS FANSC

GENDERD

OF MOTORSPORTS FANS ARE 18 - 34F

AVERAGE AGEF

PERCENTAGE OF THE GENERAL NORTH AMERICAN POPULATION ARE VERY OR SOMEWHAT INTERESTED IN THE FOLLOWING SERIESG

63% MEN 37% WOMEN

25%

51%41%36%34%

NASCAR |INDYCAR |

FORMULA 1 |NHRA |

OF THE GLOBAL ADULT POPULATIONARE INTERESTED IN MOTORSPORTSE43%

Among adult motorsports fans, 63 percent

are men and 37 percent are women. In the

United States, NASCAR has the highest

percentage of women fans, followed

by INDYCAR. Outside of sports like the

Olympics and the WNBA, motorsports is

aligned with major sports on the split of

men and women fans.

The average age of motorsports fans is 48

years old. This is on-par with the general

population as well as the average age

of an NFL and MLB fan. More than 1 in 3

motorsports fans are under 40 years old,

and more than 1 in 4 motorsports fans

are 18-34. The reach of motorsports to

Millennials is the same as MLB and is on-

par with the NFL and other major sports.

Interest in motorsports in North America

among the general population shows

that: 51 percent are very or somewhat

interested in NASCAR, 41 percent are very

or somewhat interested in INDYCAR, 36

percent are very or somewhat interested

in Formula 1 and 34 percent are very or

somewhat interested in NHRA.H

With the wide array of fans interested

in motorsports, brands are using

multiple motorsports series to reach

their audiences simultaneously or as

an evolution of their brand marketing

strategy. Brands that reach a wider

audience, such as Total Lubricants, DHL,

Mercedes-AMG and Rolex, cross over

into two or more series to hit multiple

touchpoints with their audiences. Brands

that evolve their marketing strategy, yet

continue to use motorsports as a platform,

include UPS, BP Castrol and Verizon.

Motorsports offers a unique and compelling opportunity for brands to interact with a loyal and experience-driven fan base. Learn more on page 11.

What opportunity exists with the emergence of esports? 43 percent of motorsports fans are interested or very interested in esports. Learn more on page 20.

IN NO OTHER SPORT

MOTORSPORTS AND BEYOND


FORMULA E

Formula E is the first all-electric

international single-seater street racing

series in motorsports inherently promoting

sustainability. The Championship boasts one

of the most diverse line-ups in motorsports

with a calendar of international host cities

and increasingly innovative technology

on the track.

FORMULA 1

F1 is the sanctioning body of technologically

advanced open-wheel racing. Each

season of Formula 1 consists of a series

of international races, called grand prix,

which are held around the world in diverse

locations as well as historically significant

international venues.

IMSA

IMSA, the International Motor Sports

Association, is known for its exotic cars

and premier road course and street circuits.

IMSA features American-made and imported

high performance vehicles as well as

custom-built racing machines. It includes

North America’s greatest endurance races

including the Rolex 24 At Daytona, the Mobil

1 Twelve Hours of Sebring and Petit Le

Mans at Road Atlanta.

INDYCAR

INDYCAR is a North American open-wheel

racing series that features a diverse group

of drivers and style of races including:

superspeedways, short ovals, road

courses and temporary street circuits.

The global motorsports market comprises a variety of races involving cars,

motorbikes and other vehicles. By design, this report considers the sanctioning

bodies popular in the United States including IMSA, INDYCAR, Formula E,

Formula 1, NASCAR, NHRA, USAC and the World of Outlaws.

NASCAR

NASCAR, the National Association for

Stock Car Auto Racing, is a stock car racing

series that uses standard conventional cars

for races, and races are held on oval, roval

and road course tracks. NASCAR oversees

several series including three national racing

series and three international racing series.

NHRA

NHRA, the National Hot Rod Association,

is the world’s largest motorsports

sanctioning body and the foremost

promoter of drag racing in the world.

The top series of NHRA, the NHRA Mello

Yello Drag Racing Series, races on drag

strips in major U.S. markets.

USAC

USAC, the United States Auto Club,

serves as the sanctioning body for a

number of racing series including the

Silver Crown Series, National Sprint Cars,

National Midgets, .25 Midgets, Pirelli World

Challenge, TORC Off Road, Speed Energy

and American Rally Cross.

WORLD OF OUTLAWS

The World of Outlaws sanctions two major

national series, the Craftsman Sprint Car

Series and the Late Model Series. Races take

place around the country on dirt oval tracks

ranging in size from a 1/4-mile to 5/8-mile.


To a general sports fan, the ecosystem of motorsports

may seem one or two dimensional and they may think only

of NASCAR, INDYCAR or Formula 1. However, the makeup

of the motorsports industry is unique and complex.

Below is a sampling of the ecosystem in the U.S.

SANCTIONINGBODIES

BROADCASTPARTNERS

TENTPOLEEVENTS

IN THE U.S.

SERIES

NASCAR NHRA USACFORMULA 1FORMULA E IMSA INDYCAR WORLD OFOUTLAWS

Verizon IndyCar Series

WeatherTech SportsCar

Championship

World of Outlaws Craftsman Sprint

Car Series

Mello Yello DragRacing Series

ABB Formula EChampionship

Monster Energy NASCAR Cup Series

PanasonicJaguar Racing

Mercedes F1 Team Penske Tony StewartRacing

AndrettiAutosport

Chip GanassiRacing

John ForceRacing

Joest Racing

Ricky Taylor,IMSA

Nelson Piquet Jr,Formula E

Sebastian Vettel,Formula 1

Bubba Wallace,NASCAR

Brittany Force,NHRA

Chris Windom,USAC

Josef Newgarden,INDYCAR

Kyle Larson,NASCAR

Knoxville Nationals,WORLD OF OUTLAWS

Rolex 24 Hours,IMSA

U.S. Grand Prix,FORMULA 1

U.S. Nationals,NHRA

Brooklyn E-Prix,FORMULA E

Daytona 500,NASCAR

Grand Prix ofLong Beach,

INDYCAR

Indianapolis 500,INDYCAR

FOX NBCESPN 2 Sirius XMABC CBS Sports ESPNDIRTVision.com

IndianapolisMotor Speedway

Lucas OilRaceway

KnoxvilleRaceway

Streets ofLong Beach

EldoraSpeedway

TEAMS

DRIVERS

TRACKS

Daytona International

Speedway

Charlotte MotorSpeedway

Circuit of theAmericas

8 BEING A SPONSOR IN MOTORSPORTS ©CSM SPORT & ENTERTAINMENT

BEING A

IN

Brands that outshine their competitors

are creating campaigns that enhance fan

experiences. The values and congruent

messages between the brand and

property must be portrayed in content

and campaigns.

Motorsports drives more than awareness

and impression numbers. With a proper

strategy, they impact consideration,

loyalty and product trial. Motorsports

can provide business-to-business

opportunities, employee engagement

opportunities, customer hosting platforms,

unique content marketing campaigns and

once-in-a-lifetime experiences.

Unique to motorsports is the flexibility

for sponsorship investments. Brands

have a history of finding longevity in

motorsports because they can sustain

long-tenured agreements that are catered

to the evolving needs and objectives of

the brand. Brands from many categories

are intertwined within the race itself. From

logo placements and campaign calls-to-

action on vehicles and signage to product

integration within the sport, brands create

connections with the fans on-site and

through broadcast and digital channels.

BRAND INVESTMENT

Motorsports’ major championships may be on traditional live broadcast feeds, but new options

are opening up for rights holders to deliver content directly to the consumer. Learn more on page 19.

DID YOU KNOW?


For each track around the United States and the world,

brands have the opportunity to bid for naming rights

to the track, to be the title sponsor for each event

the track hosts, to be a presenting sponsor for each

event, to be a sponsor to the entertainment events

at the track, to sponsor hospitality events and

to be a sponsor for brand activations at the track.

For every driver, brands have the opportunity to

sponsor the driver and appear on their fire suit,

contract the driver for official sponsor endorsements,

which would be separate from appearing on their

fire suit, as well as to contract them for public service

announcements as an ambassador or spokesperson

of their brand.

Through a media buy, broadcast integration or

through traditional communications brands can enter

motorsports without having to be on-site at the event.

With teams under each series, brands can enter with

team naming rights, as a primary sponsor for multiple

or all races as an associate sponsor for multiple or all

races, or as a technical sponsor.

Within each series under a sanctioning body, there

is an opportunity to be the title sponsor, an official

partner, a non-exclusive partner, a technical supplier

of the series or a sponsor of one or multiple assets.

TRACKDRIVER MEDIA

SERIES TEAM

In a cluttered sponsorship environment, brands must apply fully-integrated programs with a clarity of message and a focused channel to hit every touchpoint of the consumer journey. Learn more on page 21

Points of entry should be rooted in strategy, not based on a list of assets.

Motorsports is continuing to search for ways to control costs and enhance the fan experience, which in turn has created new categories for sponsors. Learn more on page 18.

APPLY A STRATEGY

EXPANDING THE LANDSCAPE


Brands with a corporate social responsibility story will find a home among sports fans in general and Formula E fans in particular. Learn more on page 22.

While viewership of sporting events still rules when it comes to most watched content on live television, connecting to consumers through multiple touchpoints generates a more loyal fan. Learn more on page 19.

APPLY A STRATEGY

THINKABOUT THIS

EXPANDING THE LANDSCAPE

PRIMING THELOYAL FAN

Motorsports fans continue to rank as the highest fan base for brand loyalty and consideration among the major U.S. sports.

2XAS LIKELY TO CLAIM THEY CHANGE

BRANDS DUE TO NASCAR SPONSORSHIPSJ

SOCIAL MEDIA FOLLOWERS

FANS STATE THAT A COMPANY’S SPONSORSHIP OF IMSA MAKES THEM FEEL GOOD ABOUT THE

SPONSOR, DRIVING A PURCHASE AND/OR REFERRALK

NASCAR

IMSA

F1 FANS ARE

THAN NON F1 FANS TO BE THE FIRSTTO TRY A NEW PRODUCT OR SERVICEM

80%

OF INDYCAR FANS ENGAGED* WITH A SPONSOR AFTER SEEING THEM

ON TV/IN-PERSONL

FOR BRAND LOYALTY AND CONSIDERATION AMONG

MAJOR U.S. SPORTS

MOTORSPORTS HAS THE

85%

OF FORMULA E FANS AGREETHAT A HIGH DEGREE OF

CORPORATE SOCIAL RESPONSIBILITY (CSR) IS KEY IN THEIR DECISION

WHEN CHOOSING A BRANDN

FORMULA 1

FORMULA E

INDYCAR

12 MOTORSPORTS MYTH BUSTERS ©CSM SPORT & ENTERTAINMENT

Whether it is in the weekly headlines or general chatter, myths are born

from the ebbs and flows of the sport.

Myths to discuss and bust include: motorsports television ratings are

eroding; the only fans of the sport are older white men; race attendance

is low; motorsports content can’t compete online; brands are leaving the

sport; brands don’t have the right budget to get into motorsports.

Perhaps the most repetitive story that seems to be in the headlines is that

motorsports ratings are falling. However, the narrative behind the myth

isn’t necessarily that ratings are declining, but instead, that the product

of motorsports is becoming less of an interest to a television audience.

THESE ARE THE FACTS.

People are watching television differently. Viewership has shifted dramatically

from broadcast and cable networks to subscription-based streaming services.

The popularity of these services, as well as cord-cutting and cord shaving are

changing the television industry. Events that traditionally draw in the biggest

audiences, the Super Bowl, the Grammys, the Oscars and the Olympics, are all

seeing a shift and decline of viewership on free-to-air television.

However, digital and social consumption continues to grow. In 2018, the 60th

Running of the Daytona 500’s social content generated 1.7 million race day

engagements which was up 48 percent compared to 2017. Video views on

digital platforms totaled 1.2 million, up 76 percent.

While measuring viewership across channels is a challenge, in this new era of

television viewing, sports and motorsports are still in high demand on traditional

live television and are producing strong numbers.O

Fox Sports networks aired more than 500 hours of NHRA programming in recent

years and the first non-stop broadcast of IMSA’s Rolex 24 Hours of Daytona in

January 2018. With the biggest growth in attendance and television viewership

among many major sports, IMSA is primed to continue to grow with a new six-

year television deal with NBC beginning in 2019.

INDYCAR announced that starting in 2019, NBC Sports Group will put eight races,

including the 103rd Running of the Indianapolis 500, on NBC. This is an increase

from five races on broadcast television in 2018.

MOTORSPORTS TELEVISION RATINGS ARE ERODING

ONE


Contrary to the myth that the only fans of motorsports

are older white men who don’t make much money,

the fact is that motorsports draws a diverse fan-base

and compares closely to other sports in the United

States. The number of women participating and

following motorsports is significantly growing.

TWO

THE ONLY FANS OF MOTORSPORTS ARE OLDER WHITE MEN

MOTORSPORTS TELEVISION RATINGS ARE ERODING

ONE

INDYCAR

INCREASE IN RATINGS OVERTHE LAST FOUR SEASONSQ

38%

NASCAR

AVERAGE NUMBER OFVIEWERS AMONG MAJOR

SPORTS, BEHIND ONLY THE NFLT

#2

IMSA

INCREASE IN UNIQUEVIEWERSHIP IN 2017R

33%

NHRA

IN VIEWERSHIP SINCE MOVINGBROADCAST RIGHTS TO FOXSPORTSS

72%

FORMULA E

CUMULATIVETV AUDIENCEP

55M

FORMULA 1

INCREASE IN TOTALAUDIENCE VIEWERSHIP IN 2017P

6.2%

MOTORSPORTS FANS ARE 18-34U U.S.-BASED MOTORSPORTS FANS ARE WOMENU

ABOVE

AVERAGE HOUSEHOLDINCOME OF MOTORSPORTS FANSU

$70K24%

NASCAR FANS ARE LATINO, ASIAN,BLACK AND OTHER ETHNICITIESU


FORMULA E

68.3MCOMBINED FORMUAL E

AND TEAM VIDEO VIEWSWThe average American spends 24 hours a week

online. Smartphones are used by 84 percent of

the American population to browse social media,

streaming services and the internet.V

Despite the growing amount of time spent online,

there is still a limit to how much people can consume.

People are consuming relationships with brands as

much as they are with people through social networks,

and every piece of content determines if and how

much a person will engage.

Motorsports have impressively developed content that

their fans and prospective fans are not only interested

in, but are engaged in, which is crashing the myth that

motorsports content can’t compete online.

CONSIDER THE FOLLOWING STATISTICS FROM 2017 >>>

MOTORSPORTSCONTENT CAN’TCOMPETE ONLINE

THREE

DATA CONTINUED ON NEXT PAGE >>>

EXAMPLE CONTENT:

Formula E car vs cheetah, YouTube


110K

HIGHEST

TIMES #ROLEX24 WAS USED DURINGTHE MONTH OF JANUARY 2018Z

FROM 2017 SOCIALMEDIA ACTIVITYZ

OF SOCIALMEDIA FOLLOWERSY

50%INCREASE

49%GROWTH

400K 237%NEW FOLLOWERS IN 2017AA IN TOTAL ENGAGEMENTS ACROSS

ALL SOCIAL MEDIA PLATFORMSAA

IMSA

150% 2800IN TOTAL VIDEO VIEWSAA

MORE THAN

VIDEOS WERE PRODUCEDON INDYCAR PLATFORMSAA

GROWING SPORTON SOCIAL MEDIAX

INCREASE IN MINUTES OFVIDEOS VIEWED ON FACEBOOKX

55%

IN FOLLOWERSX

INCREASE

4.0BSOCIAL MEDIA IMPRESSIONSBB TOTAL ENGAGEMENTSBB

DIGITAL CONSUMPTION RATEAMONG ALL MAJOR SPORTS PROPERTIESCC

463M

421,000,000 SOCIAL MEDIA VIDEO VIEWSOF NASCAR-OWNED CONTENTDD

2018 ROLEX 24

SOCIAL DIGITAL

STREAMING

FORMULA 1

INDYCAR

NASCAR

EXAMPLE CONTENT:

An eight-episode series created by NASCAR launched the

2018 season. The series featured driver Bubba Wallace and

received more than 5.5 million views on Facebook Watch

EXAMPLE CONTENT:

Streaming video from a driver’s Nose Cam

EXAMPLE CONTENT:

Qualifying and race

highlights on Facebook

EXAMPLE CONTENT:

Fernando Alonso Onboard

Camera, Facebook Live


Perhaps a result of the changing viewing and consumption habits of fans, we see that

with a number of variables, there has been a decline in fan attendance at live events

across all sports leagues.

However, the classic American experience, though shifting, is still seeing strong numbers

in motorsports, and in some cases, motorsports is leading in average attendance among

major sports in the United States.

INDYCAR continues to post record numbers and increased attendance every year.

The Grand Prix of Long Beach in California alone brings in more than 180,000 attendees

throughout the event weekend. The Indianapolis 500, the largest single day sporting

event in the world, has averaged more than 300,000 attendees for the past several years.FF

So far in 2018, NHRA has recorded sellout crowds including the Arizona Nationals and

the AMALIE Motor Oil Gatornationals. Overall, NHRA has already seen several sellout

days, when in 2017, NHRA had seven sellout days throughout the entire season.GG

Like youth programs in other sports, grassroots racing series point to the authenticity of

motorsports fan loyalty. Local tracks at the grassroots level, racing throughout many series,

draws consistent growth and attendance with sellout crowds, and the demand is only

getting higher. Short tracks account for more than 400 tracks that see 7,000 events and

17 million fans.HH

The Chili Bowl Midget Nationals, indoor dirt track midget car racing, has sold out for

27 straight years. The World of Outlaws World Finals at the Dirt Track at Charlotte Motor

Speedway has seen sellout crowds for the past five years. The World Finals averages

70,000 fans, who come from all 50 states and around the world, over the three-day event.II

MOTORSPORTS FANS AREN’TATTENDING RACES ANYMORE

FOUR

AVERAGE ATTENDANCE* PER PROFESSIONAL SPORT EE

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

HOCKEY

BASKETBALL

SOCCER

BASEBALL

FOOTBALL

NASCAR

INDYCAR**

17,000

18,000

22,000

30,000

67,000

70,000

89,000

*Rounded to the nearest whole number **Denotes multi-day events


The narrative of this myth isn’t that sponsors are simply

leaving motorsports, but instead, that sponsoring motorsports

is no longer an effective platform.

While recent announcements from brands exiting may seem

like heavy hits to motorsports, including brands Lowe’s and

Target, other well-known brands have recently entered,

returned or expanded their partnerships in motorsports,

including Anheuser-Busch, PNC Bank and Coca-Cola.

More importantly, however, is understanding that the

marketing investments brands are making in motorsports

are producing results. Monster Energy, title sponsor of the

NASCAR cup series, has seen double-digit growth versus

their competitors. PNC Bank, a long-time supporter of Chip

Ganassi Racing, recently announced an expanded partnership.

Large-scale events held every weekend throughout the year

create a natural opportunity for a beer partner to reach its

audience, including Anheuser-Busch, who has invested their

brands in motorsports for years.

SPONSORS ARE LEAVING MOTORSPORTS

FIVE

OF FORTUNE 500 COMPANIESINVEST IN NASCARJJ

OVER

25%

OF THE WORLD’S BIGGESTBRANDS ARE IN MOTORSPORTSKK

44%

PNC BANK INDYCAR

ANHEUSER-BUSCH NASCAR

ACURA IMSA

DELL F1

ABB FORMULA E

DODGE NHRA

P1 INSURANCE USAC

NOS ENERGY DRINK WOO

COCA-COLA INDYCAR & NASCAR

ACURA IMSA

NAPA WOO & NASCAR

PNC BANK INDYCAR & NASCAR

SMITHFIELD FOODS NASCAR

TWITTER NASCAR

NBC SPORTS GROUP INDYCAR & IMSA

NEW SPONSORSHIP DEALS*

*PER SERIES, IN THE LAST 18 MONTHS

U.S. AIRFORCE INDYCAR

SPORT CLIPS INDYCAR

NOS ENERGY DRINK WOO & USAC

IONOMY WOO

U.S. CONCRETE INDYCAR

YETI NASCAR

THE WEATHER COMP. NASCAR

TICKETGUARDIAN NASCAR

MOBILE 1 USAC

BRANDS ENTERING MOTORSPORTS*


BRANDS THAT HAVE EXTENDEDOR EXPANDED PARTNERSHIPS

OF FORTUNE 500 COMPANIESINVEST IN NASCARJJ

OVER

25%

OF THE WORLD’S BIGGESTBRANDS ARE IN MOTORSPORTSKK

44%

PNC BANK INDYCAR

ANHEUSER-BUSCH NASCAR

ACURA IMSA

DELL F1

ABB FORMULA E

DODGE NHRA

P1 INSURANCE USAC

NOS ENERGY DRINK WOO

COCA-COLA INDYCAR & NASCAR

ACURA IMSA

NAPA WOO & NASCAR

PNC BANK INDYCAR & NASCAR

SMITHFIELD FOODS NASCAR

TWITTER NASCAR

NBC SPORTS GROUP INDYCAR & IMSA

NEW SPONSORSHIP DEALS*


U.S. AIRFORCE INDYCAR

SPORT CLIPS INDYCAR

NOS ENERGY DRINK WOO & USAC

IONOMY WOO

U.S. CONCRETE INDYCAR

YETI NASCAR

THE WEATHER COMP. NASCAR

TICKETGUARDIAN NASCAR

MOBILE 1 USAC

BRANDS ENTERING MOTORSPORTS*


BRANDS THAT HAVE EXTENDEDOR EXPANDED PARTNERSHIPS


There is no one-size-fits-all approach to any sponsorship.

Asset-based agreements are in the past and should be

replaced with conversations on how to drive opportunity

to meet a particular brand’s challenges. In motorsports,

because there are vast opportunities that can stretch any

budget to have a big impact and meet brand objectives,

it starts with an understanding of how brands advance

their impact metrics, such as brand, business, internal

or a combination of each.

There are many price ranges for the many assets associated

with entry points into motorsports. The following are

examples within each entry point that can be achieved à la

carte or packaged based on the desired results and budgets.

I DON’T HAVETHE RIGHT BUDGET

SIXINVESTMENT LEVEL*

SOCIAL/INFLUENCER CAMPAIGN SHORT-TERM

SWEEPSTAKES PROMOTION SHORT-TERM

HOSPITALITY SINGLE EVENT

CONSUMER DISPLAY SINGLE EVENT

TEAM SPONSOR ASSOCIATE SINGLE

$

$

$

SOCIAL/INFLUENCER CAMPAIGN SEASON-LONG

HOSPITALITY MULTI OR SEASON-LONG

CONSUMER DISPLAY MULTI OR SEASON-LONG

TEAM SPONSOR HALF ASSOCIATE

TEAM SPONSOR HALF PRIMARY

TRACK SPONSOR

BROADCAST RIGHTS SINGLE EVENT

TEAM SPONSOR FULL PRIMARY

EVENT TITLE SPONSOR

SERIES TITLE SPONSOR

BROADCAST RIGHTS SEASON-LONG

*Sample of assets, not all assets of entry points are represented

No matter how large or small the marketing channel, always take a step back to root your activation in strategy.

An awareness objective may require more branding, less activation; whereas consideration requires a connection with the consumer.

START WITH STRATEGY

19 INSIGHTS ©CSM SPORT & ENTERTAINMENT

Sports fans’ interest in online video

subscriptions continues to increase as

more options and content become available.

Fans have evolved their viewing habits,

and therefore they expect quality content

to be available on-demand.

The evolution of viewing habits has had

its share of winners and losers, but among

the winners are viewers and brands.

VIEWERS HAVE IT ALL.

Viewers have the options. In the last 15

years, our society has experienced a dynamic

consumption revolution with the explosion

of social media, online shopping and the

introduction of numerous “tools” that people

use to consume media and information.

Viewers have an increased interest to

spend their time consuming more content.

This is also referred to as more distraction,

but perhaps a more “distracted” viewer

produces more loyal consumers. The ability

to consume more content allows for viewers

to have multiple engagements with content

and brands.

THIS IS WHERE BRANDS CAN WIN.

Since the introduction of smart phones and

social media, the time we spend consuming

media has significantly increased. In 2002,

the average person 18+ consumed about 51

hours a week of content, primarily through

radio, live television and personal computers.

In 2017, the average person 18+ consumed

more than 79 hours of content per week.LL

This means that with the introduction

of social media, smartphones, non-linear

television and more, the average adult

consumes an additional 28 hours of

content a week.

THE OPPORTUNITIES FOR SPORTS TO CONNECT WITH CONSUMERS HAS NEVER BEEN GREATER.

While viewership of sporting events still rules

when it comes to most watched content on

live television, with sports accounting for 86

of the top 100 telecasts in 2017MM, connecting

to consumers through multiple touchpoints

and platforms generates a greater quality

viewer and loyal fan.

Motorsports’ major championships may be

on traditional live broadcast, but new options

are opening up for rights holders to deliver

content directly to the consumer.

Beginning in the 2018 season, all 88 of the

World of Outlaws Craftsman Sprint Car Series

races stream live on DIRTVision.com.

IMSA and INDYCAR’s new multi-year

television deals with NBC Sports Group

launch in 2019. With INDYCAR’s new

deal, it will join NASCAR in having every

practice, qualifying and race available on

their streaming services giving fans an on-

demand network to view race activity.

In a cluttered sponsorship environment,

brands must apply fully-integrated programs

to employ an approach, a clarity of message,

and a focus of channel to hit every touchpoint

of an evolved consumer journey.

BRANDS ADAPT TO EVOLVED VIEWING HABITS

Motorsports brings the raw power of the platform combined with a multitude of ways to activate sponsorship that other platforms do not have.

IN A LEAGUE OF THEIR OWN


With the aforementioned evolution of consumption and

viewing habits, one of the most intriguing developments

is the esports industry and how brands may use it

effectively.

In 2017, esports emerged with a banner year. The size

and attractiveness of the global esports fan base is

at the forefront of conversations, and in the long-

term, established sports may come to see esports

teams and tournaments as competitors for fans and

sponsor acquisition. With esports still maturing as a

commercial entity, many organizations in established

sports, motorsports included, currently view it as a way

to engage a younger, sought-after audience and are

experimenting in various ways.

The crossover opportunity is here, because 43 percent

of motorsports fans are interested or very interested

in esports.NN Esports is as much a lifestyle as it is a sport.

It encompasses all existing forms of sports and a

multitude of fantasy landscapes that exist only in the

digital world.

The esports industry is growing at an exponential

rate year-over-year. The League of Legends World

Championship, esports’ marquee annual event, had

60 million unique viewers in 2017, which is a significant

increase from 43 million in 2016.OO

FOR BRANDS IN ESTABLISHED SPORTS, ESPORTS PRESENTS AN INTRIGUING OPPORTUNITY TO ACCESS A POTENTIALLY VALUABLE NEW DEMOGRAPHIC.

Motorsports series, and the brands involved, need to

take a similar approach to engaging with esports fans.

The goal is not to introduce motorsports fans to esports,

but rather esports fans to motorsports. The lifestyle, and

gaming parallels to motorsports are what can attract

esports fans to the space.

Brands can alienate new audiences quickly if they don’t

take an authentic approach to developing relationships

with the fan base. Media rights, advertising, merchandise

sales, sponsorship opportunities and revenue streams

are increasing by double digits each year. With hundreds

of millions of streaming hours viewed and revenue

generated in this space, motorsports should be looking

to invest in esports as an area with a significant potential

for brands to participate.

RESPONDING TO THEEMERGENCE OF ESPORTS

The goal is not to introduce motorsports fans to esports, but rather esports fans to motorsports.

TARGETING AN AUDIENCE


On-site events are increasingly being

fueled by experiential opportunities and

relationship-focused fan experiences.

Brands need to go where the audience

is and enhance their experience to be

integrated in the overall event.

The ability to create emotional

connections with fans on-site is the real

opportunity to move down the sales

funnel. We live in an experience economy.

The demand for more experiences is

increasing across generations, and brands

need thoughtful strategies to implement

an authentic experience.

Brands can start by segmenting their

audience and their passions to develop

a true meeting ground. Marketers have

known this for a long time, and 77 percent

of brands view experiential marketing as

a vital piece of their marketing strategy.PP

When a consumer interacts with a brand

that connects with their passions, they are

33 percent more likely to purchase from

CREATING SPONSORSHIP SOLUTIONS THAT FUEL THE CONSUMER JOURNEY

that sponsoring brand. After a hands-on

experience with a brand, 32 percent of

consumers have an improved opinion

of the sponsoring brand.QQ Experiential

marketing taps into this through consumer

experiences that attempt to develop

brand affinity, brand loyalty, brand

advocacy and brand evangelists.

Motorsports offers unique and compelling

opportunities for brands to interact

with a loyal and experience-driven fan

base. Creating fully integrated programs

reinforces the brand’s call-to-action. One-

on-one consumer engagements created

by brands that carry across digital, social,

retail, television, second devices, OOH and

on-site all need to be considered when

developing amazing experiences for fans

to engage with their products.

Brands need to go where the audience is and enhance their experience.

77 percent of brands view experiential marketing as a vital piece of their marketing strategy.

EXPERIENCE COUNTS

DID YOU KNOW?


Formula E has quickly established itself as a major

motorsports series. It has positioned itself uniquely

as “The Electric Street Racing Series,” and it has

major investors in Liberty Global and Discovery

Communications. Formula E has the full support

of FIA President, Jean Todt, who wants to

demonstrate the potential of electric vehicles.

This coincides with an electrification tipping point

for major auto manufacturers and governments

around the world.

By the 2019-20 season, 10 auto manufacturers will

be invested in Formula E, including new arrivals

Jaguar, BMW, Mercedes-Benz and Porsche. The

series has attracted a healthy roster of global brands

dominated by automotive, energy, engineering and

tech brands, which has led to increasing rights fees.

Brands with a corporate social responsibility story

to tell will find a home among sports fans in general

and Formula E fans in particular. Brands without

a corporate social responsibility agenda may be

increasingly less likely to achieve success with sports

fans. As with other forms of marketing through

sport, authenticity is paramount. With 75 percent

of global consumers expecting brands to contribute

to our well-being and quality of lifeRR and the

potential Formula E fan base being 362 million

across major markets, with a young, affluent

and gender balanced profileSS, sustainability

and efficiency need to be part of the platform

for brands that want to invest in the series.

Touted as the hottest property in motorsports,

Formula E has made a strong entrance in the

ecosystem since its debut in 2014. Brands are racing

to join the series, including Porsche, Audi and BMW,

and the new wave of the racing experience is a

breath of fresh air to teams, fans and brands alike.

BRANDS ARE SPEEDINGINTO ELECTRIC RACING

Brands without a corporate social responsibility agenda may be increasingly less likely to achieve touchpoints with sports fans.

MAKE A DIFFERENCE


As the economics of the sport continue to evolve, sports

leagues and sponsors have found more creative ways to

deliver value to each other and to the fans.

This is an example of how motorsports delivers new ways

to control costs, which in turn has created new categories

for sponsors. Mandatory equipment, such as the air guns

in NASCAR, has created a new entry point for brands

while also reducing costs for the teams. This example

is how motorsports delivers new or additional value

back to current or prospective partners.

LEAGUES AND TEAMS ARE NOT THE ONLY ENTITIES LOOKING TO REDUCE COSTS.

Sponsorship budgets are constantly under scrutiny,

and brands have had to evolve their approach to

valuation, activation and measurement. The valuation of

sponsorships has changed over time as brands have found

added value without an increase in costs. The changes in

cost structure have helped grow activation, as any savings

in rights can be applied to find creative ways to engage

with the passionate motorsports fan base.

As activation continues to be an important consideration

for any successful sponsorship, setting objectives

and measuring impact will allow sponsors to quantify

sponsorship effectiveness and define a successful ROO

or ROI, and use those metrics to evolve their programs

for greater results.

Leagues, teams and tracks have developed new

opportunities creating more inventory than in the past.

Brands have tremendous influence and are in a position

to work with their current or prospective partners to find

ways to drive down costs while optimizing value.

There is no denying the level of brand loyalty that

motorsports fans display for those that invest in their

favorite sport. What makes motorsports such a valuable

opportunity is the ability for brands to create tailored

sponsorships to fit their specific needs at their specific

budgets found within the motorsports landscape.

MOTORSPORTS DELIVER VALUE FOR THE MONEY

Brands have tremendous influence and are in a position to work with their current or prospective partners to find ways to drive down costs while optimizing value.

UNIQUE OPPORTUNITYFOR BRANDS

24 CONCLUSION ©CSM SPORT & ENTERTAINMENT

Motorsports as a sponsorship and marketing platform has seen significant transformation in recent

years. The branding heavy “sticker on a car” model has evolved to a model that prioritizes rights

and benefits customized to meet sponsorship objectives.

Whether a brand is launching, achieving or sustaining business objectives, motorsports is proving an

effective platform to reach multiple audiences. Tapping into these brand loyal fans through the right

methods is key. Ongoing evaluation and evolution of those methods will ensure a return.

As with all investment decisions, a simple yet thoughtful approach will mean success. Starting with

the destination in mind is paramount. Whether it be property evaluation and selection, sponsorship

negotiation, development of an integrated marketing plan or putting the elements to work in the

environment, marketing through motorsports drives brands forward.

25 HELLO ©CSM SPORT & ENTERTAINMENT

SPORT & ENTERTAINMENT

CSM is an agency of entrepreneurs, brand innovators, knowledge seekers

and business leaders from across the sport and entertainment industry.

If you’re looking for a partner to help you begin or expand your journey

in sport and entertainment, CSM is ready to drive your brand forward.

WE BELIEVE IN MOTORSPORTS!

LOS ANGELES

INDIANAPOLIS

NASHVILLECHARLOTTE

NEW YORK CITYWESTPORT

SAN FRANCISCO

CHICAGO

INTERNATIONAL OFFICESRIO DE JANEIRO | LONDON | BERLIN | BARCELONA | MADRIDMOSCOW | PARIS | DUBAI | ABU DHABI | CAPE TOWN | DOHAMUSCAT | HONG KONG ADELAIDE | AUCKLAND | DUNEDIN MELBOURNE | SHANGHAI | SINGAPORE | SYDNEY | TOKYO

188U.S. CITIES COUNTRIES

[email protected]

WWW.CSM.COM

TWITTER | INSTAGRAM@CSM_AMERICAS

INQUIRIES

ONLINE

SOCIAL


Source: IEG

Source: IEG

Source: CIE/CSM Global Fan Survey, 2017 |

Sample of 1,000 adults aged 16+ per market

Source: Nielsen Scarborough (Release 2 Total,

June 2016 - Nov 2017)




June 2016 - Nov 2017)




June 2016 - Nov 2017)

Source: NASCAR, 2017

Source: NASCAR Fan Engagement 2015

(conducted by Toluna and commissioned

by NASCAR)

Source: IMSA Corporate Partner Overview, 2018

Source: Nielsen Sports SponsorLink USA 2017.

Fans defined as self-identifying between 6-10 on

Fan Avidity Scale of 0-10. *Engagement refers to

visiting the brands website, researched reviews

of the brand, bought the brand, talked to friends/

family about the brand, connected with the brand

on social media, blogged about the brand, tweeted

about the brand or posted on Facebook about

the brand.





Source: Twitter Analytics, Facebook Analytics

Delmondo, and Adobe Analytics

Source: FOM, Nielson Sports

Source: INDYCAR, https://www.indycar.com/

News/2018/03/03-21-INDYCAR-NBC-Sports-

rights-deal

Source: IMSA 2017 Year End Key Metrics

Source: NHRA Year End Report

Source: The Nielsen Company


June 2016 - Nov 2017)

Source: MIT Technology Review, https://www.

technologyreview.com/the-download/610045/the-

average-american-spends-24-hours-a-week-online/

Source: Why Formula E, CSM, 2018



Source: IMSA Partner Overview, 2018

A /

B /

C /

D /

E /

F /

G /

H /

I /

J /

K /

L /

M /

N /

O /

P /

Q /

R /

S /

T /

U /

V /

W /

X /

Y /

Z /

AA /

BB /

CC /

DD /

EE /

FF /

GG /

HH /

II /

JJ /

KK /

LL /

MM /

NN /

OO /

PP /

QQ /

RR /

Source: IMSA, Rolex Marketing Deck 2018

Source: INDYCAR Year End Report, 2017

Source: Twitter Analytics, Facebook Analytics,

and Delmondo

Source: comScore

Source: Twitter Analytics, Facebook Analytics,

and Delmondo

Source: SBJ RG Live, INDYCAR 2017 Verizon

IndyCar Series Season in Review, NASCAR 2017

Source: INDYCAR, 2017 Verizon IndyCar Series

Season in Review; IndyStar.com

Source: NHRA

Source: ESPN | http://www.espn.com/racing/nascar/

story/_/id/22761122/went-wrong-how-save-

grassroots-motorsports-local-regional-series-

speedways-nascar-connections

Source: World of Outlaws

Source: NASCAR 2017

Source: Brands ranked within the 2017 BrandZ Top

100 Most Valuable Brands and/or Interbrand Best

Global Brands lists.

Source: Nielsen, 2018

Source: Nielsen, 2018

Source: https://dotesports.com/league-of-legends/

news/lol-worlds-final-viewership-18796

Source: EMI: via http://www.cmo.com/opinion/

articles/2017/3/31/how-experiential-marketing-fits-

into-the-customer-experience.html#gs.o1C_GLs

Source: GMR Marketing Experiential EQ

Source: 2016 Global Strategy Group: http://www.

adweek.com/brand-marketing/infographic-what-

consumers-expect-of-brands-when-it-comes-to-

issues-they-care-about/?platform=hootsuite



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