Location, Location, Location: Engaging the Changing Face of 'NASCAR Nation' with New Media

LOCATION, LOCATION, LOCATION
Engaging the Changing Face of „NASCAR Nation‟ with New Media

Lane Errington

MPSM900
June 17, 2010

RUNNING HEAD: LOCATION, LOCATION, LOCATION 1

Location, Location, Location:

Engaging the Changing Face of „NASCAR Nation‟ with New Media

Lane Errington

Georgetown University

LOCATION, LOCATION, LOCATION 2

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.


 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).


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  Sponsors  Media

 Drivers  Auto manufacturers  Licensees

 Teams  Tracks

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


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 NASCAR fans are just as likely as the U.S. population to be between the
Distribution ages of 18-44.
Income NASCAR fans are middle/working class, indexing to be just as affluent as
Distribution the U.S. population with 45% earning $50,000 or more.
Presence of NASCAR is a sport for the whole family. A reported 39% of fans have
Children children under the age of 18.
Geographic NASCAR fans are regionally distributed in a manner reflective of the U.S.
Distribution 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


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


(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


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”


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


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


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%


 ESPN.com: 57%  MLB.com: 85%

 CBS Sports.com: 91%  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


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:

Facebook
NASCAR 573,483 fans
Miss Sprint Cup 99,781 fans
MySpace 375,692 friends
Twitter
@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.


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


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


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


(“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).


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 WEAKNESSES

• Turner Resources • Limited control
• No overhead, risk on capital • Inability to react quickly
• Quality as opposed to speed • Reactionary approach
• Numerous partners to work with • Inability to directly promote ticket
• Connection to other stakeholders sales (tracks own rights)
• Limited mobile platforms (Sprint)

OPPORTUNITIES THREATS

• Leverage existing partnerships • Measurement of new media
• Educating rest of company • „Traditional‟ fan backlash
• Focus on the future • 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,


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


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.


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.


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


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;


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


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?


 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


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).


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


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.


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


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.


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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


APPENDIX 1


APPENDIX 2


APPENDIX 3

NASCAR Sprint Cup Tracks – Geographic Distribution

1960-1969 1980-1989

1970-1979 1990-2003


APPENDIX4


APPENDIX 5


APPENDIX 6


APPENDIX 7


APPENDIX 8


APPENDIX 9


APPENDIX 10

Roadmap
• Brand audit
• Demographic analysis
• NASCAR Digital
– Overview
– Research
– SWOT analysis
• Recommendations
– Location-based social networks
– NASCAR-specific applications

2

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

3

Brand Attributes
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

Source: 2009 NASCAR Brand Brochure

4

The NASCAR Family of Stakeholders
• Fans
• Drivers
• Teams
• Sponsors
• Auto manufacturers
• Tracks
• Media
• Licensees

5

NASCAR Fan Base Demographics
60% male
40% female

Just as likely as the U.S.
population to be ages 18-44 As affluent as the U.S. population

Source: Scarborough Research USA+ 2009

6

2010 NASCAR Fan Base Demographics

A sport for the entire family

60% of fans outside the South 1 in 5 fans is a member of a minority group

Source: Scarborough Research USA+ 2009

7

Factors Influencing Changing Demographics
• Geographic expansion Track Distribution
– Tracks 1960-1969 1980-1989

– Drivers
– DMAs
• Title sponsorship change
– Winston
– Nextel
1970-1979 1990-2003
– Sprint
• Globalization
– Hispanic markets
– International drivers
– Auto manufacturers

8

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

9

NASCAR.com User Profile
The NASCAR.com user is…
• Male
• Age 42
• White
• South/Midwest
• Some college
• $64K income
• Married
• Homeowner

Source: NASCAR Digital

10

Average Number of Claimed Hours Spent
Following NASCAR in the Media Among Fans
6.0
6.0
5.5

5.0 Total Fans
4.3
Avid Fans
4.0 3.9

Casual Fans
3.1
3.0
2.7

2.0
1.6 1.6
1.3
1.1 1.1 1.1 1.1 1.1
1.0 1.0
0.8 0.8 0.8 0.8 0.7
0.7 0.6 0.5 0.5
0.5 0.5 0.3 0.4 0.3 0.4

0.0
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
On television On the radio On the Internet On newspapers/ On mobile device*
magazines
Means include 0
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 Base: NASCAR Fans

11

Social Media Websites Visited
(not specific to following NASCAR)
Fan Avid Fan Casual Fan
(n=334) (A) (n=190) (B) (n=144) (C)

Facebook 53% 52% 56%

MySpace 41% 38% 45%

Twitter.com 20% 19% 20%

Skype.com 9% 7% 12%

Flickr.com 9% 9% 8%

LinkedIn 4% 3% 6%

Blogger.com 4% 4% 4%

Other
2% 4% C -
I have not used any of these
websites in the past month 32% 35% 29%

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

12

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

13

Females & those under 35
more likely to want
information compared to
males & those 35+

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

14

Engaging the Power of the Groundswell
• Website re-launch
– TrackPass
– Infield Community
• Social media
– Facebook
– Twitter
– Citizen Journalism
• Fan Council

15

SWOT Analysis – NASCAR Digital
STRENGTHS WEAKNESSES
• Turner Resources • Limited control
• No overhead, risk on capital • Inability to react quickly
• Quality as opposed to speed • Reactionary approach
• Numerous partners to work with • Inability to directly promote
• Integration with stakeholders ticket sales (tracks own rights)
• Limited mobile platforms

OPPORTUNITIES THREATS
• Leverage existing partnerships • Measurement of new media
• Educating rest of company • „Traditional‟ fan backlash
• Focus on the future • Sponsor deals prevent asset
optimization/breadth/depth

Source: NASCAR Digital

16

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)

17

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

18

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

19

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

20

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

21

Foursquare at the Track

22

Foursquare at the Track

23

“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.

25

Recap
• Iconic brand
• Changing fan demographics
• Increasing digital fan engagement
• Location-based social networking model

26

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 ADS
with your favorite
NASCAR drivers and
sponsors this weekend
in Sonoma, CA at
Take a look a list of check-in locations for this FROM
weekend’s race http://nascar.com/foursquare
Infineon Raceway!

Get in on the action at Goodyear, the Official tire of NASCAR, becomes NASCAR
www.foursquare.com first sponsor to offer virtual check-in option [LINK]
COMMENTS
___ People Like This SPONSORS

To get in on the Foursquare at the Track
program, sign up for an account at
http://www.foursquare.com
Photos
What was your favorite check-in location at
Michigan International Speedway’s Fan Plaza this
past weekend?
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