V8 Supercar Exposure Return??

[Just Do It!]

Now, please, with all due respect to the "club" who enjoy clubbing V8 Supercars whenever possible, can I please ask a sensible response to this topic.

If you feel the need to keep your knowledge off the "air waves", then feel free to PM or email me in confidence.

Today I read a very interesting article on motorsports sponsorship usuing TV exposure based on TV data only. The summary shows that Formula One provides an average TV exposure return of 1.25 - which means that for every $1 million that a sponsor spends on sponsorship, $1.25 million back in TV advertising equivalence.

Compare this with the presenting sponsor of the FIA GT Championship, who would receive (as quoted in the article) a guaranteed return multiple of 3.69, the same sponsorship of the support series FIA GT3 European Championship gets a return multiple of 4.2, and even the British F3 and the British GT Championship both offer a return multiple of around 3.

Apparently most international motorsports can show a return multiple of 3 or more, I just wondered whereabouts V8 Supercars actually lay??

As I have requested, please keep this to genuine knowledge rather than your personal beliefs or criticisms of the V8 Supercar category.

[F J Nedos]

How would this be measurable by teams like HRT and FPR? They have brand logos predominently on their cars.

Also, maybe another factor in this equation is sponsor longivety. If a sponsor sticks around, there is obviously a return? But can it only last so long? Pirtek being an example where the branding is out there and repetitive sponsorship becomes less effective after years of exposure.

I would expect the return to be similar to F1 figures. But I'd also expect to see a scale, much like equipment depreciation, over several years. You might get a massive return on your first year of sponsorship (particularly if you are a first time title sponsor). But as the years go on, the returns would progressively diminish.

[williamsf1]

great post!!!

I also would love to know what the actual return for $$$ spent is based just on TV advertising costings....

All I know is currently if you are running without TV it is business suicide...

[Rombles1]

I'm not a member of the "club" you mentioned, but do not have specific knowledge of this topic... but I would imagine that with the inequity in coverage between teams, that the return multiple would depend on which car you are sponsoring. Kinda along the lines that Dodo figured they would get more exposure with small signs on the HRT cars than they would as naming sponsor @ Tasman. Did PCR turn up for Indy? You wouldn't know it from the race coverage on 10. Apparently Gurr did not contest the 3rd race at Indy - but did any know that he had actually contested the first two? Can anyone name (without looking for a photo somewhere) the sponsor on his bonnet? I know the bonnet is white, but I have no idea who is on it!

I like Channel 10, and I like V8 Supercars, and I don't even have a problem with TC. I haven't been into motorsport long enough to remember "the good old days". But I think the answer to your question, Just Do It!, is going to vary depending on which team you ask.

[Taz Q2]

I wonder if V8SC would want this knowledge to be made public, more so i have to laugh at wether or not Betta Elec is asking the same thing.

[birtek]

It is also very dependant on the way commentators mention them. You think about Perkins engineering, they are very rarely called Perkins Engineering they are Jack Daniels Racing, where as Triple 8 Engineering are just about always called Triple 8 and rarely called Team Betta Electrical. Same goes with a number of teams.

Some other big names
Courtney - Jeldwen dont think I have ever heard them call that name, but Stone Brothers or SBR is mentioned regularly.

Ingall - is generally called the Caltex car but also Stone Brothers and SBR get quite a good coverage

Brights - CAT Ford, not the FPR car

PWR - usually called Super Cheap Cars

Some of the lesser lights
Radisich - its the TKR car not whoever sponsors them

Britek - big of a mix of britek and fujitsu

etc.

[GTRMagic]

In the first year that Mr Quinn sponsored Cameron McLean's Paragon V8Supercar team, he made mention that for the $800k in sponsorship of that team, and the associated publicity from that sponsorship.. sales at VIP Pet Foods went from $24m per annum to $36m per annum... (and has grown since..)

That is an enormous leap.

If you assume that even a very conservative 15 drop thru for the additional volume (presuming the existing facilties can handle the throughput change without too much more investment), this is an increase in profit of $1.8m for a $800k investment. Or 2.25 times the investment....

Now you can directly point to the motorsport sponsorship as the cause of this sales (and therefore profit) jump, because the VIP group werent doing a lot of other things either promotionally or advertising wise at the same time.

In the WPS example, the brand has been splashed everywhere.. on helicopters, safety cars, race tracks, ChampCars, grassy knolls... so picking up which part of that branding exercise works and which doesnt to generate the return would be more much difficult to determine.

[Pro Racer]

with V8's going overseas and if a few more overseas events come on the calender could we see a few more overseas companies come into the V8's,like gulf air on the perkins cars.

[Fransiscus]

Originally Posted by GTRMagic

In the WPS example, the brand has been splashed everywhere.. on helicopters, safety cars, race tracks, ChampCars, grassy knolls... so picking up which part of that branding exercise works and which doesnt to generate the return would be more much difficult to determine.

Craig Gore has said many times that his promotion in motorsport has given huge dividends to his company, he reckons it has been money well spent.

[Just Do It!]

Originally Posted by Fransiscus

Craig Gore has said many times that his promotion in motorsport has given huge dividends to his company, he reckons it has been money well spent.

As much as they hate to admit it, it would seem apparent that V8 Supercars needs the likes of Craig Gore and Tony Quinn to speak up and speak out.

The article I read seemed to purely value TV exposure, rather than provide reference to commentary teams - that is, it was purely vision based. The Gore and Quinn examples are truly magnificent, but what I was seeking was what value on a pure vision basis a V8 Supercar sponsor may get as an average return rate - which is what all the other motorsport categories quoted were calculated on - as a return on TV exposure..... that is across the whole category

[billybanana]

VESA do have some very specific analysis done after each round re tv advertising exposure. It is based around the industry standard $ per 30 second ad rate. Without going into specifics the total $ amount so far this season ranges from over $11m for the leading car down to $500K for some of the lesser lights. What can't be disputed is the major sponsors get significantly more tv exposure through sponsorship of the cars than if they just purchase ad time directly on tv.

[Just Do It!]

According to your data, what position is the crossover point?? 12th or 15th or thereabouts??

These other series quote an average value - can you sum the numbers and divide the total by the number of cars??

[cavvy]

Originally Posted by GTRMagic

In the first year that Mr Quinn sponsored Cameron McLean's Paragon V8Supercar team, he made mention that for the $800k in sponsorship of that team, and the associated publicity from that sponsorship.. sales at VIP Pet Foods went from $24m per annum to $36m per annum... (and has grown since..)

That is an enormous leap.


Now you can directly point to the motorsport sponsorship as the cause of this sales (and therefore profit) jump, because the VIP group werent doing a lot of other things either promotionally or advertising wise at the same time.

GTR you are on the V8 payroll (yes/no) or are justifying the VIP expenditure on motor racing ?
Did VIP race Porsches in the year in question, do Targa? This year is it V8s or Porsches?
Any comment on the erosion of the Ozemail market share during its V8 days, what about Betta not to mention Westpoint.

Very selective GTR, why so?

[cavvy]

Originally Posted by billybanana

What can't be disputed is the major sponsors get significantly more tv exposure through sponsorship of the cars than if they just purchase ad time directly on tv.

Billy what do WOW make/do? I want to buy one but the ad needs to tell me so I can buy two (one if its pricey).

[williamsf1]

WOW are a QLD based (Im lead to beleive) electrical retailer, like betta, truscotts, harvey norman etc etc....

and if you look at the advert on the car it says sight and sound... pretty easy to work out from that eh?


so lets say that the $20mill that vodafone are spending over 3yrs, what TV return have they been promised? and what else do the marketeers give for the $$$$$

[peckstar]

Originally Posted by cavvy

GTR you are on the V8 payroll (yes/no) or are justifying the VIP expenditure on motor racing ?
Did VIP race Porsches in the year in question, do Targa? This year is it V8s or Porsches?
Any comment on the erosion of the Ozemail market share during its V8 days, what about Betta not to mention Westpoint.

Very selective GTR, why so?

Gee Cavvy you seem to have a selective reading problem. maybe you should go back and read the first post. and then we can have genuine discusion without mindless the drivel you just posted

[GTRMagic]

Originally Posted by cavvy

GTR you are on the V8 payroll (yes/no) or are justifying the VIP expenditure on motor racing ?
Did VIP race Porsches in the year in question, do Targa? This year is it V8s or Porsches?
Any comment on the erosion of the Ozemail market share during its V8 days, what about Betta not to mention Westpoint.

Very selective GTR, why so?

1. I am on the payroll of a few companies, nothing to do with V8Supercars however...

2. The racing history of VIP is Here however there was an artlcle detailing what I described that seems to have been pulled off the VIP website.

The text of the article is below...

Originally Posted by V8 Supercars - VIP Pet Foods Race-Powered Growth Bucks Sponsorship {25339}

V.I.P. Pet Foods expects its major sponsorship of the Cameron McLean Paragon Motorsport Ford Falcon V8 Supercar will help drive the company to further sales records in 2002.

Managing Director Tony Quinn was keen to take on the partnership with the team after his Gold Coast-based business achieved outstanding results from motorsport sponsorships in 2001.

"We spent $800,000 on sponsorships last year and saw the turnover of V.I.P. Pet Foods increase by $12 million or 50 percent, to $36 million," Mr Quinn said.

"Our sponsorship of the Queensland 500 was a raging success. Motorsport gave us access to around 53 hours' television exposure and nothing else will do that.

"This year, motorsport sponsorship will be integral to plans for some major expansion of our manufacturing business. Having the V.I.P. Pet Foods Falcon V8 Supercar will be huge."

Going against the recent down-trend in major sport sponsorships, Mr Quinn has committed his company to backing not only McLean's Falcon, but also a second year of the V.I.P. Pet Foods Queensland 500, which will be round nine of the V8 Supercar championship in September.

He also will drive his personal Porsche Turbo coupe - in the same livery as the V8 Supercar - in the annual Targa Tasmania rally in April. He finished second in last year's event to fellow Porsche driver Jim Richards.

Also in 2001, Mr Quinn finished fifth outright in the Australian Nations Cup Championship, driving a Porsche GT3.

"We've made a good decision to be with Cameron McLean and Paragon Motorsport. We considered it very carefully, but they're an excellent team and if we can get the same success with our sponsorship as we did last year I'll be very happy," he said.

3. No, Yes and Porsches plus signage at certain events (like QR track branding etc)

4. I talk with only specific knowledge on this occassion of VIP Pet Foods...