Vol. 15, December 2005

Prepping for Partnerships:

Yamaha Seeks Business Relationships 

with Non-Endemic Sponsors

The Yamaha brand name brings with it a lot of clout in racing, and now, after 50 distinguished years in motorsports, the manufacturer is looking to establish sponsorship partnerships with its wide array of race teams. 

Before embarking on a search for potential partnerships, Yamaha first turned the microscope inward to gauge the power of its brand from several distinct angles.  As part of the research effort, Joyce Julius and Associates conducted an exposure impact analysis regarding Yamaha’s major sponsorships—Supercross, Motocross, Road Racing and Supermoto.  Components measured and evaluated in the study included print, television, Internet, on-site, team, mobile and appearance sources.

“We were able to see and compare our Factory Racing efforts in several different race categories, and evaluate our corporate sponsored events and series in the racing world as well,” said Sandy Salem, Sponsorship Director with Yamaha Racing Division.  “We combined the Joyce Julius information with internal market research on our brand, customers and race related products…then we put it all together with the race fan demographics, lifestyle information and market research from the AMA and race promoters. We wanted to make sure we could provide current, comprehensive and targeted information for all types of companies interested in pursuing a partnership.”

Significant exposure is certainly one of the benefits Yamaha has at its disposal to share with a potential partner.  The Joyce Julius Full Program Analysis revealed Yamaha Factory Racing annually generates more than 457 million impressions and some $17 million in exposure value.

While Yamaha is looking to share the spotlight with the right partners, the manufacturer is also looking to develop a sponsorship hybrid, rare in the world of motorcycle racing.  Instead of an endless stream of logos, Yamaha is more interested in limiting the field to insure maximum integration and impact.

“Many of the factory racing and supported teams appear to have a long list of sponsors at a low level of sponsorship,” said Salem.  “This typically results in sponsorship clutter, less value for their sponsors, and fewer opportunities to build integrated partnership programs that allow sponsors to get the most bang (and marketing value) for their buck.

“Our goal is to create synergistic brand alliances with partners that are equally committed to developing fully integrated sponsorship.  We want to limit the field to fewer sponsors in order to provide greater value.”

Salem says Yamaha can offer not only the typical inventory of a motorsports sponsorship package, such as crew uniforms, team merchandise, collateral materials, etc., but also marketing extensions and cross promotional opportunities with the 1,400 Yamaha dealerships across the country.   Direct marketing through the Yamaha customer database, product displays and sampling opportunities at dealer and consumer shows, along with product demonstrations are likely to become a part of any Yamaha sponsorship arrangement.

“Our approach in looking for partnerships is based on working with companies that share similar goals and objectives in terms of building brand alliances. We are in a unique and valuable position in the industry because we have the ability to offer a clean canvas to work with after 50 years of tremendous racing success. This allows us to customize and develop integrated sponsorship packages that will provide greater value for fewer sponsors.”

This season's Bowl Championship Series title game on January 4 has the makings of a classic, which would certainly be an added benefit to Rose Bowl presenting sponsor Citi.  The following table details in-broadcast exposure findings from last year's BCS game telecasts:

Motorsports Sponsorship

  The streak continues…   For the 21^st consecutive season, the primary team sponsor of the NASCAR Cup Series champion (The Home Depot/Tony Stewart) did not earn the most in-broadcast exposure value for the season.  The 2005 team sponsor top-five ranked as follows:  Budweiser ($149.0 million), Lowe’s ($140.2 million), The Home Depot ($125.0 million), NAPA Auto Parts ($105.5 million) and DuPont ($84.7 million).

  Unseating 13-time NHRA Powerade Funny Car champion John Force was no easy task, but this season Gary Scelzi was able to take the title away from John Force Racing for the first time in nearly fifteen years. As a result, Scelzi's team sponsor, Mopar, earned $6.2 million in exposure over the course of the broadcast season.

  Porsche was mentioned more during the 2005 Grand American Rolex Sports Car Series telecasts than any nameplate with 666 verbal references, followed by Pontiac (644), BMW (410) and Lexus (123).  Pontiac reigned supreme in terms of on-screen time, amassing four hours more in-focus time than its closest car competitor.

  The hood of a NASCAR Nextel Cup Series car is some of the most valuable real estate in all of sports.  The following provides a breakdown of the top 10 hoods in terms of generating on-screen time during the race telecasts:

  Andretti Green Racing saw all members of its sponsorship fab-five—comprised of arca/ex, Jim Beam, Klein Tools, 7-Eleven and XM Satellite Radio—ranked among the top 15 primary teams sponsors in the Indy Racing League IndyCar Series at year’s end.  Combined, the Andretti Green Racing team sponsors garnered some $38.4 million, or 20% of the entire value collected by all series’ team sponsors.

  If history is any indication, an increase from three to five races next season on CBS looks to bode very well for sponsors in the American Le Mans Series.  This past season, the three CBS races accounted for 53.2% ($58.3 million) of the total exposure value accumulated during the entire 10-race season.

  As a group, the top 50 sponsors in the 2005 Champ Car World Series saw their average in-broadcast on-screen time increase nearly one-and-a-half times over figures from 2004.  Likewise, average mentions were more than doubled for the group.  When comparing this exposure to higher advertising rates stemming from a stronger television package, average comparable exposure value for the top 50 sponsors rose more than 450%.

  Car makes and models accounted for 61% of all exposure monitored during 2005 Grand-Am Cup Series event telecasts on Speed Channel. 

  Danica Patrick was interviewed 33 times during telecasts of Indy Racing League IndyCar Series events this past season, while also being mentioned by the announcers on 1,129 occasions.  In contrast, series champion Dan Wheldon was interviewed just 24 times throughout the season, but surpassed Patrick’s mention total with 1,327.

  Thanks to its involvement with Speed Channel’s telecasts of the Speed World Challenge Touring Car and GT Championship, CARFAX—the car history service—ranked among the top 10 sponsors in both series.  Combined, CARFAX collected more than $460,000 of exposure value during the telecasts as a result of various graphics and mentions.

  During the 2005 ARCA RE/MAX Series telecast season, the top five team sponsors–Hantz Group, National Pork Board, Advance Discount Auto Parts, Lucas Oil Products and 1-800-4-A-Phone—amassed a combined $6.4 million of comparable exposure value during 18 event broadcasts. 

  In the cola wars, Pepsi narrowly edged Coca-Cola in exposure during telecasts devoted to the NASCAR Nextel Cup, Busch and Craftsman Truck Series.  Altogether, Pepsi was credited with $63.3 million compared to Coke’s $62.4 million.

Talladega Superspeedway Part of ‘Amazing Race’

Brand integration is nothing new for CBS’ Emmy Award-winning Amazing Race.  For instance, this past season on the Amazing Race: Family Edition, 10 families of  four sprinted across the country in GMC Yukons and logged on to America Online to receive clues from host Phil Keoghan.  In previous seasons, teams have toted Travelocity gnomes as part of the competition.  So it comes as no surprise that a visit to Talladega Superspeedway and the International Motorsports Hall of Fame afforded the track and its sponsors some valuable prime-time exposure.

Talladega Superspeedway earned the largest share of airtime from the October 18, 2005, broadcast, combining 39 seconds of exposure with 10 mentions to net $625,500 in comparable value.  The International Motorsports Hall of Fame also fared well, earning $328,500 through three seconds of on-air time and seven verbal references as the teams searched the museum for a clue.

Some of the track sponsors profiting from the Amazing Race’s visit to Talladega were Aaron’s ($67,500), Carraway ($54,000), UAW-Ford ($49,500), Nextel ($36,000) and Pepsi ($27,000).  Retaining walls were responsible for most of the exposure, visible as the teams pedaled multi-seater “party bikes” for a lap around the track.

Home Plate Signage Dominates World Series

Chicago’s dominance over Houston in the 2005 World Series did not stop with the play on the field.  When considering the game-within-the-game of corporate logo placements during the Fox coverage, Chicago’s home plate virtual signage averaged 18.5% more on-screen time per half inning for sponsors than that of Houston’s location.

According to research conducted by Joyce Julius and Associates, brand logos appearing during the four World Series game telecasts collected a combined one hour, 35 minutes, 37 seconds (1:35:37) of clear, in-focus exposure time.  During Games One and Two from Chicago’s U.S. Cellular Field, logos appearing on the home plate signage averaged 1:17 of on-screen time per half inning, while the final two contests from Houston’s Minute Maid Park averaged 1:05 per half inning.  With advertising time estimated at more than $10,800 per second during the Fox telecasts, the differences in the time compares to nearly a $260,000 disparity for a full inning of play.

The reason for this gap is simple:  Chicago’s home plate signage location (where Fox digitally inserts corporate logos) was located slightly up the field toward first base, whereas the Houston sign was situated more in line with home plate.  The end result was blockage of the sign during plate appearances by left-handed batters.

Taco Bell appeared clear and in-focus on the home plate signs more than any other brand, totaling 13:55 during the World Series telecasts.  When comparing the in-broadcast time to the estimated commercial cost, the restaurant chain secured more than $9 million of exposure value from the home plate signs alone.  Chevrolet also utilized the home plate signs among its arsenal of in-broadcast tactics, leading to 12:59 and $8.4 million.

Thanks to an extra inning marathon lasting 14 innings, Game Three turned in the highest cumulative exposure totals for the home plate signs.  Altogether, the 14 brands utilizing the sign position during the Game Three broadcast collected 28:39 of clear, in-focus exposure time and $18.6 million of comparable exposure value.

Updated Format for 2006 Sponsors Report

The format for the Joyce Julius in-broadcast measurement service, the Sponsors Report, has been updated for 2006.  Expanded category lists and year-to-date information highlight the improvements made to the presentation of data.  The user-friendly document also allows for quicker referencing of exposure source information without reducing any of the content traditionally contained within the Sponsors Report.

Sponsors Report Rates for 2006 Motorsports Packages Now Available

Subscription orders are now being taken for the various Joyce Julius motorsports research packages to be offered in 2006.  Please contact a Joyce Julius sales representative more details:

Laura Webb                            Cathie Joynt

Vice Pres. Sales                      Account Executive

734.971.1900 x. 22                  734.971.1900 x.19

LWebb@joycejulius.com       Cathie@joycejulius.com

  A Second Look is a newsletter published by Joyce Julius and Associates, Inc., updating recent developments, trends and happenings in the areas of sports, special events and entertainment marketing.  All information contained in this newsletter is available for journalistic use, with all rights reserved.