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NASCAR Double-Dipping Ad Dollars

Charging twice for the same ad space is turning sponsors away

From Tim McCormick, for About.com

Guide Note: This article came from a long discussion on the current health of NASCAR. I offered to give this reader a voice on this site and here is the result. All views offered are his alone.

It seems to me that part of the reason that NASCAR is in the situation it's in with regard to not having enough well funded cars/teams is because they've essentially been selling the same advertising space TWICE in recent years: First to all the team sponsors to fly their colors on race cars (expecting to be able to turn on the TV and see their logo's prominently displayed on their cars and teams on race day!). Second - and here's where the double selling started - they then decided to sell the SAME advertising time and space to the TV networks, who offered big dollars to cover NASCAR racing.

Of course the networks had the intent all along to leverage the popularity of the sport (and the viewing audience it brings) to sell their own advertising that drowns out racing team sponsors with advertising of their own. Now we're watching TV commercials, not race coverage. Where did you think the gazillion dollars was going to come from Mr. France? Advertising.....

The problem with this shift, of course, is that you used to be able to look at the advertising logo's on the race cars and still watch the race - But no matter how clever the networks try to be with on-screen tricks (remember that Texaco-Havoline commercial that poked fun at NASCAR advertising?), you simply can't watch a TV commercial and the race at the same time without destroying the continuity and coverage of racing.

It seems to me NASCAR accepted a check from the networks that put itself, it's products, and it's sponsors second in line behind the network sponsors... Inevitably, the trickle-down effect of this is that racing sponsors are moving their money - that is, their ADVERTISING BUDGETS, elsewhere - and all but the very top teams are now struggling to attract and retain good sponsors.

As I tune into this year's NASCAR racing season (something I'm doing a little less each year recently) I fully expect to once again see more commercials and less racing... The formula is simple: More TV commercials = less racing coverage = less TV time for race team sponsors = less sponsors = less sponsored cars to complete on the track.

Not to worry, though: NASCAR is not concerned about the quality of their product. In fact, they already have this GREAT new points system designed to make a 10 car race as interesting as possible. I bet they've already started selling additional advertising....

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