Sponsorship or Partnership? Making the Most of Your Advertising

[Counterman]

Being a part of your local community is one of the most rewarding benefits of operating any business. Our individual operations certainly take up most of our time and attention, family and other obligations occupy another significant portion, but many of us also manage to carve out the time and energy to share a part of ourselves with the people and organizations that make a ZIP code into a genuine community.

From serving as school or other organizational board members, coaching local youth sports, or being an active member of your church, friends and neighbors might come to know you both personally and professionally, and your business is often a reflection of those values you already hold dear. As a business, we are also often called upon for financial contributions to a variety of charities, benefits and other generally good causes. The larger the business model, the more these requests roll in, and “the asks” are also generally more substantial. 

For any automotive business, there are also many requests from members of your local grassroots racing community seeking “sponsorship” for their individual racing interests. These come in many forms, from racers looking to obtain a discounted rate on parts purchases to financially supporting their teams over the course of a season, usually in return for some sort of advertising on the car. On the surface, these requests might seem no different than sponsoring a Little League team or donating items for a benefit auction. Look a bit deeper, though, and you may realize that these racing “sponsorships” really need to be more of a “partnership” to make financial sense

Too often, a “sponsorship opportunity,” as presented, is a one-sided request, with the team simply seeking assistance in pursuing their dream of competing in motorsports. In exchange for your merchandise or funding, you get… a sticker! When asked just what kind of return on investment you can expect from your sponsorship, the answer is very often stunned silence. If the answer is “free advertising,” then we must truly consider the value of
that advertising. 

Most of us have an advertising budget, and use a variety of media to get individual messages out in front of potential customers. It is already increasingly difficult to connect with consumers using traditional print, radio and television advertising. Streaming services and satellite radio both allow consumers to avoid advertisements, and newspaper readership has been declining steadily for years. Having your company name on the fender of a car in front of a few hundred people on a Saturday night might seem like a decent investment, but this kind of individual sponsorship is dependent upon several variables. Failures, successes, team or driver reputations, and even the team’s ability to compete regularly can vastly affect the value of your investment. If you choose to pursue business relationships with individual drivers or teams, think carefully about how those relationships will be mutually beneficial to each party.

Being associated with the racing community is a great way to connect with your existing clientele, and to keep your name in front of those who might use your services in the future. To maximize your advertising efforts, consider spreading the wealth in a more effective way than through a series of smaller individual sponsorships.

Advertising at the track itself is a great way to participate without relying on being associated with the most popular or successful team. A trackside billboard is a literal sign of your support for the racing scene, visible no matter which cars are on-track during the various practices, heat races and features. Sponsoring a particular racing class, offering a contingency payment in return for displaying your decals, or even holding a special event on track night, all benefit more than just a few individuals, and partnerships like these also build relationships with the local track operators and their extended network of supporters. 

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