Here we go again, the time of year when fellow racers and clients of mine send me their racing proposals to review, only to find the same old disappointing routine: a proposal threaded with clichés like “Your logo here” or “We’ll paint the car in your colors.”

Stating that you will put a company’s logo on your car is important, but if that’s all you’ve got, you are in trouble! Making a big deal of putting a company’s logo on your car is about as obvious as saying that the sun will come up in the morning. It is the least you can do, and something that is expected. It’s not something that will set you apart from the other 250,000 weekly racers across the United States that compete for over $2 billion in annual sponsorship dollars earned by all types of racers.

The same is true with tracks. Selling a prospective sponsor solely on the value of having a billboard at your facility is actually less exciting (and less valuable), dollar for dollar, than buying advertising on a road side billboard from Lamar or Viacom. At least a billboard along the highway will be seen by tens of thousands of passers-by on a weekly basis –- about the same as the annual attendance at a local race track. And judging by the numbers, local racing attendance is not something to brag about these days!

So what to do? How do we transform logos on cars and uniforms into a respectable return on increasingly scarce and valuable marketing dollars?

The answer is ACTIVATION!

What is activation? Think of activation as the fuel that makes sponsorship go. A sponsorship program without activation is like an engine without fuel -- it won’t go, and doesn’t stand a chance of success. The same is true with you and your sponsorship program. A lack of activation will set you and your race team or track up for failure.

Activation is “the way that companies maximize their sponsorship investment.” By design, sponsorship should begin with investment in a team or track, decorated with logos and colors, and all of the happy, fun things that look pretty on TV and from the grandstands, and end with in-store promotions, sweepstakes, distribution agreements in grocery and convenience stores, and licensing contracts. This is just to name a few of the types of common activation programs utilized by many of the national race teams.

On average, companies invest an additional $1.30 for every dollar that they spend on their initial sponsorship with a track, series or team. This fact is not confined to racing sponsorship, but includes all forms and types of sponsorship.

In 2005, or any year prior, did your sponsors spend $1.30 on sponsorship activation for each dollar they gave to you for sponsorship? Did they spend 25 cents? Did they spend a penny? Did they even know they were supposed to spend activation dollars? Do they know what activation is? Chances are, the answers are NO, NO, NO, NO and NO!

I would bet that your sponsor would answer “YES” to the question “Would you like a way to measure your sponsorship investment, even if its costs additional money?”

Not only is it your job to educate your sponsors about activation, it’s your responsibility and your key to a long-term relationship rather than a revolving door.

Activation also provides ways in which to measure sponsorship. You hear about return on investment all the time, but seldom does anybody talk about how to measure it, especially in the world of racing sponsorship. In terms of motorsports marketing and sponsorship, one of the only ways to measure is to have some form of activation in place. Did you ever wonder why you see NASCAR logos, drivers and cars on products you find at Wal-Mart or your local grocery store? It is not uncommon for a company to sponsor a race team for the purpose of creating a special promotion which will set their product apart from others on the shelf, dairy case or freezer.

Companies that sponsor motorsports at the national level utilize (activate) their sponsorship by selling retailers on creating special in-store displays and ads in their circulars to bring special attention to products that might feature the driver or series that they sponsor. Finally, while the product is featured in the store, it is sold at a sale price and, in some cases, fans can see a show car at the grocery store that is participating in the promotion.

By design, all of these elements working together will result in additional product that is sold with an increase in sales for both the sponsor and the retailer. When all is said and done, the sponsor will measure how much additional product they sold because of their sponsorship, in addition to the value of exposure and having a presence on the car, and will decide if they experienced a positive return on investment.

Contrary to popular belief, many of the same strategies and tactics utilized by Fortune 500 companies and large consumer packaged goods companies can be executed at the local and regional level, with some creativity and forward thinking.

Sponsorship Weekly is a weekly article written by RaceQuest’s Bill Catania, and is geared toward providing sponsorship tips and insight to grassroots racers and promoters.

About RaceQuest

RaceQuest is a marketing services company, dedicated to helping local/regional racers and promoters with their sponsorship marketing efforts. RaceQuest founder and fellow racer Bill Catania has authored two popular books on racing sponsorship: RaceQuest Marketing Manager and Turn-Key Racing Sponsorship Programs, which focuses on sponsorship activation. RaceQuest also offers marketing consultation, representation, proposal development, proposal templates and a full line-up of racing uniforms & apparel. Visit www.racequest.com or call 814-244-1539 for more information.