Thursday, August 25, 2011

NASCAR and the Pentagon: As American as Apple Pie

The battle over spending continues to rage on Capitol Hill and while Republicans are keen to take an axe to the budget, one interesting item was spared: The Army’s sponsorship of NASCAR. The House gave the green light for that sponsorship to continue, rejecting an amendment that would have blocked the Pentagon from using taxpayer dollars for NASCAR ads.

The Army spends more than $7 million a year to sponsor NASCAR Sprint Cup driver Ryan Newman and several million more as part of a partnership with NASCAR. It says the prominent ads on the car and presence at the track help attract recruits.

Over the last decade each branch of the military has had a partnership with NASCAR. But now just the Army, Air Force and National Guard continue to sponsor teams - the Marines, Navy and Coast Guard dropped their own NASCAR sponsorships in recent years.

Perhaps the ads are working. Military recruitment is surging - the waiting lists to sign up are currently longer than they have been in recent years which could be a result of several factors: the still-struggling economy, high unemployment rate and the post-9/11 GI Bill, that pays for education and housing for family and service members who have served at least 90 days and were honorably discharged.

Recently NASCAR revamped its business and marketing model to reach new and younger audiences hoping to increase track attendance and TV ratings. NASCAR's audience had steadily eroded over the last four years due to a variety of circumstances, not the least of which was alienating its longtime, hard-core fans with a variety of changes: later starts to appease West Coast viewers; altering its rules that made for safer, albeit less exciting racing; as well as a tepid economy, rising ticket prices and skyrocketing gas prices.

The new integrated-marketing communications department has focused a good part of its attention to the critical 18- to 34 year-old demographic, using social media to help organize college viewing parties; developing a dedicated youth website; and promoting young drivers such as surprise Daytona 500 winner Trevor Bayne (age 20), Joey Logano (21) and, starting with the Nationwide Series Kroger 200 race this Saturday, action sports star Travis Pastrana (27). It is also expanding its outreach for branded entertainment in TV, films and music videos, and taking a deeper dive into the burgeoning Hispanic market with the creation of more Spanish-language content.

The Army saw an opportunity to leverage NASCAR’s strategy into a recruiting tool so it sank some serious advertising dollars into drag racing. They wanted a driver to be all he could be for them, personable with a heavy foot on the gas, as passionate for what the Army represented as he was for squeezing every nano-second out of his Top Fuel dragster. The Army’s sponsorship places an impetus among young fans that sharpens the focus and dedication, the idea being that a military branch active in a foreign theater provides more of a motivation than, say, selling auto parts.

The Army has maintained a presence in NASCAR since 2000, through direction from Congress itself. NASCAR, of course, is one of the most popular spectator sports in America, and if the Army wants to attract more people, then—stereotypes aside—there aren’t many better places than stock car racing.

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