[LSC9901]

Caution Flag Flies for Nascar as Ratings Slip

After Years of Strong Gains, League May Be Suffering a Slowdown

By Rich Thomaselli

Published: November 27, 2006
NEW YORK (AdAge.com) -- After an unrelenting six-year streak in which it lapped all other professional sports except football in popularity and TV viewers, the $3 billion business of Nascar is suddenly having to market itself.

Average TV ratings for the 10 final Nascar races of the season dropped 10%. Photo Credit: AP




Ratings down
Whether it's just a pit stop, or whether the rubber has finally worn off the racing league's popularity remains to be seen. But its easy ride appears to be over, as average TV ratings for the 10 final races of the season, dubbed the "Chase for the Cup," dropped 10% from 4.8 to 4.3, and some 31 of the 36 races drew lower TV ratings this year than in 2005. And while Nascar doesn't release attendance figures at its tracks, there were clearly empty pockets of seats at several recent races.

Combine the ratings falloff with the sport's freshly inked eight-year, $4.48 billion TV deal with ABC/ESPN -- some 40% higher than the previous agreement with NBC and Fox -- and this week's traditional annual post-season celebration of cocktail parties and driver appearances start to look more like work for Nascar. In fact, it may well be as big a marketing week for the league as its season-opening race in Daytona, Fla., its version of the Super Bowl.

"It's a fair question," said Steve Phelps, Nascar's chief marketing officer, but he added, "I wouldn't say it's any more imperative to have a good marketing week in New York than we have in the past."

'Nip this thing in the bud'
"This is the time for Nascar to set the stage for next year," said the chief marketing officer for a prominent sponsor. "I do think there's a sense of taking measures or precautions to nip this thing in the bud before it gets out of hand, so to speak."

To be sure, Nascar is far from crashing. Where just three years ago teams were struggling to pull in primary sponsors -- those willing to shell out the estimated $18 million needed to bankroll a driver through the 36-race season -- Nascar officials say a whopping 48 drivers will be fully funded for the 2007 season. Toyota is making its long-awaited debut in the main Nextel Cup Series, to the chagrin of the Big Three. And popular Formula One driver Juan Pablo Montoya is jumping to Nascar for the 2007 season, perhaps opening a marketing avenue to Hispanics.

But there are signs its popularity may be waning, attributed to everything from the length of the February-November season; the length of races, which can push four hours; rising costs of attending a race; and a perception by hard-core fans that Nascar has somehow gotten away from its roots.

'We're poised to rebound'
Some say a ratings slip is inevitable after a period of meteoric growth, something even Nascar concedes. "Being down for the first time in a while is disappointing, but the ratings fluctuate for all sports and entertainment. We had a record year last year and a lot of times it's difficult to sustain double-digit growth," Mr. Phelps said. "Sponsorships are still strong, the tracks are doing far better than what people are giving them credit for, and we're poised to rebound significantly from a rating standpoint."

So, too, believes, Roger Vandersnick, CMO for International Speedway Corp., which owns 12 tracks across the country and hosts 21 Nascar events. "Reports of Nascar's demise are greatly exaggerated," said Mr. Vandersnick, a former chief marketing officer of the sport. "It's in vogue right now to say Nascar has chinks in the armor."

He said any anecdotal evidence of falling attendance at the tracks has to be taken in perspective. The August race at the Indianapolis Speedway, for instance, was noted in a report by USA Today as being 20,000 fans shy of capacity -- even though 240,000 fans were estimated to be in attendance. "That's three Super Bowls," Mr. Vandersnick said.

[lilsexy08]

The only reason I think think of the slip in ratings is-forgive me didn't read the whole article, but anyway the commerical time and sometimes poor coverage!

[Quality88]

A bunch of dillusional idiots at the helm of Na$car as usual. They think it's just a down year and they'll rebound......... keep dreamin folks. You've pissed off to many fans now.

[lilsexy08]

Originally Posted by Quality88

A bunch of dillusional idiots at the helm of Na$car as usual. They think it's just a down year and they'll rebound......... keep dreamin folks. You've pissed off to many fans now.

Too Cool Quality!

[LSC9901]

Originally Posted by lilsexy08

The only reason I think think of the slip in ratings is-forgive me didn't read the whole article, but anyway the commerical time and sometimes poor coverage!

Since we all have a perspective I would add that it isn't (from my point of view) sometimes poor coverage. There is a lot that could be done to make it better. Everything from camera angles to announcers. Granted we all have different wants, but lets face it some of what we see is just plain terrible.

Originally Posted by Quality88

A bunch of dillusional idiots at the helm of Na$car as usual. They think it's just a down year and they'll rebound......... keep dreamin folks. You've pissed off to many fans now.

I guess I wonder why we don't mean much to them. The long time fan is what got them here and the flash in the pan fans will be watching whatever is most popular next year. My theory is do what got you to where you were most successful and then make it better. I'm not real sure I see that happening.

[checkerboard_charly]

Not much has changed this year, has it??

[wardfan]

I think the drop is due to a few things. The fact that they are on so many different channels, the later starting times, the never ending commercial breaks and coverage of the front runners only.

[rich1va]

1) Top 35 automaticly race sunday's = Failure

2) Green white Checkered flag = Failure

3) Restrictor plates = Failure

4) Nascar racing in other countries - Failure / Nascar's future

5) TV Coverage - Failure

6) Ticket prices / Ticket resale scalper - Nascar allows - Failure

7) Loyal Fan support - Decreasing

Car of tomorrow - Biggest Joke ever - Failure

9) Smaller Fuel Cells - Failure

10) Officials - Another joke - Failure

These are my opinions only. Nascar will dissapear like the fuel cell size.

[Donno]

Problem...? Commercials....

As an Englishman who is used to watching 90 minutes of uninterrupted football (thats soccer to my American friends) even on channels in the UK funded by advertising. If they put commercials every 8-10 minutes in english soccer there would be a public outcry, and questions 'asked in the House'....

Commercials.... please, please find a better way!!!

Yes, I have been known to wander off during a commercial, get collared by the Wife, and its race over!

Why allow the intrusion of disrupted influences (commercials and Wives!)

Inventor: Chair of Tomorrow... Patent pending!

[nascarfan24]

i kind of have mixed opinions
nascar needs its fans but their drivers are more important
i kind of lean toward the side that says "to bad, Nascar has had the same level of compition, if not more, and the intensity is the same so too bad!"
i guess i just say if your a true fan, watch the races and enjoy yourself
the sport could be in worse shape, "cough" IRL "cough"

[jks812]

I know I use to watch every busch and cup race. If there was anything Nascar on my hubby and kids knew what we were gonna be watching. Now I can do without watching the busch races, all it is now is a practice race for the cup drivers. And with all the commercials and all the nascar bs I've gotten to where I can pretty much do without watching the cup races now. Just get in the last 50 or so laps and I'm good. But the truck races is different. I want to kick myself if I miss one of them.

[Quality88]

Originally Posted by Donno

Inventor: Chair of Tomorrow... Patent pending!

I'd like to place an order for one of those

[Donno]

Chair of Tomorrow update!

After exhaustive testing the Dupont fire resistant padding has been replaced with less inflammable Nitroglycerine foam!

[Quality88]

Originally Posted by Donno

Chair of Tomorrow update!

After exhaustive testing the Dupont fire resistant padding has been replaced with less inflammable Nitroglycerine foam!

Hmmm..... explosive development. Keep me posted.

[Donno]

Beer holder has been upgraded with Kevlar to prevent chair damage when beer bottle thrust in holder at breakneck speed when that Gordon person crosses the line... again!!!