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Influences on sponsorship deals in NASCAR: indirect evidence from time on camera

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  • Kurt William Rotthoff
  • Craig A. Depken
  • Peter A. Groothuis

Abstract

When corporate sponsors want to maximize their exposure, they often focus sponsorship dollars on events, teams and athletes that will prove to be reliable, respectable and, most important, repetitive advertising outlets. Analysing the factors that increase a broadcaster's propensity to display a sponsor during television broadcasts is often hard to measure. Using a unique data set describing NASCAR broadcasts, we indirectly analyse what influences the value of a sponsorship contract through a proxy for driver sponsorship value: the value of time on camera (VTOC). We find that the VTOC is influenced by driver performance and their celebrity status, as measured by driver experience and inherited brand-name capital. Although the values of individual sponsorship contracts are generally not reported, the evidence herein suggests that driver performance and status likely influence the value of NASCAR sponsorship contracts.

Suggested Citation

  • Kurt William Rotthoff & Craig A. Depken & Peter A. Groothuis, 2014. "Influences on sponsorship deals in NASCAR: indirect evidence from time on camera," Applied Economics, Taylor & Francis Journals, vol. 46(19), pages 2277-2289, July.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2277-2289
    DOI: 10.1080/00036846.2014.899672
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    Cited by:

    1. Craig A. Depken II & Peter A. Groothuis & Kurt W. Rotthoff, 2016. "Family Connections in Motorsports: The Case of Formula One," Working Papers 16-13, Department of Economics, Appalachian State University.

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