Deals on wheels - financial magazines advertise on racing cars - Brief Article

Folio: The Magazine for Magazine Management, June 1, 1994 by Tim Bogardus

What is driving two financial magazines to use promotional dollars to plaster their names on fast cars? For Entrepreneur CEO Peter Shea, whose publication owns its car, racing is a passion, not a promotion. "I don't think we'll sell more subscriptions because our name is on the car," says Shea--although he does use the automotive events to woo advertisers. "Instead of a golf game, we can take clients to a race."

Financial World, however, views racing as a major marketing vehicle, and it invests big money to back it. Primary sponsorship of an Indy Car costs $4 million to $15 million, according to the April 12 FW cover story, "Rolling Billboards," which examines the marketing and promotional value of auto racing. Financial World is a co-primary sponsor of Indy Car, NASCAR and Formula One Series cars. President Douglas McIntyre says that the television exposure, promotional tie-ins and advertising incentives are worth the investment. "I can say to an advertiser, 'Look, double your commitment to me and I'll put your name on the car for the Indy 500,'" he says, citing the example of the Bahama Tourist Board, which recently bought both ad pages and a spot on the car.

If auto-racing sponsorships create such lucrative business opportunities, why aren't car mags cashing in? "We find more effective ways to spend our promotional dollars," says William Jeanes, publisher of Road & Track and Car and Driver. He prefers smaller, more traditional promotions like shooting tournaments, charity events and auto shows. As for advertisers, he notes, they would rather putt than zoom. A day at the races, he has found is "not as popular as a golf outing."