NASCAR, Verizon, and Penn Gaming Demonstrate Value Of A New Integrated Partnership Model
BY ADAM GROSSMAN
NASCAR announced a new partnership last week with Verizon to “upgrade wireless connectivity at 12 of its race tracks.” While the original focus appeared to be facilitating faster social media interactions, race updates, and interpersonal communication, the NASCAR-Verizon partnership’s largest beneficiary could be Penn National Gaming.
In past Block Six Analytics (B6A) blog posts, we have highlighted how the potential biggest boon from the legalization of sports gambling would come from the increase in partnership revenues. More specifically, fans having a financial interest in the outcome of sporting events means that more people are more likely to be engaged with sports content. B6A research has shown that increased audience engagement leads to a higher likelihood of fan interaction with corporate partnerships and that has a strong relationship with increasing the likelihood of lifts in companies’ revenues.
NASCAR, however, has discovered a novel way to unlock potential engagement through gambling. More specifically, “one of the newest demands on stadium connectivity comes from the rise of mobile sports betting.” Verizon has been leveraging sports to demonstrate power of its 5G network starting with the NFL. NFL teams need high-speed wireless connectivity so that its fans can use their mobile devices effectively in their venues.
Verizon’s relationship with NASCAR, however, could make this message even more tangible for consumers. More specifically, fans want to be able to place one or multiple types of in-race bets during a NASCAR event as quickly possible using their mobile device. Verizon making the sports betting experience better demonstrates the value of 5G directly to a large number of customers it is trying to reach through this partnership.
That is great news for Penn National Gaming. The company recently solidified its own relationship with NASCAR as the league’s first authorized sports betting operator. Enabling faster sports betting through better WiFi connectivity means it is more likely someone will make one or multiple bets at a race. This increased activity should enable Penn National Gaming to generate new revenue directly through its NASCAR relationship.
Better WiFi also makes it easier for Penn National Gaming to help drive fans to its brick and mortar locations (i.e. casinos and racetracks) where the company currently drives the majority of the revenue. Increased usage of the mobile app in a NASCAR context becomes a marketing channel for Penn National Gaming to reach new customers in an environment that can help drive future purchasing decisions. More specifically, sports bettors having a good experience using the Penn National Gaming mobile app at NASCAR races will then be more likely to visit the company’s onsite locations.
NASCAR’s new partnerships with Verizon and Penn National Gaming partners also demonstrate a change to how the sponsorship industry will look at integrate partnerships. Traditionally, companies have wanted category exclusivity within their own industry or product line as part of any potential sports partnership. Therefore, integrated partnerships meant one partner having partnership activations in multiple channels (onsite, traditional media, social media, corporate hospitality, etc.).
NASCAR, Verizon, and Penn National Gaming is a great example of a new form of integrated partnership model. More specifically, NASCAR, Verizon, and Penn National Gaming all maximize their individual outcomes by working together. Verizon shows the power of its new network using a tangible, real-world use case of sports betting. Penn National Gaming can generate more bets from NASCAR races and increasing the likelihood of NASCAR fans attending on of its brick and mortar venues. NASCAR can generate more money through partnerships by better helping partners generate incremental revenue growth through collaboration.
One question B6A frequently receives is how can we help properties and partners identify new partnership opportunities. NASCAR, Verizon, and Penn National Gaming highlight a new way for companies in different categories to work together to maximize their individual revenue and brand goals. This integrated partnership model is an opportunity to identify new opportunities and / or activate current partnerships in novel ways that drive value.