IBJNews

Izod claims 350-percent return from IndyCar Series

Back to TopCommentsE-mailPrintBookmark and Share

Izod is touting its first year as the IndyCar Series title sponsor as a roaring success. Series officials are confident Izod’s proclamation will lead to more sponsors’ joining the series in 2011 and help it turn a profit for the first time since its founding in 1996.

During 2010, the first year of the six-year deal, Izod officials said they realized a 350-percent return on the apparel company’s investment.

“The return on investment is off the charts,” said Michael Kelly, executive vice president for corporate marketing at New York-based Phillips-Van Heusen, Izod’s parent company. “It’s just amazing.”

Izod and IndyCar Series officials declined to divulge the value of the deal, but motorsports marketers said Izod is paying $6 million to $7 million annually, including a sizable media buy.

Izod officials said that in 2010, Izod brand awareness increased 10 percentage points, brand familiarity rose 16 percent among 25- to 35-year-old men, and digital impressions increased 20 percent over 2009, due primarily to the series’ and drivers’ Facebook and Twitter accounts.

The clothing brand registered more than 25 million digital impressions this year through the series’ and its drivers’ social media accounts, Kelly said.

“A 350-percent return on this size of investment is very impressive,” said Larry DeGaris, director of academic sports marketing programs at the University of Indianapolis, who has conducted several studies for motorsports business enterprises. “But what they’re looking at, primarily digital impressions and brand awareness, is only a partial evaluation.”

Just Marketing International CEO Zak Brown, who represents major sponsors in NASCAR, Formula One and the IndyCar Series, said a 350-percent return would represent “the biggest I’ve ever heard of.”

Sales increases, Brown said, must be an essential part of a complete evaluation of Izod’s return on investment, but he added that a spike in brand awareness could be a sign that sales increases are coming.

Izod officials declined to discuss sales increases in 2010, but Kelly said distribution of the company’s products through Macy’s has increased since Izod signed the title sponsorship deal in November 2009.

“Izod wouldn’t be making these claims if they weren’t true in their world,” Brown said. “Izod is well-respected in the retail sector, so this claim has caught the attention of some other sales and marketing executives.”

Izod’s strategy relied on heavy spending in the digital realm and on television.

Izod took six IndyCar drivers to Panama early this year and filmed a series of TV commercials depicting Ryan Hunter-Reay, Marco Andretti and others racing jet-skis and motorcycles. The commercials directed viewers to the website, racetotheparty.com, which had more information and videos on the series, drivers and Izod’s products.

The TV ads were supplemented by billboard ads in major U.S. markets, including New York and Los Angeles, and print ads in GQ, The New York Times, ESPN The Magazine and Vanity Fair.

Izod used past and present drivers and entertainment stars such as actor Mark Wahlberg and rapper P. Diddy at special promotions at Macy’s stores in Indianapolis, Chicago and New York and at special events in California.

Izod“The best thing is, they are actively involved in the series and spending money to raise the awareness of the series,” said Terry Angstadt, president of the series’ commercial division. “Izod has worked hard to take our message into people’s homes and lives that weren’t already race fans.”

Pep Boys and Internet search engine Northern Lights each had brief stints as the series’ title sponsors, but Brian Barnhart, IndyCar Series president of competition, said the deal with Izod is “probably the first legitimate title sponsor we’ve had.”

Kelly said Izod likely will increase spending in 2011 to promote the series, adding that marketing muscle will be added in the series’ new markets, such as Baltimore, and surrounding the centennial celebration of the Indianapolis 500 in May.

The effusive praise from Izod is the latest in a string of positive developments for the series. This fall, Chevrolet and Lotus announced they’d be joining the series as engine suppliers in 2012, and promised to dump $10 million to $15 million each into promoting the series.

In November, race promoters estimated series-wide attendance increased 5.5 percent. According to New York-based Nielsen Media Research, TV viewership for 12 races on cable channel Versus was up 15 percent in 2010—to 366,000 viewers per race—over 2009. ABC saw average viewership increase 2.3 percent, to 2.36 million viewers over four telecasts.

The series still has challenges. The Indianapolis 500, its marquee event, in 2010 drew 5.79 million viewers on ABC, down 8.6 percent from 6.34 million in 2009.•

ADVERTISEMENT

  • Or the best possible time
    Maybe, maybe. Firestone backing out now is like a dagger in the back of the series, no?

    You, me or anyone can claim anything we want I suppose, just like Mike Kelly. But, IF you don't release supporting data then it's nothing more than speculation...just like I'm doing. So, it isn't all that bad, is it? I just said it's not what it's hyped to be....just like my feelings on the IRL/IzOD series.
  • Chief or Indian?
    Yeah Chief, I am sure that Brian Kelly and IZOD are lying about positive returns on their investment since it is their job to get money back on every $1 they spend. I am sure it's such a money pit that IZOD, Chevy, Lotus, and Verizon thought it would be a great idea to invest into the series so they could lose money. Go back and crawl under your CART/ALMS hole that you came out of...idiot. Firestone hasn't left yet and if they do, they are leaving at the worst time possible.
  • Stay on topic
    350% increase in digital impressions....hmmm, could some 'web-savy' marketing person articulate that to the rabid defenders of the 'league' please?

    Deflect the heat from IRL/IzoD series to the F1! BRILLIANT! So, that justifies the IRL's loses. Too funny.

    What are you defending, Mr. Defender? The right for sponsors to realize that the IRL provides no REAL ROI? What is it, do tell....
  • Obsession by Chief
    When will IZOD end their involvement in the series then, Mr.Einstein?

    Can you point me to the official link that Firestone is definitely leaving the IZOD IndyCar Series?

    Here is a fact that we do know to be verified: The same tyre company IS leaving Formula One, which evidently WAS a money pit and wanted to get away from it.
  • IZOD claim is MISLEADING
    For those uninitiated with what IZOD's 350% return means:

    They are saying brand awareness and digital impressions have netted 350% increases. This DOES NOT IMPLY that for every $1 dollar invested they saw $350 dollars returned.

    Zak Brown and others quoted in the article indicate the data is incomplete as none of this is tied to sales or revenues.

    Clearly another misleading IRL/IZOD claim that is false. Perhaps FIRESTONE saw these claims and wanted to distance themselves from the reality: the IRL is a money pit and they wanted to get away from it. FACT.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. If what you stated is true, then this article is entirely inaccurate. "State sells bonds" is same as "State borrows money". Supposedly the company will "pay for them". But since we are paying the company, we are still paying for this road with borrowed money, even though the state has $2 billion in the bank.

  2. Andrew hit the nail on the head. AMTRAK provides terrible service and that is why the state has found a contractor to improve the service. More trips, on-time performance, better times, cleanliness and adequate or better restrooms. WI-FI and food service will also be provided. Transit from outlying areas will also be provided. I wouldn't take it the way it is but with the above services and marketing of the service,ridership will improve and more folks will explore Indy and may even want to move here.

  3. They could take the property using eminent domain and save money by not paying the church or building a soccer field and a new driveway. Ctrwd has monthly meetings open to all customers of the district. The meetings are listed and if the customers really cared that much they would show. Ctrwd works hard in every way they can to make sure the customer is put first. Overflows damage the surrounding environment and cost a lot of money every year. There have been many upgrades done through the years to help not send flow to Carmel. Even with the upgrades ctrwd cannot always keep up. I understand how a storage tank could be an eye sore, but has anyone thought to look at other lift stations or storage tanks. Most lift stations are right in the middle of neighborhoods. Some close to schools and soccer fields, and some right in back yards, or at least next to a back yard. We all have to work together to come up with a proper solution. The proposed solution by ctrwd is the best one offered so far.

  4. Fox has comments from several people that seem to have some inside information. I would refer to their website. Changed my whole opionion of this story.

  5. This place is great! I'm piggy backing and saying the Cobb salad is great. But the ribs are awesome. $6.49 for ribs and 2 sides?! They're delicious. If you work downtown, head over there.

ADVERTISEMENT