Race Industry Now Webinar Explores the New Era of Motorsports Sponsorship, ROI Measurement and AI
Mike DeFord of VSC Race Works Shares Modern Sponsorship Strategies for Racers and Teams
The world of motorsports sponsorship has changed dramatically over the last decade, and simply placing a logo on a race car is no longer enough.
That was the central message delivered by Mike DeFord, Business Development Director at VSC Race Works, during a recent EPARTRADE Race Industry Now webinar titled:
"The New Era of Motorsports Sponsorship: AI, ROI, Expectations & Avoiding Scams."
Hosted by Brad Gillie of SiriusXM Channel 90, Late Shift, the session examined how sponsorships have evolved from traditional decal placement into sophisticated business partnerships driven by measurable returns, digital engagement, and authentic relationships.
Sponsorship Has Become a Business Partnership
According to DeFord, many racers still approach sponsorship using an outdated model that focuses primarily on car graphics and race results. Modern sponsors, however, are increasingly focused on return on investment (ROI) and expect teams to provide tangible business value.
"Those days are long gone," DeFord explained. "Sponsors are paying for results, not simply logo placement."
He emphasized that sponsorship should be viewed as a long-term partnership rather than a transaction. Teams accepting sponsorship commitments—whether in cash, product support, or discounts—must understand that they are entering into professional relationships with real deliverables and responsibilities.
In some cases, companies are even pursuing legal action when contractual obligations are not fulfilled.
Digital Presence Now Carries Significant Weight
One of the biggest changes discussed during the webinar was the growing importance of online visibility.
DeFord noted that a team's value is increasingly determined by its digital footprint. While winning races remains important, many sponsors place greater emphasis on audience engagement, social media activity, and content production.
"You don't need a million followers," DeFord said. "But you need a presence."
Regular posting, race updates, photos, videos, and sponsor mentions all contribute to a team's overall marketability. In today's environment, many sponsors evaluate online exposure just as carefully as on-track performance.
Understanding Sponsor Objectives
Another key topic was the importance of identifying what a sponsor actually wants before presenting a proposal.
Different companies pursue sponsorships for different reasons. Some may seek brand exposure, while others prioritize:
- Product development feedback
- Customer hospitality opportunities
- Content generation
- Market research
- Dealer engagement
- Technical validation
DeFord advised racers to stop sending generic sponsorship requests to company inboxes and instead establish direct relationships with marketing personnel.
"The first question should be, 'What are you looking for?'" he explained.
Understanding those objectives allows teams to determine whether they can realistically deliver the requested value.
Measuring ROI in Modern Motorsports
A major technical component of the webinar focused on sponsorship analytics and ROI calculations.
DeFord explained that sponsors today evaluate numerous metrics, including:
- Social media impressions
- Online video views
- Sponsor mentions and tags
- Streaming exposure
- Website traffic
- Audience engagement
- Track attendance
- Hospitality activation
While traditional television exposure once dominated sponsorship valuations, streaming platforms and digital media have now become equally important.
Many companies target returns of six-to-one or greater, meaning that every sponsorship dollar invested should ideally generate six dollars in value.
Some organizations, DeFord noted, seek even higher returns.
Content Creation Drives Sponsor Value
The discussion also highlighted the increasing importance of content libraries.
Photos, videos, race recaps, and behind-the-scenes material provide sponsors with reusable assets for social media, advertising campaigns, catalogs, and dealer communications.
"Content is king," DeFord explained.
Even large manufacturers with dedicated media departments constantly need additional authentic motorsports content. Teams that consistently provide high-quality materials strengthen their long-term relationships and increase renewal opportunities.
Hospitality Remains a Powerful Tool
Despite the rise of digital marketing, trackside hospitality continues to play an important role.
Sponsors frequently use racing programs to entertain customers, reward employees, and create memorable experiences for partners and dealers.
Whether through VIP access, paddock tours, grandstand tickets, or full hospitality programs, these experiences often generate value that extends well beyond traditional advertising metrics.
Sponsorship Recaps Help Secure Renewals
DeFord stressed that post-event reporting is critical.
Sponsors need evidence that commitments were delivered and often rely on those reports internally when requesting future marketing budgets.
Providing recaps that include:
- Performance summaries
- Photos and videos
- Audience statistics
- Social media metrics
- Sponsor exposure examples
can significantly improve retention rates and help convert one-year programs into multi-year partnerships.
Recognizing Sponsorship Scams
The webinar also addressed a growing problem within motorsports: fraudulent sponsorship programs.
DeFord warned racers to be cautious of online advertisements promising guaranteed sponsorship opportunities in exchange for upfront fees or recurring subscriptions.
He advised teams to perform due diligence and avoid organizations that require payment before delivering results.
AI: Helpful Tool or Dangerous Shortcut?
Artificial intelligence was another major topic.
While DeFord acknowledged AI's usefulness for graphics and productivity tasks, he cautioned racers against relying on AI-generated sponsorship proposals and synthetic marketing materials.
According to DeFord, sponsors increasingly recognize artificial content and generally prefer authentic photography, genuine storytelling, and real-world engagement.
"AI has its place," he said, "but don't overuse it."
Authenticity, he emphasized, remains one of the most valuable assets a team can offer.
A New Sponsorship Mindset
The webinar concluded with a clear message: modern sponsorship is no longer about asking for money in exchange for decals.
Success now requires:
- Relationship building
- Content creation
- Audience engagement
- Data-driven ROI measurement
- Communication
As motorsports continues to evolve, teams that understand these principles will be better positioned to attract sponsors, retain partners, and build sustainable programs.
The webinar was presented as part of the EPARTRADE Race Industry Now series and featured Mike DeFord, Business Development Director at VSC Race Works, hosted by Brad Gillie from SiriusXM Channel 90, Late Shift.
For more information, watch the full webinar here.
