A Kentucky Derby Advertising Guide for the Homestretch Win

An Overview of the Kentucky Derby

Established in 1875, the Kentucky Derby has a rich history and has evolved into one of the most prestigious horse races in the world. Taking place at Churchill Downs on the first Saturday in May, the prestigious event attracts a vast audience in person and through televised and streaming broadcasts.

Also known as the “Run for the Roses,” the event not only showcases the athleticism and beauty of thoroughbred horses but also serves as a cultural event that brings together people from various backgrounds to witness the excitement of one of the most iconic sporting events in the world. 

The event also creates an excellent opportunity for brand advertisers to jockey for attention in front of a large, captivated, wealthy, and affluent audience with spending power. For example, here’s what the 2023 Derby generated:

• NBC’s broadcast brought in an estimated Total Audience Delivery (linear broadcast, streaming services, and mobile devices) of 14.8 million viewers.
• Viewership on Peacock (NBC’s streaming service) was up 50% over 2022. 
• NBC generated $34.1 million in ad revenue and delivered 1.07 billion ad impressions among viewers aged 18 and up.
• $288.7 million in wagers were placed.

What does this all mean for brand advertising?

Advertising and marketing to sports fans allows advertisers to tap into a large and engaged audience and capitalize on fans’ values, emotional connections, and passion for their favorite teams, athletes, and, in this case, horses. Doing so can generate brand awareness and visibility while driving consumer engagement and sales.

Let’s jump in the saddle and learn how your brand can benefit from advertising alongside the Kentucky Derby. 

3 Benefits of Kentucky Derby Advertising

Sports marketing has several benefits, and advertising during significant events like the Kentucky Derby offers numerous advantages. It’s a popular strategy for many brands. In 2022, 37 brands spent $33.8 million advertising during the Derby to capture viewers’ attention during “the most exciting two minutes in sports.” 

What can these dollars get your brand? Let’s take a look. 

1. Benefit from Highly Engaged Live TV Audiences

Connecting to a live audience has many benefits. For starters, it’s a pretty large audience. NBC’s Kentucky Derby Coverage Peaked at 16.6 million viewers in 2023. Streaming viewership increased 50% from 2022 to become the most-streamed horse race ever, led by NBC’s streaming service, Peacock. 

Secondly, live audiences are enticing for advertisers to reach simply because they can’t fast-forward the commercials and engage in the moment. For example, with the Super Bowl, we often see a spike in the search for advertising brands during the game. While not on the same scale as the Super Bowl, the same idea rings true in other live events and big games like the Kentucky Derby. 

Additionally, most audiences view sports on a big screen, and a 2022 study from MediaScience compared ad recall on TV and streaming versus digital environments – or big screens versus little screens. 

Last but certainly not least, advertising alongside live events generates excellent word-of-mouth marketing. Audiences often want to talk about the event with friends the next day in person, on social media, or in group chats. Brands with standout ads can quickly become part of this conversation.

2. Engage A Wealthy Audience Demographic

The Kentucky Derby isn’t just a race. It’s a cultural event that attracts the wealthy and affluent, with high net worth and a lot of spending power. Front Office Sports has broken down numbers, providing a glimpse into the spending power in-person attendees have:

• Exclusive and luxury hotels and resorts go for more than $20,000 a weekend.
• Anyone’s guess is as good as any on how much each person spends on their outfit. The race is known for fashion statements, and a Kentucky Derby hat – the cherry on top of any outfit – can go as low as $1,000. 
• Established in 1966 as an exclusive interior dining room, Millionaires Row caters to an elite clientele, including high-net-worth individuals, celebrities, corporate executives, and VIP guests. Access to this area is restricted to those who can afford the hefty price tag associated with its amenities. Prices start at $36,000 per table.
• For those who can afford even more luxury than Millionaire’s Row, watching the race from The Mansion, an invite-only club that opened in 2014, has varying ticket prices but ranges from $7,500 to more than $14,000 per ticket. To top things off, many sign a three-year deal for Mansion seating, costing an estimated $30,000 per person. Inside, a mint julep cocktail will cost $1,000. 

3. Build Trust Through The Halo Effect

Building trust with your audience is paramount for any brand looking to establish a strong connection and loyalty among consumers. Research from the 2023 Edelman Trust Barometer indicates that consumers are more inclined to trust and support brands that align their advertising efforts with reputable sources. Therefore, a brand aligning with the Kentucky Derby and sports content, especially locally, can yield a significant halo effect. 

Further amplifying this effect, TVB’s research underscores that local broadcast news is the most trusted platform among viewers, thus extending the halo effect to advertising. In the context of the Kentucky Derby, local news serves up trustworthy sports content delivered by esteemed and award-winning sports reporters – offering sponsorable content that enhances brand visibility among local audiences.

Kentucky Derby Advertising Opportunities

As the Kentucky Derby gallops into the spotlight, brands have a golden opportunity to captivate audiences and leave a lasting impression. However, the allure of horse racing extends beyond the famed Run for the Roses, encompassing prestigious events like the Belmont Stakes and the Preakness Stakes. Here’s a breakdown of the advertising opportunities for brands eager to make their mark on the horse racing circuit.

Broadcast TV 

The power and influence of broadcast live and appointment TV events can’t be overlooked. The numbers from Q1 in 2024 speak for themselves:

• This year’s Super Bowl set records, becoming the most-viewed event since the moon landing with 123.7 million viewers. On average, the NFL regular season also brings in 17.9 million viewers.
• 19.5 million viewers tuned into the Academy Awards, making it the most-watched Oscars since 2020 and marking the third year of consecutive viewership growth.
• The Golden Globes jumped 50% from 2023 to 9.4 million viewers
• The Grammy’s viewership also climbed 34% from 2023 to 16.9 million
• NASCAR viewership is up 19% over 2023, with the Cup Series race from Phoenix Raceway amassing more than 4 million viewers on FOX.
• Interestingly, a PGA Golf rerun of Pebble Beach, where Wyndham Clark set a course record in his winning moment, amassed more than 1.21 million viewers on CBS.

This channel or platform is the only one that can offer this scale or level of viewer engagement. 

To reach a broader audience and ensure widespread visibility and awareness of your brand during these marquee events, embrace traditional media channels such as broadcast television’s event coverage, commercial opportunities, content sponsorships, and Lifestyle show appearances.

Additionally, local broadcast news stations are the most trusted channels for informing Americans about what’s happening in their communities. Thanks to the halo effect, these local audiences will positively associate your brand with the local, trusted news channel. After all, local news has emerged as one of the safest environments for advertisers and is a proven and powerful vessel for brand messaging.​ According to the IAB, 84% of consumers feel that advertising within news increases or maintains brand trust, and 45% are more likely to visit the brand’s website or search for more information online.      

Streaming TV

Extend your broadcast campaign’s reach with OTT/CTV streaming advertising options and reach an unduplicated audience, utilizing new targeting and measurement opportunities. By embracing the power of streaming, brands can position themselves at the forefront of the horse racing conversation.

• Unduplicated Audience: When adding a second platform to your campaign, you may be worried that your ad is being shown to the same audience, fearing burnout. On average, our friends at PREMION deliver 85% unduplicated reach – meaning only 15% of the CTV and OTT viewers also saw the ad on linear TV.
   
• Advanced Targeting: Capture audiences that can’t be reached through broadcast alone—like cord-cutters, cord-nevers, and those who watch on gaming consoles or through streaming sticks, CTVs, or laptops. With streaming TV advertising, you can also narrow target audiences based on market or geography, from regions and states to ZIP codes, consumer trends such as interests, intenders, in-market shoppers, and more.
   
• Measurable Results: Linear and streaming TV ad campaign results can now be measured with a tool like TEGNA Attribution. This measurement tool allows our partners to measure the effectiveness of their TV and OTT campaigns by connecting viewing behaviors to engagement metrics, such as website visits, app downloads, and more.  

All the benefits of traditional TV are also available on streaming TV. Not only are news, weather, and sports available on streaming, but there is also a handful of high-quality and feel-good holiday content for viewers to enjoy.  For example, TEGNA’s streaming apps, such as 11Alive+, offer a new generation of ad-supported streaming apps with 24/7 access to breaking live and on-demand local news, newscast replays, extended live coverage, weather, and station specials and investigations. Additionally, on-demand content from the Locked On Podcast Network, VERIFY, Daily Blast LIVE, and more.

Online & Digital

There are several digital pathways to consider for an online marketing strategy that can help complement a broadcast and streaming TV strategy to reinforce messaging. Teaming up with the right local media partner, your brand can:

• Create clickable display ads, which is essential to any online campaign. 
• Leverage geofencing and geotargeting to ensure you reach the right audiences in the right areas.
• Deploy native advertising for better engagement and ad recall. According to Sharethrough, consumers are 53% more likely to look at native ads than display ads, have an 18% lift in purchase intent, and, according to AppNexus, have an 8.8x higher click-through rate. 
• Use contextual targeting to reach the right audience in a cookieless world by leveraging a page’s content to determine the most appropriate placement of an advertisement. This form of advertising can also help brands improve what they are associated with (for example, if a beer company wants to be associated with sports).

Examples of Successful Kentucky Derby Ads

In this traditional spot, FanDuel leverages the power of celebrity and prestige by including former NFL star Rob Gronkowski as he drafts the Kentucky Derby into his sports betting strategy. 

Vineyard Vines Oxmoor Center Partners with Louisville’s WHAS 11 & Great Day Live to create brand awareness and help Derby-goers find their perfect outfit for the big day. This appearance educates viewers on what’s available in more than a traditional 30-second spot, and the brand also benefits from the halo effect and good feelings the Derby provides. 

UL Health, Bachman Auto Group, Elite Heating & AC, and West Shore Home all took advantage of sponsoring WHAS 11’s weather reports, knowing that Derby-goers would check the weather before heading out to the event. This type of sponsorship and logo placement helps with brand recall and aims to make the brand top-of-mind when viewers need the advertised products or services. 

Kentucky Derby Advertising with TEGNA

Our ultimate goal is to equip brands with insights to capture the hearts and minds of sports fans nationwide. Team TEGNA knows the power of cross-channel marketing campaigns that combine TV, streaming, and digital assets, and we’re ready to jump-start your campaign today. With 64 broadcast stations in 51 markets nationwide, TEGNA has a unique ability to reach drivers across Broadcast, OTT/CTV Streaming, and digital solutions. Contact us today to see how we can accelerate your advertising.  

Want to learn more about sports advertising? Be sure to check out:  

• Tips & Strategies for Sports Advertising & Marketing  
• Why is Sports Marketing Important? 5 Benefits  
• Decoding The Olympics Advertising Game  
• Tackling the Power of NFL Season Advertising  
• 3 Advertising Takeaways from Super Bowl LVII

Frequently Asked Questions

Who are the main sponsors of the Kentucky Derby?

The main sponsors of the Kentucky Derby typically include major corporations such as Churchill Downs Incorporated, the parent company of the Kentucky Derby, and prominent brands from various industries such as automotive, beverage, fashion, and finance.

Why might a brand be interested in sponsoring the Kentucky Derby?

Sponsoring the Kentucky Derby offers brands a unique opportunity to align themselves with one of the world’s most prestigious and widely recognized sporting events. The event draws a massive domestic and international audience, providing extensive visibility and exposure. Additionally, associating with the Kentucky Derby allows brands to tap into its rich history, tradition, and sense of luxury, appealing to affluent demographics.

Can you use Kentucky Derby in marketing?

Yes, companies can use the term “Kentucky Derby” in their marketing materials, but they must adhere to trademark rules. The term is trademarked, so any usage must be respectful and compliant with trademark law. Generally, it’s advisable to avoid implying official affiliation or endorsement unless authorized by the event organizers. Proper attribution and acknowledgment of the trademark owner should also be included when referencing the Kentucky Derby in marketing campaigns.

Note: It’s crucial to consult legal counsel for specific guidance on using trademarks in marketing materials to ensure compliance with relevant laws and regulations.