F1 Sponsorship - follow the money!

[adrianjordan]

Not entirely sure you're understanding sports sponsorship...the idea is that you are aware of the brand.

[Manoah2u]

yes, but it hardly ever correlates to the consumer level.

on a business level, it's a whole different story. Obviously, that means brand awareness is neccesarily.
I say RedBull in F1 is also out of 'business level' interest instead of consumer interest. Most RedBull consumers are very young kids, and almost none of them know or watch F1, nor RedBull air race, or anything like that. Yet, they buy it at the store.

A business however, is more prone to buy RedBull because they are so popular in business circles. Let's put it like this;

if you'd slam 'Monster Energy' completely on the Mercedes, as a main title sponsor - black with green and all, then i'll bet the same kids aren't going to buy it yet. But, because businesses get interested in the brand exposure, these businesses do 'business' and the monster energy drinks reach the stores, and then the kids are going to buy it.

F1 isn't a directly consumer related. It's business related.

F1 > business > consumer.
Nascar > consumer

[dans79]

Of course to bring this in full circle, let's get back to the original point about F1 sponsorship and Haas, which is namely that Gene Haas is a moron. Claiming F1 is how he will sell Haas CNC to the planet is laughable as there are so many better options.
Sponsoring a Premier League team would be a far better use of his money as he is assured of a minimum of 90 minutes of exposure every match day as opposed to F1 which might give him 10 minutes per race, 20 times a year versus 90 minutes times 38 games in the Premier League...to say nothing if it's a team good enough to qualify for UEFA Champions League, and the various overseas matches that might be played.

Motor sports is the most relevant place for him to be a sponsor, because his type of product is used in motor sports. Every team own several machining centers, and I'm sure his team will be using Haas brand equipment. If the team does well, advertisements will some how reference the car was built using Haas machines.

sponsorship isn't about getting you to buy something, it's about Brand awareness. Aparently this is a hard concept for Bernie and several members of this form to grasp!
http://en.wikipedia.org/wiki/Brand_awareness

[dans79]

yes, but it hardly ever correlates to the consumer level.

on a business level, it's a whole different story. Obviously, that means brand awareness is neccesarily.
I say RedBull in F1 is also out of 'business level' interest instead of consumer interest. Most RedBull consumers are very young kids, and almost none of them know or watch F1, nor RedBull air race, or anything like that. Yet, they buy it at the store.

A business however, is more prone to buy RedBull because they are so popular in business circles. Let's put it like this;

Redbull, is in F1, because it has a corporate image to maintain, and it has low brand awareness in some sectors. For example my Niece used to be on Facebook 24/7, not she never uses it because her grandmother is on it. I asked her why over the holidays, and her response was simple and to the point, "it's not cool anymore".

[SectorOne]

Yes, it's quite true.

Do you think the bank sponsors are sponsoring to try and get people to sign up for new bank accounts?

That's not their primary purpose.

It's business-to-business marketing. They are trying to attract other companies to come to them to invest money or get loans from them.

Again....business-to-business marketing.

For a global sport, it's amazing how difficult it really is to attract sponsors. Most global companies see absolutely no value in F1 sponsorship.

That´s something you´ve whipped up yourself and presented as some sort of fact.
And let´s not get too far away from your original statement.

Except F1 doesn't attract any sponsors selling products to the average person.

It´s just factually incorrect, period.

[GitanesBlondes]

Yes, it's quite true.

Do you think the bank sponsors are sponsoring to try and get people to sign up for new bank accounts?

That's not their primary purpose.

It's business-to-business marketing. They are trying to attract other companies to come to them to invest money or get loans from them.

Again....business-to-business marketing.

For a global sport, it's amazing how difficult it really is to attract sponsors. Most global companies see absolutely no value in F1 sponsorship.

That´s something you´ve whipped up yourself and presented as some sort of fact.
And let´s not get too far away from your original statement.

Except F1 doesn't attract any sponsors selling products to the average person.

It´s just factually incorrect, period.

So don't believe it. Not my problem if you want to believe otherwise.

The proof is in the numbers.

McLaren has no title sponsor.

Half the grid is broke.

No major sponsors in recent years.

Drivers who bring sponsors who wouldn't otherwise be associated with the sport were it not for the driver.

Yes...F1 is so attractive to sponsors.

[Richard]

You're all right, because life isn't black & white. Money comes from a variety of sources.

Sponsors aren't trying to sell accounts to customers? Santandar plaster the UK high streets, transport hubs & prime time TV advertising with these images. You can't get cash out from the bank without a face full of this:



You see the thing is that while not many people actually watch cars going around in circles, an awful lot of people recognize that smiling chap. They might not know his name but they know he's got a nice smile and won something important a while ago. Frankly the Santandar logo on the car isn't worth much, they're paying for the smiling mug shot on the high street.

Or how about this chap in the sunday papers and glossy magazines:



None of the above is relevant to the money sloshing around in the paddock. That's where executives wear silly sunglasses and rub shoulders with celebrities, obscenely talented drivers and powerful men. The orgy of power is irresistible:



Some of the stardust rubs on the normally grey suited businessmen (yup they're all men).



They drink too much in the hospitality suites, they reciprocate their host's generosity with a day at Roland Garros, the Nou camp or perhaps Royal Ascot.

Or perhaps a trip to the Maracanã. Unfortunately the chairs are straight backed in a football stadium.



Somewhere along the way deals are done. That's the business to business bit. That's where the likes of Bernie gets his billions, or Seb Blatter & Putin don't make their billions


The folk wallowing in the paddock billions don't watch the racing other than a selfie in front of the cars to send the kids back home. President Uhuru Kenyatta didn't even bother to get the cars in his pic, but he did manage to include a Boss logo.



Also F1 advertising does work, Putin absorbs this strapline every day:

[wesley123]

So don't believe it. Not my problem if you want to believe otherwise.

The proof is in the numbers.

McLaren has no title sponsor.

Half the grid is broke.

No major sponsors in recent years.

Drivers who bring sponsors who wouldn't otherwise be associated with the sport were it not for the driver.

Yes...F1 is so attractive to sponsors.

Is it because there aren't any sponsors or is it because the Tobacco sponsorship all had to leave?

Tobacco sponsorship was responsible for the title sponsorship of almost every team, to the value of hundreds of millions of dollars. Tobacco companies needed to spend this money because they had been under fire for years and they desperately needed the brand awareness involved.

There simply isn't a market that is/was under fire like Big Tobacco, so there isn't a market that needs to spend these big bucks on sponsorship deals making the loss of Big Tobacco a hole that can't possibly be filled.

Sponsors come and go, and there have been quite a few new sponsors in F1 in the recent years, however, none on the level of Big Tobacco.

F1 teams have been spoiled by the money Big tobacco bought in.

. Aparently this is a hard concept for Bernie to grasp!
http://en.wikipedia.org/wiki/Brand_awareness

I'm certain Bernie understands this perfectly well. However, in his position there is more than brand awareness., there also is competition. For example Johnny walker, their prescence will raise brand awareness for them, while other companies operating in the same(or similar market) wont see this brand awareness, this places them at a disadvantage, making it important for them to too sponsor F1, to make it clear that johnny walker isn't the only alcoholic beverage on the market. And what we saw since last year was that Martini and Smirnoff committed to a sponsorship deal.

[Richard]

I'm not sure about that Wesley. F1's current wealth and ostentatiousness makes the 1990's seem like an amateur village fete. The difference is that income from fans is dominated by TV fees, and sponsorship is funneled through centralised global deals with FOM.

However more money in centralised deals means less for individual teams. Most the money used to come into F1 via the teams, but nowadays the teams are more like hired actors reliant on FOM as their dominant source of income. For instance Saward estimates Caterham got $69m from FOM. Go back 20 years and a back marker team like Caterham would have got nothing from FOM.

[NathanOlder]

on the exact same level with you here, Gitanes.

Which I dont get, if you had every sponsor on the cars this year, more of those sponsors products will be found in the average household.
And the average person will be aware of their products. Its all about awareness, I dont use Kaspersky on my computer because of Ferrari, But i know about them because of Ferrari. Normally id use Norton because I know of them. I see Kaspersky was a little cheaper but I have no idea who they are.... oh wait, Iv seen that name on a Ferrari F1 car so they must be alright.

The sponsorship didnt make me buy it, it just put it in my mind. Job done for them.

F1 sponsorship it VERY relevant to the average man.Which sponsors in F1 actually have no relevance to the average person ? Not talking about you 2, im talking about a % of 100 people

[hollus]

Individual example, but...
I have a Medion PC computer. It was suspiciously cheap, it is boxy but it works just fine and I am very happy with it.
And I'd never have bought it if it wasn't for Adrian Sutil's personal sponsorship. I only bought it because I knew the brand thanks to F1, which meant that when one would pop in a Mediamarket catalog I'd check the characteristics of this Medion in particular, out of curiosity. And they looked alright. And when it popped up in the Aldi catalog, which normally would be a blemish in the prestige of a technology company, I had in my mind that it probably made sense for this cheap but yet good brand. And when a family member bought a horribly boxy and bulky Medion laptop, the brand got burnt in my brain.
So when I needed a new PC, I checked HP, Dell and Medion, in that order. And Medion won hands down. They do not have any physical shops and typically are not present in Computer stores, by the way, they do most of their selling online.

It is brand awareness... until it is not.

Assuming they paid 4M$ and a 400$ profit from me, I gave them 0.01% return on investment. I only takes 10000 like me to pay back.

[SectorOne]

So don't believe it. Not my problem if you want to believe otherwise.

I won´t, i don´t get involved in beliefs as they serve no purpose.

[ChrisDanger]

No amount of marketing sells me on any product period.

=D>

[Richard]

No amount of marketing sells me on any product period.

That's curious, how do you know the things that you buy even exist, or which shop sells those things?

[NathanOlder]

No amount of marketing sells me on any product period.

That's curious, how do you know the things that you buy even exist, or which shop sells those things?

Haha thats a very good point