“I’m a relatively small business compared to the likes of Rolex, Heineken and Emirates. I can’t get anywhere near those sorts of sponsorship budgets”, I hear you say. Well, thankfully there are ways in which you can capitalise on Formula 1’s ever-growing exposure in a much more cost-effective manner. Whilst the term ‘athlete’ is more commonly associated with the likes of Mo Farrah, Anthony Joshua or Cristiano Ronaldo, you’d be mistaken to overlook a Formula 1 driver as this video of George Russell shows. Using an athlete who performs on a global stage, is looked up to by millions for inspiration and is followed by even more on their social media, is often a more appropriate way for a brand to associate itself with sport. This is especially the case in Formula 1.
This year, marketing spend on sport partnerships is expected to grow by 4% to reach a record high of £35bn globally, according to a recent study.
This figure is equally as impressive as it is frightening, as most brands continue to have the belt around their marketing budgets tightened. Every penny spent must have a clear purpose and help in its own little way to achieve both the long and short-term goals of its organisation. Of the industries who spend the most in sponsorship, financial services lead the way with 19% of all spending coming from this sector; HSBC has reportedly spent £8m to become the title partner of the World Golf Championships, BNP Paribas are the main sponsor at Roland Garros thanks to a £16m cheque and construction is underway for the Golden State Warriors new stadium – the Chase Centre – helped by JP Morgan Chase’s $15m naming rights deal.
The automotive, airline, soft drinks and, predictably, gambling sector are some of the remaining industries who also have a major stake in the world of sport sponsorship, which can now be seen in pretty much every sporting event around the globe. In theory, the competitions who draw the largest viewership typically price themselves on the higher end of the scale, as is their prerogative, and with Formula 1 recently boasting of its 1.8 billion cumulative viewership its unsurprising that the sport has received over $30 billion over the last 15 years in revenue.
To provide a sense of scale, less than 13% of sponsorship spend within Formula 1 was on the series itself. Emirates, Heineken, DHL and Rolex each paid over $20 million and in return, they see product integration wherever possible, digital exposure, grandstand tickets and hospitality, image rights, content creation opportunities and last but not least, the unmissable on track branding which delivers a TV media value which surpasses what they paid by quite some distance.
Whilst the brands who are present within Formula 1 are fortunate to have significant sponsorship and activation budgets, this needn’t have to be the case as we at Blackcastle Sport continue to prove. Through the concept of driver led ambassador partnerships, we can create powerful narrative and the ability to associate your brand with the prestige, exposure and performance of F1, whilst remaining focused on a tight budget.
In a game of milliseconds, it’s important to use each available positive element to its maximum potential, which is appropriate both on the track and in our approach to building meaningful partnerships in sport.
Give our team a call to explore the opportunities suitable to you: +44(0)207 099 9900