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9 Dec 2013, 09:48 (Ref:3341901) | #51 | ||
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There are several reasons IMO. Global reach is easier now - you don't need to sponsor an F1 team to get global reach any more - this was a thing of the late 90's early 2000's IMO. There are easier, cheaper and more effective ways to do this and more importantly ways you can control. There are many more routes to market now. Costs - the fee paid to the team is just the start - the costs of effectively activating and managing a global sponsorship property are huge. ROI - budgets are under massive scrutiny these days and in many large corporates these sort of campaigns will be signed off by a governance board that has nothing to do with marketing and will look only at value for money, ROI and any legal issues. Sponsorships are notoriously hard to quantify, despite what anyone says and companies are increasingly wanting these types of campaigns to directly and immediately impact on sales, not just pure brand building. Corporate Responsibility and Governance - some large corporates have a CSR policy that is focused on carbon reduction/sustainability aspects of their business which F1 no longer sits well with. Also from our own experience of corporate clients, often their employees are prohibited from accepting 'gifts' from companies they do business with under bribery and corruption clauses. We literally have had to sell hospitality to people we do business with and who want to come along to one of our own events. Age - a lot of the brands you mention are targeting 16-35 max age band, F1 I would suggest has an older core audience. Trend - brands that do actively sponsor sports want to be linked with individuals so or active sports (rugby, football, athletics) where they can get better exposure at the top end and alignment with 'athletes' plus run grass roots campaign in support, which gives them a feel good/community support factor and promotes healthy lifestyle, etc. F1 is still seen as too elitist for many brands I suggest. All in all I think commercially F1 is in a 90's time warp that teams probably don't know how to get out of, hence the rush to bring investor type or driver related sponsors on board who do it for different reasons. |
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9 Dec 2013, 13:06 (Ref:3341941) | #52 | ||
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All of that makes sense Moneyseeker, until i think about Nascar and Aussie V8's for instance. Those two series have corporations/large companies coming out of their ears.
Sprint sponsor the whole show in Nascar, the likes of Pepsi, Coca-Cola sponsor individual races and cars, along with the likes of FedEx, UPS, GoDaddy, Target, Texaco, Monster, McDonalds, Burger King, Subway, KFC etc etc. Global reach is easier, agreed, but surely by definition then reaching a domestic market must be even easier? I don't think we could even blame F1's apparent lack of green credentials. Nascar's gas-guzzling reputation is even worse. Surely F1 must be doing something badly wrong? |
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9 Dec 2013, 13:30 (Ref:3341948) | #53 | |
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NASCAR, for all its foibles, is affordable & accessible - to attend an event doesn't need a mortgage, plus it's part of US TV culture. The drivers actually speak to the fans *gasp*! Aussie V8 Supercars are almost exactly the same - affordable & accessible.
F1 is quite the opposite - it's aspirational, locked away, and you only get in if you have $$$. Right now I'd suggest that one of the significant problems F1 has, although it might realise it, is the glamour. In days gone by people aspired to it, but in these days of austerity there's perhaps a growing feeling that the money in F1 really is obscene. It's been like that for years, of course, but compare the costs to fans to attend an event at Silverstone: 2014 British F1 GP, Sunday general admission, adult (no seat): £150 2014 British Moto GP, Sunday general admission, adult (no seat): £75 2014 British WEC, Sunday general admission, adult roving grandstand (sit anywhere): £35 Now look at NASCAR pricing: 2014 Daytona 500, most expensive grandstand seat, race day only: $195 2014 Miami (Homestead) 400, most expensive grandstand seat, race day only: $195 using 2013 pricing Also pertinent is that F1 has a truly worldwide following, but outside of real enthusiasts, neither NASCAR nor the V8s have any significant following outside of their own markets. That makes the marketing and sponsorship very parochial and much easier to identify with. Look at your average F1 car - who the hell are all these companies who are paying for stickers? Loads of them mean nothing to me. Not only that, loads of them don't even have products in my home country, or worse, aren't actually consumer-oriented. It makes me wonder really, really hard just what F1 is trying to be these days. |
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9 Dec 2013, 13:47 (Ref:3341957) | #54 | ||
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Domestically of course it is easier to activate a sponsorship in one country and in a single market place - you may also be drawing from a single budget. If you are pitching to a global brand for a worldwide event, they may well allocate their budget by region - so UK would have a budget, Europe or maybe EMEA, etc so you need 'buy in' from each area if they are expected to contribute from their budget. Not all brands will have a sponsorship budget per se either, so you are competing against other marketing spend which is a much easier sell in to your board. As whether F1 is doing something badly wrong, if you stripped all the logos of connected deals, B2B, contra deals and associated companies sponsoring teams it would look even worse.... Clearly either the teams are doing a bad job of selling themselves, or for a combination of some or all of the reasons I proposed, F1 is simply not attractive enough as a global marketing platform at the moment. As for the financial/banking sector - a few months ago I was with quite a senior person at a City trading firm who told me that the reputation of the industry is still so bad that he doesn't even tell people what he does for a living at social events, so the chances of this industry plastering their logos all over F1 cars is still quite slim IMO! |
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9 Dec 2013, 16:05 (Ref:3341991) | #55 | |||
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as usual brilliantly summarized.
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9 Dec 2013, 17:05 (Ref:3342001) | #56 | ||
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FOM has not really embraced social media and sees You Tube as threat to TV rights exclusivity rather than a promotional tool. It also only has 33,000 follower on twitter which doesn't strike me as a lot for a global sport, FIFA (football) for example has 2.2 million followers on twitter. Also on the F1 website there is no link to the twitter feed and no twitter feed/stream from teams or drivers. One problem that F1 has is that FOM does not promote F1 globally, it relies on the promoters of each race in each country to promote their event both online and offline, so you will have varying degrees of reach. FOM get's paid upfront in rights fees and TV rights for the vast bulk of the income, so as they have no risk or need to attract any ticket sales themselves, there is no need for central promotion - or so it strikes me. A good barometer of any sport is to go out in the street and ask passers by to name (say) 5 grand Prix circuits and 5 GP drivers and 5 F1 sponsors and see what results you get, the reasoning for this is that you can claim as much promotion and coverage as you like but if people haven't heard of (or can't recall) any of them it's all wasted.... |
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9 Dec 2013, 17:29 (Ref:3342008) | #57 | |
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9 Dec 2013, 17:36 (Ref:3342009) | #58 | ||
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It has long struck me as odd that, say, Coca-Cola and McDonald's don't sponsor F1. It seems to work for Red Bull...
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9 Dec 2013, 17:51 (Ref:3342012) | #59 | ||
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They are reported to have eyed it up though on a larger scale as well. http://f1times.co.uk/news/display/06413 Red Bull is dominant though with 4 cars on the grid and owning one of the GP's so maybe Coca Cola won't want to enter and be seen as 2nd best - share of voice and all that.... McDonald's is in to active sports sponsorship (FIFA & Olympics) so they can be seen to encourage us all to run about and be fit...I also doubt F1 fits in with any of their criteria for demographics or age range. |
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9 Dec 2013, 20:02 (Ref:3342053) | #60 | |||||
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i do think Formula E may be going too far by allowing fans vote to see who gets a speed boost but in general they have the right idea. Quote:
in an odd way i do think F1 is attempting to address that issue with the gimmicky rules that make the racing more akin to a video game/mario kart which could be seen as being more relevant for younger viewers. |
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31 Dec 2013, 04:02 (Ref:3349079) | #61 | |
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More bankruptcies ahead?
http://grandprix247.com/2013/12/29/c...ve-in-new-era/ Bernie and his bankers get fat, everybody who is actually doing the work goes broke! Last edited by wnut; 31 Dec 2013 at 04:10. |
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31 Dec 2013, 11:59 (Ref:3349160) | #62 | ||
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An interesting article. I wonder who the three "shady would be investors" are in the photo? I doubt if they would be happy to described thus!
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4 Jan 2014, 17:19 (Ref:3350371) | #63 | ||
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6 Jan 2014, 14:36 (Ref:3350901) | #64 | ||
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The one in the middle is Suhail Al Dhaheri, the boss of the Al Manhal "empire", which is run from a pizza parlour in Utah. |
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7 Jan 2014, 17:20 (Ref:3351291) | #65 | |
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I see where Toto Wolff believes that spending by F1's big teams is unsustainable and should be contolled.
http://www.autosport.com/news/report.php/id/112048 |
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7 Jan 2014, 19:34 (Ref:3351339) | #66 | |
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All the right noises are being made, by all the right people. I just pray that this comes to something where the sport is in a much more stable place. Even with so much money being pumped out by CVC, at least the teams will be able to survive. We will still argue what happens is unjust but at least the issue this unjust causes may be partly resolved.
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7 Jan 2014, 20:16 (Ref:3351354) | #67 | |
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The other part of the problem is the amount of money the midfield teams get from Bernie. The new agreements mean the smaller teams get proportionally a lot less and this will not really hit until the 2014 season.
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8 Jan 2014, 00:43 (Ref:3351420) | #68 | ||
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If F1 collapses then Bernie will have nothing left to sell...
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8 Jan 2014, 11:57 (Ref:3351568) | #69 | ||
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Lotus are skipping the first test.
That makes no sense, I think that's a worrying sign. Testing is expensive but in the case of a season like the one ahead, absolutely necessary. |
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9 Jan 2014, 13:29 (Ref:3352030) | #70 | |
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I wouldn't worry about that yet. Building a new car is not easy. Many teams will have nothing to test. At least in the previous seasons they could have done tests with an old chassis, which is pointless now.
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11 Jan 2014, 20:30 (Ref:3352899) | #71 | |
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"Some of these people are earning millions of dollars a year and they are not prepared to pay for .... With some of them, it's all take and no give. They wouldn't even buy you a cup of coffee" said Bernard C. Eccelstone* at the Brazilian GP 1987.
On that occasion he was talking about the drivers now it could be.... well you know. *Ref The Turbo Years by Alan Henry page 241 |
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4 Feb 2014, 09:28 (Ref:3363974) | #72 | |
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There is possibly a new investor looking at buying out CVC to gain control of F1. It is suspected US media billionaire John Malone is interested in buying CVC's shareholding. In Europe he owns 51% of Eurosport, but also owns Virgin Media (UK), Unitymedia (GER), Ziggo (NL) and Telenet (BEL).
If he were to gain control of F1 it could have significant ramifications to how we see it in the media. CVC has been trying to offload its shareholding for some time with the failed float etc. So it would be folly to discount such a move. http://joesaward.wordpress.com/2014/...ula-one-group/ |
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4 Feb 2014, 11:33 (Ref:3364014) | #73 | ||
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Now Bernie is denying it. http://www.pitpass.com/50872/Ecclest...ed-F1-takeover |
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6 Feb 2014, 20:13 (Ref:3364968) | #74 | |
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Even though I am not a fan of Pitpass I like this article by Mike Lawrence. Its where he compares F1 teams to football teams and how soccer players are paid compared to F1 drivers.
http://www.pitpass.com/50876/The-Elastoplast-Technique |
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6 Feb 2014, 21:15 (Ref:3364989) | #75 | ||
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Good article, and by that I simply mean I agree with his comments. He's right. There is something seriously wrong with F1. The fact that the 100 year rights were sold by the FIA (the sport does not belong to the FIA executive, it belongs to followers, the fans) is a major piece of irresponsible management, and at the very least, incredibly short sighted. In any professional international sport the governing body are the simply the managers for the public interest. they do it well, and succeed, or they do it badly and fail miserably. |
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