By Emanuele Venturoli| Posted January 21, 2025 | In Formula 1, Formula1
Formula 1’s commercial landscape is undergoing significant transformations as it embraces a new era of expansive and strategic partnerships. With an evolving sponsorship portfolio and strategic moves into new markets and sectors, Formula 1 continues to assert its dominance not only as a premier motorsport series but also as a powerhouse in global sports marketing. This article delves deep into the developments shaping Formula 1’s commercial strategy for 2025, highlighting key partnerships and projecting future trends.
2025 marks a pivotal year for Formula 1 as it secures and solidifies major sponsorship deals, most notably the landmark ten-year contract with the LVMH Group, valued at an impressive US$150 million per season. This partnership not only underscores the allure of Formula 1 as a premium marketing platform but also showcases the series’ ability to attract luxury brands, with Tag Heuer, Louis Vuitton, and Moët Hennessy enhancing the glamorous image of the sport.
The extension of existing partnerships, such as DHL’s logistics support since 2004 and Pirelli’s exclusive tyre supply until potentially 2028, reinforces the sustained trust and mutual value generated through long-term associations. Furthermore, new deals like Nestlé’s KitKat as the official chocolate bar of Formula 1 exemplify the series’ strategic approach to diversifying its sponsorship portfolio and engaging broader audiences worldwide.
Looking ahead, Formula 1 is setting the stage for further expansion into new commercial territories. The integration of emerging technologies and sectors, such as AI with AWS’s global partnership, indicates a forward-thinking approach to embracing innovation. Additionally, the series’ licensing agreements with major brands like Lego and Mattel for team-specific merchandise signal a push towards a more integrated fan engagement strategy.
The potential introduction of new race venues in Rwanda and enhanced presence in Asia aligns with Formula 1’s global expansion objectives. These developments not only open up new markets but also provide fresh opportunities for regional sponsorships and partnerships, leveraging the global appeal of the sport to tap into rapidly growing sports marketing landscapes.
AI’s role in refining strategies and operations within Formula 1 is becoming increasingly significant. As the technology advances, smaller niche companies may find unique opportunities within the ecosystem to provide specialized services or enhancements, contributing to the sport’s technological and operational advancements.
Sustainability continues to be a crucial focus for Formula 1, with partnerships like Aggreko’s low-carbon energy solutions spotlighting the sport’s commitment to environmental consciousness. These initiatives are vital for maintaining Formula 1’s relevance and responsibility in today’s eco-conscious market, ensuring that the series remains at the forefront of sustainable practices in motorsport.
Formula 1’s comprehensive strategy in diversifying and expanding its commercial portfolio, while embracing sustainability and innovation, reflects its vision to remain a leader in the competitive world of sports marketing. With strategic partnerships, emerging market opportunities, and a commitment to innovation and sustainability, Formula 1 is well-positioned to continue its legacy as a premier platform for global sports marketing.
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A graduate in Public, Social and Political Communication from the University of Bologna, he has always been passionate about marketing, design and sport.
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Read MoreIn an era where it is possible to get anywhere with a click, there is a strong temptation to approach teams and properties directly for sponsorship projects.
By doing so, we are convinced that we are shortening the value chain, saving time and money. However, these DYI methods are anything but risk-free and what initially appears to be a competitive advantage soon turns into a problem that is difficult to resolve. That’s why there are agencies. And this is why you should rely on us for your sponsorships.
When first approaching a motorsport sponsorship project, it is difficult to know immediately which stakeholders are correct, what the decision flow is, and what the right timelines are for each process. Motorsport is a very specialized field of action, and fitting effectively into its paths can take a lot of time and therefore money. We, on the other hand, know referents and spheres of action and know who to talk to, when and how. So you are also more effective.
Motorsport is an immense passion, and for our heart colors we would be willing to do anything. But business is a different business, and it is important to make the best possible strategic decisions based on independent research, statistics and reliable data. A motorsport sponsorship agency like RTR has an objective, 360-degree picture of the scenario and can tell you what is really best for you: which racing series, which athlete, which team. This is because we possess a great deal of data and information on ratings, segmentation and attitudes. Because the numbers don’t lie. Never.
Activations are the real heart of motorsport sponsorship. Without them, there remains only a blank sticker on a motorcycle, car or uniform and no contact with the public, no emotional connection, no impact on the bottom line. Then how do you do it? It certainly won’t be the teams or the athletes who will help you leverage sponsorship and enjoy the many marketing rights you have paid for. To bring out the best in a motorsport marketing project, you need an agency that knows how to use sponsorship to engage the fanbase online, to reach out to Shopping Centers, to organize hospitality, to develop B2B and B2C opportunities, and to get “your” athletes in front of millions of potential consumers.
Would you ever go to the dealer who sold you the car and ask if the competitor’s car is better? No, of course. So, how do you expect to get firm measurements of the effectiveness of your sponsorship if you do not rely on someone super partes? At RTR, we have always worked with independent third-party agencies that allow us to know the return on any exposure of your brand on TV and in the media. In addition, we believe in calculating ROI as the ultimate measure of your success-so we can tell you for every penny you spend how much you are making.
We have been involved in motorsport sponsorship and sports marketing for more than 15 years. We are consultants in the sense that our goal is to maximize your investment, but we are also an agency that manages the project from start to finish. We have been doing this since 1995 with passion and professionalism, following three principles that have become cornerstones of our business: independence, verticality and transparency.
I would like to highlight the fact that one of the qualities of RTR is its great ability to approach the sponsorship scenario strategically, together with its passionate attitude, its amazing enthusiasm for solving problems, and its high level of professionalism.
Gianluca Degliesposti
Executive Director Server&Storage EMEA
Eurosport is truly delighted with its business relationship with Riccardo Tafà, who has become extremely popular, thanks to his detailed knowledge of the sports marketing sector and his highly diligent attitude to work.
Francois Ribeiro
Commercial Director
Passion and Expertise are the features that I have found in RTR since the very beginning. Serious and reliable professionals but also very helpful, nice and open-mind people, willing to listen and compare different ideas. All the values in which RTR believes make this agency a partner, not just a supplier, a partner with whom we have had the opportunity to achieve significant commercial results in term of success and image.
Luca Pacitto
Head of Communication
We have been working with RTR Sports Marketing for over 10 years. The objectives and the programmes of collaboration continue to be renewed and to grow with mutual satisfaction. I believe RTR is a team of great professionals led by Riccardo Tafà, who I consider a manager of exceptional skills and with a great passion for his work.
Lucio Cecchinello
Team Principal
I have known and worked with Riccardo Tafà since 1995 when we collaborated for the first time on a project for the Williams Formula 1 team. Several clients followed. After leaving Williams to work for Gerhard Berger then owner of the Toro Rosso F1 Team, I turned again to Riccardo to seek his help in finding a tool supplier for the team and Riccardo duly obliged with an introduction to USAG, a partnership with Toro Rosso which endured for five years. I recently started a new role as Group Commercial Director for the renowned Andretti Autosport organisation and I find myself working with Riccardo once again on a number of interesting projects. Why has this relationship with Riccardo endured ? He’s smart, knows the commercial side of sport inside out and back to front and he’s honest and trustworthy. Riccardo Tafà is a “doer” not a “talker”: in over 20 years I have never had a dispute either with him or with a company that he has introduced and each partnership introduced by Riccardo has delivered quantifiable ROI to rights holder and sponsor alike. I can think of no better testimonial of Riccardo’s diligence, knowledge, contact base and hard work than that.
Jim Wright
Group Commercial Director
The online platform where you can discover the latest trends, strategies and insights from the exciting world of sports marketing.
View our blog
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