Formula 1 ‘s change of regulations -new cars and new tires first and foremost- led to two spectacular races and record ratings. A risk that paid off but was necessary if motorsport’s top series was to continue to remain relevant and relevant to audiences and sponsors.

Sports marketing: communicating in and out of your arena

As those in the industry know well, every sports property must direct its communication and promotion efforts in two equal and opposite directions.

On the one hand, the property–and it matters little whether this is a club, a stadium, a sports league or a federation–must direct its actions within its natural area of insistence, to talk to its audience, interact with its stakeholders and generally give continuity to an existing relationship based on a communion of purpose.

On the other hand, likewise, the same property fights a tight struggle every day with other external objects, bodies, organizations and entities that insist on areas different and distant from its natural vertical of reference. It is a struggle for attention, for interest, for relevance and, last but not least, for screen time. This is all the more true and relevant the larger and more globally interesting the property.

In essence, and to give an example that clears the field, a major soccer club must not only focus on its fans and investors, but must simultaneously fight for the attention of new consumers against other forms of entertainment, from video games to music, from movies to social media.

This dual direction of marketing and communication, which is simultaneously inward and outward, is the key to a virtuous balance that is a harbinger of success, but also very difficult to find.

Forgetting to communicate inward means losing the hard core of one’s fans and moving away from one’s historical MVPs (Mission, Vision, Purpose). Conversely, to stop communicating outward is to lock oneself into a niche that no longer attracts new audiences and leads, in the medium and long term, to product extinction.

Theoretical hints aside, therein lies the great difficulty of any change: how to remain relevant to one’s audience and become appealing to those who do not yet follow us? How to move toward modernity without betraying heritage? And finally, how to find the new without throwing away the old?

Come to think of it, this is a cross-cutting drama for the marketing world at large, perpetually hovering between the present and the future.This is precisely what Product Life-Cycle Management is all about: strategizing processes and actions to manage and guide the life cycle of a product or service.

Formula 1: change to stay the same

As mentioned at the outset, product lifecycle management is all the more important the larger and more global the property. In an absolutely transversal, planetary, and manifoldly connected market, not only does the “too big to fail” that was believed to be true until a decade ago not apply, but paradoxically greater efforts to adapt are required of precisely the most structured entities. This reasoning applies, of course, in the area of sports marketing as well.

In this context, Formula 1 is part of that elite group of leagues, series and championships that catalyze most of the world’s attention. Along with the Premier League, NBA, NFL, Champions League, and MotoGP, motorsport’s top series rightfully ranks as one of the most extraordinary entertainers on the planet. In 2021 alone, the circus amassed 1.5 BILLION total viewers, 433 MILLION unique viewers, and nearly 5 million spectators in the stands at the circuits over more than twenty races in 10 months (source: Nielsen for Formula 1- 2021). Staggering numbers that, as always, have the double side of success and responsibility.

It is in the light of what has been written so far, and with the specter of a recent not-so-simple past clearly in the rear-view mirror, that the great change that the top Formula has decided to undertake on several fronts for some time now and that is only now showing its true colors should be interpreted. A change that, for the sake of simplicity, we can divide into four points:

• Regulating
• Of average production and distribution
• Geographic
• Demographic and cultural

Formula 1 changing: the regulations

The regulatory one, and expressed at its most vigorous by the Rule Book change this racing season, is certainly the most manifest of all the skin changes in the world’s most famous four-wheel sport. Cars reverting to ground effect, simplification of fluid dynamics to allow for more compelling overtaking, lower-temperature tyre warmers and so on are actually negligible details of a grand design that can be substantiated in one simple sentence: Formula 1 needs entertaining races, with lots of overtaking and big twists.

Why, however, do we say “negligible” details? What is evident is that the governing body of the sport is trying to banish the ghost of complexity to try to lower the barriers to entry for new viewers. A new user, and this is yes instead a marketing problem , cannot have difficulty accessing the product since, if not sufficiently motivated, they will tire and turn elsewhere. A sport in which it is necessary to have a degree in thermodynamics and follow the race with a clipboard is not a sport, it is a math problem. Formula 1 knows this well. But it also knows that creating competitiveness-a topic this blog has covered before-is difficult, especially when there is so much technology involved.

Hence a change in regulations that, while leaving the complexities and details so beloved by fans (communication within one’s arena), offers a simple, intuitive and usable product for those new to it (communication outside one’s arena).

Clearly, the satisfaction of both of these audiences is the sine qua non of the goodness of the toy and these different layers of vision. The new user will be delighted to see the overtaking and counter-overtaking between Verstappen and LeClerc, while the more enthusiastic will be able to elucidate on the undercuts that are less performing now that the tires are coming out of the garage at 70 degrees and not 160.

The changing Formula 1: production and media distribution

Drive to Survive, the hugely popular television series now in its fourth season, has been a masterstroke on the part of the circus marketing offices. Not only does the TV product offer a more gossipy and tasty angle, capable of intriguing even audiences that are not necessarily sports-oriented, but it has the double benefit of penetrating new audience niches and lengthening the experience and memory for brands, sponsors and manufacturers.

DTS is one of many, big and small changes that Liberty Media has brought on the product placement and product promotion front. A new logo, new font, new graphics, new acronyms and new direction add to a non-exhaustive list of different touches to a sport that has changed face in just a few years.

A clear understanding of the holistic role of quality integrated communication is necessary here. It is clear that a new logo, in itself, brings nothing to the cause. Equally, however, it is true that a brand image responsive to a modern language that is in step with the times is important to align with a visual habit that is changing with increasing frequency (it is no coincidence that even the Premier League revamped its logo and color palette a few years ago-both beautiful).

Changing Formula 1: Geographies

That of boundaries, physical but not only, is a dominant theme of all the world’s top sports properties. Moving from saturated to expanding markets is a necessity for both sponsors and stakeholders to find new audiences. This concept is as intuitive as it is extremely difficult to put into practice, for reasons of logistics, timing and economics (the National Football League, which has been experimenting for years with bringing a team to London and landing the world’s least famous oval ball on the old continent, knows this well).

Liberty, FOM and the FIA have a puzzle on the table with several pieces to put together, not necessarily matching. On the one hand, there is a cultural and legacy hegemony of Europe on the Formula 1 product, which has in England, Italy and the Central European area its birthplaces and most of its teams. On the other hand, there is a need to shift centers of gravity to areas with more leeway and more money, notably the Middle East. Third, there is the realization that a truly global product cannot fail to have traction, following and interest in the United States. Finally, that the weeks of the year available are less than forty (if breaks are taken into account, of course) and moving cargo and materials takes time and organization.

The extension of the calendar to 23 races, with the introduction of tracks such asSaudi Arabia (2021) and Miami (2022) flanked by a solid group of historic circuits, goes precisely in this direction.

Because of the reasoning made above about the two directions of communication, it is clear that the circus cannot get rid, except by seeking harakiri, of tracks that represent the beating heart of the sport such as the Belgian jewel of Spa or the fast Brianza track of Monza. But it is also clear that the economic fortunes of the top Formula cannot be based on an increasingly monetarily stagnant central Europe but must find new vibrancy in more sparkling and exploding markets such as those in the middle east. The calendar cannot be lengthened forever, although there are already those who are calling for 30 races, but certainly the extension of the map and the return of major classics such as Imola are good news for sponsors and investors.

The changing Formula 1: demographics and culture

This is perhaps the most difficult, intangible and delicate aspect of our reasoning. It is also, for the same reasons, perhaps the most important. While it is indeed easy to identify changes in the regulations or to appreciate the lengthening of the calendar, it is difficult to account for a change that is as much cultural as it is demographic.

The two, as is easily understood, go hand in hand.

An international marketing platform, a hugely popular sport, and a long-standing spearhead of the entire automotive industry, Formula 1 needs to present itself to the world with an absolutely first-rate ethical, cultural and image roster. The great space devoted in recent years to Black Lives Matter, the focus on social issues of inclusion and diversity, and the highly international scope are clear proof of this. That it is not just about sports is all too obvious. Like any great entertainer of modernity, the top open-wheel series must also embrace the role of great educator. Like it or not, agree it or disagree it this is what modernity dictates to large corporations and high-profile players. This is especially true when it comes to motorsports, traditionally a discipline that has had to deal with issues such as locker room machismo and which today seeks, as NASCAR struggles to do, to shake off the dust of the provincial garage.

Overbearingly parallel to this is the issue of the new generations. Hyper-connected and with formidable but elusive attention spans, accustomed to multimedia, multiscreen and deeply attached to an aesthetic, that of video and digital gaming, largely revolutionized. Pushing hard on social media, trying to speed up productions, building around the protagonists characters very similar to the heroes (or antagonists) of a TV series, giving everything a videogame patina are some of the cards in the deck played by Formula 1.

Verstappen’s RedBull single-seater coming to a halt at the end of the race on a stunning lighted and interactive platform while a 4K drone filmed the Arabian night, illuminated with phosphorescent neon, fireworks and dreamscapes is yet another proof of this leap, which is as much generational as it is intentional. This is not just sports, but the most beautiful spectacle in the world.

The future to come

This season’s Formula 1 has so far delivered what it promised.

Roaring races with cars finally able to overtake and fight at every turn, dreamlike scenery at visually stunning tracks, widespread competitiveness and numerous twists and turns brought about by a rule change to which not everyone, especially among the most emblazoned, has been able to adapt.

It is unrealistic to think that the level of performance so far will remain so for the next 21 releases. Instead, it is useful to appreciate that this is not a random exploit but the result of a sensible direction and a clear strategy that can hearten sponsors, insiders, stakeholders and protagonists. A long-term strategy whose main objective is to secure the future of the circus among the world’s top sports and entertainment platforms by fighting in the two directions mentioned at the beginning of this article with the same, renewed effectiveness.