Are you willing to sponsor?
Are you ready to explore the transformative power of athlete sponsorship for your brand? Click here to learn more about how sponsorship can help brands grow and thrive in the exciting world of motorsports.
By Emanuele Venturoli| Posted May 7, 2020 | In MotoGP, Sport Sponsorship
In the past days RTR Sports Marketing have been interviewed by a prestigious sports magazine about the future of MotoGP sponsorship. Amidst the uncertainties raised in the sports industry by the COVID-19 pandemic and the rapid changes dictated by technology, the sponsorship arena is rapidly evolving. It was the opportunity to sit back and reflect on a revolutionized connection between brands and properties in the pinnacle of two-wheel racing and on how MotoGP is forging the path to a modern idea of global sponsorship. We are happy to share the answers to these questions with you.
Things are rapidly changing. Once, you’d have brands looking for the biggest logo on the bike they could get. In the days of free-to-air television, visibility was everything: the bigger the sticker on the fairings the stronger your sponsorship program.
Of course this is no longer the case. Brands today are looking for properties that can effectively portray their value system and they use MotoGP as a global marketing platform to boost their existing communication assets.
Some brands are not even asking for visibility anymore: they need social media support, B2B opportunities within the paddock, access to riders and management to embed them in their storytelling strategies. They need a different angle to approach their customer base: straight-as-an-arrow brand exposure just isn’t key anymore. Experiential marketing is where it’s at at the moment.
Take hospitality services, for instance. For a large part of the MotoGP Teams, hospitality revenues mean 30% of the grand total. This figure grows, obviously, with Moto2 and Moto3.
With more than 200 countries receiving the MotoGP live TV Signal and 55 countries represented by media personnel, MotoGP is truly a global sport. Some riders, like Valentino Rossi or Marc Marquez are both icons and legends. It’s fair to say they are familiar to Billions.
Geographically speaking, the MotoGP Championship visits 16 Countries in four continents with 19 Grands Prix in a Season. Again, this is a key element, because the series is a moving marketing platform really, and is able to engage with local fans, sponsors and stakeholders on the ground.
It should come as no surprise then that the series has been adding more and more rounds to the calendar in the past few years, with Finland being the latest addition. Without the COVID-19 pandemic, we would have witnessed a 20-round Season in 2020, the longest Championship in world motorcycle racing history.
Apart from the traditional European Countries, the championship is well established everywhere, from Australia to South America. In the last few years South-East Asia, in particular, is proving a very interesting market for both MotoGP and the two-wheel industry. Countries like Indonesia, Malaysia, Vietnam and Thailand (where bikes and mopeds represent the main mean of transport for a large part of the population) have a deep love for bike racing and a true passion for MotoGP riders. These vast, young and loyal audiences are pivotal for the future of the series (the Thai GP is the most attended race of the year), and so are the growing economies of these countries.
Finally, MotoGP is pushing to expand its digital boundaries. Online and social media are front and center in the evolution of the sport and both the teams and the organization have been pushing hard to make MotoGP the strongest motorsport property when it comes to social and web.
As mentioned, the increasing role of experiential marketing and a different approach to fan engagement especially online and through social media, alongside a decline in the importance of traditional visibility, are some of the main forces driving todays sponsorship market in MotoGP.
However, it has to be noted that these global sports are always in a fluid, ever-evolving situation. The sponsorship market attached to these disciplines must be fluid and responsive as well, in an adapt-or-die kind of scenario.
Think of what happened in the past 20 years in Motorsports alone. We’ve had the huge tobacco ban, the switch from national tv to pay-tv, the impact of social media, the rise of OTT services, and now we have esports and sustainability matters, just to name a few. It’s not a revolution: it’s more like one hundred revolutions altogether.
This is a growing sector of the sport, and one Teams and organizations are heavily working on.
Today we have tons of data. We already have a very clear picture of what happens when fans watch a race on live TV (how much airtime do sponsors get, what are the most visibile areas on bikes and circuits and so on) and what they do on social media and online. When presented with a sponsorship opportunity, brands are given hundreds of figures on global audiences, media equivalency values, social media reach. It’s a very detailed snapshot of what is happening right now.
The future, in my opinion, is putting those data in a more three-dimensional grand scheme, building an evolving profile of the fan, rather than providing a snapshot of where he/she’s at. We must never forget that customers and fans and spectators are not inanimate, static entities, but rather rapidly evolving individuals, whose habits and patterns and preferences are changing and shifting.
Sponsorship is a long-term marketing process: we somehow need to tell brands not WHERE the fan is NOW, but WHO will she/he be in 36/48 months.
Sustainability is a very important trend in today’s marketing and brands need to leverage on that if they want to remain relevant in the global market. Take Formula E, for instance, which is possibly the best and greatest example of how you can build a brand new sport and business around that idea: it’s no coincidence all the top car manufacturers want to be a part of it.
On the MotoE front, I do believe it is important for a lot of reasons.
First and foremost, Dorna have been clever enough to develop an all-electric series under their wing, rather than having some other organization setting up a whole new Championship away from the MotoGP paddock. This means extra value for Dorna itself, of course, but is also very important in the sponsorship negotiation process. Teams who field entries both in the MotoGP class and in MotoE have now a whole new array of tools for sponsors. And sponsors can now benefit of the values of both disciplines.
Furthermore, one must not forget that MotoE is a brand new sport that must go through a building process. The technology is still relatively new and needs some fine-tuning to be appealing for the masses, but it will progress rapidly.
If we consider the consumer market, everyday bikes are, in my opinion, less bound to go full electric than the car industry. Bikes will always somehow remain attached to that “petrolhead culture” if you wish, but there is no doubt that the future of mobility is electric and that sustainability will be a key value for brands in every industry.
As mentioned, the MotoGP marketing boundaries are already being stretched out as we speak. As new markets and new target audiences emerge, the sponsorship market evolves with them. The esports arena, which MotoGP is entering with their e-championship, is one of those fields and I can see why some brands are already jumping in.
Prosaic as it might sound, and especially today through this COVID-19 pandemic, it’s a matter of “thinking outside of the box”. Growing up around toy cars and race cars posters on the wall, somehow we are still hard wired to think that sponsorship is a sticker on a car or motorcycle. That world is dead now. The question today is not “how do i make my brand visible?” but “how do I get my brand to engage and interact on a personal level with my consumers?” and “how do I create high-value experiences for my customer showcasing my brand’s values and propositions?”.
Technology will play a strong role in this, providing one-to-one, tailor-made engagement opportunities.
Are you ready to explore the transformative power of athlete sponsorship for your brand? Click here to learn more about how sponsorship can help brands grow and thrive in the exciting world of motorsports.
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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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 sponsorship or sports marketing 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. Sports 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.
Sports 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 sports marketing and sports sponsorship agency like RTR has an objective, 360-degree picture of the scenario and can tell you what is really best for you: which sport, 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 sports 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 sports marketing project you need an agency that knows how to use sponsorship to engage the fanbase on the Web, 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 sports 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
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