Motorsport marketing refers to creating, developing, and implementing marketing programs based on motorsports, thus leveraging on the passion of a large worldwide audience (people once known as petrolheads and that are today a lot more, with a demographic of 60% male and 40% female, coming from any walk of life) in order to reach companies’ marketing and business objectives.
Motorsports is one of the most dynamic platforms marketers can work with. Local, global, small, big, simple or glamorous – there is always a place for your brand to shine or for corporate events to be held. The motorsport ecosystem is so specific and there are so many different opportunities that it is always better to look for the support of one of the several highly specialized motorsport marketing agencies in the market.
These marketing agencies operate in a challenging, rich, and intensely exciting environment. Some of the world’s largest brands have built themselves starting from simple grassroots programs that developed into dynamic, multi-series operations ending with the direct ownership of several sports properties.
Sport could look easy to handle but, for marketing managers, executives, and those interested in working with motorsports sponsorship programs, it can quickly become overwhelming without the required knowledge and support from a sport marketing consultancy specialized in this specific field.
The world of motorsport marketing is a tricky one to navigate. There are various dynamics, flexibility, and opportunities, and in order to be successful you have to have someone by your side who knows the rule of the game as well as the players. It is imperative to have a good understanding of the specific sector and implement activation programs capable of extracting all the potential value from such partnerships.
The opportunities are countless and the potential ROI is explosive: this is why brands invest billions of dollars each year to engage their customers through sport sponsorship which has now become a constant of the marketing mix, along with digital marketing.
However, all of those ups don’t come for free; there are some fundamental challenges that you must be aware of and hence, prepare yourself for, beforehand, so planning is essential. The truth is there are no obstacles in motorsport marketing if you are well equipped and if you plan carefully how to invest your marketing budgets. Motorsports have changed so much that there is no single item of communication that cannot be tackled through them. Even sectors that have traditionally been away from motorsport (think about the green economy) can now be served using the new zero impact categories such as Formula E and MotoE, not to mention the newborn ExtremeE. Also, there are plans and sponsorship deals for pretty much every pocket.
Sponsorship activation has its language, and properties might try and persuade you with some fancy terms. However, the first step to prepare yourself is to know the fundamentals of what it takes to generate sustainable ROI through your sponsorship program.
Even if you are working on the program in an aspiring manner, 9 times out of 10, you will end up in one of these obstacles faced by motorsport marketing agencies. Therefore, the next step should be to further prepare by avoiding these.
For most brands involved in sponsorships customer engagement is key and Motorsports is the right tool to use.Experiential marketing is an ideal strategy and the motorsports platform gives you some of the best opportunities in terms of hospitality and storytelling. From the VIP suites of iconic races to the commercial areas of the tracks any segment of your target could be reached and engaged. Publishing race related content on your website or other social media platforms could make your story telling even more powerful and let you stretch your reach well beyond the boundaries of the race track or the people watching on the TV.
Engaging Different Audiences Effectively
More demographic types, different audiences, more marketplaces, and more options to activate your sponsorship in the most relevant possible way right where you need it. These could be potential customers to engage and win over from the competition we are talking about.
The championships touch several continents every year and give you the flexibility to communicate globally but to act locally with the possibility to run any PR, promotional or communication operation linked to the single race held in the interested Nation.
Any series and any race team is different and attracts different demographics thus giving you the opportunity to market your product or service entirely differently. F1 is different from Nascar and the WEC is different from Indycar just to name a few.
Inside any and each category the teams present different features and qualities as well, with different values, ethos and heritage. So there is a lot to take in when putting together a sponsorship program for your company.
One thing is clear by now: the variety and the flexibility is valuable, and programs in motorsports cannot afford not to focus on customer engagement in one way or another. With the right tools, you can ensure your sponsorship activation plan is balanced and aligned with your objectives from day one.
Knowing What You Are Taking On
Doing brand activation on your own, with no motorsport marketing agencies or sports marketing consultancy, is a risky thing to do. Choosing to go at it alone, initially, managing your own programs might seem cost-effective, but often the inefficiencies add up to missed opportunities and costly learning curves.
It must be remembered that each operation you run at the sport venue has to be devised taking into account that we play in a field with given rules. Timewise everything rotates around the event schedule and you have to stick to the rights you bought from the property. So there are some complication that have to be considered and it is important to have someone in you r team that knows the matter.
So what are the keys to success of a sponsorship programme? I would say , plan in advance and Activate the sponsorship. Stay strategic and keep a constant eye on what you are trying to achieve or solve through the program. Finally, measure the results, because sponsorship is only as good as the results that generates: from the generated visibility for the brand, to the guests’ satisfaction, from the PR actions to the impact on the bottom line.
Where to put the money
You should prioritize the activation budget over the property budget. Even if you have the most incredible property globally, you will not see the return you are looking for if you do not invest in activations. Spend $2 on activation for every $1 spent on a property to extract maximum value.
With those principles firmly in your mind, another step is breaking the myth that all motorsports marketing agencies or sponsorship programs require a multi-million-dollar budget. That is far from the reality of the opportunities available. Some of our most useful and successful programs are centered around targeted, highly efficient grassroots programs. So, no matter your budget, this platform is worth exploring as a way to excite your marketing and bolster your marketing strategy.
Overall, motorsport marketing agencies have had an essential effect on sports marketing. The industry continues to change and evolve, using sports marketing consultancy to level up their marketing strategies.
Now that you have learned some obstacles faced by motorsports marketing agencies and why it’s advisable to get a sports marketing consultancy services, visit our website today to give a big boost to your marketing strategy and take it to the next level.