Formula 1 Sponsorship, in short
F1 Team Sponsorship: Formula 1 teams frequently establish partnerships with companies to enhance the visibility of their brand and products.
This form of sponsorship commonly entails the inclusion of branding on the race car, team apparel, and other team-related materials.
Additionally, it encompasses exclusive hospitality privileges at races and the ability to generate content for public relations and social media purposes.
The financial commitment for team sponsorship can vary significantly, with estimated costs ranging from $1 million to $50 million annually.
F1 Sponsorship: meet the world’s most prestigious brands
Formula 1 today is a sophisticated, globally recognized sport portraying a rich bouquet of values and propositions that quickly transfer onto the brands sponsoring the series. Speed, technology, passion, teamwork and innovation are at the heart of every big company’s mission and vision. That’s why, from the 60’s until today, F1 advertising has always proved to be super effective for those companies wishing to stand out from the competitions and to become familiar to millions of fans worldwide.
But there’s more to Formula 1 Sponsorship deals. Choosing a Formula1 sponsorship program also means joining an exclusive, highly prestigious club of other excellent Formula 1 sponsors: the world’s top brands and most influential companies. From Google to Ray Ban, from Jack Daniels to Aston Martin to Microsoft and Alfa Romeo the best of each industry is present in this category. Not only, as a matter of fact, Formula 1 is an extraordinary driver (no pun intended) of business when it comes to B2C; it is also an effective fly-wheel for all things B2B.
From on-car visibility to PR ops, from trackside billboards to VIP hospitalities and from exclusive communication rights to top-notch social media storytelling, Formula 1 marketing opportunities are copious and tailor-made on the partners’ needs, goals and ambitions.
An impressive TV audience
Formula 1 reaches 1.55 billion people in 188 territories and this number is increasing year by year. Globally, the average audience per Grand Prix in 2021 was 70.3mn. These figures make it one of the most watched sports in the world, and its popularity is only increasing as the sport becomes more and more accessible via digital channels.
The reach of Formula 1 is not limited to TV though, as the sport has a huge social media following. F1 has 49.1m total followers and has seen the highest engagement rate with social posts compared to other major sports in 2021.
With such a large and engaged audience, it’s no wonder that brands are clamouring to get involved in Formula 1 sponsorship.
- Average audience per GP: 87.4m.
- Strong results in a number of key markets with +43% year-on-year (YoY) in China, +28% YoY in the Netherlands, +10% YoY in the UK, + 71% YoY in Russia and +5% YoY in Germany. The USA also saw a +1% increase even with no local time zone events and no US Grand Prix which would have benefited from wider ABC audience exposure.
- Unique viewers: 433m (-8% YoY), fewer races as well as the reasons mentioned above.
- Cumulative TV audience: 1.5bn compared to 1.9bn in 2019.
- Most-watched GP: Hungarian Grand Prix with 103.7m for the Hungarian race, 5m for Portugal, 98.1m for the Bahrain outer track and 89.1m for Turkey.
Formula 1 sponsorship: joining a strong digital platform
F1 is the second fastest growing major sports league on the planet across the four major social media platforms.
Followers (across Facebook, Twitter, Instagram, YouTube, Tiktok, Snapchat, Twitch and Chinese social platforms): up 36% to 35m, video views up 47% to 4.9bn and total engagement up 99% to 810m.
Total video views across F1.com, the F1 App and social media: +46% vs 2019 to 4.9bn, unique users on F1.com and the F1 app were up +26% to 70.5m and page views were up +13% to 1.3bn.
Very strong digital growth in China with followers on Chinese platforms (Weibo, WeChat, Toutiao and Douyin) up +133% to 1.9m.
14m podcast listens, Beyond The Grid the most-listened-to motorsport podcast in the USA, UK, Australia and Canada, amongst other territories.
Formula 1 Esport
- The F1 Esports Series 2020: total of 11.4m live stream views across all digital platforms, 98% increase on 2019.
- The Grand Finale reached an impressive 1.7m social media interactions, an all-time record for any F1 Esports Series event
- The series recorded 23.8m video views, up 29% on 2019
To Wrap it up
Nowadays Formula 1 sponsorship is not just an agreement but a strategic partnership that pays dividends, create success and driving sales. By aligning with the popularity of F1, brands gain access to cutting-edge technology and a global platform to showcase their service and products.
This partnership goes beyond mere exposure; it’s an active exchange that fosters relationships and connects companies to an audience of millions interested in innovation and speed.
The course of F1 sponsorship has previously set the stage for tomorrow’s business objectives, delivering unparalleled access to competitive markets and developing research opportunities that justify the investment.
Office industries and car manufacturers alike find value in this focused platform, leveraging the popularity of Formula 1 cars to develop brand loyalty and increase revenue. Through this dynamic exchange, businesses not only showcase their commitment to excellence and innovation but also engage in a dialogue with customers and competitors alike.
The history of F1 sponsorships and its partnership model serves as an exemplary example of how sports marketing can develop and deliver substantial returns, driving the rest of the industry to reconsider how collaboration and technology can fuel growth and success in the present days.
The Cost of F1 sponsorship
Discovering the myriad sponsorship avenues in Formula 1 unveils an array of possibilities, albeit with varying investment requirements.
Formula 1 Team Sponsorship: Formula 1 teams frequently collaborate with companies to amplify brand visibility and product exposure. This sponsorship category typically encompasses prominent branding on the racing car, team apparel, and associated paraphernalia. Moreover, it includes premium hospitality during races and opportunities for PR and social media content creation. While the cost of team sponsorship varies considerably, estimates range between $1 million to $50 million annually.
Formula 1 Team Supplier: This stands as another popular sponsorship avenue within Formula 1. Such partnerships involve companies aligning with teams to offer technological advancements or engineering prowess. Costs for technology partnerships span a wide spectrum, typically ranging from $1 million to $10 million per annum.
Formula 1 Official Partner: Companies can elevate their presence within Formula 1 by becoming official Championship partners, unlocking extensive branding prospects. These encompass trackside advertising, activation privileges, and utilization rights for the Formula 1 logo, alongside premium hospitality benefits. Estimated costs for official partnership status hover between $15 million to $50 million annually.
Formula 1 Race Sponsorship: For companies seeking a targeted approach, sponsoring a specific Formula 1 race presents a compelling option. This sponsorship avenue entails trackside advertising, branding opportunities, and engagement initiatives with fans. Costs for race sponsorship vary, with estimates ranging from $2 million to $5 million per race.