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By Emanuele Venturoli| Posted January 21, 2025 | In Formula 1, Formula1
The incredible effectiveness of sponsorship in Formula 1
Formula 1 (F1) is not only a top-level motor racing competition, but also represents an extraordinarily effective global marketing platform. The sponsorships in F1 offer companies a unique opportunity to increase brand visibility, engage diverse audiences and achieve a significant return on investment. In this article, we will explore the evolution of sponsorship in F1, analyze current trends, and discuss the concrete benefits that companies can gain by investing in the sport.
The evolution of sponsorship in Formula 1
Sponsorships in Formula 1 have undergone a significant transformation over the decades. In the 1960s, cars were painted in national colors and sponsorships were limited to small logos on the vehicles. However, in 1968, the situation changed dramatically when Team Lotus signed an agreement with Imperial Tobacco, introducing a fully branded livery for the first time. This marked the beginning of a new era in which sponsorships became a key component of F1 teams’ funding and identity.. In the following years, tobacco-related sponsorships dominated the scene until a ban was imposed in 2006. This change forced teams to diversify their sponsorship sources, opening the door to sectors such as automotive, energy drinks and, more recently, technology and software.
Current trends in Formula 1 sponsorships
In recent years, the sponsorship landscape in F1 has seen the emergence of new sponsor categories and a significant increase in investment. According to an analysis by Caytoo, the average value of sponsorship deals in recent years is about $37 million per year, with peaks such as the $100 million deal between Oracle and Red Bull Racing, the $90 million deal between HP and Ferrari , or the maxi deal between the Formula 1 Championship and the LVMH group. Another notable trend is theincrease in sponsorships from technology and software companies. This reflects the natural alignment between F1’s emphasis on technology and innovation and the aspirations of these companies to showcase their capabilities to a wide audience.
Benefits of sponsorship in Formula 1
Sponsorships in F1 offer a number of tangible benefits for companies:
- Increased brand visibility: With a global fan base estimated at 750 million people, F1 offers unparalleled exposure.
- Engagement of a diverse audience: The demographics of F1 fans are changing, with a significant increase in interest among women and young people. This offers companies the opportunity to reach previously untapped market segments.
- Association with values of excellence and innovation: F1 is synonymous with high performance, precision and advanced technology. Companies that sponsor the sport can benefit from a positive transfer of these values to their brand.
- Brand activation opportunities: Sponsorships in F1 are not limited to simply displaying the logo. Companies can create integrated marketing campaigns, promotional events and engaging digital content to interact with fans in innovative ways.
Case study: Oracle and Red Bull Racing
A prime example of the effectiveness of sponsorship in F1 is the partnership between Oracle and Red Bull Racing. The agreement, worth $100 million a year, is not limited to simply displaying the Oracle logo on the cars. It includes the creation of a digital loyalty program called“The Paddock,” powered by Oracle Cloud Customer Experience (CX) technology. This program allows fans to interact with the team in new and engaging ways, demonstrating how a sponsorship can be used to add value for both the company and consumers.
A powerful 360-degree marketing tool
Investing in a Formula 1 sponsorship is a powerful marketing strategy for companies seeking to expand their reach and strengthen their brand image. However, it is critical that companies carefully evaluate their options, considering factors such as alignment with the team’s values, target audience and brand activation opportunities. Working with specialized agencies can help maximize the return on investment, ensuring that sponsorship is put to good use through integrated and targeted marketing strategies. In conclusion, sponsorship in Formula 1 offers a unique mix of global visibility, association with values of excellence and innovation, and opportunities for audience engagement. For companies willing to invest strategically, the benefits can be significant and lasting.
Emanuele Venturoli
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 MoreWhy choose RTR Sports Marketing
In 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.
Save time and money
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.
The right information, the right choice
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 beating heart
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.
Objective measurements for a certain return
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.
Sit back, relax, we’ll take care of it
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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