F1 sponsorship analysis 2022: the rise of the machines?
High-growth tech sponsorships show that revenue is no longer the key indicator of affordability?
The portfolio of brands sponsoring F1 and the teams look more like an investment portfolio than the tobacco brands of decades past. Emerging tech brands, established tech brands and a wave of crypto-related brands take prominence across the tracks and cars. Throw in some safe bet brands that will guarantee your return and you’ve got a balanced portfolio.
The new era of sponsorship?
The categories of brands sponsoring F1 are reflective of booming industries. Covid caused digital acceleration. That has benefited many of these brands, such as Zoom, Citrix and TeamViewer who are more powerful and can take a seat at this prestigious table. The latter’s rise to a seat at the sponsorship top table is remarkable given that the brand’s deals with Manchester United and Mercedes F1 and formula-e teams committed over ￡250m over five years, despite at the time having only posted revenues of ￡400m. TeamViewer’s size would not have registered on traditional searches and their high profile partnerships indicate that a new approach and new metrics are required when identifying potential brands.
Technology and Formula 1 are natural bedfellows. Tech powers the sport and many partnerships are technical supply or value in kind. Amazon Web Services (F1), Google Cloud (McLaren) and Oracle’s RedBull deal show that the tech can power the car and the partnership delivers for the brand. These true partnerships lower costs, provide technology and revenue for the team and brand assets for the partner. The demonstration of the technology in action adds authenticity by showing that it delivers elite performance.
What does this say about the sport?
That F1 is reflective of the changes to our global economy. It shows the growth of technology and software in our personal and working lives.
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What does this say about the business behind it?
That the F1 family has been drawn towards brands attracting investment for their growth, not just established names. This means that F1’s family of partners will continue to both be reflective of economic changes and a forebear of which will be strong in the future. Much like any good investment portfolio.
What does this all mean for rights holders??
It shows that good research and some creative thinking are way more important than old networks when it comes to high growth tech. It underlines the importance of research in identifying the targets which might have the right objectives which make partnering with you make sense plus the funds to make it happen; and it highlights the need to develop a creative pitch to open the door and get that first meeting.
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