High stakes for F1 in Vegas
Mark Alexander
Investment professional with a background in sports, infrastructure and media.
The stakes are high. Formula 1's Liberty Global backed expansion into the U.S. market, has a billion-dollar annual upside. Their self-promoted Vegas F1 race comes to the fore this weekend. Breaking the US is a big strategy and plan for F1. Let's take a look at a few of the tactics that are being deployed to make it happen.?
?? Credibility building in a core auto audience
Jay Leno is the petrolhead's petrolhead. His belting car collection, overt passion for and real credibility help drive F1's awareness to his large social media audience. He talked about how he loves how Formula One and how it has grown in the States. He credits the Netflix Drive to Survive series and comments on the inaugural Vegas race as a pinnacle of F1 presentation.?
??? Entertainment crossover introducing new fans
F1 took a leaf from the?National Basketball Association (NBA)'s playbook and got pop culture icon U2 on the team. Bono who is playing at the Sphere name-checked F1. He compared the band members to F1 drivers, “On the bass, the most elegant man on the circuit. Who is it, who is it? Lewis Hamilton is on bass! On guitar, the Monaco model himself, Charles Leclerc! I’m at home with country music and metal and I am the right person to bring peace between Formula One and NASCAR – on vocals, Daniel Ricciardo!”
Tomorrow?Las Vegas Grand Prix, along with presenting partner the @Las Vegas Convention and Visitors Authority (LVCVA),?will host a concert to green-light the event. Andra Day, Bishop Briggs, J Balvin, Journey, Keith Urban, Steve Aoki, Swedish House Mafia, Thirty Seconds to Mars, and Will.i.am are all set to perform along with the Vegas regulars Blue Man Group and Cirque Du Soleil
??Putting drivers and character to the fore
F1 drivers are still an underutilised asset. Hidden behind a helmet. Deep in the cockpit. Scant seconds on the podium just for the top three finishers. They have long been underexposed. F1 took flack for pushing the drivers to the fore, just 30 minutes before race time at Miami. The Controversial driver walk-ons will return at Vegas- despite being criticised in Miami earlier this year. Perhaps the execution could have been better but F1 is on the right track. Positioning the drivers as Superstars with clearly defined characters will help build fan identification in a sport where only Ferrari has genuinely got deep team brand loyalty.?
The NBA did it well with Shaq, LeBron, Tim Duncan or Alan Iverson or against defined geographical audiences like Tony Parker, Yao Ming, Gasol or Dirk Nowitzki helped to expand the game across Asia and Europe in the mid-2000s when I was there.?
?Price Anchoring is centre-stage
Lots of press around the premium prices of Vegas F1 tickets. The big news of someone paying a staggering five million dollar price tag for the terrace at Caesar's Palace is a lesson in anchoring. Price anchoring is a powerful tool used by luxury brands that deploy a highly visible high price point, which serves as an anchor for comparison against lower prices. By positioning the anchor at Vegas so high, F1 makes any lower prices seem more attractive and enticing. The $2,180 Grandstand seats look a bargain despite being very high - comparable to a full hospitality package at most Grands Prix. The highly publicised anchor price creates a perception of value and quality, making the lower price appear more appealing.
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1 年Not a great start for F1 in Las Vegas. IMO, not just F1, but sports in general. I love F1, but there is way too much too going on in Las Vegas as far as I'm concerned. 10pm and midnight start times. Really? For an auto race. Reality is Las Vegas is a small town that caters to moms and pops losing their hard earned money on the blackjack tables and slot machines. Hotel room rates plummeting to $18 per night. Empty hotels, restaurants and casinos. Now with the NFL, NBA Summer League, WNBA, NHL, Oakland A's coming soon, USA Basketball, high school tournaments, prize fights, UFC, etc. Why would F1 think they could break thru the noise. Except for a fortunate few, F1 is a European made for television sporting event. Like soccer (football). I was tired of Las Vegas 20 years ago. I can't imagine things now. But I’m sure the greed of the city the networks and the corporations all want more, more, more. I'm good.
Founder and Managing Director, The Fitting Room | Creating Hype, Demand and Legacy | Ad Age Leading Women in Marketing, Advertising and Media
1 年Mark Alexander Using U2's pop culture influence was a little unusual but a great way to break into the market?????