1 - Depends how you want to integrate the company brand. Could be like many McLaren sponsors in that there is a supply deal in place and the value of such a deal doesn't warrant a sticker or patch on the car and driver. What the supply company would get is the ability to market a direct association of their product/service with a high technology, high popularty sport. Examples could be IT equipment, brakes, dampers, wheels, computers, tools, clothing etc. "McLaren uses our products, McLaren is a great winning team, so shouldn't you consider us as well?"
This moves up into what we see, stickers on a car, drivers kit, etc. Notice ads in magazines featuring the car/driver. Stickers only do so much, you have to leverage the popularity of link you have made to F1. You invite guests, clients etc. to races, you advertise your link, you have team personel show up for corporate events etc, you might as well find ways to unite your customers with the sport.. I wouldn't be suprised if many sponsors spend almost as much on advertising their association as they do handing over cash to the teams.
2 I would *think* teams approaching sponsors is how it goes. Only the top notch teams would have companies knocking on their doors.
3 I *think* the cheque you are willing to sign determines location of your branding on the car, and that location determines the size of your sticker.
4 An association with the sport, a paticular team, a driver. If you are a high tech company it makes sense to associate with a high tech sport. A good portion is business to business. In NASCAR Shell sponsors Penskes #22 car because Roger's fleet of companies uses lots of motor oil. Sponsor the race team, get the account. Shell, Mobil1 etc. get a relevant R&D excercise that improves their products and brand value.
The beauty of live sport is very little else draws the complete attention of the viewer. People want to emulate.
5 An American company has a relevant reason to use Formula 1 as a tool to market to the world. Gene Haas is something of an example. He sells machine tools. If his machine tools can build F1 cars they must be pretty good? Put his company sticker on the side of a Ferrari F1 car, install some HAAS CNC machines in the Ferrari factory and that gives his business some clout when he walks into the boardrooms of manufactures.
One thing to consider is I don't think European viewers make up even half the TV numbers anymore. F1 is a GLOBAL marketing tool.
6 That depends and varies from sponsor to sponsor. I would think they would want a minimum 6:1 return. Depends what you are in it for.
Aren't marketing expenses a tax write off in most countries???
You are going to look at it as what would a $10 million F1 sponsorship deal get me, how will that effect my brands image, and would spending that $10mln on say TV ads get me just as far. Live sport is such a money making machine though.
Hope that helps.
Edited by Nathan, 09 July 2014 - 17:40.