22 replies to this topic

[FirstnameLastname]

After years of getting used to seeing less and less sponsor decals on the new liveries as they are unveiled, this year that trend seems to have come to a sudden halt and the cars are festooned with new stickers, and teams being sponsored by start-up brands and/or brands that have never used F1 as a platform before.

Is this due to the new direction of F1 under liberty, in terms of a greater ‘social media’ presence for the sport or is it because of a cheapening of f1 sponsor space? Title sponsorships have plummeted in value despite more exposure through the social media channels, and an increase in races... though tv viewership in some markets is in a less than ideal situation.

Are the teams just accepting now that the space on the car just doesn’t demand the same amount of cash as in f1’s heyday? Or is this indeed f1’s renewal and a rebirth of f1 as a go-to place for sponsors to spend their cash?

[pdac]

After years of getting used to seeing less and less sponsor decals on the new liveries as they are unveiled, this year that trend seems to have come to a sudden halt and the cars are festooned with new stickers, and teams being sponsored by start-up brands and/or brands that have never used F1 as a platform before.

Is this due to the new direction of F1 under liberty, in terms of a greater ‘social media’ presence for the sport or is it because of a cheapening of f1 sponsor space? Title sponsorships have plummeted in value despite more exposure through the social media channels, and an increase in races... though tv viewership in some markets is in a less than ideal situation.

Are the teams just accepting now that the space on the car just doesn’t demand the same amount of cash as in f1’s heyday? Or is this indeed f1’s renewal and a rebirth of f1 as a go-to place for sponsors to spend their cash?

 

Yes.

[YoungGun]

Rich Energy seems to have become a recognized brand in short order, so F1 must be doing something right.  And WTF is a Rokit? 

[loki]

Is this due to the new direction of F1 under liberty, in terms of a greater ‘social media’ presence for the sport or is it because of a cheapening of f1 sponsor space? Title sponsorships have plummeted in value despite more exposure through the social media channels, and an increase in races... though tv viewership in some markets is in a less than ideal situation.

 

That's been happening well before Liberty bought the rights to F1.  The costs are so out of control to maintain the previous amounts of sponsorship relative to the cost of running the team it's unsustainable.  For example if we say in the olden days that a title sponsor could make up 50% of a budget (just pulling a number out of my butt) since then the costs have spiraled and what once made financial sense no longer makes sense.  That 50% instead of $40 mil could be $200 mil or more.  That's only sustainable for the few.  When the same thing started happening in Nascar they switched to having multiple primary sponsors rotating on many of the cars.  That's more difficult in F1 as the teams are stuck with a single livery for the season and Nascar changes them at will.

[pdac]

Rich Energy seems to have become a recognized brand in short order, so F1 must be doing something right.  And WTF is a Rokit? 

 

Really? What is your sample on this. I am guessing, but I think you asked 1000 people in the street if they have heard of Rich Energy, I'm betting the number who have would not take up all of the fingers on one of your hands.

 

Edit:

I'll go further. I think once the season starts and people who are watching F1 (again, fewer than you might think) see those cars with Rich Energy plastered across them, ask again and the number will be higher. But I bet if you then asked "What is Rich Energy", those people would probably guess maybe a supplier of electricity and gas.

Edited by pdac, 15 February 2019 - 00:39.

[beachdrifter]

Rich Energy seems to have become a recognized brand in short order, so F1 must be doing something right. 

 

What is Rich Energy?

[tokengator82]

Motorsports in general is suffering and i think as the new generations of advertisering professionals enter into the market they are bringing different ideas on how to spend advert dollars. The internet/social media has provided the advert industry an immense amount of personal data on users that they will use for direct marketing techniques.

Edited by tokengator82, 15 February 2019 - 00:51.

[RacingGreen]

Old style sports sponsorship takes an expensive shotgun approach to marketing, modern direct internet marketing is a cheap sniper rifle. Without the mass coverage of free to air TV the shotgun makes little sense, and those desirable affluent younger demographics don't watch much TV these days anyway.

[efuloni]

Really? What is your sample on this. I am guessing, but I think you asked 1000 people in the street if they have heard of Rich Energy, I'm betting the number who have would not take up all of the fingers on one of your hands.

Edit:
I'll go further. I think once the season starts and people who are watching F1 (again, fewer than you might think) see those cars with Rich Energy plastered across them, ask again and the number will be higher. But I bet if you then asked "What is Rich Energy", those people would probably guess maybe a supplier of electricity and gas.

Well, I think Google Trends works as a trend. See how the searches for "rich energy" on google have increased. The country with most success was Denmark.
https://g.co/trends/mAJDV

[OSX]

WTF is a Rokit? 

ROKit is a low-rent mobile phone brand that has as of yet not sold a single phone.

[taran]

What is Rich Energy?

 

Don't you mean "Where is Rich Energy?"

 

 

[TomNokoe]

F1 is a niché sport

[Nonesuch]

Are the teams just accepting now that the space on the car just doesn’t demand the same amount of cash as in f1’s heyday?

 

Yes, and it took them long enough, too. The current decade has seen way too many empty F1 liveries.

 

If you lose a massive chunk of your audience in just 10 years time, don't be surprised when people no longer want to throw the same kind of money at you.

 

In those circumstances, going with the super-expensive new engine formula was just another case of F1 shooting itself in the foot.

[Risil]

What is Rich Energy?

 

This thread may be able to answer your questions (it won't).

[Baddoer]

As long as the cheque is in the post it can be whatever you like

[jcbc3]

Well, I think Google Trends works as a trend. See how the searches for "rich energy" on google have increased. The country with most success was Denmark.
https://g.co/trends/mAJDV

It wasn't me! Promise.

[Topsu]

There's been weird sponsor throughout history in F1. Altough I must say the blazing red "Husky Chocolate" on the McLaren rear wing is a bit nascar-ish.

[Kalmake]

After years of getting used to seeing less and less sponsor decals on the new liveries as they are unveiled, this year that trend seems to have come to a sudden halt and the cars are festooned with new stickers, and teams being sponsored by start-up brands and/or brands that have never used F1 as a platform before.

Is this due to the new direction of F1 under liberty, in terms of a greater ‘social media’ presence for the sport or is it because of a cheapening of f1 sponsor space? Title sponsorships have plummeted in value despite more exposure through the social media channels, and an increase in races... though tv viewership in some markets is in a less than ideal situation.

Are the teams just accepting now that the space on the car just doesn’t demand the same amount of cash as in f1’s heyday? Or is this indeed f1’s renewal and a rebirth of f1 as a go-to place for sponsors to spend their cash?

When was this heyday? What are we comparing to?

[Nonesuch]

When was this heyday? What are we comparing to?

 

F1 viewership probably peaked in the early '00s, a time when F1 attracted the attention of manufacturers like Ferrari, BMW, Mercedes, Renault, Honda, Ford, Toyota and Honda.

[pdac]

Old style sports sponsorship takes an expensive shotgun approach to marketing, modern direct internet marketing is a cheap sniper rifle. Without the mass coverage of free to air TV the shotgun makes little sense, and those desirable affluent younger demographics don't watch much TV these days anyway.

 

This is the key point here. Even discounting the benefits of internet marketing in this area, the modern approach is targeted marketing.

 

Also consider what you actually get. A logo stuck on a moving car is not necessarily that visible compared to one in a more static position. Also, coverage now focuses a lot more on on-board and super close-up shots that don't really show a lot of areas of the car very well to the TV viewers.

[paulstevens56]

As far as car sponsors are concerned yes, they days of big names being involved are gone.

 

Not sure exactly why, probably the lack of decent tv viewing figures at the expense of fleecing those that wish to pay for it.

 

But the amounts paid by the likes of Heineken must be considerable and they get huge coverage as a result. 

 

I would suggest most deals are mate of mates, people with an interest in f1 who own companies, have links to drivers or countries.  

[Afterburner]

This thread may be able to answer your questions (it won't).

It will tell you what Rich Energy isn’t, although I can guarantee the list of things it isn’t is a lot shorter than you may initially suspect.

[maximilian]

What is Rich Energy?

 

It's a posh version of dark energy, the little-understood force that appears to be tearing the universe apart.