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How B2B sponsorship works between FOM and consumer goods?


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#1 Viryfan

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Posted 17 March 2019 - 19:56

This might be a useless topic but anyway.

 

Why DHL or Johnnie Walker  are sponsoring F1 while the broad audience is decreasing?

 

How much ROI do they really get in order to carry your ad time is reducing?

 

What i noted when i travelled to GP is one thing:

 

- All beer stand are Heineken

- All spirits stands are Johnnie Walker

- All tickets are shipped exclusively through DHL

- All tobacco stands are Philip Morris International

 

 

My take is that what they loose in tv exposure, they gain on hard cash through hardcore fan spendings.

 

Interestingly Mclaren press release about Coca Cola partnership is telling

 

 

 

The partnership will pair the McLaren Formula 1 team with multiple brands across different beverage categories. Throughout the season, Coca-Cola will develop consumer events, activities at the points of sale, online promotions, and communication.

 

I would not be surprised if all non alchoolic beverage stand are branded with Coke brands in F1 track this year.

 

Is this the way F1 is still able to sustain through pay TV?

 

Is the money coming from the fans spent at track keeping the whole system alive?

 

Is it the future?

 

How much time they can sustain that?



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#2 Afterburner

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Posted 17 March 2019 - 20:05

Apparently the business-to-business relationships involved in racing sponsorships are actually worth more to some companies than their direct impact with fans. This was the logic behind the newfound relationship between Indycar and NTT Data: the potential for growing their business by forming relationships with other businesses was appealing enough for them to pursue the title sponsorship. Many businesses are involved in F1, so if you're Coca-Cola, maybe you want to work out something that involves you getting product placement by forming partnerships with other businesses that you meet at the track.

DHL's activities in F1 for pursuing business-to-business relationships makes the most sense, as many businesses rely on shipping. Using F1 sponsorship and presence at the track on weekends seems to be an effective way to get the word out to new potential business partners. I base this hypothesis on the assumption that it must be working if it's a model pursued by more than one racing series. :p

#3 loki

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Posted 17 March 2019 - 20:07

TV audience numbers haven't been as important than they used to be for almost two decades now.  They use B2B to promote the brands at the track with VIP events including local suppliers, distributors, contest winners, etc.  These are big events with over 100k in attendance in many cases which also gives them plenty of opportunity reach general consumers.  If you couple that with a coherent social media program the reach to your targeted audience will offer a better value for the money spent.  Branding a promotion these days is much more complex than how many people watch on TV.



#4 Viryfan

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Posted 11 April 2019 - 18:02

 Philip Morris International basically confirms that they are still sponsors of the FOM

 

https://pbs.twimg.co...YLzWwAA6wgS.jpg

 

It basically officialize the sponsorship of F1 in exchange of a monopoly in tobacco stands at Races.


Edited by Viryfan, 11 April 2019 - 18:07.


#5 muramasa

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Posted 11 April 2019 - 18:28

 

PM's pavillion (iqos nowadays) always sits at the prime spot of grand prix square (large space for events and booths after main entrance and at the back of grand stand) of Suzuka in Japanese GP for years and years.

 

 

 

 

btw tobacco, Red Bull or whatever energy drinks, coca cola or whatever those sorts of soft drinks, beers, spirits, Honda, Ferrari, ray ban, hublot, Renault, AMG, hilfiger.....F1 is full of products I never bought or seldom buy by myself or dont even think about buying :lol:

petrol, DHL and those IT related like lenovo hp epson microsoft yes tho  :p


Edited by muramasa, 11 April 2019 - 18:31.


#6 pdac

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Posted 11 April 2019 - 19:31

 

PM's pavillion (iqos nowadays) always sits at the prime spot of grand prix square (large space for events and booths after main entrance and at the back of grand stand) of Suzuka in Japanese GP for years and years.

 

 

 

 

btw tobacco, Red Bull or whatever energy drinks, coca cola or whatever those sorts of soft drinks, beers, spirits, Honda, Ferrari, ray ban, hublot, Renault, AMG, hilfiger.....F1 is full of products I never bought or seldom buy by myself or dont even think about buying :lol:

petrol, DHL and those IT related like lenovo hp epson microsoft yes tho  :p

 

Just looking at your list with respect to my purchasing habits:

 

Tobacco - no

Red Bull - no

Energy drinks - no

Coca Cola - no

Beer - rarely buy away from the pub

Spirits - no

Honda - no

Ferrari - no  :)

Ray Ban - no

Hublot - no

Petrol - well, you got me there

DHL - no

Lenovo - no

Epson - no

Microsoft - only from eBay

 

So, F1 is wasted on me.



#7 Clatter

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Posted 11 April 2019 - 19:48

Just looking at your list with respect to my purchasing habits:

 

Tobacco - no

Red Bull - no

Energy drinks - no

Coca Cola - no

Beer - rarely buy away from the pub

Spirits - no

Honda - no

Ferrari - no  :)

Ray Ban - no

Hublot - no

Petrol - well, you got me there

DHL - no

Lenovo - no

Epson - no

Microsoft - only from eBay

 

So, F1 is wasted on me.

 


Much the same for me. When I used to attend the GP's I never spent anything on site. Took all food and drink with me, had no intention of spending on the overpriced crap served up.

#8 azza200

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Posted 11 April 2019 - 20:16

Yet in the 90's you had Foster's billboard's Mobil 1, Shell, Bridgestone,Goodyear sometimes all in one corner don't get that anymore. Now all corners etc are advertised by either Rolex, DHL or Pirelli and the way commentars say the brand name as the car goes thru the corner is annoying and brand marketing 

 

Heard that in the V8 Supercar's day's "lets go to the KFC action replay"  :rotfl:  "Vettel going thru Rolex La Source" 


Edited by azza200, 11 April 2019 - 20:17.


#9 Bleu

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Posted 12 April 2019 - 07:36

The 90s gave actually more idea where the race was held just by looking at all advertising.



#10 azza200

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Posted 12 April 2019 - 09:38

Me too, the fact now F1 is dominated by the same brands on every track & they all look the same. if you was to compare a shot of a car with say DHL in the background on 2 different tracks it prob is tough to identify the track



#11 Sterzo

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Posted 12 April 2019 - 10:49

The further back you go in history, the more distinctive the trackside advertising. Italy: "Supercortemaggiore." France: "Champagne Ici." England: "Pratts At All Events



#12 Clatter

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Posted 12 April 2019 - 10:54

I assume the more varied trackside ads was when the circuit owners still got the revenue. When did Bernie start taking the advertising away from the circuits?

#13 azza200

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Posted 12 April 2019 - 23:13

sometime in the 00's i think



#14 Viryfan

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Posted 13 April 2019 - 18:32

I assume the more varied trackside ads was when the circuit owners still got the revenue. When did Bernie start taking the advertising away from the circuits?

 

from 1997 onwards.

 

best example is monza

 

Sans-titre-313.jpg

005-1997-Italian-GP-Coulthard.jpg

 

 

 

Apparently Coca Cola and Bernie had a huge rift in 1997.


Edited by Viryfan, 13 April 2019 - 18:36.