Wealth & Finance July 2017

Wealth & Finance International 26 Formula 1 - Change and Opportunity in Motorsport’s Premier Series 1 remains far and away the most popular motorsport series in the world. For a sport that generates almost $3bn in reve- nue annually, the ‘race local, reach global’ approach that F1 embodies is a model that appeals to organisations seeking access to diverse markets. Twenty-one races take place in 21 countries across five continents, over the course of nine months. 80m fans from across the globe tune in for each race, with a cumulative global audience of over 1.8bn, across 200 territories via 110 broadcast- ers. Digital is also growing with 158m video views, 41m Facebook likes and 25m Twitter followers. In terms of scale, diversity of audience and assets, not to mention longevity, F1 is almost unrivalled in sport when allowing affiliated com- panies, the chance to build a truly global programme that will achieve business objectives. What is the opportunity? New Chairman and CEO of F1, Chase Carey commented upon comple- tion of the takeover that F1 is a sport with ‘huge potential’ and ‘multiple untapped opportunities’. His Formula One Group (FOG) as they are now known, has wasted little time in realising that potential. The F1 calendar already takes place in or near some of the world’s most commercial and cosmopolitan hubs including: Melbourne, Shanghai, Barcelona, Monaco, London, Milan, Singapore, Austin, Mexico City, Sao Paulo and Abu Dhabi. With discussions, already underway with a view to adding another destination city such as Miami, New York, Las Vegas or perhaps another Asian location to the roster, the business opportuni- ties within the sport will only grow exponentially. Levels of brand engagement are also experiencing a significant lift as the rules are relaxed around what brands can and can’t leverage within the sport. Recent reports point to three to four times more fan engage- ment across all touchpoints against this time last season. Therein lies the greatest opportunity for organisations looking to reach a wealthy, commercially active and globally diverse audience. In one of the largest pieces of sports fan research ever commissioned, the motorsport team at CSM Sport & Entertainment, has identified six distinct fan segments within F1. Our research, which surveyed 18,000 people aged 16+ from 18 countries across the globe, identified the ‘fanatics’. These are a segment of super fans, who despite representing only 3% of the total fan base, wield disproportionate influence in terms of the time and money they invest in following the sport. Compared to the average F1 fan, ‘fanatics’ are more likely to be male (65%) and young (70% are under 45), plus 79% are in ABC1 occupa- tions, the highest for any group of F1 fans. ‘Fanatics’ are present in all the countries surveyed, but there are relatively more of them in Asia, possibly reflecting rapid economic growth and increasing numbers of the super-wealthy in the region. The key for sponsors, is that organisations involved in F1 achieve strong brand penetration and 93% of ‘fanatics’ state they have become aware of new brands through their sponsorship of F1, reflecting the potential size of the prize. Our research also found that 90% of ‘fanatics’ think that companies that sponsor F1 improve their image, while 84% say that they are more likely to consider a brand if they are a sponsor of F1. Nearly three quarters of ‘fanatics’ say that they have consciously made purchases from brands that sponsor F1, because of their involvement in the sport. Our expertise CSM Motorsport has brought many global organisations into F1, through a team sponsorship, a title sponsorship or a global FOG sponsorship, each time with a plan in place to leverage a comprehensive and unique suite of assets to achieve very different business objectives. Different objectives require a different approach, and we have devel- oped programmes that focus on a specific consumer group (see UBS example below), that have a business-to-business (B2B) core such as UPS and some, like Johnnie Walker, that are about awareness and engagement at scale. For the first time in over 40 years, there is a new hand on the tiller of Formula 1 (F1) - motorsport’s premier racing series. For many, change means uncertainty, but for others it signals opportunity. If you fall into the latter group, the early signs are extremely positive. F 1706WF11