Robert Dempsey is a shining star of a Digital Marketing student. He is currently doing his internship with us from IADT. We love what he is bringing to the team, including fresh ideas. He also brings you some fresh blog content. Formula One (he refers to either F1 or Formula 1) is a HUGE passion of Robert’s. So when it came to an idea for blog content, it didn’t take him too long to come up with this idea! We hope you enjoy the read:
The figures:
The world of Formula 1 has changed drastically due to the influence of digital marketing. 10 years ago F1 was worth a staggering $9 billion. Today, fast forward 10 years its worth over $23 billion. The big question is how did get to where it is now?
In recent years, F1 has grown due to the news trends in digital marketing. In 2018, Formula 1 started to collaborate with Netflix to produce behind the scenes and exclusive content. As a result of this increased viewership, across every platform, this has enabled Liberty Media (who owns F1) to negotiate better deals for TV rights from the likes of Sky Sports.
The team valuations:
In the past 10 years, the valuation of Formula 1 has increased dramatically due to the rise of popularity in the sport. (Valuations all in US Dollars):
According to Robert, the top 4 teams:
2014:
- Ferrari – 1.35 billion
- McLaren – 810 million
- Red Bull – 640 million
- Mercedes – 560 million
Fast forward ten years to 2024:
- Ferrari – 4.78 Billion
- Mercedes – 3.94 Billion
- Red Bull – 3.5 Billion
- McLaren – 2.65 Billion
Examples of brands:
Many Brands enter the world of Formula 1 to reach their target audience. For example, Tag Heuer has been a big sponsor in the world of Formula 1 for many years now. Recently Tag Heuer has made an agreement with “Grand Prix de Monaco” to rename it to “TAG Heuer Grand Prix de Monaco”. This deal was agreed as it would maximise the exposure and reach for Tag Heuer. The name of the Grand Prix will be all over the circuit in branding. All of this branding will translate over to digital platforms and a hashtag will be used for the race #TAGHeuerMonacoGP.
The deal between TAG Heuer and the organisers at Monaco is estimated to be worth over $1 billion. TAG Heuer also is sponsoring two of the biggest names in Formula 1 right now – Max Verstappen and Lewis Hamilton. The drivers wearing a TAG Heuer watch when the TV cameras are on them both. Clever marketing!
Formula 1 are masters of engaging with their fans through digital platforms. Interacting with social media influencers is helping to expand its reach and increase its audience. On a race day, Formula 1 teams often have a social media influencer covering their Instagram stories and even do a live Q&A with fans.
Formula 1 recognises the importance of adapting its marketing approach to remain relevant in many age demographics. Before the Netflix series “Drive to Survive” Formula 1 was wasn’t offering a great return. That was then, this is now!
Since the start of the Drive to Survive the popularity of Formula 1 has skyrocketed driving the demand for tickets through the roof. The domino effect is increased sponsors in the sport.
To conclude, you can see that Robert could have easily brought this topic into a white paper on Formula 1. We loved the way he can see the impact of marketing in the world of F1. He is also pointing out the huge inflation in valuations, where much thanks needs to be given to marketing.