This piece was originally going to be about why Formula 1 should seriously examine having an oval race.
Yes, yes I can hear you saying it now. Oval racing? Who wants to see that except some beer-swilling, RV-driving, moonshine-making rednecks? Sort of.
You see oval racing is something that rarely gets talked about among the F1 fraternity but seems to be mentioned online by quite a few fans either positively or negatively.
But in light of the Grand Prix Drivers Association survey findings that the sport does not connect to younger audiences nor to women, it now seems paramount to attract some new fans quickly.
Staging more races in the USA – an oval race and another US race, probably an iconic one like Long Beach – would help to build US audiences and get mums, dads and kids into F1. The survey also shows that it’s vital that F1 broadens its marketing from the wealthy and exclusive to the aspirational middle class and average Joe, and then make it easy for this audience to connect via their preferred media.
Why? Because it is absolutely vital to F1 that it starts re-attracting a certain type of sponsor: Global Companies with big marketing spends that have broad global customers. Think big tobacco and remember the heady days of F1. Since banning tobacco sponsorship and car manufacturers evacuating F1 has been short on cash.
Now think McLaren and their lack of title sponsor and the current 20 car grid compared with 30 cars lining up for pre-qualifying in the 80’s and early 90’s. Only serious sponsorship would provide a team with the resources it needs to compete at the top. Now think of Red Bull Racing.
So the GPDA survey results are a massive negative for F1 in attracting global companies as sponsors. These companies target the 14 -21 year old target market as these they want to capture their customers early and hold on to them for the remainder of their life (just like F1 does).
It also clearly answers some recent questions that were posed regarding Red Bull’s sponsorship of F1 and Coca-Cola and Pepsico’s distinct absence.
Why does Dietrich Mateschitz go so heavy into F1 with 2 teams, 4 drivers and a home race while his direct competitors stay out?
Red Bull likes motorsport and extreme sports because their target is males aged under 40 and they love these sports. This is completely vindicated by the GPDA survey results that show that F1 attracts a strong global audience of 22 – 45 year old men.
Just like Red Bull, Pepsico and Coca-Cola are estimated to spend up to 30% of revenue on marketing.
So why does Coca-Cola and Pepsico (and McDonalds, beer brands et al) stay away?
1.There is only 1 US F1 race and no oval race therefore little direct US exposure
2.There are other forms of highly watched and lucrative motorsports in the US eg Nascar
3.They prefer to spend BIG on global sports when they have a broad age and gender audience
eg FIFA World Cup, The Olympics
4.They don’t market to high rollers that can afford $25,000 watches. They market to mums, dads and kids through sports like football codes and baseball etc.
5.These other sports have embraced an online presence with free-ish content. F1 is only just recognising this as vital to being relevant to the younger set.
Oval races and more US races would in part help cure this problem by validating the sport in the world’s biggest consumer market and hence ‘globalising the sport’ for sponsors. Just watch a Nascar or Indy race crowd to see kids, women & men living average lifestyles, perfect for the big spenders in sports marketing.
But here’s the catch for current fans: Does it really matter if a few less Britains or Europeans watch one race compared to many more Americans tuning in? Probably not as market growth is the name of the game and that’s what helped Bernie get all those races going from Australia to Argentina back in the tobacco era.
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Opinion by Matt Bolzon
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