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GP Week : Issue 180
F1 >>> BUSINESS Last year’s Bahrain Grand Prix was the first time in 2012 that Red Bull Racing showed the dominant form that had driven it to both titles in 2010 and 2011. After coming away from the first three races of the season with a single podium, Bahrain was a chance to turn things around and Sebastian Vettel took a commanding victory from the Lotuses of Kimi Räikkönen and Romain Grosjean. This was great publicity for Red Bull as its logos on the cars were flashed around the world on television broadcasts. Formula Money calculates that race coverage alone generated exposure for the energy drink brand that would have been worth US$25.5m if it had been purchased as television advertising. A total of $22.7m of this came from logos on the Red Bull Racing cars, with the remainder coming from Toro Rosso, making Red Bull the best-exposed brand of the race. The strong performance meant that 27.8% of the total brand exposure during the race was achieved by brands which appeared on the Red Bull Racing cars, a total of $28.2m of exposure putting it well ahead of Lotus on $18.3m. It was therefore good news for other Red Bull Racing partners including Infiniti, which gained exposure worth $2.5m, and Total, which drew exposure worth $5.0m from logos on all of the top four finishers. Its double podium made Lotus the best value for money team of the race, spending an estimated $251,000 per point it scored compared to Red Bull Racing’s $424,000. Grosjean was also the best value driver in Bahrain. He cost the team just an estimated $833 in salary per point he scored. This year’s Bahrain Grand Prix will be an opportunity for Red Bull Racing and Lotus to shine again and from a financial perspective is particularly important for Lotus, which still has some empty space on its livery. Another strong race will generate further top level exposure for its brands and make it more attractive to new sponsors. It’s also likely to be a good event for race title sponsor Gulf Air. The airline drew coverage worth $22.3m from last year’s event, making it the second best exposed brand of the race. Gulf Air was also well-represented in the local print media with 110 articles referencing its F1 involvement in the two weeks surrounding the race. This further emphasises the benefits of F1 for sponsors and it should come as no surprise that one of Gulf Air’s main rivals, Emirates, is now a series partner. METHODOLOGY Brand exposure By using the lap-by-lap performance of each team along with the extent of sponsors’ exposure during a given race, Formula Money calculates the advertising value equivalent of team sponsorships factoring in the effects of race performance on brand visibility. The focus of the data is not time on-screen but is instead the global media value of each sponsor’s exposure. The data covers all brands featured on the 2012 F1 cars, including sponsors, team owners and engine manufacturers. The data also includes the exposure achieved by the trackside advertisers at each race. The data is race-performance based so exposure is calculated for the duration of the race only and excludes branding of on-screen graphics. Team spending per point This data shows the ratio of the number of points scored by each team in the 2012 Bahrain Grand Prix to the level of resources that team had available to it for the race. Team resources estimates are based on Formula Money’s estimated 2012 team total resources. Driver value for money The drivers’ cost per point is calculated by dividing a driver’s average pay for the race by the number of points he scores there. Driver cost estimates are based on Formula Money’s estimated 2012 team driver salaries. Data provided by the Formula Money ROI Review: www.formulamoney.com FIVE BEST-EXPOSED BRANDS – BAHRAIN 2012 Brand Team(s) / Race Est advertising value equivalent of exposure 1 Red Bull Red Bull Racing, $25,490,620 Toro Rosso 2 Gulf Air Bahrain GP $22,301,128 3 Lotus Lotus $11,423,989 4 Vodafone McLaren $9,213,022 5 Santander Ferrari $6,659,252 Best-exposed team Red Bull Racing $28,229,308 TEAM SPENDING PER POINT RATIO – BAHRAIN 2012 Team Points Estimated spending per point (US$) 1 Lotus 33 $251,000 2 Red Bull 37 $424,000 3 Force India 8 $755,000 DRIVER VALUE FOR MONEY: BAHRAIN 2012 Driver Points Estimated cost per point (US$) 1 Romain Grosjean 15 $833 2 Paul di Resta 8 $1,563 3 Kimi Räikkönen 18 $13,889 As F1 teams head back towards Europe, with this week’s Bahrain GP, Caroline Reid and Christian Sylt look at last year’s Bahrain race as an example of how sponsor’s returns are calculated The business of branding 1 GPWEEK.com // 1 GPWEEK.com // PARTNERS: