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GP Week : Issue 184
F1 >>> BUsInEss The British Grand Prix is one of the most high profile events on the F1 calendar, so is a big attraction for sponsors. The title partner of the British GP traditionally holds a prestigious position that cements its role as one of the foremost brands in F1. For the last seven seasons, the title sponsor at Silverstone has been Spanish bank Santander which has cleverly used its association to rebrand its business in the UK. The sponsorship started in 2007 with branding for British bank Abbey, which Santander had recently acquired. It spent an estimated $12m on purchasing trackside advertising slots in its first season and occupied far more hoardings than any other brand at any recent race. Gradually over the course of the sponsorship, the Abbey signage was replaced with Santander signage, thus cementing in the public’s mind the bank’s transition from Abbey to Santander. Nowadays Santander has a more conventional race title sponsorship package, worth around $5m, but it is still an important marketing tool for the bank. At last year’s British GP, Santander attracted worldwide television exposure which would have cost $36.8m if it had bought it as conventional TV advertising. A total of $26.8m of the exposure came from its title sponsorship with the remainder generated by its major partnership with Ferrari as Fernando Alonso led for most of the race, eventually coming home in second. It represented a return of 7.9 times on its spending on the two partnerships. The prominence of Santander’s title sponsorship branding meant that, despite Mark Webber taking victory, Red Bull was only the second best exposed sponsor in Britain with coverage worth $16.6m. The top five was rounded out by Pirelli ($11.3m), Vodafone ($7.6m) and Ferrari ($6.4m). Santander was also the best- exposed title sponsor in the local print press in the two weeks surrounding the race. A total of 25 articles mentioned its F1 involvement. Its Silverstone boost meant that Santander closed to within a fraction of a percent of Red Bull in the ranking of exposure in the 2012 season so far. With major coverage on two teams’ cars (Red Bull Racing and Toro Rosso) Red Bull is usually by far the best exposed brand of any F1 season. However, following the British GP, Red Bull stood on a total of $162.6m for the nine races so far in 2012 and Santander on $159.0m. In total the 2012 British GP generated exposure worth $122m for the brands involved in the sport, emphasising its position as one of the most important races on the calendar for sponsors. FIVe BesT-eXPOseD BRANDs – BRITIsH GP 2012 Brand Team(s) / Race est advertising value equivalent of exposure 1 Santander Ferrari, British GP $36,841,088 2 Red Bull Red Bull Racing, $16,614,909 3 Pirelli All teams, $11,346,024 British GP 4 Vodafone McLaren $7,638,480 5 Ferrari Ferrari $6,365,070 Best-exposed team Ferrari $19,397,551 TeAM sPeNDING PeR POINT RATIO: 2012 BRITIsH GP Team Points estimated spending per point (us$) 1 Red Bull 40 $392,000 2 Lotus 18 $460,556 3 Ferrari 30 $654,000 DRIVeR VALue FOR MONeY: 2012 CANADIAN GP Driver Points estimated cost per point (us$) 1 Romain Grosjean 8 $1,563 2 Bruno Senna 2 $6,250 3 Mark Webber 25 $12,000 As F1 prepares to head to Silverstone, Caroline Reid and Christian Sylt analyse how sponsor’s returns were calculated, using last year’s British Grand Prix The business of F1 brands 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 British 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 11 GPWEEK.com // 11 GPWEEK.com // PARTNERS: