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GP Week : Issue 186
F1 >>> BUsInEss Its logos didn’t appear on any of the cars, but oil company eni was by far the best exposed brand at the Hungarian Grand Prix last year. Eni is one of a growing number of sponsors which are reaping the rewards of sponsoring a race or the series itself. Traditionally it was believed that the best way to maximise an F1 sponsorship was to partner a team as this gives access to drivers to use in promotional campaigns and theoretically creates an emotional bond with fans of the outfit. However, many big names are now choosing to take a different route into F1. While some teams have complained that the sponsorship market is tough in the current climate, several big brands have taken up series sponsorships, most recently Emirates and Rolex who are spending an estimated $65m annually between them. The rationale behind this is simple. The fortunes of teams ebb and flow from race to race and a lot can change between the lights going out and the chequered flag. In contrast, a series or race sponsorship package offers guaranteed exposure for the entire length of the race through trackside advertising hoardings, regardless of what is happening on track. The returns can be significant. At the 2012 Hungarian Grand Prix, Eni generated exposure worth $25.6m on an estimated spend of just $4m. In contrast, Vodafone, the title sponsor of McLaren whose driver Lewis Hamilton was victorious, generated exposure which would have been worth $16.0m if it has been bought as television advertising slots. With two cars on the podium, Lotus also fared well, but couldn’t match the coverage of Eni. The Lotus brand was the third best exposed of the race with exposure worth $10.9m. It was followed by another brand which had only trackside advertising in Hungary, Allianz, with exposure worth $7.7m. Brand exposure wasn’t the only area in which Lotus performed well. Its second and third places made it the best value for money team in Hungary, spending just an estimated $251,000 per point it scored compared to $407,000 for nearest rival McLaren. Romain Grosjean’s third place made him the best value driver, costing the team just an estimated $833 in salary per point he scored. Despite missing out on a podium place, Red Bull was still the most discussed team owner in the local media, with 414 articles mentioning its F1 involvement in the two weeks surrounding the race. FIVe BesT-eXPOseD BRANDs – HuNGARIAN GP 2012 Brand Team(s) / Race est advertising value equivalent of exposure 1 Eni Hungarian GP $25,605,656 2 Vodafone McLaren $15,989,477 3 Red Bull Red Bull Racing $12,943,152 Toro Rosso 4 Lotus Lotus $10,929,911 5 Allianz Hungarian GP $7,681,697 Best-exposed team McLaren $21,092,480 TeAM sPeNDING PeR POINT RATIO: 2012 HuNGARIAN GP Team Points estimated spending per point (us$) 1 Lotus 33 $251,212 2 McLaren 33 $407,273 3 Red Bull 16 $980,000 DRIVeR VALue FOR MONeY: 2012 HuNGARIAN GP Driver Points estimated cost per point (us$) 1 Romain Grosjean 15 $833 2 Bruno Senna 6 $2,083 3 Kimi Räikkönen 18 $13,889 As F1 prepares to head to Budapest, Caroline Reid and Christian Sylt analyse how sponsor’s returns were calculated, using last year’s Hungarian 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 German 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: