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GP Week : Issue 190
F1 >>> BUsInEss Red Bull Racing’s current dominance of F1 may not be popular with all fans but it is definitely good news for the team’s energy drinks giant owner. The rewards it reaped during last season illustrate how its on-track performance brings success off-track too. After a relatively poor start to the beginning of the 2012 season, Sebastian Vettel made last year’s Korean Grand Prix his third victory in a row, leading every one of the 55 laps and coming home 8.231 seconds ahead of team mate Mark Webber, who spent all but six laps of the race in second place. To add to Red Bull’s great weekend, the Red Bull-branded Toro Rosso cars scored a rare double-points finish, with Jean-Eric Vergne and Daniel Ricciardo crossing the line in eighth and ninth place respectively. This was a crushing performance from Red Bull Racing and led to the Red Bull brand dominating coverage of the race. The drinks company was by far the best-exposed brand during coverage of the Grand Prix and gained exposure which would have been worth $15.7m if it had been bought as traditional TV advertising slots around the world. This represented 20.5% of all brand exposure value during the race and brought Red Bull’s tally for the season up to an impressive $262.9m worth of exposure. Red Bull also benefited from being the team owner that got the most coverage in the local press in the two weeks surrounding the race. A total of 352 articles mentioning its F1 involvement were published in Korea to coincide with the Grand Prix. In addition, Red Bull Racing was also the best value for money team of the race, spending $365,000 per point it scored, compared to $518,125 for nearest rival, Lotus. Red Bull was not the only beneficiary of the race however. There were two Korean brands in the top ten best-exposed brands, trackside advertisers LG (7th, $3.4m) and SK Zic (10th, $2.4m). Series tyre supplier Pirelli also benefited from prominent trackside advertising hoardings. It was the second best exposed brand of the race with coverage worth $6.5m. A podium place for Fernando Alonso boosted Ferrari sponsor Santander, which was the third best exposed brand of the race with coverage worth $6.4m. Sixth-placed Nico Hulkenberg was the best value driver of the Grand Prix, costing his Force India teams just $1,563 in salary per point he scored. FIVe BesT-eXPOseD BRANDs – KOReAN GP 2012 Brand Team(s) / Race est advertising value equivalent of exposure 1 Red Bull Red Bull Racing, $15,722,798 Toro Rosso 2 Pirelli Teams, Korean GP $6,455,924 3 Santander Ferrari $6,449,546 4 Allianz Korean GP $5,934,116 5 Lotus Lotus $4,146,432 Best-exposed team Red Bull Racing $16,152,867 TeAM sPeNDING PeR POINT RATIO: 2012 KOReAN GP Team Points estimated spending per point (us$) 1 Red Bull 43 $364,651 2 Lotus 16 $518,125 3 Ferrari 27 $726,667 DRIVeR VALue FOR MONeY: 2012 KOReAN GP Driver Points estimated cost per point (us$) 1 Nico Hulkenberg 8 $1,563 2 Jean-Eric Vergne 4 $1,875 3 Romain Grosjean 6 $2,083 As F1 prepares to head to Korea, Caroline Reid and Christian Sylt analyse how sponsor’s returns were calculated, using last year’s Korean 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 Belgian 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 12 GPWEEK.com // 12 GPWEEK.com // PARTNERS: