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GP Week : Issue 194
F1 >>> BUsInEss The united states is often cited as being one of the most important untapped markets for Formula One. Like many european sports, football included, F1 has struggled to build a presence in America where NAsCAR reigns and the Indy 500 is the premier single seater racing event. With no successful American driver since Mario Andretti retired in 1982, F1 has tried various methods to boost its profile in the states, though none has yet provided a major breakthrough. Could Circuit of the Americas change all that? In the heart of NASCAR country, Austin did not seem the obvious choice for the new home of F1 in the States, but its inaugural race seems to have proved that wrong. The Grand Prix saw raceday crowds of 117,000 – the third best of the season – and the event was widely praised within F1. This year’s race will demonstrate whether interest in the race can be sustained. But the 2012 Grand Prix was a success in terms of more than just image. The total value of brand exposure at the race was the highest of the season and would have cost $150.9m if it had been bought as traditional television advertising slots. This was great news for the F1 teams as it gave extra value for money to their sponsors. The United States Grand Prix is able to generate this kind of exposure because it is one of the most watched races of the season. This is firstly because of its location on the calendar close to the end of the season – when last year the championship was hotting up – and secondly because its timezone is favourable to TV audiences around the world. An afternoon race in America is not only on TV on a Sunday afternoon in F1’s biggest market, Brazil, but it gets an early evening slot in Europe when TV audiences are at their peak. The best-exposed sponsor of the race was series tyre supplier, Pirelli, which in the absence of a race title sponsor took several prime trackside advertising slots for the event and provided special Pirelli-branded cowboy hats for the podium celebrations. This resulted in total exposure worth $24.5m, or 16.2% of the overall exposure value. The top five brands in terms of exposure during the race were rounded out by Red Bull ($19.3m), LG ($14.1m), Verizon ($14.0m) and Lotus ($9.5m). American telecoms brand Verizon replaced title sponsor Vodafone on the McLarens for the race and got a big boost as Lewis Hamilton rode home in first position. FIVe BesT-eXPOseD BRANDs – us GP 2012 Brand Team(s) / Race est advertising value equivalent of exposure 1 Pirelli All teams, US GP $24,491,017 2 Red Bull Red Bull Racing $19,343,962 , Toro Rosso 3LG United States GP $14,145,943 4 Verizon McLaren $14,025,315 5 Lotus Lotus $9,541,469 Best-exposed team Red Bull Racing $20,707,351 TeAM sPeNDING PeR POINT RATIO: 2012 us GP Team Points estimated spending per point (us$) 1 McLaren 35 $384,000 2 Lotus 14 $592,143 3 Ferrari 27 $726,667 DRIVeR VALue FOR MONeY: 2012 us GP Driver Points estimated cost per point (us$) 1 Romain Grosjean 6 $2,083 2 Nico Hülkenberg 4 $3,125 3 Pastor Maldonado 2 $12,500 As F1 prepares to head to Circuit of the Americas, Caroline Reid and Christian Sylt analyse how sponsor’s returns were calculated, using last year’s US 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 13 GPWEEK.com // 13 GPWEEK.com // PARTNERS: