F1 sponsors: Off the pace?

Singapore - As Singapore's first attempt at staging a Formula One race takes centre stage this weekend, international sports sponsorship research and evaluation expert Nigel Geach believes the quiet marketing lead-up to the event is "endemic" of F1 races.

"If the sponsorship doesn't work, or if the sponsors involved don't leverage it correctly, then there's the danger that the hype surrounding the race will start to die off," he said.

But Geach, who is director for global independent sport research and sponsorship research and evaluation agency Sports Marketing Surveys, adds that he doesn't think this will happen because "you'll get good audiences on TV for the novelty factor, and it's also a very critical time in the Championship... and at the moment, this is the only night race".

"The mere factor of excitement of having a night race around the streets has already given huge publicity right across the world and other than Monaco, this is one of the most exposed races," he said.

While F1 sponsors such as SAP have kicked-off related marketing efforts today, as the event moves into its full swing this weekend, OgilvyAction Singapore's GM Ben Heyhoe Flint said the lead-up to the race weekend had been "quite quiet".

"I don't know the reason for that, only the marketers can tell you why they have or haven't done that much. But it's a first time event, people are finding their feet with it and exploring different ways of doing it. They're experiencing the costs associated with it as well, which may have caught some of them by surprise. It's not cheap investment," he said.

Today, SAP launched its Oasis Lounge at the Conrad International leveraging on the pre-race concept or the 'dead-time' between when fans (or those invited to the suite) wake up to when they go to the actual race.

"They've taken the brand hospitality a step further," Geach said. "As with any sponsorship, there's no point just sticking a sticker on a car. You've got to spend a certain amount of money to leverage the sponsorship."

The SingTel-sponsored F1 race is expected to attract around 40,000 visitors to Singapore, providing a pick me-up for Singapore's tourism industry during the current global financial crises. But Geach says it's a "myth" that F1 fans are "all high income".

"There a lot of white collar workers, youngsters, and a lot of women who watch F1 now... whilst the percentage is still heavily male, obviously, women are becoming more interested," he said.

This fact was not lost on ESPN Star Sports (ESS) which broadcasts the entire F1 racing season across its entire footprint spanning 24 markets, and recently released study results showing "bolstered TV ratings for female viewership for live races" during the ongoing 2008 F1 season.

The report revealed, in terms of female viewership for live races, a very positive and robust upward trend of 26% for women aged 15 and above.

 
Originally published on 26 September 2008.