Motorsport Sponsorship: 5 Things for Companies to Consider

Over the years I’ve been working in the industry, I’ve frequently had opportunities to advise my clients on how to spend their money when they are considering sponsoring a team, series or track. During this time, there are a couple of key things that come up over and over again, which I’d like to share with you.

When it comes to sponsorship, the world of motorsports is a tried-and-tested playground for companies to enhance their brand awareness, connect with customers, and drive sales. It’s not just about fast cars and thrilling races but also a massive global networking platform that brings together industry players, including sponsors, teams, drivers, and fans worldwide.

Demographics

But, before jumping on the sponsorship bandwagon, companies need to consider some essential factors that could make or break their investment. One of the most critical considerations is understanding the demographics and reach of the motorsports series, team or event being considered.

The audience demographics and reach will determine the potential impact of the brand and its representatives’ presence. In other words, ensuring the target audience is adequately represented is essential.

Brand Fit

One thing I have noticed is that companies usually want to go straight for the jugular and slap their brand on a Formula One car.

In many cases, though, the budget and targets that these companies want to use to play in the big league don’t remotely fit.

It’s essential to ensure that the values and image of the series align with the sponsoring company’s brand. Sponsoring an event that conflicts with a company’s values or image could hurt brand perception, which is the last thing any company wants.

Here’s an example of brand fit done right: GoPro, the action camera company, has been a key sponsor for the FIA Rallycross Championship in recent years.

The partnership has allowed GoPro to showcase its products and brand to a young and engaged audience and create unique content for its social media channels. GoPro has also worked with Rallycross drivers and teams to create behind-the-scenes content and promotional videos that have massively helped to build brand awareness and engagement.

Budget and ROI

Naturally, when we speak about sponsorship, we mainly talk about spending money to increase exposure and sales. Sponsoring a high-profile series or event can get VERY expensive, so evaluating the potential ROI is essential before making any decision.

Companies should assess the potential exposure and engagement with customers and any potential sales lift resulting from the sponsorship. Just because you stick your logo on the car or the track doesn’t necessarily mean you’ll immediately see the cash roll in. Companies’ budgets need to consider additional expenses to leverage their presence. This includes flights, accommodation and client outings.

Brand Activation

Activation opportunities are also an essential factor to consider. These refer to the activities and campaigns a company can undertake to leverage their sponsorship, such as product demonstrations, brand experiences, and hospitality events. Companies should evaluate the activation opportunities available to them to ensure that they can maximise the impact of their sponsorship and take full advantage of their investment.

Here’s another quick case study for you: Heineken became the official beer sponsor of the FIA Formula 1 World Championship.

The dutch brewing company has used its (significant) sponsorship to create unique brand experiences, such as the Heineken Village, which offers fans a chance to watch the race while enjoying Heineken’s products. This has helped to build a strong brand association between Heineken and high-quality experiences, leading to increased sales of its products.

Regulation

To close off on a subject that almost always gets overlooked in initial talks, we need to address legal and regulatory considerations. This includes compliance with local laws and regulations and any requirements set by the motorsport series or event.

Companies must ensure that they have a thorough understanding of the legal and regulatory landscape before deciding to sponsor a series or event.

Spending money on motorsport is very easy (ask any team manager). Spending it right to make more back is much, much harder.

The above are some of the most common things I’ve learned to consider when working with big and small brands looking to leverage the industry to increase awareness and sales. To be as effective as possible, company managers and their prospect sponsoree need to be fully transparent, honest and realistic in managing expectations.

When done right, the return on investment will bring in more revenue than you could imagine possible at any other sporting event. One of the reasons for this is that your brand will travel the world and be potentially exposed to thousands, if not millions of people.

The world of motorsports is waiting to welcome your brand with open arms, so what are you waiting for?