As the world gets more homogenous, so does the car business.
Once mighty Chrysler is now a part of Italian based Stellantis Corporation, an amalgam of 14 international companies.
What used to be considered American motorsports, ¼ mile dirt tracks, ¼ mile drag strips, etc. has faded to irrelevance in our connected world, and car companies are looking for promotional venues that can reach a world-wide audience. Happily, Formula One (F-1) is tailor made to fit their needs, and is enjoying a surge of popularity in the United States. The Austin TX USGP race drew over 400,000 fans last year, the most of any F-1 race.
In the TV world, ESPN claims a record 1.2 million US viewers watched their live race coverage in 2022, up 28 percent over ’21. F-1 claims 49.1 million followers worldwide on all digital platforms, up by 23 percent. 40 percent of them are female, up from just 8 percent in 2017.
According to Nielsen ratings, the typical F-1 fan is 32 years old, has at least some college, and can afford $300 for a weekend race ticket, plus food, lodging, and transportation. Just the type marketers are searching for. These same surveys indicate video games and TV series are big influencers on whether to follow F-1.
Part of the reason for the popularity surge may be the Netflix series Drive to Survive, which has, through social media and astute marketing, hit the demographic bull’s eye that all car companies hope to capture. Drive uses a reality show format that features celeb-filled episodes, buckets of cash, and jet set glamour both on and off track. Each episode is filmed during an actual race, and mixes behind the scenes “real life” F-1 personalities with race action to create a cocktail that’s irresistible to fans and marketers.
Don’t be put off by the Reality Show label. There is no sex, no drugs, or emotional meltdowns. I did see Caitlyn Jenner walk through the pits in one episode, but thankfully no one wanted to interview her. Missed the Miami GP? You can dial up any one of 5 seasons, with 10 episodes per season, each edited into a 35 to 45 minute format, and watch it on Drive. Pretty handy. It keeps all the action, pit drama and faces you’ll recognize, and is available 24 / 7.
Britisher Jenson Button, who won the 2009 F-I Championship and now competes in NASCAR, said, “In America, we love behind the scenes. We like seeing the individuals that are actually competing and a bit of controversy. You definitely got that on the (Netflix) TV show (on Formula 1). That’s a big part of it. Racing is one thing. I think understanding the personalities that are in the sport is something the European fans would want to know.”
Porsche and Red Bull have been talking for a year now about co-sponsoring the Red Bull race car when the Oracle Red Bull contract expires in 2026. They went from RED BULL / PORSCHE to PORSCHE / RED BULL and back again but could never reach an agreement. When Jim Farley, CEO at Ford and a successful vintage racer, heard the negotiations were stalled, he pulled out his phone and wrapped up a deal in less than 10 minutes. There should be plenty of meat on the table for both of them.
It’s all about exposure. Each “brand impression,” which is defined as your product or logo on screen for ½ second or more, is worth real money. Farley can use that to justify whatever he spent to reach the worldwide F-1 audience. Ford enjoyed a huge bump in brand awareness after the Ford v Ferrari movie.
Pretty impressive, considering Andretti Racing and Cadillac have been on their knees for the past year trying to convince F-1 CEO Stefano Domenicali to expand the franchise from 10 to 11 teams so they can join the party … especially considering Red Bull is the current champion and has won every race so far this season.
The first car of the new partnership will roll onto the track in 2026 under a new formula where Ford will supply the internal combustion engine backed up by new electric “mild hybrid” components.
For more adventures in brand exposure see this episode from the Nov 2019 BLOG archives (http://mustangirs.com/blog/index.php/2019/11/).
Seven-time World Driver’s Champion Lewis Hamilton, now SIR Lewis Hamilton, is currently producing an as-yet-unnamed Hollywood movie that stars Brad Pitt. Sir Lewis hopes to equal or exceed the excitement generated by the Ford v Ferrari blockbuster (4 Oscar nominations and 2 wins including Best Film). Do you think RED BULL / FORD is aware of all this? Do you think there is much jockeying for “product placement” shots in the new movie? Yea probably.
There are three F-1 races in the U.S. this year: Miami, Austin TX, and the new venue, Las Vegas. Vegas expects (hopes) that one million people will line their new course now under construction. It will be 3.8 miles long and speeds should top 200 MPH. Standing room only 3-day tickets started at $500.00 and are already sold out. Grandstand seats with a 4-night hotel stay range from 2 to 10K each and are “going fast.”
For something a little more glamorous, how about the SKYBOX PREMIUM / CLUB HOSPITALITY overlooking the start/finish line. Your purchase includes admission to the Opening Party, and unlimited food / drink with a “top shelf” bar for 4 days. It is only $11,200 per person with tax and fees. It does not include gratuities, and a pit pass, if you want one, and your hotel must be purchased separately.
Ford knows an opportunity when it sees one. With demographics like this (demos in ad-speak), they’ll want to be front and center.
Good work, Jim.