F1 Sponsorship - follow the money!

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GitanesBlondes
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Joined: 30 Jul 2013, 20:16

F1 Sponsorship - follow the money!

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Mod edit: Split from the "Haas - American team in F1" thread.
___________________________________________________________________

dans79 wrote:
GitanesBlondes wrote: The only measure of success is wins.
Not to the sponsors writing checks, To them it all comes down to "was the exposure worth the cost". If you want to win, you have to keep the sponsors happy, and you have to constantly have new sponsors in the pipeline.

Richard Petty is a perfect example, he didn't win a single race in the last 8 years of his career, and STP still happily cut the check to the team, because having Petty in the car insured several minutes or air time every race. It's the say way with Alonso, Hamilton, & Vettel, having them in the car guarantees air time, and thus happy sponsors.
Except F1 doesn't attract any sponsors selling products to the average person.

I've already pointed out numerous times F1 is an absolutely terrible value for sponsors at large. It's become primarily business to business advertising.
"I don't want to make friends with anybody. I don't give a sh*t for fame. I just want to win." -Nelson Piquet

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FW17
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Joined: 06 Jan 2010, 10:56

Re: Haas - American team in F1

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GitanesBlondes wrote: Except F1 doesn't attract any sponsors selling products to the average person.
Image

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dans79
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Joined: 03 Mar 2013, 19:33
Location: USA

Re: Haas - American team in F1

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GitanesBlondes wrote:
Except F1 doesn't attract any sponsors selling products to the average person.

Bernie, is that you?

The following is a short list, if you dig deeper, I'm sure you will find a lot more.

*) Mercedes - A c class is easily obtainable for the middle class
*) Petronas - Depending on where you live you might buy gas at one of their gas stations
*) Blackberry
*) Redbull - even children can buy this
*) Infiniti - another middle class car company
*) Renault - a cheap car company
*) Martini - Anyone of age can buy a bottle
*) Santander - anyone can walk into a bank and open an account
*) Shell - another gas company
*) UPS - need a package delivered for cheap
*) Mobil - another gas company
*) hugo boss - some of the clothes aren't that bad
*) Royal Challenge - another alcohol company
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SectorOne
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Joined: 26 May 2013, 09:51

Re: Haas - American team in F1

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dans79 wrote:
GitanesBlondes wrote:
Except F1 doesn't attract any sponsors selling products to the average person.

Bernie, is that you?

The following is a short list, if you dig deeper, I'm sure you will find a lot more.

*) Mercedes - A c class is easily obtainable for the middle class
*) Petronas - Depending on where you live you might buy gas at one of their gas stations
*) Blackberry
*) Redbull - even children can buy this
*) Infiniti - another middle class car company
*) Renault - a cheap car company
*) Martini - Anyone of age can buy a bottle
*) Santander - anyone can walk into a bank and open an account
*) Shell - another gas company
*) UPS - need a package delivered for cheap
*) Mobil - another gas company
*) hugo boss - some of the clothes aren't that bad
*) Royal Challenge - another alcohol company

Allianz
Puma
Advanti
Monster Drinks
Spies Hecker
Kaspersky
FIAT
Claro
TNT Energy drink
Smirnoff
Roshfrans
Kingfisher
TW STEEL
Alpinestars
Gatorade
Petrobras
BancodoBrazil
Chelsea (yes even a football game is a product)
Singha Beer
Siemens
AT&T
Pepe Jeans
Casio
TAG Heuher
Rexona
Randstad
Oris Swiss Watches
ESQUIRE
CLEAR
Burn
OZ
Henri Lloyd


...yup F1 does not attract any sponsors selling products to the average person.
Because everyone knows only companies buy deodorant, liquor, watches, shampoo, football games, cars, energy drinks, bank accounts, fuel for their car, anti-virus programs, clothes, etc etc.
"If the only thing keeping a person decent is the expectation of divine reward, then brother that person is a piece of sh*t"

f1316
f1316
80
Joined: 22 Feb 2012, 18:36

Re: Haas - American team in F1

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SectorOne wrote:
dans79 wrote:
GitanesBlondes wrote:
Except F1 doesn't attract any sponsors selling products to the average person.

Bernie, is that you?

The following is a short list, if you dig deeper, I'm sure you will find a lot more.

*) Mercedes - A c class is easily obtainable for the middle class
*) Petronas - Depending on where you live you might buy gas at one of their gas stations
*) Blackberry
*) Redbull - even children can buy this
*) Infiniti - another middle class car company
*) Renault - a cheap car company
*) Martini - Anyone of age can buy a bottle
*) Santander - anyone can walk into a bank and open an account
*) Shell - another gas company
*) UPS - need a package delivered for cheap
*) Mobil - another gas company
*) hugo boss - some of the clothes aren't that bad
*) Royal Challenge - another alcohol company

Allianz
Puma
Advanti
Monster Drinks
Spies Hecker
Kaspersky
FIAT
Claro
TNT Energy drink
Smirnoff
Roshfrans
Kingfisher
TW STEEL
Alpinestars
Gatorade
Petrobras
BancodoBrazil
Chelsea (yes even a football game is a product)
Singha Beer
Siemens
AT&T
Pepe Jeans
Casio
TAG Heuher
Rexona
Randstad
Oris Swiss Watches
ESQUIRE
CLEAR
Burn
OZ
Henri Lloyd


...yup F1 does not attract any sponsors selling products to the average person.
Because everyone knows only companies buy deodorant, liquor, watches, shampoo, football games, cars, energy drinks, bank accounts, fuel for their car, anti-virus programs, clothes, etc etc.
+ Benetton ffs! ;)

(Never understood how it could be worth their while but that's another discussion...)

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GitanesBlondes
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Joined: 30 Jul 2013, 20:16

Re: Haas - American team in F1

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SectorOne wrote:
dans79 wrote:
GitanesBlondes wrote:
Except F1 doesn't attract any sponsors selling products to the average person.

Bernie, is that you?

The following is a short list, if you dig deeper, I'm sure you will find a lot more.

*) Mercedes - A c class is easily obtainable for the middle class
*) Petronas - Depending on where you live you might buy gas at one of their gas stations
*) Blackberry
*) Redbull - even children can buy this
*) Infiniti - another middle class car company
*) Renault - a cheap car company
*) Martini - Anyone of age can buy a bottle
*) Santander - anyone can walk into a bank and open an account
*) Shell - another gas company
*) UPS - need a package delivered for cheap
*) Mobil - another gas company
*) hugo boss - some of the clothes aren't that bad
*) Royal Challenge - another alcohol company

Allianz
Puma
Advanti
Monster Drinks
Spies Hecker
Kaspersky
FIAT
Claro
TNT Energy drink
Smirnoff
Roshfrans
Kingfisher
TW STEEL
Alpinestars
Gatorade
Petrobras
BancodoBrazil
Chelsea (yes even a football game is a product)
Singha Beer
Siemens
AT&T
Pepe Jeans
Casio
TAG Heuher
Rexona
Randstad
Oris Swiss Watches
ESQUIRE
CLEAR
Burn
OZ
Henri Lloyd


...yup F1 does not attract any sponsors selling products to the average person.
Because everyone knows only companies buy deodorant, liquor, watches, shampoo, football games, cars, energy drinks, bank accounts, fuel for their car, anti-virus programs, clothes, etc etc.
The trouble with this line of thought is that you, and Dans essentially argued against yourself with the listing of a number of companies that have minimal to no relevance to most fans. Here's the big kicker that I'm not sure either of you are getting, the exposure the companies receive now is...terrible for what has to be paid to the teams for small signage. This is to say nothing of how McLaren has no title sponsor. Williams may have gotten Martini, but relative to the overall costs in F1 these days, it was not a high dollar deal.

Remember in 2009 when Brawn GP was running away with everything and yet they were running a nearly bare bones car devoid of any real sponsors?

Philip Morris may still be Ferrari's title sponsor till the end of 2015, but they have been using the whole thing as a business-to-business platform.

The sponsors receive far less exposure than they ever did due to less overall track time due to the ban of in-season testing as well as the reduction in overall time on a grand prix weekend. That doesn't even get into the change of broadcasting methods where far less zoom shoots are shown that show all of the sponsors.

In addition a number of those sponsors both of you guys listed are country specific.

Good god, sometimes I think I'm the only one who remembers the old days when you had tons of sponsors all over the place. When FOM started controlling the track signage at all grands prix with the exception of Monaco, you saw the pool of sponsors dwindle even further. The claim was that having sponsors all over the sides of the track made it bad exposure for everyone as no one would be able to focus on who the sponsors were. What we got were endless Pirelli signs, or Rolex signs which made opportunities for visibility even more greatly reduced.

If you talk to the more well known ex-F1 sponsors, they will all tell you the same thing, the advertising value of F1 in the 21st century is an exercise in pissing money away. Sure you've got the supposed marketing analysts making claims that via RBR, Infiniti received over $1 billion in advertising exposure thru the 2013 season. But you can justify anything you'd like depending on how the metrics are developed.

Ratings plummeting is another interesting factor that will impact how sponsors feel...especially when you have TV broadcasters rethinking their F1 involvement.

Point is gentlemen, F1 sponsorship is less about actual value and more about the benefits that come from many sponsor execs being able to hobnob and rub elbows with the rich and famous. Bernie's goal always has been to make every grand prix appear in similar stature to Monaco.

Keep in mind to when you have driver specific sponsors such as Santander, their long-term involvement once Alonso no longer drives in F1 is dubious. Shell, Mobil, and the other fuel sponsors are there so long as they can do further R&D. Had F1 gone the route of spec fuel, they would have all disappeared as there would be nothing of benefit for why they are there.
"I don't want to make friends with anybody. I don't give a sh*t for fame. I just want to win." -Nelson Piquet

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ecapox
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Joined: 14 May 2010, 21:06

Re: Haas - American team in F1

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I can guarantee you that the amount of money spent by UPS is reasonable for the advertisement received.
I know this 100%. And this is on one of the most visible cars on the grid, and a relatively large logo in a prime spot. Santander being probably the only larger sponsor.

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PlatinumZealot
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Joined: 12 Jun 2008, 03:45

Re: Haas - American team in F1

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GitanesBlondes wrote:
Good god, sometimes I think I'm the only one who remembers the old days when you had tons of sponsors all over the place.
With tonnes of sponsors all over the place it must be hard for any brand to stand out, especially in the mid field teams who need it most. Ironically, having fewer sponsors on the grid overall just might be more beneficial to those said sponsors. It is easier to stand out and you get more exclusivity.
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SectorOne
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Joined: 26 May 2013, 09:51

Re: Haas - American team in F1

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GitanesBlondes wrote:The trouble with this line of thought is that you, and Dans essentially argued against yourself with the listing of a number of companies that have minimal to no relevance to most fans.
That´s simply not true.
"If the only thing keeping a person decent is the expectation of divine reward, then brother that person is a piece of sh*t"

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dans79
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Joined: 03 Mar 2013, 19:33
Location: USA

F1 Sponsorship - follow the money!

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SectorOne wrote:
GitanesBlondes wrote:The trouble with this line of thought is that you, and Dans essentially argued against yourself with the listing of a number of companies that have minimal to no relevance to most fans.
That´s simply not true.
I have to agree with you on this.

Shell - gets several hundred dollars of years from me.
Mobil - gets several hundred dollars of years from me.
UPS - gets 2 or 3 hundred dollars a year from me.
Smirnoff - probably gets a hundred dollars a year from me.
Gatorade - probably gets 2 hundred dollars a year from me.
AT&T - Don't even want to think about how much money they get from me.
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Manoah2u
Manoah2u
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Joined: 24 Feb 2013, 14:07

Re: Haas - American team in F1

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dans79 wrote:
SectorOne wrote:
GitanesBlondes wrote:The trouble with this line of thought is that you, and Dans essentially argued against yourself with the listing of a number of companies that have minimal to no relevance to most fans.
That´s simply not true.
I have to agree with you on this.

Shell - gets several hundred dollars of years from me.
Mobil - gets several hundred dollars of years from me.
UPS - gets 2 or 3 hundred dollars a year from me.
Smirnoff - probably gets a hundred dollars a year from me.
Gatorade - probably gets 2 hundred dollars a year from me.
AT&T - Don't even want to think about how much money they get from me.
at the same note i can say none of these get any dollars from me. not even shell. i only tank at tinq - which is from GULF, tango - Q8, and BP. Isn't sponsored on any F1 vehicle, yet i buy it. Shell esso etc is on F1 cars but i don't get that stuff.
Mercedes - i drive a daily honda [ did not buy it because they partnered with mclaren] and a '71 muscle car. I buy my suits from the WE backshelf for around 70 EUR instead of 400 store price, and not from Boss, which is triple that. I don't drink energy drinks. I haven't seen Heineken, Presidente, Ron Barcelo or Brugal on a F1 car, nor AbnAmro Bank or Banco Vimenca.

I feel zero connection with F1 sponsors. I won't buy it because i see it on F1, neither do i see the stuff i buy on F1 cars.
"Explain the ending to F1 in football terms"
"Hamilton was beating Verstappen 7-0, then the ref decided F%$& rules, next goal wins
while also sending off 4 Hamilton players to make it more interesting"

Manoah2u
Manoah2u
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Joined: 24 Feb 2013, 14:07

Re: Haas - American team in F1

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meanwhile, i highly doubt people would tank shell because it's on a ferrari.

I'd say people get shell because it's on their route, or close to their homes. Perhaps they are momentarily aware of it when they spot a Ferrari with a shell logo, but that's it.

Shell being so present on the Ferrari cars was more due to their 'partnership' rather then sponsorship.

And Petronas? i can't buy that here. And blackberries are awful. Haven't seen the Apple-logo on an F1 car. interesting, actually. You'd think if F1 was a marketable tool for brands that Apple would definately took that approach.

Instead, blackberry is usually more used by your 'not average consumer', meaning; businessmen.

sometimes it looks more like it's businesses competing against businesses to show off who can brag the most about whether and how big their company is presented on a F1 car. You aren't on a F1 car? then you aren't important and i don't do business with you.

the girls thus don't come cheap.

I'll give NASCAR a more positive regards here, Nascar has real-life sponsors on their cars. stuff that people actually buy. And, believe it or not, people actually tend to buy stuff because they saw it in Nascar. Same goes for winner/cars. Win on sunday, sell on monday.
Something totally not happening in F1. Then again, i don't think F1 really ever was like that, and thus not really that important.
If we go way back to the early years; Ferrari, Maserati, Mercedes, Alfa Romeo, Bugatti. was there even a sponsor on those cars? and if they won, would somebody go and buy a Alfa Romeo or Ferrari? i have a gut feeling that wasn't the case.

Brabham won? went out for your local brabham dealer? oh wait.

Kingfisher airlines, ah, it's on an F1 car, lets' fly with them. ehhh....

no, the thing is though, F1 is a means for brand exposure. Its constantly being reminded of a brand that will keep hanging in the mind, which MIGHT just get somebody to choose that product instead of the competition. Mercedes doing so well in F1, hey, they must know engines. No BMW in F1. you know what, i'll buy that Mercedes with this and that option, instead of that BMW i could also buy.
Hey, i want to fly to India. Ah i see tickets of Kingfisher airlines. these Flybombay tickets are a lot cheaper, but i've never heard of this company. Better get the Kingfisher airlines.

in reality, it works on a business level more than on a consumer level.

That's why Haas thinks he can achieve something in F1. not on a consumer level, because nobody buys their stuff on a consumer level. CNC machinery. Who has a CNC mill in their garage? On a business level, it's a whole different story though. Businesses that need CNC machines in their store never used to hear of Haas. But thanks to F1 exposure, they now konw about Haas equipment. And buy Haas machinery.
Actually, Haas is so confident on the business benefits of F1, he's expecting or atleast eyeing a 1 billion dollar profit from europe from selling business equipment.

As little trust and confidence i have in Haas' motorsport 'skills' - like i said, i'd say Tony Stewart is to thank for that - It's clear as day that Haas has great business 'skills'. His company is proof of that, and in that regards, the man did a stellar job and i believe he has genuine intentions on business achievements in europe.

Where i have very different thoughts about is whether for Haas, it actually will pay off, since he's eyeing it with a Nascar-approach, which imho, is not the right approach for F1.

I still hope i'd be proven dead wrong. I genuinly hope the USA will do good business in F1.
Still, i'm very critical of what i've read and heard untill now. Especially because i really would like US to succeed in F1.
Or better said; I'd really HATE it if it's another USA-can't-do-it-in-F1, and i'm not at all convinced Haas is on the right path.

More ontopic though;

I don't think we'll see a fully-sponsor-covered Haas F1 car.
Last edited by Manoah2u on 09 Jan 2015, 22:32, edited 1 time in total.
"Explain the ending to F1 in football terms"
"Hamilton was beating Verstappen 7-0, then the ref decided F%$& rules, next goal wins
while also sending off 4 Hamilton players to make it more interesting"

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GitanesBlondes
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Joined: 30 Jul 2013, 20:16

Re: Haas - American team in F1

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SectorOne wrote:
GitanesBlondes wrote:The trouble with this line of thought is that you, and Dans essentially argued against yourself with the listing of a number of companies that have minimal to no relevance to most fans.
That´s simply not true.
Yes, it's quite true.

Do you think the bank sponsors are sponsoring to try and get people to sign up for new bank accounts?

That's not their primary purpose.

It's business-to-business marketing. They are trying to attract other companies to come to them to invest money or get loans from them.

Again....business-to-business marketing.

For a global sport, it's amazing how difficult it really is to attract sponsors. Most global companies see absolutely no value in F1 sponsorship.
"I don't want to make friends with anybody. I don't give a sh*t for fame. I just want to win." -Nelson Piquet

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GitanesBlondes
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Joined: 30 Jul 2013, 20:16

Re: Haas - American team in F1

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dans79 wrote:
SectorOne wrote:
GitanesBlondes wrote:The trouble with this line of thought is that you, and Dans essentially argued against yourself with the listing of a number of companies that have minimal to no relevance to most fans.
That´s simply not true.
I have to agree with you on this.

Shell - gets several hundred dollars of years from me.
Mobil - gets several hundred dollars of years from me.
UPS - gets 2 or 3 hundred dollars a year from me.
Smirnoff - probably gets a hundred dollars a year from me.
Gatorade - probably gets 2 hundred dollars a year from me.
AT&T - Don't even want to think about how much money they get from me.
Any of the F1 sponsors that I happen to use, I do not use because they sponsor F1, it's purely coincidental that I even use them. No amount of marketing sells me on any product period.

Of course to bring this in full circle, let's get back to the original point about F1 sponsorship and Haas, which is namely that Gene Haas is a moron. Claiming F1 is how he will sell Haas CNC to the planet is laughable as there are so many better options. Sponsoring a Premier League team would be a far better use of his money as he is assured of a minimum of 90 minutes of exposure every match day as opposed to F1 which might give him 10 minutes per race, 20 times a year versus 90 minutes times 38 games in the Premier League...to say nothing if it's a team good enough to qualify for UEFA Champions League, and the various overseas matches that might be played.

But just imagine all the free press he will have if he changes his mind from fielding a F1 team...no real money paid other than for that teeny-tiny little Haas CNC logo on the bottom of the Ferrari sidepod.
"I don't want to make friends with anybody. I don't give a sh*t for fame. I just want to win." -Nelson Piquet

Manoah2u
Manoah2u
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Joined: 24 Feb 2013, 14:07

Re: Haas - American team in F1

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on the exact same level with you here, Gitanes.
"Explain the ending to F1 in football terms"
"Hamilton was beating Verstappen 7-0, then the ref decided F%$& rules, next goal wins
while also sending off 4 Hamilton players to make it more interesting"