I have always enjoyed motorsport, and in particular the Formula One. It’s always been an exciting time of year when the annual Formula One Grand Prix is held in Melbourne. The sport itself is European at heart, yet global with races and events being held all over the world. However, it is going to be interesting to view the expansion and changes the sport will undergo as it ventures into the ‘Digital Age’. Late last year Liberty Media Group announced it would acquire the Formula One Enterprise for $8billion USD, and the Formula One CEO Bernie Ecclestone welcomed the acquisition. Liberty Media are seeking to adapt the sport to the current ‘digital age’, they claim that Ecclestone has not done enough to market the sport digitally. Primarily liberty media seek employ four strategies to market Formula One, these consist of:
1) Utilising Digital Marketing channels to target new audiences more attune to digital and social media, as opposed to the print and traditional media channels Formula One have relied on heavily in the past;
2) Using Event Marketing more strategically, that races held in each host nation could become akin to the US ‘Super Bowl’, provided the right channels were used when promoting the upcoming race;
3) Break into the American market, which has been dominated by the Indy 500 in the past. Formula One has seen limited penetration of the US market in the past;
4) Explore new technologies allowing them to connect with audiences globally in a more engaging manner, namely, the use of Virtual Reality (VR), which was identified as a future growth area.
The photo above was taken during the 2002, Melbourne Grand Prix in Albert park. The crash happened moments after the race began on the first turn, very dramatic and luckily no one was seriously hurt. I’m personally excited about the Liberty takeover of the F1 Enterprise, I’m excited to see where they can take the sport using marketing technologies and appropriate digital marketing channels. Given Liberty’s American roots, I think this may be the Agency which can dramatically increase Formula One’s penetration of the American market.
Thanks for reading, and let me know your thoughts on the sport below.
Warm Regards,
Eddie
featured image: http://www.wallpapercave.com
Hi Eddie. Great post!
Digitalize business is a trend. So I agree with your opinion to make F1 digital. I have an idea that designing a VR F1 video game to attract more audience. Or creating a VR traning system for F1 players to avoid accidents like the picture displayed. Not only in sports area, but also in many old fashion areas could apply digitalization to gain broad consumers and investors.
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Thanks for commenting, they do already have a VR videogame, F1 have been creating licensed videogames for Play Station and Xbox for a while, and with the current generation you can buy VR headsets to play. I think there is still a lot the sport can explore in terms of VR.
I think combining motorsport with the use of VR would be brilliant. While motorsport is already exciting as it is, being able to see it through VR would create a whole new experience. And I definitely agree with utilising digital marketing channels more, as these events are being held all around the world which means messages would spread out faster and more effective globally through the use of digital marketing. Interesting post!
Yes I agree, especially for international races like in Monaco, it will really give you a sense of being there. Absolutely, I think contracting digital agencies within each city where the race is being held will also be effective so the marketing campaigns are more likely to be culturally relevant.
Interesting post! I’m excited to see what sort of VR experiences they can incorporate into the Formula One industry. I agree with the fact that the traditional methods of marketing has probably not worked as well in recent years and that it’s time for an update. I haven’t been exposed to much Formula content online besides the occasional Facebook video so i’m excited to see what dort of changes will be implemented.
Thanks for commenting, yes I agree, most of the F1 content I have been exposed to comes from the Mercedes or Redbull teams, I know Redbull really have marketing – both traditional and digital, down to an art form. I think Liberty will be successful in the US market and at propelling the sport forward.