Sports sponsorship (II) Nascar is booming as an advertising platform in the USA, Formula 1 in Europe.
USA is a concrete advertisement for the participating car brands -
("stock cars" = production vehicles) - in the foreground. With the Formula
1, the victorious cars from Ferrari, BMW or Toyota cannot compete for
be purchased for road traffic. Only when evaluating the
designers, an image transfer for the brand takes place. Both for
Nascar, as in Formula 1, are not really a problem in the advertising-friendly environment of these
spectacle, however, more and more "free riders" can be observed. On the one hand
the audience figures on TV guarantee a good platform for commercials.
Even more important in Formula 1, however, are the other sponsors.
In fact, sports sponsorship seems to be resistant to the general
trend towards shrinking advertising sales and continues to be reflected in
fittest form. From an international perspective, Formula 1 is the
The sponsors' favorite. Above all, the success of a team is a source of pleasure for the
High-tech products that are used in the background of such a race to win
have led to. Formula 1 threatened with Michael Schumacher as
The permanent world champions are getting boring. In Switzerland, the
TV viewing figures per race from 345,000 last year to this year
still 298,000. In 2004, however, Formula 1 was the most watched sport on television
Even in the soccer mecca of Germany, according to a study with 40 percent
Interest still just ahead of football in the annual ranking with 39 percent
- even in the year of the European Football Championship. After Formula 1 and football
follow on the popularity scale of television - and thus also the
Sponsors - ski jumping, cycling and boxing. Here important
Sponsors include Vodafone, T-online and various beer brands.
Trend sports such as snowboarding and surfing are combined with sporting goods,
food and luxury foods.
And where are the trends leading? Football and beach volleyball are
The prognosis is that the future will bring particular benefits from sports sponsorship
of Faspo, the trade association for sponsoring and special forms of advertising. As
The association sees boxing and tennis as losers. But also Formula 1
must shift down a gear and focus on lower sponsorship levels.
volumes. One reason is the threat of advertising bans. Estimated
300 million euros have so far been invested annually by the five participating
tobacco companies have flowed into Formula 1. Already this season
the first restrictions came into effect, however, and this source of money
will sooner or later go up in smoke.
Technology instead of tobacco
Niki Lauda once saw an opportunity to make up for these losses
in the fact that Formula 1 simply moves to countries where
tobacco advertising is still permitted. But this is becoming increasingly difficult. So
new adhesives have to be found for the racing cars. With the
Sponsorship is an image transfer. With Formula 1
In addition to car brands, banks were the main beneficiaries in the past
from this effect. Since the cigarette brands in Formula 1 are not
be allowed to be more visibly present, the
electronics industry to the top starting positions. The trend
It is becoming apparent that more and more technology companies are
high-tech sport Formula 1.
"In Formula 1, everything happens at breakneck speed, and not just on the track.
not only on the slopes, but also in terms of technical developments",
was the name of the game at McLaren back in 1987.
Engineers and technicians of the team with the British
technology company Sun as a partner and sponsor.
"Technology is always the absolute focus in Formula 1",
says Ron Dennis, CEO of the TAG McLaren Group. This also requires
Partners who are leaders in their field. Ayrton Senna is one of the
Team became world champion. Even after the merger with
Mercedes will continue to produce the cars with the help of technology from Sun
developed. After eight years, the cigarette manufacturer West is
left McLaren due to the tobacco advertising ban. Among today's
The most important sponsor as a substitute for the tobacco industry is the
Chip manufacturer Intel with promised 32 million euros in the
pole position. However, McLaren-Mercedes is not yet willing to confirm this.
Intel was already a partner of Toyota last season.
active. Intel's further involvement is made more difficult because the
FIA, the world's highest motorsport authority, is working with Intel competitor AMD on extensive
simulation programs.
Panasonic joined Toyota in 2001 and has a contract as
Namesake of the team on the sides and on the rear wing until 2006.
Siemens has also been with McLaren-Mercedes since 1998 and is one of the
first electrical companies in Formula 1.
is also the official technology partner of the entire racing series.
Coca-Cola ante portas
Vodafone sponsors the Ferrari team with Michael Schumacher. Vodafone
in Formula 1 achieves above-average results thanks to this sponsorship.
high spontaneous recall values. In a survey of 1000 people
9 percent knew the brand, and 5 percent associated it with the formula
1 But even in the high-tech sector, money is not flowing unchecked. BMW
Williams will have to do without sponsor HP next year. Because the
Computer manufacturer sees its goals achieved. "In 2005, we were
present in 200 countries, where 160 million people worldwide use each of the 19
Grands Prix," HP thanks its team at the end. They say,
that HP has canceled the sponsorship for image reasons, because in
Germany will have to cut 1500 jobs by the end of 2006. BMW
Williams is now increasingly relying on sponsorship from Allianz. The
With this commitment, the insurance company wants to make its name
relevant markets such as Asia and Eastern Europe.
It is denied that Coca-Cola wants to enter Formula 1. Here
the wildest speculation in various world media is that the
beverage multinational not only support a single team, but even
wants to be the namesake for all races: "Coca-Cola Formula One
Championship". Philipp Bodzenta, Director Communications at
Group, rejects the idea, but says: "Even if we are not currently in talks
This does not mean that we are closing ourselves off to this topic for the future." Would Coca-Cola actually get involved,
there would certainly be a few crashes with Red Bull. Even Formula 1 zampano
Bernie Ecclestone did not want to enter into corresponding talks with Coca-Cola.
confirm" - but also not deny. A name sponsorship of the
entire racing series would cost around 130 million euros per year, according to experts.
costs. Ecclestone is under increasing pressure in Formula 1. Some
Car manufacturers such as Renault, DaimlerChrysler, BMW and Toyota are threatening to
a separate racing series from 2008. A sponsorship agreement, such as the one with
Coca-Cola, Ecclestone would have a good card in the poker game with the teams.
play into their hands.
Sports sponsorship market Switzerland
And how is this business going in Switzerland? The sponsorship market here is rather modest, with a volume of CHF 350 to 400 million, according to a study by the Gesellschaft für Sportförderung, gfs.
The best-known sponsors here are the banks, with UBS being the biggest sponsor with 43
percent ahead of Credit Suisse (30 percent) and the Raiffeisen banks (13 percent)
lies. Swisscom and the Swiss Post Group also play an important role in sports sponsorship.
Rivella. UBS will have produced around 20
million euros into Alinghi's sailing crew and thus to be able to
the keyword "teamwork". Credit Suisse, since the season
2001 sponsor of the Sauber Petronas team, will continue to sponsor the Sauber Petronas team after the sale of
Sauber to Germany the newly created BMW team from the coming
year and certainly until 2008. "Formula 1 is a
valuable global marketing platform with which the Credit Suisse brand
is present all over the world," said Marco Taborelli, Head of Global
Marketing at the bank. Like many companies, CS also uses its
Promoting racing, not least for customer care. An invitation to
the pits of Monte Carlo is hardly a small gift.
to be surpassed.
Andreas Panzeri