Sport transcends cultures and borders, it is a global language. It creates an emotional connection with audiences around the world, making it an ideal vehicle for the development of global brands. Formula 1 is a distinctive market when it comes to sponsorship, with the global reach of its 22 races and the colossal budgets that are at stake.
Multiple levels of sponsorship
Formula 1 is composed of different entities that can be sponsored (properties) and on different hierarchical levels. For example drivers, teams, circuits and the Championship itself.
Each level of sponsorship in Formula 1 has distinct characteristics that meet specific communication objectives.
Sponsorship of the driver will be influenced by the competition hazards. A driver with more on-track successes will be more popular and therefore, more visible. The nationality of the driver can also position him advantageously in his homeland. We need only think of the Santander bank following the driver Fernando Alonso from McLaren to Ferrari, to increase visibility in Spain.
The main advantage of sponsoring a team is the visibility on the car itself. Television cameras are pointed at the cars and races benefit from a worldwide broadcast. However, the large number of sponsors on the car can make brand recognition difficult. This type of sponsorship will allow a brand to publicize the relationship using the trademark of the team in various communications.