Many analysts have concluded that sponsorship is the real fuel that keeps motorsport running, and rightfully so. The owners, drivers and fans of the racing teams are all in agreement that sponsorship and advertising keep the wheels of both rally and formula cars spinning.
This is because motorsports prize money covers only a tiny fraction of the costs of running a racing team. Thus, most of the money circulating in racing sports comes from sponsors. One could even say that racing teams are actually not competing on the racing tracks but as providers of marketing services.
Of course, many teams see sponsorship and marketing as just a good way to get involved in racing. But for some other teams, it’s the sole reason why they are involved in the sport. However, our purpose with this article is to not question anyone’s motives but rather to look into sponsorship activities in motorsports.
Who sponsors motorsports?
Visibility at motorsports is, at best, well-targeted and effective advertising. However, some teams still don’t seem to know how to sell the benefits of visibility to potential marketing partners. Fortunately, getting sponsors is now becoming easier – even for less business-savvy teams.
Although big companies with enormous marketing budgets are still the main funders of motorsports, smaller players have also started sponsoring racing teams in recent years. These sponsors include online casinos and sports betting websites that want to sponsor racing to advertise their casino rewards and other offers to their primary audience – men.
Naturally, businesses want to make sure that the marketing money that they spend will deliver them substantial returns. However, many smaller companies that sponsor racing are more emotionally attached to the sport. For example, company executives may be former formula fans or even drivers themselves. Often, these smaller companies don’t expect as high returns for their marketing spend which makes them a great source of funding for racing teams.
Target demographics of racing marketing
Although men have traditionally been the target audience of motorsports, people from all backgrounds follow racing sports nowadays. However, not all motorsports are equally popular in Europe, Asia and the United States. For example, in the US, racing car sports are more popular, while in Asia and Europe, Formula 1 and Moto GP are more popular. Interestingly,
followers of motorsports come from both urban and rural areas, although Rally is more popular in rural areas.
Has sponsorship gotten out of hand in motorsports?
Motorsports have often been accused of being just a marketing arena for big companies. However, racing is a very expensive sport, and most motorsports would simply die without sponsors.
Over the last ten years, the money for mainstream racing sports has declined substantially. Many companies have cut their marketing money for motorsports for environmental and political reasons. So, the role of sponsorship is more important than ever in these sports, and ultimately motorsports couldn’t survive in their current form without sponsors. Luckily, money is gradually coming back to motor racing sports as smaller players are starting to notice the benefits of visibility in them.
Discussion about this post