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F1 sponsorship sees signs of recovery – It’s all about activation says Lotus boss Tony Fernandes

Business | Sponsorship | Sport

A report in the UK’s Independent newspaper during last weekend’s Spanish GP highlights an encouraging increase in sponsorship money flooding into Formula 1 as a result of the influx of new teams and the tentative emergence of the global economy from its recent downturn.

The report, by respected financial journalist Christian Sylt, states that F1 has benefitted from £12.5 in new sponsorship deals since the turn of the 2010 season, suggesting that international brands are once again being tempted to dip their toes into F1 water.

One of those new teams, Lotus Racing, has recently announced a long-term deal with Malaysian telecoms company Maxis. Team Principal of Lotus is Malaysian entrepreneur Tony Fernandes, who is also founder of budget airline AirAsia. In an exclusive interview for The UK Sports Network, initiated by Sine Qua Non, Tony explores why F1 is such a good opportunity for companies willing to activate their sponsorship.

“F1 still stands for what it always has – speed, passion, glamour, risk, excitement, innovation, excellence and international cool!” he says. “Any brand that counts these words amongst their own brand values can derive huge value from association with our sport, but the key is to embrace the sport and support the naming rights they purchase with fully integrated activation plans. There are too many brands in the sport who see the benefits of awareness, but, perhaps because their expectations were not fully managed, are somewhat blinded by the range of other opportunities that their investment can provide.”

Tony highlights the recent Maxis deal as a good example: “We have a number of partners with Lotus Racing who are already showing what can be done with a well thought out strategic plan – Maxis, the leading Malaysian telco, have already created and launched an iphone application that within a week was the top application in Malaysia. This creates a dialogue with a new fanbase who will keep coming back to Maxis for more content, more access to the team, and this is a great use of their sponsorship. I think that shows what can be done, and what should be done by brands who come into the sport for the right business reasons.”

When asked what Formula 1 can learn from other global sports, football/soccer being the most logical comparison with the advancing World Cup in South Africa, Tony recognises where F1 still falls short:

“What F1 needs to do to increase fan numbers and stay ahead of the other entertainment choices consumers have. The relatively recent explosion in interest in football is both down to the fantastic, interactive coverage it has around the world, and the way the brands involved in it use it as a platform for globally relevant, innovative marketing activities. Nike, Adidas, Coca Cola, Sony, Microsoft and all the other brands involved at club and international levels keep driving up awareness and fan loyalty, through amazing campaigns and great products. F1 must do the same, and the very nature of the sport, cool cars, amazing athletes and jaw dropping locations, give our sport the perfect platform to promote ourselves. This will see us replicate the success football has had in attracting new fans, particularly in Asia and India, and that’s the key lesson we can learn.”

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