Initiative Worldwide’s study connects ‘Formula One’ to health brands

As per a study conducted by Initiative Worldwide, called ViewerTrack 2005, Formula One (F1) managed to secure the top position as the leading global annual television sports event for viewers and marketers. Initiative Worldwide conducted this analysis after studying viewing data in 52 countries during the 2005 F1 season.

The study also threw up the interesting fact that as tobacco sponsorship phases out within the European Union, the sport may become a sponsorship property for more family friendly and health oriented brands.

This phasing out of tobacco sponsorship will shake a lucrative 37-year-old relationship that began in 1968, when Gold Leaf sponsored the Lotus at the Monaco Grand Prix.

This break with the past opens up possibilities for F1 as a ‘cleaner’ environment for more family friendly and health oriented brands. The risk of negative associations from the halo effect of advertising alongside a tobacco brand had long excluded F1 as an attractive sports property for brands from such sectors.

One major influence on global television viewing next year will be clashes in the broadcasting of matches in the 2006 FIFA World Cup tournament and Grand Prix races. Likely clashes identified so far are the British Grand Prix and the Montreal Grand Prix. The Montreal Grand Prix was the most watched Grand Prix this year, although it is unlikely to be the viewers’ favourite next year with such a tempting alternative.

The finding also revealed that the cumulative viewers for F1 swelled up by 3 per cent in 2005, as compared to 2004. However, although the season’s viewing levels were up overall, viewing per race has gone down by 3 per cent. The global increase in the number of viewers this year is attributed to the cumulative result of adding a 19th Grand Prix to the calendar, the new race that took place in Turkey, and served to boost the total number of events to watch.

F1, however, remained unparalleled, not only in delivering a large number of viewers annually, but also in the upmarket viewing profile of that audience. F1 is the only television sports event that attracts upmarket viewers of the kind who would otherwise be associated with more niche sports such as polo and yachting.

In addition, only a few markets showed substantial viewing increase and the reason has been linked to national pride in a ‘local hero’. The fastest growing markets included Spain (due to Alonso) and France (due to Renault). They saw a 60 per cent and 23 per cent increase in average audiences per race, respectively. This translates into growth in average audiences per race of 19 lakh and 7 lakh individuals, respectively.

However, globally, without the addition of Turkey’s Grand Prix, the cumulative audience year on year would have been down by 3 per cent. Also, the speculation that Michael Schumacher’s domination of the sport has been killing viewer interest could have another side to it: There is a possibility, as per the study, that without him, audience defection might be worse.

© 2005 agencyfaqs!