Why B2B Marketing in F1?

F1 racing car

The Azerbaijan Grand Prix just wrapped up, and what a race! Oscar Piastri won, taking McLaren to the top of the Constructors Standings. For the 1st time in the last 2 years Red Bull lost its top spot.

It was in 2020 that I started watching the sport as my ‘cool friends’ were watching it. I was amazed when I first heard that Red Bull spent ~$220MM on F1 in 2020. This is almost equal to Samsung’s total spend on display ads in USA in 2023. My curiosity rose when I saw branding from B2B firms – AWS, Crowdstrike, Zoom, and Oracle. It made me dig in a little to find out the reason for this.

A Massive and Growing Fanbase

F1 did a survey of 14,000 sports fans in collaboration with Ipsos MORI Social Research Institute. Extrapolating the survey results, F1 ballparked 550 million F1 fans across the globe – approximately 7 per cent of the world’s population. This is a good mix of gen-z and millenials who like the technicalities of car making and sheer thrill of speed, middle-aged people who grew up watching Schumacher and Ferrari, and about everyone who got into the sport since their favorite celebrity was spotted at Silverstone for raceday.

The Allure of Exclusivity

Formula 1 is often seen as an elitist sport. Many drivers come from affluent backgrounds, and race day tickets can cost upwards of $500. VIP areas are frequented by celebrities and influential figures, creating an exclusive atmosphere. As one infamous email stated, “Grid access passes should be reserved for celebrities, people of note, or glamorous individuals.” By sponsoring F1, B2B companies tap into this sense of exclusivity, offering high-value clients and prospects a taste of this elite world.

Networking with Decision Makers

F1 events are not just races—they’re opportunities for networking in a high-profile setting. These exclusive events are attended by wealthy decision-makers from major corporations. For instance, one company reportedly created an eight-figure pipeline by inviting a prospect to an F1 event. By featuring their logo on a car or hosting clients at the race, companies like Oracle and AWS increase their visibility and build relationships with potential clients, facilitating business deals in a memorable way.

The Nerd Effect

F1 is more about technique than speed; it is a sport for nerds. Nerds who grew up with tech…who go on to assume decisionmaking and influential positions in big tech firms. Perhaps, CTOs, Chief Information Security Officers (CISOs), and other reputed positions. B2B companies are banking on these nerds as Ideal Customer Personas (ICPs). By being present in an out-of-office place that these nerds love, B2B companies are getting an in. The fact that average deal size (hosting on AWS, database management by Oracle, etc.) can be in millions is good enough to continue sponsoring F1.

Lastly, it also helps when you get user-generated content in the form of silly jokes.

Tim Cresner provides an insightful analysis on how sponsorships help both B2C and B2B businesses in his article: https://www.linkedin.com/pulse/why-do-companies-choose-sponsor-formula-1-teams-tim-cresner