Desi F1 unleashes marketing blitzkrieg
Sources in the Indian Grand Prix circuit say title sponsor Airtel has spent around Rs 30 crore for three seasons spread over three years.
CHENNAI/MUMBAI: The smell of burning rubber. The screeching of cars zipping around at 300 km/hour. The vra vra vroom pit babes. The speed, the thrill, the big money, the bigger egos-Formula 1 isn't called a marketing circus for nothing. And with its desi debut lined up end October, the marketing buzz is beginning to turn ear-splitting.
Although there are no confirmations from companies on the figures, sources in the Indian Grand Prix circuit say title sponsor Airtel has spent around Rs 30 crore for three seasons spread over three years. Alongside Airtel, the other big sponsors include Red Bull (which will bring everything from its aero models to its bikers and all that they have in the name of adventure to India by September end), UB group (which owns Force India and is the only Indian team in F1), Mercedes Benz, Shell, Renault, Castrol, JK Tyre, Vodafone, Tag Heuer, Helix-you name it. Many companies that haven't signed up as official sponsors are now joining the fray in a slightly different capacity. Hero Motors, for instance, has signed up with Narain Karthikeyan who will drive his Hispania car at the Indian Grand Prix.
TICKETS
The track owners JPSI has spent $400 million on building the track and stadium alone. Given that there are around 100,000-odd tickets for sale-already the lowest denominations, worth Rs 2,500 and Rs 6,000, are sold out, says Sameer Gaur, MD of JPSI-the gate money should be in the region of around Rs 1,000 crore. The platinum boxes, worth Rs 50 lakh, have been booked by corporates like Citi, Venky's, Kingfisher and JK Tyre not to mention some of the top business names in the country. Top of that heap though will be the box bang opposite the grand stand with a cool tag of Rs 1 crore. Gaur refused to divulge details of who has snapped that up. Of course even with all our billions you may still not be eligible for the Paddock Club, the most exclusive club in the F1 firmament. Entry costs $4,500 apiece but just buying a ticket doesn't ensure you're chosen-that's left to Bernie Ecclestone and the boys who run FOM (Formula One Management) to scan your application and then take a call. It's not just tickets which are disappearing; even hotel rooms in the vicinity are sold out.
ADVERTISING
TRPs
F1 is about association, an opportunity to engage with the potential consumer, rather than sheer exposure. That, says Balsara, is part of a growing trend in the advertising world "where the chain has moved from exposure to engagement". Which also explains the money pouring into a sport that still doesn't boast top gear TRPs. Says Anamika Mehta, branch head Lodestar, Delhi: "Typically, the target group is the 15- 24-year-old and the TRPs for a F1 race is between 6 and 8 against 2 of a home series test match."
The low TRPs mean that there would a "lot less money involved when it comes to advertising" and more "below the line marketing for the event". At any rate, she says, when it comes to advertising inventory the "India feed is only about 600 seconds and a good part of that will be retained by ESPN for pricing it at a premium closer to the event." For now, though, the price of a 10 second ad is roughly Rs 1-1.2 lakh, which is double that of cricket. However, unlike cricket, the duration of advertising is limited since there are no ads in the middle of the race.
Highlights:
- Despite lower TRPs, the price of a 10 second ad is roughly Rs 1-1.2 lakh, which is double that of cricket.
- The lowest denominations, worth Rs 2500 and 6000, are sold out
Although there are no confirmations from companies on the figures, sources in the Indian Grand Prix circuit say title sponsor Airtel has spent around Rs 30 crore for three seasons spread over three years. Alongside Airtel, the other big sponsors include Red Bull (which will bring everything from its aero models to its bikers and all that they have in the name of adventure to India by September end), UB group (which owns Force India and is the only Indian team in F1), Mercedes Benz, Shell, Renault, Castrol, JK Tyre, Vodafone, Tag Heuer, Helix-you name it. Many companies that haven't signed up as official sponsors are now joining the fray in a slightly different capacity. Hero Motors, for instance, has signed up with Narain Karthikeyan who will drive his Hispania car at the Indian Grand Prix.
TICKETS
The track owners JPSI has spent $400 million on building the track and stadium alone. Given that there are around 100,000-odd tickets for sale-already the lowest denominations, worth Rs 2,500 and Rs 6,000, are sold out, says Sameer Gaur, MD of JPSI-the gate money should be in the region of around Rs 1,000 crore. The platinum boxes, worth Rs 50 lakh, have been booked by corporates like Citi, Venky's, Kingfisher and JK Tyre not to mention some of the top business names in the country. Top of that heap though will be the box bang opposite the grand stand with a cool tag of Rs 1 crore. Gaur refused to divulge details of who has snapped that up. Of course even with all our billions you may still not be eligible for the Paddock Club, the most exclusive club in the F1 firmament. Entry costs $4,500 apiece but just buying a ticket doesn't ensure you're chosen-that's left to Bernie Ecclestone and the boys who run FOM (Formula One Management) to scan your application and then take a call. It's not just tickets which are disappearing; even hotel rooms in the vicinity are sold out.
ADVERTISING
ADVERTISEMENT
So what explains the mad marketing rush for an F1 footprint? The TRPs may not compare with cricket but F1 is a potent marketing opportunity. Says Sam Balsara, CEO of Madison: "F1 as a concept has tremendous appeal for young, modern, dynamic and fast-paced companies. They want to appeal to people with the same characteristics and F1 offers that platform. The TRPs may be miniscule but exposure will be very high." That's pretty much what convinced Airtel to pitch for the Indian Grand Prix. Says Airtel CEO Sanjay Kapoor: "Brand Airtel has always used sports to connect with the audience. The characteristics of both Airtel brand and F1 is similar, as they both stand for freshness, youth and dynamism. Given the demographics, this is a sport that will be very relevant for India and more so given the 14 % growth of the $40 billion sports marketing business (sports, sports entertainment, sponsorships and sports goods retailing) in the country," he explains. TRPs
F1 is about association, an opportunity to engage with the potential consumer, rather than sheer exposure. That, says Balsara, is part of a growing trend in the advertising world "where the chain has moved from exposure to engagement". Which also explains the money pouring into a sport that still doesn't boast top gear TRPs. Says Anamika Mehta, branch head Lodestar, Delhi: "Typically, the target group is the 15- 24-year-old and the TRPs for a F1 race is between 6 and 8 against 2 of a home series test match."
The low TRPs mean that there would a "lot less money involved when it comes to advertising" and more "below the line marketing for the event". At any rate, she says, when it comes to advertising inventory the "India feed is only about 600 seconds and a good part of that will be retained by ESPN for pricing it at a premium closer to the event." For now, though, the price of a 10 second ad is roughly Rs 1-1.2 lakh, which is double that of cricket. However, unlike cricket, the duration of advertising is limited since there are no ads in the middle of the race.
ADVERTISEMENT
Highlights:
- Despite lower TRPs, the price of a 10 second ad is roughly Rs 1-1.2 lakh, which is double that of cricket.
ADVERTISEMENT
- The lowest denominations, worth Rs 2500 and 6000, are sold out
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