Industry: Sports and entertainment
About the company
Formula 1 (as shown in Figure 8.2) is the commercial entity responsible for organizing and managing the Formula 1 World Championship. Established in 1950, Formula 1 has since evolved into a multi-billion-dollar business, captivating a vast global audience and substantial commercial interest. The company’s primary objective is to oversee a series of high-profile racing events held across various countries, showcasing the world’s most skilled drivers and technologically advanced racing cars. Serving as a mediator between teams, sponsors, broadcasters, and other stakeholders, Formula 1 ensures the seamless operation of the championship and the preservation of the sport’s prestige and marketability.
Figure 8.2: Formula 1 Logo (https://www.formula1.com/en.html)
As a company, Formula 1 derives a significant portion of its revenue through a combination of broadcasting rights, sponsorships, ticket sales, and licensing deals. Broadcasting rights are particularly lucrative, as the sport enjoys a massive TV and online viewership worldwide. Major brands and corporations are attracted to Formula 1 as a powerful platform to advertise their products and services to a global audience, leading to substantial sponsorship deals. The company also invests heavily in research and development to continuously improve safety measures and the overall racing experience. Formula 1 continues to evolve, embracing sustainability initiatives and technological advancements to remain at the forefront of global motorsport and thrill generations to come.
At the center of the Formula 1 business are the fans. Formula 1 fans are global, generally higher income groups, and technologically savvy. The fan experience is of paramount importance for Formula 1, as it plays a crucial role in shaping the sport’s success and sustainability. Fans are the lifeblood of any sporting event, and in the case of Formula 1, they create an electric atmosphere that amplifies the excitement and drama of each race. Engaging and satisfying the diverse global fan base is essential for maintaining and growing Formula 1’s viewership, attendance, and commercial appeal. Providing fans with an unforgettable experience at the racetrack, as well as through digital platforms and media, fosters a deep emotional connection to the sport and its stars. Their passion and loyalty drive the demand for merchandise, ticket sales, and sponsor engagement, which, in turn, contribute to the financial health and longevity of the championship. By prioritizing the fan experience, Formula 1 can continue to captivate and inspire generations of motorsport enthusiasts, ensuring its position as a premier sporting spectacle for years to come. Creating and providing an immersive and engaging fan experience is crucial for the motorsports business. Major chunks of F1’s revenue come from broadcast rights, merchandise sales, and ticket sales.
To be at the forefront of the ever-changing digital experience for its fans, F1 partnered with Salesforce to provide its fans with the best experience: both offline and online.