What Formula 1 Taught Me About Marketing That No MBA Ever Could
By Ori Matarasso, CMO at AvaTrade, G-CMO Forum community member
Letโs be honest.
When people hear your company sponsors a Formula 1 team, they assume youโve won the marketing lottery.
And honestly… theyโre not entirely wrong.
There are selfies with the F1 worldโs best driver, casual beers with legendary Team Principals, unlimited Michelin-starred food in the Paddock Club, champagne flowing all weekend, and access to experiences money canโt buy, like walking in the pit lane and spending time behind the scenes with the F1 team.
Itโs glamorous. Itโs exclusive. Itโs addictive.
But behind every Instagram-worthy moment are months of planning, countless meetings, and the constant realization that, just like Formula 1 itself, everything can change in a split second.
One experience in Abu Dhabi proved exactly that.
We had just 30 minutes to film the reigning Formula 1 World Champion, for one of our biggest global campaigns. He walked in, delivered every line from the teleprompter in a single take, stood up… and left.
Exactly as scheduled.
Mission accomplished.
Or so we thought.
When the footage arrived, we experienced one of the more painful realizations of my +20 years marketing career.
It turns out the worldโs greatest Formula 1 driver isnโt necessarily the worldโs greatest actor.
Behind the wheel? In his zone โ unstoppable!
In front of the camera? Letโs just say he wasnโt exactly in his comfort zone…
Despite every editing trick we could think of, we eventually killed the campaign. Weeks of work disappeared overnight.
Formula 1 teaches humility remarkably fast.
So why Formula 1?
In Fintech services, sponsorship is often about trust. Most brands choose football, basketball or other popular sports teams (few years back we also sponsored Manchester City FC).
This time we deliberately chose something different and were one of the first Brokers to lead the way in sponsoring F1 teams.
With only ten teams, Formula 1 offered us a rare โblue oceanโ, less clutter, fewer direct competitors, as each team allowing only one sponsor per category, and a perfect association with precision, innovation and performance. It also allowed us to maintain our โGlocalโ approach – Aligning with a Global brand but still keep the Local experience with races in about 20 different countries, many of which we also have Local Offices at.
After sponsoring Aston Martin F1 team for 2 years, we had the opportunity to partner with Oracle Red Bull Racing, arguably one of the worldโs most creative brands in the world.
Ironically, despite their incredible creative reputation, the campaign that became our biggest success to date didnโt come from Red Bull.
It came from our own marketing team, here in Israel (G-CMO Israel is in the house!)
We called it The Best Job in the World.
Instead of simply giving away race tickets, we invited fans on social media to convince us to chose 1 fan that will become our Formula 1 ambassador. The winner received a 3-days-all-inclusive trip to Abu-Dhabi, VIP-money-canโt-buy-experience, with behind-the-scenes access to the team, the Paddock Club, the garages and the drivers – all in exchange for documenting the experience on social media. Ohโฆ and we actually also paid them… after all, we promised them the best job in the world…
The response was overwhelming.
Our registration site almost crashed. The collab with ORBR social accounts was absolutely amazing! Our SM exploded with new followers and engagement…
We won the moment!
And then came the question every CMO eventually hears (and loves…):
โSo… whatโs the ROI?โ
Media value reports look impressive, same goes for our Social KPIs.
Nielsen estimates are useful.
Brand awareness studies provide a great direction.
But none of them answer the CFOโs favorite question.
โHow much money did this actually generate?โ
Surprisingly, the biggest return, that can be actually directly tracked and attributed came from something we hadnโt expected to become the sponsorshipโs superpower: VIP hospitality.
Across our key markets, we invited top partners & clients to Grand Prix weekends, giving them exclusive access to the team, the drivers and unforgettable experiences.
When we compared guests revenues before and after those events, we discovered the real benefit with incremental revenue and increased LTV and ARPU. Boom!
Not because our logo appeared on a Formula 1 car.
Because unforgettable experiences build unforgettable relationships.
3 lessons Iโll take with me:
A sponsorship isnโt a logo placement. Itโs an entire marketing ecosystem of content, PR, social, customer engagement and experiences.
Great ideas donโt always come from the biggest creative agencies or brands. They usually come from the people closest to the customer.
Plan everything. Expect the unexpected anyway. Thatโs true in Formula 1, and even more true in marketing.
And finally…
If you ever get the chance to sponsor a Formula 1 team…
Take the meeting (tell them youโll meet them at the raceโฆ you need to experience it by yourself… it worked for me perfectly well in Barcelona, before we signed our sponsorship with Aston Martinโฆ).
The marketing lessons are priceless.
The champagne is pretty good too.