Attention all F1 Fans, yesterday Marketing Week broke the news that the top F1 sponsors have grouped together to form an alliance named F100, aimed at maximizing on their combined annual investment of £458m. Sponsors; Shell, LG and SAP are set to be leading the agenda of the proposed 3 meetings per year that will aim to represent the brands interests. Sponsors will be able to compare notes and develop ways to maximise their partnerships.

Entry into the F1 playground involves enormous investment with the cost of sponsoring an individual team for the season at about £25m and with one-off race sponsorship at up to £5m. It is therefore a smart move for the brands to look to protect this investment as well as question the return.

This present season has been successful in welcoming more than 25 new and returning brands – ranging from newcomers like TW Steel, Full Tilt Poker and the Tune Group to returning major brands like HP, Lada, CNN and Burger King, proving that there is still a perceived value in entry.

Many top brands are attracted to global sponsorship platforms that appeal to their clients, promote the brand globally and make good commercial sense. A combination which UBS clearly saw in F1 as yesterday, they agreed a new global deal which will be launched in Singapore. They will be just one of many companies that will benefit from the F100 concept which, “ will allow the sponsors to both learn from each other as well as propose change for the good of the sport”, says former F1 commentator James Allen.

Interestingly, unlike other sports, the F100 alliance shows that competing brands are choosing to co-operate rather than be conflicted in their sponsorship strategies. With a sport that attracts over half a billion viewers it is a move that is likely to be rewarded in the long run.

Photo taken by me! Spot the famous person in the background. No not Lewis Hamilton.

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