Abu Dhabi: Etihad Airways, the title sponsors of the Abu Dhabi Grand Prix Formula One and partner of Ferrari's Formula One team, term their involvement with F-1 as the pinnacle of sports sponsorship.
Speaking to Zayed University students over the weekend, Michael Johnson, Manager F-1 Marketing, Etihad Airways, said: "Sport sponsorship is a very important part of Etihad's marketing strategy. Etihad is involved in some high-profile sports sponsorships like that of Chelsea Football Club, Harlequins Rugby Football Club, the All Ireland Senior Hurling Championships, the Abu Dhabi Golf Championship, the Abu Dhabi Tennis Championship, the Al Ain Air Show, the Etihad Stadium in Melbourne and our latest and newest being Manchester City FC. However there is no question that Formula One is the pinnacle of sports sponsorship."
"Formula One racing is one of the most watched sports today. Over 600 million watch each of the Grand Prix races through the year with 10 teams and 20 drivers battling it out for the World Championship. An accumulated audience of over 10 billion watches the sport," Johnson said.
Changing nature
"By comparison, only 4.7 billion watch the Olympic Games and that is once every four years," he added.
Johnson also highlighted the changing nature of sports sponsorship and explained: "Sport sponsorship is no longer about feel good. You look forward to return on investment [ROI]. If properly executed, the ROI on sponsorship is very, very high. On a dollar put into paid advertising you get a dollar back. In sponsorship you can look to a return of 4:1, 5:1, 6:1. So it is a very effective way of getting your brand message out there."
Stressing Etihad's involvement with Formula One, Johnson said: "Sponsorship is also a very emotionally engaging tool. For a new brand like us our involvement with Ferrari enhances our brand prestige, our brand credibility. Etihad has been around for just five or six years while Ferrari has been around for 80 years. It is a remarkable achievement to be involved with Formula One."
"Etihad's sponsorship of Formula One is a rational, calculated business investment. It is not something that in the past was done because the CEO likes golf or the CEO likes tennis. There has to be a return on investment in sport sponsorship today," Johnson said.
Without revealing Etihad's commitment, he said: "It is a high investment. For most at the entry level of sponsoring Formula One we are still talking millions and millions of dollars. With that high investment comes incredibly high return on investments.
"We don't just sit back and think it is working. We monitor it on a regular basis using high technology methods through an independent third party. Every week we get a detailed report on where our brand was seen, how it was seen and the quality of that exposure. Then we get an advertising equivalent in value and then say ‘yes this is actually paying off for us'."
Brand exposure
"In 2008, through our Formula One sponsorship, we derived 42 minutes of brand exposure for Etihad Airways — a value of $30 million [Dh110 million]," Johnson said.
"The power of Formula One is so great that when we brought Kimi Raikkonen to Abu Dhabi last year and Felipe Massa this year- both events generated $4 million worth of exposure," he added.
Commenting on Etihad's sponsorship of the Ferrari F-1 team, Johnson said: "In Ferrari we have a number of positions obviously on the car. The name on the rear wing is the most prominent. We are also on the front flaps from the Italian Grand Prix of this year. Also on the cockpit side we have the closest proximity to the Ferrari brand than any other sponsor. The Etihad brand is also sported on the chin of the driver's helmet as well as on his sleeve."
Etihad Airways have an official title-sponsor deal with the Abu Dhabi Grand Prix for three years with the option of extending it for a further two years.
