Creating a Business Plan

business plan

Following on from the previous assignment, the business plan was meant to be the next formal step in getting a programme to air.

Again, this is a more business orientated assignment. If you have no particular interest in business plans, then look away now. Ye be warned!

On a more serious note, the business plan was an interesting assignment as it taught me more about business in media than I had to this point in the degree. So well worth it for all round knowledge. Although this isn’t the greatest business plan known to man, the end result was decent (at least the marks reflected it!) especially as I had never created a business plan like this before!


Formula Fan

Take the Wheel

This plan is designed to compliment the existing proposal for Formula Fan: Take the Wheel by providing further analysis, proposals and opportunities to develop the programme.

Personas

As per the existing breakdown from the previous document, the main aim of this programme is to appeal to the following age groups:

  1. 35-49yr male (existing audience)
  2. 18-25yr female (growth aim)
  3. 18-25yr male (growth aim)

Overall focus will be around the 18-25yr groups, with an aim to not alienate existing audience.

It is important to note that the data surrounding this data has been understood from Assignment 1a, however links to the relevant data has been provided in the references.

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Marketing Opportunities and Promotional Ideas

With the above personas, as well as the overall aim of rapidly boosting the Formula 1 brand by using the Formula Fan programme, the following marketing opportunities have been identified.

Mark (35-49yr male group)

This is the largest existing market and it is key through all of this to show that they are not being overlooked.

Awareness

Traditional Media – the older age group still consumes a lot of traditional media, especially when it comes to newspapers, TV and radio, coupled with only occasional online consumption.

Newspapers – traditional adverts promoting the product work best here and is a tried and tested option. Additionally, a one-off write-in with questions during pre-season, with an advert run building up to the segment in the paper(s). The one-off nature of this also limits the time aspect of this, allowing for a reasonable rate of return for a (relatively) small time investment.

A key metric for these could be for interaction we get with fans regarding write-ins, as well as improvement in viewership for associated programming being advertised and overall sentiment for the brand and production.

Additionally, for the PR group, additional promotion can take place within the Official Formula 1 Magazine (Formula 1, 2020). Which allows us free promotion space as well as being able to completely control the content.

Radio – a solid focus on sports shows on Radio 5 Live to allow conversation with fans via phone ins. Can use special guests (racing drivers and senior teams’ staff etc) to drive localised conversation, taking advantage of both Formula 1’s global audience and workforce.

A key metric here would again be observing the frequency of fan interaction in the phone-ins, as well as both fan and guest participation sentiment.

TV – traditional adverts have been proven to be most successful here in the past yet using them to specifically drive an increase in viewership through promotional codes for discounted programming through Sky Sports F1 allows more direct tracking for metrics for traditional content. Additional codes for Formula Fan (allowing additional votes for instance) would be another useful way to track engagement.

Additionally, as Formula 1 controls its own broadcast output, it is in a significantly easier position to promote Formula Fan across all Formula 1 content.

Facebook – using a more targeted approach through Facebook with existing fans to promote content for Formula Fan on Official F1 and Sky Sports F1. The advantage here is that the content can be controlled by ourselves allowing for more direct interaction, as well as not costing to add daily content into people’s feed. Additionally, ad revenue can be spent to either drive traffic to the page or just straight into Formula Fan.

Interest

Once we have the awareness of the existing fan base, the key focus will be to show how the Formula Fan programme can enhance their race experience. This will involve leveraging additional official Formula One programming to promote the programme, as well as make the Formula Fan experience as simple and straight forward as possible.

This is additionally key for the brand as most of the content will be video based which is then being enhanced by the Formula Fan experience. The main promotion for this will be a completely open experience for Race 1, allowing people who have not traditionally been used to this sort of experience with Formula 1 to see what is available.

As well as using all the above options for bringing them to the Formula Fan programme, once we have details on the platform, a more direct method can be used to promote the programme to them, as well as giving both themselves and friends and family bonuses if they get them to sign up to the service.

With this in place, we’ll have a robust way to track personal user click through rates, as well as user generated sign-ups to the platform.

Desire

Based on having the user being on the platform, the focus is very clear and that is to provide them content how they want it. We can take advantage of them being online with the service to ask direct, personal questions about the sort of content they would like to see, as well as to gather critical feedback about the product.

This personalisation of the content is critical to the success of Formula Fan, so although the existing userbase is more traditional, allowing them to see that they can get more deeply involved in the race weekend, as well as directly drive what content is effectively shown across partner programming is key.

Although we have our own account sign-up, making sure that a user can register with the programme with their existing social media platform is crucial, as well as making it a seamless experience for the user to write a review on their platform of choice. This is mainly down to the userbase in our existing market generally not being as comfortable with this sort of technology, so any way to streamline and simplify is key.

Main navigation needs to be through a large button format on screen with easy to read font and language, with simple visuals to compliment the content. It is important at this point to not confuse the user with excessive ads or anything that will take them off the platform.

Key metrics here to keep in mind will be bounce rate, time on the platform and pages viewed.

Action

For the less tech-savvy existing market for Formula 1, the entire call to action is focussed around one simple action: taking part. Building from the promotional optional content, the focus here is making sure they engage with Formula Fan during the race weekend. This is done by tracking what drivers/teams they have shown an interest in, along with giving them unique insights into other aspects of the sport, based on if any additional data around their signup (radio, TV, magazine) is available.

It is at this point the focus will be on making them interested in purchasing the unique content only available through Formula Fan, taking advantage of them knowing about how the product worked early on and all users having free access to Race 1 whenever they are joining to get a feel of the service.

Throughout the weekend, having a simple feedback form available where they can voice their thoughts on what they did or did not have will be crucial in knowing how to further personalise the service for them.

Sarah (18-25yr Female Group)

As one of the key growth aims for the audience, although the end goal is the same, the initial steps for how to get hold of them will be drastically different.

Awareness

Style, Fashion, relationships, online. These are the key focusses for the persona that we need to keep in mind in order to grab their attention in a very busy world.

Unlike the more traditional marketing with our existing audience, this group is the furthest away from our norm. Within this, we must show a different side to Formula one to allow the group to see what we can offer with Formula Fan.

TV – America’s Next Top Model, Love Island and Project Runway. All shows based around style and fashion. It is here where we need to leverage our existing premium brand partners to focus around the glitz and the glamour that Formula 1 has to offer.

For shows like America’s Next Top Model and Project Runway, we need to directly approach the producers of these shows to pitch to them that we need models to be the faces of these various events, then as the viewers get pulled in by the format of those shows, offer their viewers promotions for Formula Fan almost passively (launch event for Formula Fan for example) as well as actively (both discounts to join and competitions to win trips to Formula 1 race weekends).

For shows like Love Island, we can push being the head sponsor for a season, allowing the brand to be showcased through every aspect of the show. Although this will come at a significant cost, promoting content like this goes directly to the group we’re aiming to see and previous head sponsors have seen huge spikes down to the show.

This is shown by the types of sponsors that shows like this are grabbing. Degun (2020) cites Spotify and TikTok as new Love Island sponsors, showing that brands which are traditionally looking for the 18-25yr female group are aiming heavily at these TV audiences.

Grazia – a key magazine and online fashion hub for influential women has a massive young female audience (Johnson, 2020), with a monthly reach of 2.76 million 15+year olds through both physical and online media for both general readers and visitors. Specifically, 1.2 million of these are identified as women which is impressive monthly users. Everything is carefully curated for the brand, allowing multiple links into Formula 1 either directly with our drivers and spouses (if they agree to take part) and our corporate partners.

More telling from our lack of focus on this market segment until now is the last piece run by Grazia was back in 2018 with the banning of grid girls (Spratt, 2018). This is frankly shocking when between Formula 1 and our teams, nearly every premium brand is covered (Leahy, 2020)

Podcasts – humanising the sport has traditionally been seen as a weakness. With drivers having to handle extreme physical and mental stress, it would be a great avenue into humanising the sport and making it more appealing for the female audience. This would be a focus on self-help regarding mental stresses and health and could both be one-off episode with an individual driver or senior team staff or indeed a weekly or daily series depending on participation.

Instagram – using Instagram as the main social media focus, the main aim here is to use our industry leading photo and video content to heavily promote the brand as well as Formula Fan. However, within this we need to work with influencers on the platform who also do both photo and video content, while having a large young female audience. Examples to reach out to would be the likes of Saffron Barker (1.5m followers), Niomi Smart (1.5m followers) and Patricia Bright (1.2m followers), all of which do this with their content and would have significant reach in a young female audience.

Additionally, it would be worthwhile tapping existing sources of car influences online, with the likes of supercarblondie (5.9m followers) as well as generally large younger influencers with carefully curated projects with them and partner products (like Emma Watson; 55.6m followers).

Interest

Once we have initially gained visibility with this group, it will be critical to use the platforms to help drive interest in Formula 1 and the Formula Fan programme. Unlike with the more “serious racer” groups, the focus here would be around humanising the sport, as well as making these audience members part of the Formula Fan world, through partnership promotions with our existing sponsors to this group while being a lot more “behind the scenes” in nature and not just based around fast cars.

Although the grid girls are a thing of the past, we need to take a behind the scenes look at the parties, the launch events and the tentpole corporate events during the race calendar. Although the removal of the older out-dated sexism of Formula 1 for a more family friendly corporate event has been successful on the whole, not being able to see the more glitzy side of the business has led to a stale out-of-touch image which needs to be turned around with this sort of promotion.

Significant focus is needed here to focus not just on the fashion and style aspects of Formula 1, yet a hearts and mind campaign around other partner groups (W Series) as well as significant highlighting of women in Formula 1, especially success stories like Claire Williams (Team Principal – Williams F1) and Jamie Chadwick (Williams F1 Development Driver and W Series 2019 Champion), the latter being a potential key influencer with being aged 21.

The general aim of podcasts would be that growth outside of our usual market. This would generally be a longer-term investment as the largest cost is the time involved. Begum (2019) listed several self-care podcasts on Women’s Health and it would be well worth looking at developing specific programming with these podcasts, with the aim of promoting Formula 1 as a whole, while giving additional promotion and discounts for the Formula Fan programme as a jumping off point.

The focus will be promoting the free initial access to the new content on Formula Fan, with a more personal view of the race weekend than is traditionally available. This push can be done directly within W Series too, as the F1 2020 races in United States and Mexico will have the W Series as support races over the weekend.

Social media influencers are used to providing their followers with promotions so we can promote the new race weekend content with them by providing discount codes (allowing metrics) while providing the influencers with race access to allow them to create their own content.

For large influencers, the important aspect will be to work with them and their brands so that it makes sense for their existing image when we contact for collaboration. For instance, with Emma Watson being an established women’s activist and sustainable fashion advocate, focus around women drivers like Jamie Chadwick and conversations with successful women in the industry like Claire Williams would be key.

Desire

As mentioned above, once we have pulled the audience into our Formula Fan platform, the key will be providing them with an incentive to stay, even if it’s not just based around the race weekend.

Although we have our own account sign-up, making sure that a user can register with the programme with their existing social media platform is crucial with us using social media influencers, as well as making it a seamless experience for the user to write a review on their platform of choice. That being said, once they are registered on the platform, we can feel more comfortable with giving them a significant amount of customisation for their content, as this will be something they’re familiar with on the other platforms.

Here, we will flip the social influencers and other sources on its head, getting these various groups to provide Formula 1 with original content over the course of the race weekend, with the only way to access being via the Formula Fan app, making it a far more social hub than additional tool for the race weekend for these users.

However, within all this secondary content, there needs to be a sustained push towards the main Formula 1 brand and Formula Fan content. The useful aspects here being (for example) through the Formula Fan app users can experience Jamie Chadwick during the practise runs or get to see behind the scenes with Claire Williams as she runs the team during the whole race weekend.

Action

These are individuals who know all about personalisation in their marketing. This is something that we can exploit by using the likeness of social media influencers when they’re creating content for us to provide tailored purchase cues for the users.

This will allow us to not only have specific ROI metrics based on certain influencers but also lets us see overall conversion based on general exposure metrics provided through social media account sign-ups.

If we want to additionally customise this experience, we could get influencers to record stingers using a selection of common female names, allowing us to give users a tailor-made response as a thank-you for signing up and being in Formula Fan.

Generally speaking, these fans will be the last to directly take part in the race weekend with what we have available on the app for both the VR content and fan boost, yet it does allow us to heavily promote and encourage participation, which is currently something the brand is not doing.

Steve (18-25yr male group)

One of our unique growth groups is the younger male audience. Although the older traditional audience engaged more for the fast cars and beautiful women, the younger age group haven’t had the same social upbringing and as such need a slightly different approach to get them engaged with Formula 1 as a whole and specifically Formula Fan.

Awareness

This sort of group falls solidly into the social browsers, essentially those who might consume just as much content as their female counterparts but rarely engage themselves (at least in terms of commenting and sharing). Therefore, there are several unique challenges when getting them to be aware of Formula Fan enough to check us out.

The key to this is to heavily lean on their existing products, either through partnerships or promotions, to allow for maximum engagement potential with the user group.

Reddit – we have already had recent success on this platform, especially with the AMA (Ask Me Anything) format. This could be expanded by working with the Formula 1 sub-reddit to focus on the technology and drivers who will be using Formula Fan initially, as well as giving the users on Reddit a chance to do early tests of the service during pre-season testing and provide us feedback. This would mean bringing the Formula 1 technology team up to speed with how the platform works so their answers can be more simply translated by the social media team when they post replies.

The general aim here would be to use their interests in sports and technology to benefit us in both testing the platform before it gets a surge from general audiences, as well as making this group feel special for the early access.

BBC Radio 1 – with its focus on a wide mix of music content, our brand focus should be to be a main sponsor for key events for them during the winter months in the build-up for the start of the season. This can be through creation of Charity events for them as part of the work they do for Comic Relief, as well as being sponsors for events like their Big Weekend. This has been done in the past, most notably with Jenson Button promoting the F1 as part of Sport Relief in 2010, “F1 Star hops to it for Sport Relief”.

The Guardian – traditional adverts promoting the product work best here for passive build-up of the brand and is a tried and tested option.

One positive aspect for Formula 1 is that The Guardian has pushed both its physical and online presence, along with its reputation which provides us with multiple opportunities for additional product placements. A metric for these could be for interaction we get with fans regarding write-ins, as well as improvement in viewership for associated programming being advertised and overall sentiment for the brand and production. Additionally, if we have the articles and content go into the physical paper first, they can then be posted online too which allows us not only two hits at an audience group but also allows the option for additional feedback online.

TV – this is the part which most closely resembles our existing audience base. Traditional adverts have been proven to be most successful here in the past yet using them to specifically drive an increase in viewership through promotional codes for discounted programming through Sky Sports F1 allows more direct tracking for metrics for traditional content. Additional codes for Formula Fan (allowing additional votes for instance) would be another useful way to track engagement.

Interest

With this group especially, with using a lot of standard platforms we can use a lot of tried and tested metrics to see if our promotions are being successful. However, in terms of getting the audience to stay involved with the Formula Fan app, we need to provide that hook to get them invested.

With online, both on Reddit and with The Guardian online content, a lot of this will be providing a more regular back and forth between Formula 1 (through the Formula Fan app) and these platforms. With Reddit AMA content, that interaction is very instantaneous, however we need to make sure that we offer a wide variety of contacts through this. For this age group, this would mean focussing on our younger drivers, as well as junior members of the various Formula 1 teams, with the key being that the Reddit audience can be an equal part of the race weekend by being a part of Formula Fan. With this group, specific focus on the Fan Boost technology and the VR experience will be key as it allows them to have direct interaction with the brand without having to feel the need to comment directly, which suits their browsing habits.

For radio and TV, these are more one-way communication and a lot of this will rely on clear marketing on those platforms and then providing these users an easy way to register with ourselves to try the Formula Fan app. An additional option here is to simply focus on one aspect of the Formula Fan app, so either the Fan Boost or VR experience. Fan Boost especially has an existing marketing plan within the FiA and has proven popular with this group, so should be used as the main hook when promoting the app to them. It is worth noting that unless we have a clear promotional code with this, it will be harder to monitor click-through-rate, however this can be resolved through the account creation process.

Desire

On a practical level, a lot of the content we will be providing this user group is content we are already planning as part of the broader Formula Fan app. As well as the flagship Fan Boost and VR experiences, having easy access to other online content that allows the user group to simply browse will be key for keeping them on the platform.

This means, just like the other groups, a focus on a very clean and easy to use user interface will be critical, as well as having multiple customisation options available for this group to make the experience as tailored to them as possible.

Within this, the overall key will be to get them to pay to access the main content, rather than just browsing. That means that we have to not only provide them access to the content but also allow them to get discounts and promotions through our existing partners, as well as options to get discounts for the specific platforms that they initially found us on, allowing a very natural back-and-forth between the platforms. This will make it feel like a very casual browsing experience, while our brand and partners will be in control of the whole experience.

Outside of sales promotion, very similar to the younger female audience, we can investigate popular drivers and senior production team staff recording various stingers and interstitials to use for the promotion of the Formula Fan app.

Action

One main advantage we have of using this sort of promotion is we have a clear set on what sort of content the users are interested in being a part of with Formula Fan.

The focus will be on making them interested in purchasing the unique content only available through Formula Fan, taking advantage of them knowing about how the product worked early on and all users having free access to Race 1 whenever they are joining to get a feel of the service.

With being general browsers, we will have to pay stricter attention to the conversion rate of this group as generally we will not be getting any physical feedback from the user group.

One potential advantage that could be investigated is with the user group being a large merchandise purchaser traditionally, discounts could be tied into the Formula Fan app for the Formula 1 merchandise store.

Revenue Drivers

Summary Matrix

The following are examples of some key revenue drivers both directly on the Formula Fan app, as well as the surrounding brand and partners, based on the above persona breakdowns.

Overall promotion will be stated, as well as what this is being used for driving (just app sign-ups or Formula Fan subscription for example).

Matrix is designed to see at a glance what services are being aimed at which groups for which level of access. Initial setup relies heavily on brand partners for pushing installs of app and subscription, which can evolve over time. For more detail, see the individual group breakdowns below.

35-49yr male group

Promo with Sky Sports F1: sign-up driver for Formula Fan app from Sky Sports F1, using promotional code used on channel.

Driving: initial sign-ups as well as a limited period promotional discount on subscription for Formula Fan.

Competition – tickets to race weekend: as Formula 1 and FiA control access to the race weekends directly, a chance to win tickets to the race weekend each week. Competition can only be accessed via the Formula Fan app.

Driving: Sign-ups to Formula Fan app, as well a general enthusiasm for race weekend (traditional revenue options then available).

Coupons – driving experience: a single car, 15-minute quick ride at the track being used for the current race weekend. Opportunity to promote Formula Fan app with local audience within this group, no need for additional hardware as this is something F1 teams have available in limited capacity at each race weekend for VIPs.

Driving: Subscriptions on the Formula Fan app, as well as encourage locals to visit during the race weekend. Small discount to all users (allows large sign-up promotion), larger discount for Formula Fan subscribers (main focus).

“Favourite Team” F1 merch discount: using data from who the user supports on the Formula Fan app, offer discount on that team/driver merchandise on the Formula 1 store.

Driving: subscriptions for Formula Fan. Discount is a limited pop up during race weekend on the app for subscribers (subscription sign-up advertised reward).

Formula Fan merch discount: discounted Formula Fan branded merchandise. Allows users of the app to reward themselves with merchandise, although it’s essentially an easy way for us to drive additional purchases as well as advertise the product for free with users wearing the Formula Fan merch.

Driving: subscriptions for Formula Fan. Discount is always available to subscribers (subscription sign-up advertised reward).

Race Weekend ticket discount: like the competition rationale, can give general access discount for the full weekend ticket. Gives a possibility of more local groundswell attendance, which in turn can bolster traditional race weekend revenue. Can be combined with Favourite Team and Formula Fan merch discounts at the track, rather than just online.

Driving: subscriptions for Formula Fan as well as race weekend attendance. Discount is a set rate, available all year round to subscribers to Formula Fan, to allow time for users to plan around race weekends. (traditional revenue options then available).

F1 exhibition access: several longer established tracks have museums and exhibitions for visitors, which are normally locked down to general public during race weekend (limited VIP access only). Formula Fan app gives access.

Driving: subscriptions for Formula Fan as well as race weekend attendance. Access is only for individual + 1 additional guest (plus children if a family). Allows access to an already available product at the racetracks which have them.

The Daily Express Subscriber Promo: discount off Formula Fan subscription for The Daily Express subscribers. The Daily Express users given discount code for Formula Fan subscription.

Driving: subscriptions for Formula Fan from The Daily Express subscribers. Market segment specific promotion.

Advertising: Additional targeted Ad spaces available for car manufacturers and tech companies, based on user data.

18-25yr female

Promotion with Lush: cross promotion with brand and Jamie Chadwick. Items available to public, however small discount available for Formula Fan app users.

Driving: sign-ups for Formula Fan app. Using the promotion to be a low barrier to entry and awareness for the app.

Competition – tickets to W Series events on F1 race weekend: as Formula 1 and FiA control access to the race weekends directly, a chance to win tickets to the race weekend each week. Competition can only be accessed via the Formula Fan app.

Driving: sign-ups for Formula Fan app. Using the W Series as a female centric event which takes place during the F1 race weekend to appeal to female users.

Coupons – W Series photo/autograph access: coupled with the above competition, Formula Fan subscribers get exclusive access to W Series drivers for photo/autograph opportunity.

Driving: subscriptions for Formula Fan, specific focus for female audience.

Grazia subscription promo – discount off Formula Fan subscription for Grazia subscribers. Grazia users given discount code for Formula Fan subscription.

Driving: subscriptions for Formula Fan from Grazia subscribers. Market segment specific promotion.

Project Runway/America’s Next Top Model promo: discount to entry for these events for Formula Fan subscribers. Events can link into tentpole race weekends (like Monaco) to help drive glamour aspects. Additionally, Formula Fan users have the chance to win tickets to these events.

Driving: female fashion fans to become subscribers to Formula Fan.

Victoria Beckham exclusive collection: for Formula Fan brand, sold exclusively for Formula Fan subscribers for a period of time when new products release. Continuing exclusive discount code for purchases once collection is available to general public.

Driving: subscriptions for Formula Fan. Exclusive collaboration with established fashion brand to drive subscriptions for fashion conscious users.

Discount – spa day during race weekends: additional activity around race weekends to promote local business (simple cross-promotion).

Driving: subscriptions for Formula Fan. Adds a lifestyle promotion option for the service, while supporting local business.

Discount – exclusive Formula Fan branded iPhone: like U2 model in past, this exclusive iPhone design for Formula 1 and Formula Fan comes with Formula Fan app pre-installed and year subscription. Percentage of the sale goes to charity.

Although exclusive product is available to buy for all, discount on the phone is available for existing Formula Fan subscribers.

Driving: brand awareness and overall access to Formula Fan with cross-promotion. Uses Apple ID to setup Formula Fan access, which is then used to provide pop-ups throughout the year while they have the free subscription.

Advertising: Targeted Ad spaces available for just exclusive partners (Grazia, Lush, Victoria Beckham fashion, Apple)

18-25yr male

Promo with M&S Men: sign-up promotion and subscription discount with specific M&S Men purchases. Collections created in collaboration with various Formula 1 drivers each season moving forwards (current F1 Champions collection).

Formula Fan users also get early access look at each year’s new collection, as well as discount on purchase.

New purchasers of collection are given a code for a discount to Formula Fan subscription.

Driving: sign-ups and subscriptions for Formula Fan, as well as overall awareness.

Promo with TopMan: sign-up promotion and subscription discount with TopMan purchases. Collection created in collaboration with the most popular Formula 1 driver

Formula Fan users also get early access look at each year’s new collection, as well as discount on purchase.

New purchasers of collection are given a code for a discount to Formula Fan subscription.

Driving: sign-ups and subscriptions for Formula Fan, as well as overall awareness.

Competition – tickets to band performances at race weekend: With already having successful bands and artists like the Artic Monkeys performing at race weekends, having a competition to win access is a simple addition to existing product.

Driving: Sign-ups to Formula Fan app, as well a general enthusiasm for race weekend (traditional revenue options then available).

Competition – tickets to race weekend: as Formula 1 and FiA control access to the race weekends directly, a chance to win tickets to the race weekend each week. Competition can only be accessed via the Formula Fan app.

Driving: Sign-ups to Formula Fan app, as well a general enthusiasm for race weekend.

“Favourite Team” F1 merch discount: using data from who the user supports on the Formula Fan app, offer discount on that team/driver merchandise on the Formula 1 store.

Driving: subscriptions for Formula Fan. Discount is a limited pop up during race weekend on the app for subscribers (subscription sign-up advertised reward).

Formula Fan merch discount: discounted Formula Fan branded merchandise. Allows users of the app to reward themselves with merchandise, although it’s essentially an easy way for us to drive additional purchases as well as advertise the product for free with users wearing the Formula Fan merch.

Driving: subscriptions for Formula Fan. Discount is always available to subscribers (subscription sign-up advertised reward).

Race Weekend ticket discount: like the competition rationale, can give general access discount for the full weekend ticket. Gives a possibility of more local groundswell attendance, which in turn can bolster traditional race weekend revenue. Can be combined with Favourite Team and Formula Fan merch discounts at the track, rather than just online.

Driving: subscriptions for Formula Fan as well as race weekend attendance. Discount is a set rate, available all year round to subscribers to Formula Fan, to allow time for users to plan around race weekends. (traditional revenue options then available).

The Guardian subscription Promo: discount off Formula Fan subscription for The Guardian subscribers. The Guardian users given discount code for Formula Fan subscription.

Driving: subscriptions for Formula Fan from The Guardian subscribers. Market segment specific promotion.

Engagement Objectives, Data and Metrics

Throughout all the above promotions, competitions and deals, the overall aim is to build engagement in the brand (both Formula Fan and Formula 1 as a whole), which in turn will build up our audience.

As such our overall objectives should be as follows:

  1. Maintain current audience – it is crucial that we do not see a drop in the existing audience base. As such, although all Formula Fan users will have access to all promotions, it is key that we give these users an easy opt-in/-out option for promotions which would not traditionally suit their group (see: style, fashion options above). This should be a year-on-year rolling objective.
  2. Grow existing audience group by 50% – although a significant gain, data has shown that various PPV platforms lost this level of viewership from the open platform, showing that the audience is still potentially out there if given a strong enough proposition. This gain should be a medium to long term objective (3-5 years).
  3. Grow Young Female Audience by 200% – with relying heavily on cross-brand promotion with this persona group, we will expect to see a huge boost in young female viewership and overall engagement. Although this aim seems large, this would still only begin to move us towards a 70:30 male-female split. However, this is still an improvement over the current split of 90:10. This is a short to medium term objective (1-3 years).
  4. Increase Audience Split to 60:40 – as mentioned above, this is where we need to be looking as a world leading brand moving forwards. This will only be accomplished through heavily promoting female talent and available assets to the correct audience groups and will need to be constantly reviewed, monitored and improved over time. This is a long-term objective; aim should be 5-10 years.
  5. Increase Young Male Audience by 20-25% – with pushing both male fashion and technology aspects of Formula 1, along with the mobile nature of the content, this should be the short to medium term objective of Formula Fan app. Time for this objective is 1-3 years.

Data and Metrics

With the focus on building specific age groups as well as a female audience, ensuring we have enough data available to see where these users are coming from is going to be key. This will be done through multiple means, which will be detailed below.

General Formula Fan Data

This is data that we gather in app during both the initial sign-up process and then during user usage.

Sign-Up Data

  1. Name
  2. Age
  3. Location / Home Grand Prix
  4. Email address
  5. How you found the app

In-App Data

  1. Viewing Habits
  2. Popular Content
  3. Popular drivers/teams
  4. Popular promotions
  5. Popular purchases (via in-app codes for other platforms, which we can give unique ID to for tracking)
  6. Length of time using App on each visit

The general focus on the app sign-up and usage data will allow us to not only serve more tailored content but also allow us to see which persona the user sits within.

The aim there will be to allow us to further promote relevant content through the Formula Fan app for the user, to result in a high retention rate.

Where are the users coming from?

Our key data to track here are the discount codes. Each promotion (Sky Sports F1, Lush etc.) will have their own unique code system, allowing us to track users coming to Formula Fan from their platforms.

This not only allows us to get a clickthrough rate for the promotion (x users requiring z number of codes over time), yet very quickly will allow us to see a conversion rate from these into the Formula Fan subscription. Equally, once these users are on the platform, we can monitor additional data as detailed above.

The key here will be using the Formula Fan app data along with the above aim of finding out where the user came from so that we can monitor the success rate of our partner programs for the Formula Fan subscription.

Commercial and Legal Issues: trading video content through Formula Fan App

All the above is assuming that we have a robust and secure platform set up for our fans, as well as Formula 1 staff and racing teams.

Although our existing media agreement with staff and teams is being expanded to include the 3D/VR camera setup for drivers during the race weekend, other content on the app (specifically that of the user generated content) does not fall under this banner.

As such, the following is the general digital rights management outline for both the YouTube content (created during the virtual race tournaments) and other Formula Fan app content.

Fundamentally, being able to monitor this content is going to be complex and will most likely involve investment from Formula 1 to create a team to monitor the platform, as well as create automated systems to bolster that monitoring across Formula Fan. Equally, with any partners (both brands and influencers) strict terms and monitoring will need to take place and agreed upon before any content is seen by the public.

The main advantage we have is we are building out the platform ourselves and as such ultimately control the content shown there. The main disadvantages (as outlined below) are that in some instances we have to rely on the strength of monitoring and control of other parties (most notably user generated content sites).

Ownership and Copyright

Although the Formula 1 and Formula Fan brands are owned by FiA F1, as well as cars and track likeness in products like the F1 2020 game, any content created solely by a user on their own channel is their content. It is that we will need consistent communication with these content creators, and we can use them during the year to help promote race weekends, in exchange for being featured creators on our platform.

Within this, we must be careful that unknown creators are not simply taking our live feeds and overlaying their content on top to hide unauthorised broadcasts of the content, as what has happened with other sports. Luckily for our content, we can encrypt the data, meaning that users have to login on a platform if they wish to view. This is something that our partners at Sky Sports F1 do for their broadcasts, yet for YouTube (for example) it’s a touch harder.

A possible solution here would be to reach out to Google/Alphabet (and other major user content sites) to create a commercial agreement with them to allow fast automatic scanning of broadcasts from their users through their automatic filtering systems and remove them. For this to be accurate, they would need access to a live feed to see what was being broadcast to allow the automated systems something specific to look out for on race weekends and other virtual events.

For the virtual events themselves, individual users will have full ownership of the content they create, however we can keep control of the viewership by having a stream that works in a similar manner to that of the live races themselves. For an example of this in action, a good reference would be PlayStation (2019) and how they stream the Gran Turismo Sport FIA GT Championships. We already have access to the agreements with this setup through the FiA, so it would make sense to replicate this for Formula Fan content.

Copyright

It is crucial things are created this way with user generated content through external partners, as it cuts off any liability for the content in favour of the hosting platform needing to monitor this. The main part of this will be to ensure that we have a copyright notice available on the Formula Fan app to ensure that viewers are aware that we are simply hosting streams from selected content creators on YouTube, Twitch etc. and those platforms are who need to be contacted over inappropriate content. However, with reaching out to these groups as part of commercial agreements being set up, we can setup a line of communication for these issues.

Trademark

Along with protecting our own trademarked content, we must make content creators for Formula Fan, as well as the social influencers and brand partners aware that using Trademarked content as part of promoting our brand will not be allowed under any circumstances. Although this is stricter than what many might have seen (wrongly) used online, it is crucial that Formula Fan and Formula 1 brands as a whole represent themselves as a premium brand and protect both ours (and our partners) assets.

Following Legal Guidelines

One of the largest aspects of the Formula Fan system will be following national, regional and global laws, for the protect of our product, the content of the fans and those who would view our content. This is especially true with our advertising/promotion system as we are pushing that especially hard to build up a userbase for Formula Fan.

For example, UK Government(n.d.) has a guide around marketing and advertising law for the UK specifically.

It is important that we follow these regulations especially as not doing that would result in a negative brand perception.

Example Actions to Take

If any user does not abide by this outline, the following actions can be taken:

  • Block/Removal of their hosted content on Formula Fan
  • Give notice to the user about violations of our rules
  • Block and/or suspend the user from Formula Fan app.

 

References

Formula 1 (2020) The new Official Formula 1 Magazine - out now [online]

Available at: https://www.formula1.com/en/latest/article.the-new-official-formula-1-magazine-out-now.77uGMvAccOdHwpBvkdlxcT.html

[Accessed 3rd April 2020]

 

Degun, Gurjit (2020) ITV signs Spotify and TikTok as Love Island sponsors [online]

Available at: https://www.campaignlive.co.uk/article/itv-signs-spotify-tiktok-love-island-sponsors/1670246

[Accessed 3rd April 2020]

 

Johnson, J (2020) Monthly reach of Grazia magazine in Great Britain in 2019, by demographic group [online]

Available at: https://www.statista.com/statistics/380903/grazia-monthly-reach-by-demographic-uk/

[Accessed 3rd April 2020]

 

Spratt, V (2018) Why Formula One's Decision To Ban Grid Girls Matters [online]

Available at: https://graziadaily.co.uk/life/opinion/formula-one-grid-girls-sexism-objectification/

[Accessed 3rd April 2020]

 

Leahy, D (2020) F1 2020: LIST OF PARTNER/SPONSOR OF ALL THE 10 TEAMS [online]

Available at: https://formularapida.net/f1-2020-list-of-partner-sponsor-of-all-the-10-teams/

[Accessed 3rd April 2020]

 

Begum, T (2019) Mental Health Awareness Week: 11 self-care Podcasts You Need to Hear [online]

Available at: https://www.womenshealthmag.com/uk/health/mental-health/g27331445/self-care-podcasts/

[Accessed 3rd April 2020]

 

Sport Relief (2010) F1 Star hops to it for Sport Relief [online]

Available at: https://www.youtube.com/watch?v=bEl0ycNSoWY

[Accessed 3rd April 2020]

 

PlayStation (2019) [English] FIA GT Championships 2019 | Nations Cup | World Finals | Final [online]

Available at: https://www.youtube.com/watch?v=g29OTaMe94A

[Accessed 3rd April 2020]

 

UK Government (n.d.) Marketing and advertising: the law [online]

Available at: https://www.gov.uk/marketing-advertising-law

[Accessed 3rd April 2020]

 

Formula 1 Audience Data Links

Sports Pro Media (2020) Report: F1 sees UK TV audience fall by 8.6m in 2019 [online]

Available at: https://www.sportspromedia.com/news/f1-uk-tv-audience-fall-2019-sky-sports-channel-4

[Accessed 1st March 2020]



Formula1.com (2019) Formula 1's TV and digital audiences grow for the second year running [online]

Available at: https://www.formula1.com/en/latest/article.formula-1s-tv-and-digital-audiences-grow-for-the-second-year-running.OqTPVNthtZKFbKqBaimKf.html

[Accessed 1st March 2020]



Roberts, Matthew (2019) I'm Matt Roberts - Director of Market Research at Formula One Management - Ask me Anything! [online]

Available at: https://www.reddit.com/r/formula1/comments/a7cm46/im_matt_roberts_director_of_market_research_at/

[Accessed 1st March 2020]



Roberts, Matthew (2020) Hi Reddit, my name is Matt Roberts and I am the Research & Analytics Director at Formula 1. My job is to explore how F1 can use research and data analytics to drive strategic + commercial decisions around the sport. AMA! [online]

Available at: https://www.reddit.com/r/formula1/comments/ekyids/hi_reddit_my_name_is_matt_roberts_and_i_am_the/

[Accessed 1st March 2020]



Motorsport Survey (2015) Full Formula 1 fan survey results revealed [online]

Available at: https://www.autosport.com/f1/news/120142/full-f1-fan-survey-results-revealed

[Accessed 1st March]



Motorsport Survey (2017) Formula1 in 2017. Global fan insight into the world’s

largest annual sporting series (2005–2017) [online]

Available at: https://web.archive.org/web/20181105045206/https://cdn-3.motorsport.com/static/documents/Fan_Report_Final.pdf

[Accessed 1st March 2020 – note: recovered document via Wayback Machine, original host link not available]

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