Getting Techy with it.

Did you see that recent statistic about the percentage of motorsports sponsorships which came from tech companies? It was mind blowing and led me to thinking and to give some insights into this space.

I've done numerous partnership deals with tech companies and I love the careful, strategic approach they take when building out the programs. Tech companies can reap numerous benefits from sponsoring motorsports events and car races. These partnerships offer more than just brand visibility; they provide avenues for technological innovation, market expansion, and deep audience engagement. Here's my take:

1. Technological Innovation and R&D

Motorsports serve as a high-pressure testing ground for cutting-edge technologies. Companies like InfoSys have partnered with Formula E to integrate AI into their sustainability platforms . Similarly, Splunk collaborates with McLaren F1 to analyze vast amounts of race data, refining both racing tactics and enterprise solutions 

2. Brand Association with Speed and Innovation

Aligning with motorsports allows tech firms to associate their brands with attributes like speed, precision, and innovation. For instance, Amazon Prime's sponsorship of NASCAR driver Chase Elliott not only promotes its streaming services but also ties the brand to the excitement and dynamism of racing.

3. Enhanced Fan Engagement

Sponsorships offer tech companies platforms to engage with passionate fan bases which is a main aspect I like to highlight to companies. Through social media, AR/VR experiences, and interactive apps, brands can create immersive experiences. I did this in 2021 with an AR company and an IndyCar driver which allowed the fan watching the race to have the actual IndyCar available in AR on their phone tablet and through viewing the phone/tablet the car could appear anywhere and allow the fan to walk around the virtual car and climb inside. The entire activation was sponsored by a whiskey company. Another example is Formula 1's use of augmented reality allows fans to access real-time race data, enhancing their viewing experience and providing sponsors with innovative ways to connect with audiences. 

4. Global Market Expansion

Motorsports have a global reach, with events held across various continents. Sponsoring these events enables tech companies to penetrate new markets and demographics. For example, Formula 1 races offer brands exposure to diverse audiences, facilitating international brand recognition and customer acquisition 

5. B2B Networking Opportunities

Motorsport events often serve as networking hubs, bringing together industry leaders, sponsors, and partners. These gatherings provide tech companies with opportunities to forge strategic partnerships, explore collaborative ventures, and expand their business networks.

6. Data-Driven Insights

Sponsorships in motorsports grant tech companies access to vast amounts of data, from vehicle telemetry to fan engagement metrics. Analyzing this data can inform product development, marketing strategies, and customer experiences.  One example of this is Formula E's partnership with Google Cloud. For instance, partnerships like that of Oracle with Red Bull Racing leverage cloud computing to run real-time analytics, influencing race strategies and showcasing the company's technological capabilities.

My belief is that this upward trajectory from tech companies will continue not only in motorsports but across many other sports. As Tanner said to 007, "It's a brave new world."