The market for Motorsport Online Advertising is forecast to reach $256.7 million by 2025, growing at a CAGR of 24.1% from 2020 to 2025. Though well established, the Motorsport Online Advertising Market is one of the fastest growing motorsport leagues markets. Over a period of time, the market has evolved significantly mainly due to incessant technological development and integration. Online advertising for motorsport is the best way to promote racing products, services, teams and leagues. Online advertising for motorsport includes integrated, cross-channel advertising opportunities that include a mix of OTT content advertising and traditional online advertising. Organizers of motorsport or clubs and teams post ads that are distributed through the network of advertisers to enter wide motorsport enthusiasts. Social media advertising has played key role in the motorsport. According to a recent Autosport article, Formula 1 advertisement has seen a 53% YoY growth across Facebook, Instagram, Twitter and YouTube, with a strong fan following of 18.5 million people across the globe.
By Type – Segment Analysis
In terms of revenue from 2020 to 2025, the programmatic segment on the market is projected to grow at a CAGR of 25.5%. Programmatic advertising is the automated purchasing and sale of online ads. This automation makes purchases more effective, streamlines the process and consolidates digital advertising activities under one technology platform. Programmatic companies have extended their inventories and databases. Targeting approaches are used to target audiences using data such that advertisers pay only for ads delivered at the right time to the right people, and are less reliant on the “spray and pray” process of digital advertising. Programmatic platforms have extended their inventory and storage so that every device and display, including smartphone, laptop, tablet, audio, streaming outdoor and connected TV, can be accessed programmatically. Targeting strategies are used to monitor viewers using data such that marketers can pay the right time for ads sent to the right people and this is expected to boost the market growth.
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By Device- Segment Analysis
Mobile Segment has dominated the Motorsport Online Advertising market in 2019 and is set to grow at highest growth rate of 26.7% during the forecast period 2020-2025. There are two major types of mobile ads, Web-based or In-App. There really is no difference in terms of quality and price between the two types as yet. As Mobile Ads are viewed on smartphones, it has created new possibilities for advertisers. Mobile ad networks such as Google Mobile Searches, Facebook and Instagram Mobile Feeds, and in-app advertising for a particular smartphone device allow marketers to target potential customers and promote their brand.
By Format-Segment Analysis
Display advertising segment of the online advertisement market for motorsport is projected to expand from 2020 to 2025 at a CAGR of 20.5% of terms of revenue. Display advertising includes banner ads to advertise on websites, apps, and social media alongside other visual ad formats. Display advertisements are a valuable advertising device for marketers searching for ways to attract and retain consumers. We use visual media liberally to grab people’s attention in the form of tweets, images, or even videos. Variety, scope, aim and success and interaction monitoring are the pros of display advertising. Whereas the Cons are blindness flags, ad blockers, and so on. Adopting display ads is gaining momentum in the motorsport market, as it helps measure the display ad management outcomes. Just as it offers exposure for tracking ad coverage and evaluating show ad effectiveness and targeting effort. This also provides access to the click-through rate and conversion rate measurements.
By Geography – Segment Analysis
Europe is expected to dominate the motor sport online advertising market over the forecast period. The European online advertising sector has taken the lead in advertisement spending, surpassing ad revenue (internet revenue) on television. Europe TV operators have begun to form alliances, surpassing online ad giants like Google and Twitter, which are much bigger in scale and have a much wider user base. Due to high youth enthusiasm for motorsports and increasing attraction to motorsport events such as motor racing competitions, grand prizes and formula, the online advertisement network results in higher growth specifically in the motorsports industry and this is expected to boost the market growth of motorsport online advertising.
Drivers – Motorsport Online Advertising market
Continuous technology developments and advanced digital platform
Marketing automation is a perfect way to reduce the time taken for many of those techniques to be introduced. And automation is just one feature which comes with a great product information management (PIM) solution. A successful PIM can centralize event data, automate marketing activities and metrics, distribute product catalogs and information to as many outlets as you need, and analyze data so that the sales and marketing plans are constantly improved and the bottom line continues to rise. The high rate of adoption of modern tools in online advertising will help to strengthen motorsport’s reach among sports enthusiasts and thus market of motorsport online advertising will grow.
The Emergence of Covid-19
The COVID-19 pandemic may have caused a ‘timeout’ on motorsport events around the world, but it has brought the virtual racing platform to the forefront, i.e. due to the advent of Covid-19, motorsport leagues are taking up virtual sim racing and gradually concentrating on this emerging digital media market. Formula 1 unveiled the Digital Grand Prix series to replace the conventional race bill scrapped or postponed due to the pandemic. MotoGP is running its own virtual version, with current heavyweights such as reigning world champion Marc Márquez and Maverick Vinales from Yamaha joining the action. Such factors have placed digital media in the forefront of motorsport leaues and will make the online advertisement model even after the Covid-19 pandemic a popular part of motorsport leagues. These factors also affect the growth of the market in online ads for motorsport.
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Challenges – Motorsport Online Advertising market
Use of tradition advertising mediums
The primary factors that hinder the growth of the global online motorsport advertising market are the shortage of trained employees and the continued use of conventional advertising outlets such as television and newspapers. Despite the disadvantages such as high cost and intrusive nature, television advertising is still used by various motorsport teams and leagues who own factors such as convenient and flexible advertising medium, strong impact, and mass coverage. Partnerships signed with various broadcasting companies that typically include a certain amount of motorsport league advertising on Television has led to the focus on this medium. Nowadays it is understood that almost every household has a TV set. Therefore, spreading their message to a large number of viewers is extremely simple for the motorsports teams and the leagues. Hence, owning television advertisement to these factors is still used by motorsport leagues, which serves as a obstacle for the online advertising market for global motorsport.
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Motorsport Online Advertising market. Motorsport Online Advertising driver market is expected to be dominated by major companies such as Oath Inc, Google LLC, Facebook Inc., Microsoft Corporation, Amazon, Inc., and Twitter Inc.
In July 2018, Pennzoil Launches New Ad Campaign with Numerous Personalities in Motorsports The campaign features experienced motorsport drivers who have “Made the Change” and rely on Pennzoil Synthetics in their cars for safety and results.
In 2019, Sony Acquired exclusive media rights for X1 Racing League, the world’s first competitive franchise-based motorsport contest, along with the media rights for X1 Racing eSports.
Online motorsport advertisement is the perfect way to advertise goods, facilities, teams and leagues in the racing market. Online motorsport advertising includes integrated, cross-channel advertising opportunities which include a mixture of OTT digital advertisement and traditional online advertising.
Programmatic advertising is the automatic sale and purchase of online ads. This automation makes purchases more efficient, streamlines the process and consolidates digital advertising activities within one platform of technology.
It has created new possibilities for marketers as Mobile Advertisements are displayed on smartphones. Mobile ad networks such as Google Mobile Searches, Facebook and Instagram Mobile Feeds, and smartphone in-app advertising allow marketers to target potential customers and promote their brand.
Europe is expected to dominate the online market for motorsport ads over the projected period. The European online advertising industry has taken the lead in advertisement expenditure, surpassing tv ad revenue (internet revenue).
A. Online Advertising Market
B. Multi-Screen Advertising Market
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