It was an interesting juxtaposition; on Thursday the New York Times ran a piece talking about the value and growth of Formula E, while on Saturday the paper ran a story about the growing issues with Formula 1. One a disruptive brand, the other a long established business with growing pains adopting to a new world of business.
It was good then to visit Formula E during its Brooklyn run on Friday to provide some context on the upside. The circuit, with its electric engines at high speeds, its footprint that is all about technology and eco friendliness, and its push for party to create compelling storylines for new champions, is now talking about being profitable just a few years after almost being too soon to the dance and running out of money, and seeing its growth in just three years is pretty remarkable, and gives any startup in sports or entertainment hope that if you have a well-funded…and the key is FUNDED…business that speaks to a growing niche in an exciting and vibrant field, even one as cluttered as motorsports…you have a chance to grow.
Why does Formula E have a chance? Some thoughts…
It Speaks To A Generation Not Used To Traditional Racing, While Giving The Core Fan His or Her Due: If you have been to any professional race, the thing you remember most is the noise. Loud cars, the smell of the track, the Days of Thunder. Formula E is not that; it whirrs and buzzes but the deafening roar is not there with cars that are both FAST and Electric. That appeals to what was seen yesterday; kids, families and the ability to execute a race of this size in and around a city. The race was literally a few blocks from residences (which presents its own logistical issues), and the noise factor changed, but did not diminish, the joy of racing. 180 MPH is still wicked fast for a road course, but you can get up close without the ear splitting, and to try and build a future generation who can get that close without fear of hearing loss, says that you can cultivate new fans.
It Has The Potential For Elite Brands To Activate, While Bringing In New Brands As Well: You saw many of the elite motorsports brands on site with advertising, but there was also a new wave of companies one might not see around racing; clean energy, solar power, conservation companies, who may not find a fit in traditional racing. Electric cars can literally be the hybrid for racing, offering the blitz of the past with a nod to the future. That appeal again speaks to a new audience while not abandoning the old. BTW one great irony, the New York base for TESLA was only a few blocks from the course, with no Elon Musk company involvement yet involved in the business. With American cars companies now looking more and more at electric power, having Ford, or Chevy or GM in the mix in the future if TESLA doesn’t make the financial jump, will be a boon to growing the U.S. presence.
Connecting with STEM: The great opportunity in the US, especially in inner cities, is to tie sport with education initiatives, especially Science, Technology, Engineering, and Math, known as the core curriculum element STEM, that makes things educational and FUN. Formula E is all about that base and is a prime way to have teachable lessons around something that is sleek, fast and engaging. Now that’s not to say that all of racing don’t try and use the latest in data and technology to be successful. The difference is Formula E is focused on clean tech TODAY and going forward. It is the first area of engagement, which sets it apart from other brands of motorsports which are more established.
It Ties Well With New Engagement Points For Millennials: The Fan Zone was full of VR demos, drones and robotics, as well as a growing connection to esports and gaming; all things that a new younger audience can engage with. Those areas all tied well with sponsor activation from BMW and Jaguar to name a few and the gaming activation drew in a host of younger fans who were more interested in doing than watching. Then there is the opportunity to tie to causes; millennials will be more brand loyal when they see an opportunity to tie to a bigger issue so safer, cleaner environments can drive a new racing fan to Formula E with its safe for the environment without losing the excitement of racing theme. That’s a great opportunity for massive auto brands to engage with a younger consumer, and becomes a win for all involved.
It Is A Great Entry Point Into All Forms Of Racing For New Brands: Racing is a VERY expensive sport to engage with. Because of its disruptive model, its tech and more millennial focus and its scaled down event footprint, Formula E can be a great entry point for brands who see F1 or NASCAR has cost prohibitive for engagement. Scaled down doesn’t mean cheap. But it does mean being tailored to a different demo that might not be the same as other forms of racing.
Lastly, Formula E Cracked The New York Code: Three years in Formula E has found a way not just to exist, but to thrive with a race in Brooklyn, something that no other form of racing has been able to do. Yes it is in a very remote area not easy to get to, but the footprint keeps growing and the logistics, not to mention the area, keeps improving. Consistency of venue has been great and being able to have an experience in New York for brands and fans who are travel reticent is key. , Being involved YEAR ROUND in the fabric of a community is key to success not just in New York, but in North America and that can continue to be refined, but New York as a base for experiential storytelling is invaluable for the upside of FE.
Are there continues challenges? Yes. It is still uber expensive to run any form of motor racing and the lack of American drivers, cars and a other races are hurdles to climb (and a better broadcast window with Fox would help), but the advances and the grasp of ecofriendly technology continue to make Formula E interesting and exciting. The circuit is also taking the best of racing…speed, technology and storytelling…and has brought parity and cost control into the sport, as well as timed races that can keep the time challenged consumer engaged, all signs that listening and adapting as a disruptive business can do, is ongoing. And we are in a global sports business, a place where Formula E us seeing its upside.
Three years in NY Formula E keeps advancing, and it continues to be one on the watch list, no matter what device or level of interest you have.
