How F1's Global Audience Has Transformed Sponsorship Economics

Sponsorship in Formula 1 looks very different today than the past eras, both in terms of who is investing and how much they are paying. As the sport’s global audience expanded and diversified, the commercial aspect grew accordingly. This post explores how that growth has affected the initial sponsorship economics, and why contract valuations have risen so sharply in the recent years.

In 2016, the world renown media company, Liberty Media bought F1. One of the first things they noticed was the underusage of sponsorships. Their solution to that issue was to grow the audience in a rapid manner. A few years later, Netflix launched the Drive to Survive series (2019), that show was Liberty Media’s biggest move yet. It brought the average age of F1 viewers down from 44 to 32, and the fanbase is now estimated to be around 40% female, up from just 8% in 2017. A younger, more diverse audience made F1 stand out to brands that have never considered the sport before.

The commercial impact was immediate, the sport’s image went from a niche and high-end sport to something considerably more mainstream and accessible to all. Which opened the door to a wide selection of sponsors. Tobacco and oil companies were replaced by tech firms, luxury brands and banks. In early 2025, LVMH and Louis Vuitton signed a 10-year deal with F1 to be the main sponsor trackside. The average F1 sponsorship is said to be on average at $ 6 million, making the entry level sponsorship contract very expensive. 

Vintage Mclaren car with a Malboro as a main sponsor

Formula one isn’t just selling a logo on a car. It sells access to a wealthy, global consumer audience, across 24 race weekends, broadcasts to hundreds of millions of people. Across the last few years, F1’s total revenue more than doubled from around $ 1.8 billion in the mid-2010s to $ 3.65 billion in 2024. For example, for companies like Oracle or even HP, it is less about advertising their business, but more about signaling the presence of their business. 

To conclude,  F1 is a clear example of what happens when  a sport successfully grows and diversifies its audience, whilst its commercial value follows. The sponsorship market in formula one has completely altered and repriced itself in the last few years. Changing significantly the whole economics behind sponsorships in F1.