Global motorsport online advertising market to reach $256.7 million by 2025, report
The market for Motorsport Online Advertising is forecast to reach $256.7 million by 2025, growing at a compounded annual growth rate of 24.1% from 2020 to 2025 according to the latest study by Research and Markets.
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 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).
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 the market of motorsport online advertising will grow.
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 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 Marquez and Maverick Vinales from Yamaha joining the action. Such factors have placed digital media in the forefront of motorsport leagues 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.
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.