NOTICE: The fork of the motorsport industry on the road
Every industry inevitably comes up against a crossroads.
Fifteen years ago, the mobile phone market hit this range. Nokia, the world leader at the time, chose a traditional direction for its flagship product. By presenting his iPhone which disrupts the market, Steve Jobs chose another. In 2013, Nokia left the mobile phone market. Today, Apple is trading at $ 125 a share.
The COVID-19 pandemic has accelerated the motorsport industry’s approach to its own fork in the road. This represents something more complicated than a choice between two cell phones. However, sports can become as useless as a flip-flop phone if it’s not careful.
In my opinion, leaders in the sport have three challenges: determining the role of technology, updating the fan experience, and elevating the perspective of the sport above each respective paddock or garage area.
Technology
Honda’s recent pledge to sell only electric and fuel cell vehicles by 2040 is a clear indication of where the auto industry is going. The auto industry is responding to what consumers will demand in the future. Fortunately, IMSA, IndyCar, and F1 have moved into hybrid power, with NASCAR signaling that its Next Gen car could evolve that way as well.
However, the racing industry has not decided how to position this movement with its audience. Motorsport has been sheepish about why, like the auto industry, racing is moving towards electrification. It seems too controversial to mention climate change, global pollution and the depletion of fossil fuels.
There are still oil companies and an American auto parts industry that rely on an internal combustion engine. These companies are many sponsors and suppliers whose support makes motorsport possible. This creates an uncomfortable foot on either side of the fork in the road. Finally, motorsport must plant a flag in the ground and announce its direction or risk alienating its audience who are moving towards another future.
Motorsport can remain as exciting, competitive and relevant in 2040 as it is in 2021. However, sport will also need to be sensitive to consumer preferences regarding the health of their communities.
The fan experience
As with the future of engine technologies, the experience of motorsport fans continues to evolve. Motorsports compete with many other sports and forms of entertainment. As new NFL stadiums and NBA arenas incorporate every new technology to enhance the fan experience, the weekend racing experience must keep pace.
In 2020 many of us enjoyed racing from our couches as we couldn’t attend all the races we wanted. In 2021 and 2022, what will attract fans and how will it compare to competitors outside of sport? Audiences will expect grandstand viewing, timing and scoring, concessions, ticketing and parking all to work together to create an experience worthy of leaving the couch. There is no doubt that the industry understands this challenge, as evidenced by recent Daytona upgrades. However, sport needs to focus on these issues or risk losing Millennials and Gen Zs to other entertainment in the future.
The auto industry is moving away from internal combustion, but while some corners of the motorsport world are keeping pace, others don’t seem willing to draw a line in the sand. Bloxham / Motorsport Images
Industry perspective
I left the motorsport industry as a full-time participant in 2005. Since then, our agency’s work has taken us to various markets including the NFL, NBA, Olympics and eSports. I don’t believe any of these areas is more or less appealing than the sport I started my sports marketing career in. However, many of these forms of sports entertainment maintain a strong external orientation, hypersensitive to the changing needs and wants of their audiences.
Motorsport, unfortunately, can fall asleep in complacency with the “paddock think”. As “the group thinks”, the paddock thinks goes like this: “We have the biggest race in the world. People who don’t like it must be crazy.
I see this perspective challenge in my own family. My two sons grew up racing thanks to my career. My oldest son loves running. My youngest son cares less about motorsport. Sadly, until the sport recognizes why “the greatest race in the world” doesn’t matter to my youngest son and to millions of members of his Millennial and Gen Z generations, paddock thinks can prevent the sport for a healthy future.
Fortunately, there is always a choice to reach a fork. In the motorsport industry, however, now is the time to choose. Like the challenges of 100 years ago, the key to the future of the sport is its cultural relevance to the state of technology, the quality of the fan experience, and its prospect of accurately understanding how these factors all combine.
For the sake of everyone who enjoys the sport in whatever form it takes, I hope industry leaders prefer the path to keep the sport relevant in the future. I will definitely be looking at what is happening on my Apple iPhone.