Matt Roberts – Formula E

Matt Roberts is VP of Business Intelligence at Formula E and in this Brand Growth interview, we will delve deep to discuss his responsibilities and the key ingredients driving the growth of the Formula E brand. He sheds light on the intricacies of managing data, engaging fans, attracting sponsors, and expanding the race calendar as well as exploring the strategic decisions that drive the electric racing series.

From the financial complexity of hosting races to the critical role of data in shaping Formula E’s future, he shares valuable insights that offer a rare behind-the-scenes look into the world of electric motorsports.

EVOLUTION OF BUSINESS INTELLIGENCE AT FORMULA E

Matt kicks off by providing a snapshot of his current role, emphasizing the transformation from the initial term ‘Insight’ to the more comprehensive ‘Business Intelligence.’ “Over the past two years, my team has grown significantly, comprising 12 members, showcasing Formula E’s dedication to data-driven decision-making.

The Business Intelligence Team have a diverse span of responsibilities areas, from extensive reporting on TV audiences to strategic projects to enhance the overall Formula E experience. This includes conducting galvanic skin response testing, surveys, and focus groups to gather valuable insights,” Matt shares.

NAVIGATING CHALLENGES: AGENCY WITHIN THE ORGANIZATION

One aspect of the discussion revolves around the similarities between operating within Formula E and functioning as an agency. “Like agencies, my team acts as internal consultants, assisting different groups within our organization. However, they face challenges, such as delivering both good and bad news, a situation familiar to those working on the agency side.

Therefore, it is important to understand that winning over clients involves more than just impressing the research or insights team, but that building positive relationships with various stakeholders within the client’s organization is equally crucial for long-term success,” Matt explains.

THE FORMULA FOR GROWING THE BRAND

Moving on to the core of Formula E’s growth strategy, Roberts identifies three main components: sponsors, fans, and event viewership. “Sponsors, vital for Formula E’s revenue, are courted through extensive research and branding analysis, showcasing the value derived from partnerships. The influx of sponsors is directly tied to Formula E’s ability to grow its fan base,” Matt shares.

“Our shift towards a more B2C focus in recent years highlights Formula E’s recognition of the importance of engaging directly with fans. It’s significant to understand fan demographics, potential barriers to fandom, and strategies to increase engagement. All these insights feed into the marketing and media teams’ efforts to target specific demographics and markets effectively.

Of course, it is evident to consider that our fanbase is diverse, with both traditional motorsport enthusiasts and those with a broader interest in sustainability and innovation. Approximately 75% of our audience comes from traditional motorsport backgrounds, having explored other racing series before embracing Formula E. The remaining 25% represents a unique segment of fans interested in the series’ sustainability initiatives and overall narrative,” Matt discusses.

“Sponsors, vital for Formula E’s revenue, are courted through extensive research and branding analysis, showcasing the value derived from partnerships. The influx of sponsors is directly tied to Formula E’s ability to grow its fan base.”

SUSTAINABLE RACING AND GLOBAL EXPANSION

Formula E distinguishes itself by being a sustainable business, net zero since its inception. Matt notes that the sustainability message is powerful for attracting both fans and sponsors. “Despite being a nine-year-old sport, Formula E achieved record levels of revenue from sponsorship in the last year, making it a formidable player in the sports industry and as we plan to expand our race calendar to 17 events.

The decision-making process involves a delicate balance between revenue generation and iconic city presence. The dichotomy of races in countries like Saudi Arabia, which pays for hosting and offers well-organized events, and iconic European cities where Formula E willingly invests to maintain its presence is important to keep in mind,” Matt explains.

CHALLENGES AND OPPORTUNITIES IN THE EUROPEAN MARKET

“Nonetheless, we are facing some challenges when it comes to precisely that. A race in a European city is imperative for us but doesn’t always drive the highest financial revenue. This is also the same for F1 who generally receive lower promotion fees from European races. European races are deemed essential for Formula E, particularly to cater to sponsors based in the region, even if we require financial investment from within our organization,” Matt shares.

One of the key takeaways from Matt’s perspective is Formula E’s focus on strategic growth markets. Acknowledging the challenges of competing with the Formula 1 behemoth, Matt points out the importance of identifying markets with untapped potential.

“For Formula E, the United States, China, and Japan emerged as focal points. These countries, with their large and growing motorsports fanbases, provide unique opportunities for us to expand our reach. We have plans to arrange races in Portland, Los Angeles, and China, tapping into the immense popularity of motorsports in these regions. Thus, the decision-making process involves a delicate balance between legacy markets, like those in Europe, and emerging markets with a thirst for motorsports entertainment,” Matt explains.

THE BACKBONE OF FORMULA E

Discussing Formula E’s approach to data-driven decision-making, Matt emphasizes the significance of relying on data to guide strategic choices. “While Formula E utilizes data extensively, one must keep in mind the complexities involved. Recommendations based on data might not always align with external constraints, such as budget limitations or political considerations internally or externally with certain cities.

Despite occasional deviations from data-driven recommendations, we are always committed to leveraging data for strategic insights. The series consistently analyses data to understand crucial aspects such as audience growth, market importance, and fan engagement, contributing to a more informed decision-making process.

Thus, we see a growing adoption of data in sports, I would like to encourage market research agencies to innovate in presenting results. Traditional survey methods may not always suffice but embracing innovative approaches such as galvanic skin response testing and passive behaviour tracking at events through Bluetooth to gain a deeper understanding of fan preferences,” Matt discusses.

“Despite occasional deviations from data-driven recommendations, we are always committed to leveraging data for strategic insights.

The series consistently analyses data to understand crucial aspects such as audience growth, market importance, and fan engagement.”

BRANDS EXCELLING IN DATA-DRIVEN DECISION-MAKING

Drawing parallels with Formula E, Roberts points to Formula 1 and football club Manchester City as examples of brands excelling in data-driven decision-making. Manchester City, with its sizable team focused on analytics, showcases how investing in data and infrastructure can contribute to success in the field.

Furthermore, Roberts touches on Formula E’s marketing strategies, providing insights into how the series tailors its approach for each race, considering regional preferences and market dynamics. He also addresses the challenges and opportunities associated with ticket sales, revealing Formula E’s efforts to create compelling marketing strategies tailored to diverse markets.

“As Formula E continues to push the boundaries of electric racing, the series stands as a testament to the power of strategic decision-making and data-driven insights in shaping the future of motorsports,” Matts shares.

“As Formula E continues to push the boundaries of electric racing, the series stands as a testament to the power of strategic decision-making and data-driven insights in shaping the future of motorsports.”