According to a United Kingdom-based publication that monitors the world of Formula One finances, Austin, the Circuit of the Americas, F1 and advertisers and sponsors benefited from a worldwide burst of exposure and publicity surrounding the United States Grand Prix last November.
An analysis conducted by Formula Money and released Thursday, estimated the value of the global media exposure at about $191 million, more than any other F1 race last year. The publication also reported that the Austin race was the second best attended race on F1’s 2012 calendar.
Christian Sylt, the editor of Formula Money, explained in a Statesman interview Thursday that the estimate of value was generated using the average advertising rate for all global broadcasters who aired Austin’s F1 event and provided coverage worldwide. The estimate is what it would have cost to buy that kind of exposure. It is not an estimate of money generated.
In Australia, which has a Formula One event comparable to Austin’s, race opponents have released a study, Blowout! A cost/benefit analysis of the Australian Grand Prix, which places the value of media exposure for that race at $263,000.
That report, compiled by economists, concludes, “It does seem reasonable that Victoria does derive some value from the media exposure,” but tries to count only that which results in increased revenue for the area.
Formula Money estimated the worldwide television audience for Austin’s race at 500 million, explaining, “The number of viewers for the entire F1 season is used rather than just those for the United States Grand Prix because even viewers who did not watch the United States Grand Prix itself will have been exposed to it through references in commentary, interviews, schedules and race results.”
Circuit chairman Bobby Epstein said, “This data further validates that the first year of the Circuit of the Americas was worth nearly one billion dollars to Texas: more than 400 million construction and other local spending, 350 million to the hospitality and small business industry (F1 and other events), and 200 million in global media value from F1 alone. We’re thrilled and satisfied to have achieved these results and look forward to the additional impact from the Motorcycle Grand Prix coming next month.”