F1 bets big on Las Vegas showpiece

Dan Sharples, Senior Account Manager, UK

“99% show and 1% sport.” That was Max Verstappen’s thought going into the Formula 1 Heineken Silver
Las Vegas Grand Prix.

It’s fair to say that he was not the only one thinking that going into the race weekend. Unlike most other
Formula 1 races around the world, the on-track action was not the main talking point or source of
entertainment for most of the fans attending. Reports of hospitality staff walking out from Vegas hotels
and restaurants due to pay disputes, key infrastructure not being ready, and unsold grandstand tickets
and hotel rooms overshadowed the run-up to the race ‘off-track’. Meanwhile, on-track, there were fears
that cold temperatures in the desert at night could play havoc with the cars’ performance, with the track
scheduling times being dictated by the need to keep the standard ‘Vegas show’ on the road, so to
speak…

Potentially the biggest bet placed across the 2023 Las Vegas Formula 1 weekend was by Formula 1
themselves. F1 invested an estimated US$700m in the event, which prompted numerous questions
around whether the “house” of Las Vegas would pay out on the gamble. Yet, after 52 laps racing around
the Las Vegas strip, even the event’s biggest critic, Verstappen, had changed his tune, singing ‘Viva Las
Vegas’ and celebrating another successful weekend at the top of the podium.

But how did the event go from a brand and client servicing side? Was the success on track and what we
watched on television replicated for fans? What needs to be considered or improved for 2024 and
future Las Vegas Grands Prix? We debriefed our account teams on the ground to get an inside
perspective of their experience and feedback for the coming years.

Leading up to the event, we all knew Las Vegas was going to be one hell of a show, but the real question
was whether Formula 1 was going to actually pull it off. Was it going to be more akin to the challenging
debut of the Formula 1 Crypto.com Miami Grand Prix 2022, where there was – it’s fair to say – a number
of learnings and areas for improvement for the promoter, not least with regards to the Paddock Club
experience.

From a logistical perspective, there were concerns around the sheer number of people descending onto
a circuit that had never been used before in a city where the main strip was shut down. Meanwhile, CSM
staff were well aware that the unique track timings may throw up challenges from the outset; we knew
that being resourceful and agile would be the key to success on-site. And most importantly, from a
brand perspective, there was so much noise around the race weekend, could you really cut through and
have an effective brand campaign?

Despite these concerns leading up to the race, the spectator and hospitality experiences both ran well
and the skyline and sounds of Las Vegas provided an incredible back drop for a Formula 1 weekend. In
terms of entertainment and showbusiness, our expectations were exceeded and the operational
efficiency was to a very high standard. Overall, the weekend was very well organised with the only
challenge being the Free Practice timings on Thursday night/Friday morning. Despite this, fans were
easily able to find their seats, there was high quality food on offer, and the line for beverages was never
longer than 10 minutes. We saw plenty of brands activate, some with great success, whilst others
struggled to cut through.

We did experience several challenges throughout the week. The half-filled grandstands for qualifying
were a disappointment, although the broadcast did well to avoid it seeming so. This is not unusual for a
race built around celebrities and a ‘broadcast-first’ approach, so perhaps some creativity from Formula 1
is needed on how to ensure spectators are in their seats for track activity beyond the race. From a
hospitality point of view, there were plenty of options available, but all had a premium price tag
compared to other Grands Prix around the world. The hospitality offerings we experienced had positive
customer service, but the premium price paid did make it feel overpriced when compared to other
races. The big elephant in the room that needs to be reviewed is the timings of the race. Even without
the challenges of Free Practice on Thursday, having a qualifying that doesn’t finish until 12:30am the
next day leaves those dedicated fans, as well as team personnel, exhausted. The sun was setting around
5:30pm local time, so this could easily be brought forward by a couple of hours, still with the amazing
spectacle of Las Vegas under lights. Finally, from a Grandstand fan perspective, being unable to walk
around the track and experience different parts of the circuit or fanzones felt wrong, especially
considering the price of a ticket.

Looking forward to next year, we are hopeful that Formula 1 listens to the feedback from all those
involved and makes some small changes to ensure an overall improved experience for those on the
ground. The track schedule was gruelling for all involved, so having extra personnel to work shifts on
hospitality programmes might be advisable if timings remain the same for 2024. With Las Vegas being the
start of a season-ending triple header next year, track timings need to brought forward by a couple of
hours so teams and personnel are able to get through the following races, without causing significant
disruptions for locals. It may also be beneficial to shift the ‘Opening Show’ to a ‘Pre-Race Show’, as the
majority of attendees were not in town until Thursday evening. With half of the grandstands empty, the
event felt a bit lacklustre and did not live up to the hype. Post-race, the podium ceremony felt disjointed
and forced, making it far too elongated for anyone watching at the track or at home, and viewers quickly
lost interest, so there is work to do on balancing the experience for fans on-site and those at home.
Indeed, the question of who F1 is putting the ‘show’ on for – relatively small numbers of ticket holders,
or the mass TV audiences – is one that the sport needs to address into 2024.

In terms of brand campaigns, we know it is essential to be creative in our approach – numerous brands
had activations with livery takeovers and branded content, so creativity and strategic media spend is
vital if brands are looking to ensure genuine cut-through. An additional learning is that, given the
timings, post-race events are difficult to execute, so a shift from the traditional post-race client dinner
format to an afternoon event is necessary for the best guest experience.

Lastly, from a hospitality side, we would suggest a change to the Formula 1 Paddock Club experience.
Including the Opening Ceremony and Recovery Brunch, the offering was a five-day hospitality programme,
however there was nothing different to the programme outside of this. When you consider that the cost of
a Las Vegas Paddock Club ticket was almost twice the cost of Paddock Club hospitality at other circuits, it
would be beneficial to consider other hospitality offerings at a lower price range which also provide
memorable at-track experiences.

Overall, we would say the Formula 1 Heineken Silver Las Vegas Grand Prix was a great success. It
exceeded expectations and the off-track experience complemented the on-track action. Whilst it was
not without its challenges, considering the size and scale of the event, it was definitely impressive for
Year one. No doubt Formula 1 will consider feedback from the teams and fans to make positive changes
in the coming years, but the challenge will be building on the high expectations of this year and ensuring
all clients and guests have an even greater experience in 2024.