Bernie isn’t a senile dinosaur, ready for pasture just yet

Bernie Ecclestone is many things to many people, but a senile dinosaur he is not

Bernie Ecclestone caused a bit of a stir last week. In an interview with Campaign Asia that left many incredulous, Formula One's commercial chief seemed to arrogantly dismiss amongst a host of things, the value of social media and the importance of Formula 1 attracting younger fans. And as you might imagine, Ecclestone's comments were not well-received.

Former F1 team owner Eddie Jordan, for one, called for Ecclestone to step down as head of F1. And the comments came of course, amidst the backdrop of what has not been the best of years. Well-documented declines in television viewership, financial difficulties and controversy over the new technical regulations have contributed to making 2014, a difficult year for not only the sport, but Ecclestone, who has admitted as much, also.

Remember, three months ago Ecclestone concluded a bribery case in Germany, in which he paid an estimated sum of $100 million to settle the case. Sure, Ecclestone avoided prison time. However, the rather oxymoronic ‘buying his way out of his bribe' isn't exactly great P.R.

More recently, in the midst of F1's financial crisis, which forced two teams to miss the recent Grand Prixs at Interlagos and Austin, Ecclestone did initially express some accountability, noting it was "probably my (his) fault." However, that rare mea culpa from Ecclestone seemed rather ingenious when Ecclestone did an about face the following week in Brazil when threats of a possible boycott subsided.

[adinserter name="GOOGLE AD"]And what exactly was Bernie's message to the smaller, cash-strapped teams? Simple: either raise the money needed to compete in the high-stakes game of F1, or find something else to do. Ecclestone did not show sympathy for their plights, nor acknowledge their contributions of those teams to a sport and industry which has helped him amass a fortune some estimate to be greater than $4 billion. Rather, Ecclestone, in his infinite wisdom, essentially offered that the poor teams probably wouldn't be so poor if well, they didn't do such a wretchedly poor job of being poor.

Now, I could go on about Ecclestone in this vain, but I think you get the point. Despite his unquestioned success in making Formula One the global success story it is, the narrative of him as a cold, arrogant, heartless, dismissive, greedy and ruthless tycoon has legitimate credence. Throw in the manner in which last week's comments were received and the perception very much exists that at 84, and out-of-touch can be added to the undesirable list of adjectives above in the minds of many.

However, if you go beyond the headlines, work through Ecclestone's trademark underhanded and belittling commentary, consider some very relevant context and actually read last week's interview in full, men like Jordan have it wrong. Bernie did not expose himself to be a senile dinosaur, whose antiquated ways make him unfit to run the sport in a significantly altered landscape. Rather, Ecclestone showed himself to be as sharp as ever. And the concern one should take away from Bernie's comments is not that he doesn't understand the problems a changing world have presented or that he is unfit to lead F1 going forward, rather he reinforced the belief that he is more than fit to lead the empire he created, because he understands the challenges before it all too well.

Of course, that's not how many presented Ecclestone's comments. For example, Daniel Johnson of the Telegraph wrote about Ecclestone, "he also said even more astonishingly that young fans are of no value to F1," a statement which if true, would be Bernie self-incriminating himself. After all, no reasonable person could support a statement.

But here's the thing: Ecclestone didn't say that. Of course, Johnson like any journalist could have fairly paraphrased what Ecclestone said in lieu of a direct quote, so long as there was proper context provided, but in my opinion Johnson did no such thing.

Context

When trying to understand Bernie Ecclestone remember he's so smart he's already 10 steps ahead of where your brain is.

Keep in mind, Ecclestone has been questioning decisions made by people with F1 all season long. The best example of this might be the new engine regulations, which have fundamentally changed the sound and atmosphere of Grand Prix racing. Ecclestone likened the sound of said engines to vacuum cleaners. In essence, Ecclestone has been questioning the decision making process of many within the sport concerning numerous matters.

As for the Campaign Asia interview (it's very lengthy) Ecclestone spends the early part discussing the value of F1 as a sports marketing property. He compares it to other sport entertainment properties such as the Olympics, which occur only once every four years. There is also discussion of how F1 has showcased nations such as Bahrain, which were somewhat unknown prior to hosting Grand Prix.

The conversation moves on to how technological devices like iPads have changed the manner in which F1 is consumed and a variety of other subjects. He also notes that in his opinion many companies dilute their advertising efforts with a proliferation of properties that deliver too little exposure. They don't, in essence, focus or target their marketing efforts, which is something Ecclestone notes Formula One has a proven track record in accomplishing. It is at this point, in the context of a target audience, in which the subject of reaching a younger audience is broached.

The next generation

Let's begin here by putting to bed the ridiculous notion that Ecclestone is not interested in young people consuming his product. Anyone who knows the first thing about Ecclestone knows there may many things he considers beneath him, but no one's money would fall into that category.

Let's also acknowledge that Ecclestone freely admits (to his credit) he doesn't totally understand what the younger consumer wants, or the media by which they consume. Now, as is often the case with Ecclestone, his point is shrouded in snide, underhanded, belittling comments. For example, he mentions that young people don't actually meet their girlfriends, because apparently they're too busy facebooking, tweeting or "whatever." However, flippancy aside, there is some real grizzle in what Ecclestone said.

Later in the interview he is asked: "Do you believe there is no value in reaching this younger audience"? The question is a direct one, to which Ecclestone does not give a direct answer. Oddly, he adopts something of a defensive posture.

"If you have a brand that you want put in front of a few hundred million people, I can easily do that for you on television," says Ecclestone.

Bang! You want a target audience, well Ecclestone can provide it for you to the tune of a few hundred million. As for whether they're young or old?

"Now, you're telling me I need to find a channel to get this 15-year-old to watch Formula 1 because somebody wants to put out a new brand in front of them? They are not going to be interested in the slightest bit.

"Young kids will see the Rolex brand, but are they going to go and buy one? They can't afford it."

Ecclestone is not saying he doesn't want younger viewers. He is saying that with respect to current F1 sponsors such as UBS and Rolex, who want a large worldwide audience he doesn't see the purpose in fundamentally altering the way the F1 product is delivered to the consumer via a medium he doesn't understand. Further, he sees little point in targeting someone not interested in the brand to begin with.

Now, keep in mind this statement was made within the context of Ecclestone noting the value of a specific target audience – providing value to the above sponsors. For those brands, the target audience is clearly not a 15-year-old who can't keep money in a UBS bank or purchase a Rolex.

Ecclestone, of course, is compelled to work in his characteristic belittling humor as he jokes "if marketers are aiming at this audience, maybe they should advertise with Disney." Here, Ecclestone's source of criticism are not 15-year-olds rather the marketing people, who he sees as foolishly peddling brands like Rolex and UBS that youngsters can't afford anyway. Ecclestone notes he is of no use to marketers with such goals.

But if Disney is interested in presenting their brand to a few hundred million TV viewers, well then he has something to offer. He just can't promise they'll all be the desired age group. For this, he makes no apologies. Nor should he!

Social Media

[adinserter name="GOOGLE AD"]Another item Ecclestone addressed was social media. Formula One, of course, has been criticized for its lack of social media activation. Ecclestone, specifically, has questioned the value of the medium.

"I'm not interested in tweeting, Facebook and whatever this nonsense is." Plus, "I can't see any value in it."

But again, Ecclestone's callous tone aside, he does not outright dismiss social media. He doesn't say there is no value in it, just that he doesn't see what value there might be. And in fairness, Ecclestone questioning the value of social media is not something specific to him. Numerous companies have noted that tangible impact of social media is as of now, incredibly difficult to quantify.

Phil Clark, an AR1 reader, and marketing and social media coordinator for Ohio-based Industry Huddle, noted this when I approached him seeking comment.

"Having a large audience on social media means just that; you have a large audience. As of now, companies cannot accurately measure what tangible return it provides. Largely, I see social media as a tool to help build long-term branding, rather than immediate value. Social media is a complimentary part of your overall strategy but not the strategy itself.

"As for Ecclestone, I will say he should look to embrace social media more, particularly as he attempts to grow in emerging markets, where fans may not have televisions but do have computers."

Sure, social media may increase exposure. Social media may engage younger or older people for that matter. Sure, social media can increase brand awareness. Ecclestone like many others simply cannot quantify its impact.

[adinserter name="GOOGLE AD"]The Takeaway

Like many things with Ecclestone the delivery of the message and the message itself are usually mutually exclusive. But that doesn't mean what he's saying doesn't have merit. Quite the contrary.

During a time that motorsport has undergone significant declines, Ecclestone has provided not answers per se. He has however provided lucid insight regarding the paradigms which many presume are the means of addressing such concerns.

For example, Twitter may be an outstanding medium, but how does Twitter improve the bottom line for Formula One? How do hashtags create return on investment for Rolex and UBS? Why should Formula One invest significant resource in such mediums that no one can empirically quantify the return on investment of?

Now, I am in no way belittling such mediums, as I utilize them myself. I am simply nodding in agreement with the questions Ecclestone presents.

And while prevailing wisdom would suggest a younger audience needs to be reached, how is Ecclestone suppose to market to them, when marketers themselves don't know how to reach them? Further, why do these companies crave such an audience, when Ecclestone can offer them an audience in the hundreds of millions 20 times a year; an audience that can and will consume their products?

In essence, why would he listen to people, who seem not smart enough to know what is good for them? And what exactly is the wisdom in placing vast resources in unproven mediums, or projecting a target audience on a group with little chance of providing adequate return on investment?

Rather than giving consideration to such ideas, many chose to lambaste the F1 Supremo, ironically via Twitter and other social media Ecclestone has dismissed as frivolous. However, with a little probing into what was actually said, and the context in which it was said, I think it's pretty clear there are many who are woefully out of touch. I just don't think Mr. Ecclestone is one of them.

Brian Carroccio is a columnist for AutoRacing1. He can be contacted at BrianC@AutoRacing1.com