The used car dealer Vroom buys and sells vehicles online without consumers having to do a physical dealership.
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Online used car dealer Vroom is buying its first Super Bowl airtime on Sunday to introduce the company to the approximately 100 million fans who watch the game every year – and to make fun of its competition.
Piously buy and sell vehicles online without having to go to a dealer. His 30-second Super Bowl ad called “Dealership Pain” focuses on the pressure to buy a vehicle through a traditional car dealer.
“We felt that the Super Bowl would be the kind of opportunity for us to convey the message of our brand promise, which means you never have to go to a retailer again,” Peter Scherr, chief marketing officer of Vroom, told CNBC said. “We felt it was a way to get a new standard for us in terms of considering Vroom for buying and selling cars. And we’re going to continue the momentum throughout ’21.”
Vroom’s business is similar to Carvana, a larger e-commerce platform for buying and selling used cars. But instead of targeting such a competitor, Vroom decided to focus on physical dealers in general – a much larger market than Carvana’s customers who are already aware of buying cars online.
“The way we see it is our main competition is traditional traders,” Scherr said. “There is enough room for us to be successful in the Super Bowl, as well as Carvana to continue on their successful path.”
Paul Hennessy, CEO of Vroom, added: “It simply did not make sense to pick one of the smallest players in the space and then compete with them. We compete with where our customers go, which is basically are traditional traders. “
In Vroom’s advertisement, a car salesman is put under pressure by a second-hand car salesman to the point of torture with jump cables. While the customer pleads to leave, the seller leans to attach the jump cables to him. As this happens, the chair and scene turn to the man sitting in his front yard with a woman taking a vehicle from Vroom. “Well, it was painless,” the actor said as the vehicle was being delivered.
The Super Bowl ad is part of an advertising campaign for Vroom with similar venues, including ‘Dealership Deceit,’ which aired Sunday during the NFL AFC Championship game.
Both Hennessy and Scherr expect the Super Bowl ad to continue to raise awareness and business for Vroom, which became known in June.
“We’re thinking about the long term and building a business for the long term,” Hennessy said. “We expect Vroom to be a household name.”
Vroom’s sales increased by 86% during the first three quarters of last year to 10,860 vehicles, resulting in the company’s revenue increasing by 62% to $ 630.5 million during that period compared to 2019. It compared to Carvana with sales of nearly 172,000 vehicles and revenue of $ 3.8 billion during the first nine months of last year. Both companies are unprofitable.
Shares in Vroom rose about XX% from their initial public price of $ 22 per share. The stock closed at $ X.XX a share on Tuesday, up XX percent and XX so far this year.
– CNBC’s Megan Graham contributed to this report.
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raises business awareness and builds on strong growth during the coronavirus pandemic.