Robinhood is launching its first Super Bowl ad, just as the company is experiencing a growing branding crisis. CNBC reports that the ad is Robinhood’s biggest branding campaign, and it focuses on the idea that anyone can be an investor. It has been at the heart of Robinhood’s message since its inception seven years ago, but recent inventory restrictions have undermined the entire Robinhood brand.
Robinhood temporarily banned small investors from buying shares in companies such as GameStop last week, before placing restrictions on shares related to r / WallStreetBets – including GameStop, AMC and Nokia. The move angered thousands of Robinhood customers by buying shares, and the company’s app received a review in the Google Play Store. While Google initially tried to save the app’s rating, it dropped to just one star yesterday.
Robinhood is also facing dozens of lawsuits in connection with the freezing of GameStop, and Representative Alexandria Ocasio-Cortez (D-NY) has also called on Congress to investigate the Robinhood app. Robinhood claims that the restrictions were imposed due to clearing houses that suddenly require much higher deposits, but the company did not specifically explain the cryptocurrency restrictions it imposed.
This new Super Bowl ad does not currently address any controversy surrounding Robinhood, which has made it rather uncomfortable. CNBC reports that Christina Smedley, chief marketing officer of Robinhood, says the ad was designed to let people know more about the app. “It felt like it was a great stage for us to remind people of what we stand for and to remind people why the company came into being in the first place,” says Smedley.
Robinhood has disabled commenting on the YouTube version of the ad, but a version on Twitter see all the negative reactions to this new Super Bowl ad.