Used car retailer Vroom buys and sells vehicles online without consumers having to go to a physical dealer.
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Online used car retailer Vroom buys its first Super Bowl airtime Sunday to introduce the company to the roughly 100 million fans who watch the game every year – and to fool the competition.
Vroom buys and sells vehicles online without customers having to go to a dealer. The 30-second Super Bowl ad called “Dealership Pain” focuses on the push to purchase a vehicle through a traditional car dealer.
“We felt the Super Bowl would be such an opportunity for us to convey that message about our brand promise of never having to go to a dealer again,” said Peter Scherr, Vroom’s Chief Marketing Officer. against CNBC. “We felt that was a way to set a new normal for us in terms of Vroom’s consideration of buying and selling cars. And we’re going to continue with that momentum throughout ’21.”
Vroom’s business is comparable 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 online car purchases.
“The way we see it is our main competition from traditional dealers,” said Scherr. “There is plenty of room for us to be successful in the Super Bowl and Carvana to continue their path to success.”
Paul Hennessy, CEO of Vroom, added, “It just didn’t 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 are essentially traditional dealers. to be.”
Vroom’s ad shows a car buyer being pressured by a used car salesman, almost to the extent of torture with jumper cables. As the customer begs to leave, the salesperson bends over to attach the jumper cables to him. When that happens, the chair and scene turn to the man sitting in his front yard with a woman taking delivery of a vehicle from Vroom. “Well, that was painless,” says the actor as the vehicle is being delivered.
The Super Bowl ad is part of an ad campaign for Vroom featuring similar spots, including one called “Dealership Deceit” that aired during Sunday’s AFC Championship game for the NFL.
Both Hennessy and Scherr expect the Super Bowl ad to continue to raise awareness and revenue for Vroom, which went public in June.
“We think about the long term and building a business for the long term,” said Hennessy. “We expect Vroom to become a household name.”
Vroom’s sales increased 86% in the first three quarters of last year to 10,860 vehicles, increasing the company’s sales by 62% to $ 630.5 million in that period compared to 2019. That’s comparable to Carvana with sales of nearly 172,000 vehicles and sales of $ 3.8 billion. during the first nine months of last year. Both companies are not profitable.
Vroom’s shares are up about XX% from their stock price of $ 22 per share. The stock closed on Tuesday at $ X. XX per share, down XX percent and XX so far this year.
– CNBCs Megan Graham contributed to this report.
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raise awareness of the company and build on the strong growth during the coronavirus pandemic.