Vroom, a used car retailer, buys and sells vehicles online without requiring consumers to go to a physical dealer.
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Vroom, the online seller of used cars, bought its first Super Bowl speaker on Sunday to present the company with about 100 million fans who watch the game every year – and to make fun of its competition.
Vroom buys and sells vehicles online without asking customers to go to a dealer. His 30-second Super Bowl ad, called “Dealership Pain,” focuses on the pressure of buying a vehicle through a traditional dealer.
“We felt that the Super Bowl would be that kind of opportunity for us to get that message about our brand promise, which is that you should never go to a dealer again,” Vroom’s chief marketing officer Peter told CNBC. Scherr. “We felt this was a way to get a new normal for us in terms of considering Vroom for buying and selling cars. And we will continue that momentum throughout ’21.”
The Vroom 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 customers who are already aware of buying cars online.
“The way we see it is our key competition, it’s the traditional representations,” Scherr said. “There is a lot of room for us to succeed in the Super Bowl, as well as Carvana continuing on their path to success.”
Vroom CEO Paul Hennessy added: “It just didn’t make sense to choose one of the smallest players in space and then compete with them. We compete with where our customers go, who are essentially the traditional representatives. “
The Vroom ad features a car buyer who is pressured by a used car salesman almost to the torture with jumper cables. While the customer pleads to leave, the seller leans over to attach the jumper cables. As this happens, the seat and the stage rotate towards the man sitting in the front yard, with a woman taking delivery of a vehicle from Vroom. “Well, it was painless,” says the actor as the vehicle is delivered.
The Super Bowl announcement is part of an ad campaign for Vroom with similar spots, including one called “Dealership Deceit,” airing during Sunday’s AFC NFL Championship.
Both Hennessy and Scherr expect the Super Bowl announcement to continue to raise awareness and business for Vroom, which went public in June.
“We think long-term and build a long-term business,” Hennessy said. “We expect Vroom to be a well-known name.”
Vroom sales increased 86% in the first three quarters of last year to 10,860 vehicles, leading to a 62% increase in the company’s revenue to $ 630.5 million in that time period compared to 2019. This compares with Caravan with sales of nearly 172,000 vehicles and revenue of $ 3.8 billion. in the first nine months of last year. Both companies are not profitable.
Vroom shares increased by approximately XX% from the initial public offering price of $ 22 per share. The stock closed at $ 20 a share on Tuesday, down XX percent and XX this year.
– CNBC Megan Graham contributed to this report.
CUTS
raises awareness of the company and grows on a strong rise during the coronavirus pandemic.