Vroom rocks behind its Super Bowl advertisement for more national awareness
A popular whipping boy among those who have long wanted to transform the auto industry has been criticism of the consumer experience in dealerships, where the hassle of price negotiations, lease applications, and other complexities has always left buyers with bad taste. When it came to used cars: double and triple the perception of pain.
So Vroom had an easy target when the startup online used car dealer came up with a creative approach to its first Super Bowl advertising that ran in the first half of the Big Game on Sunday: used car dealers. The 30-second commercial was, in fact, a gruesome caricature of buying a used vehicle, depicting the literal torture of an unfortunate buyer by a villainous used car salesman.
In contrast, when the deal ends, Vroom enables consumers to both sell and buy used vehicles with complete information transparency, touchless and from the comfort of their own home, where they can also enjoy how a Vroom delivery vehicle drops off their purchases without ever Entering a notorious used car dealer.
Vroom CEO Paul Hennessy told me that the ad “almost wrote itself”. “Customers know what we are talking about and Vroom offers them a happy ending.” The Vroom theme had to be, “You never have to go to a dealer again. We knew we needed creatives who would position Vroom and the customer as heroes, and we knew that if we ousted the dealerships, everyone would understand the difficulty. Many customers have said that they will never go to a dealer again. “
In fact, Vroom has already grown into a roughly $ 1.5 billion company in a business that Hennessy said no one knew about – a lack of awareness that Vroom effectively addressed by revealing its business model about 100 am Sunday Presented to millions of Super Bowl viewers.
“The world doesn’t know that you can have a huge choice of cars brought straight to your home and that anything you can do through a dealership can be done through Vroom,” said Hennessy, an e-commerce veteran of the Joined Vroom in New York City in 2016. “And most of us don’t know anyone who has done this, even with all of our online competitors.
Vroom has joined major competitors CarMax and Carvana to create a fully virtual platform for American consumers to sell one used vehicle and buy another used vehicle. Vroom shot to a total of $ 340 million in the third quarter of last year, its first publicly traded company.
Covid provided a “tailwind,” said Hennessy. “Consumers said, ‘I want to follow the rules of social distancing and not spend the day in a closed dealership,’ so they experimented with models like Vroom. We were fine before, but now a lot more people get a lot of things delivered. We believe that this is a structural change that more and more consumers will engage. ”
However, Hennessy noted that the three big online used car purchases combined account for only about 3 percent of US corporate used car sales, while about 42,000 traditional car dealers keep the rest.
The country’s auto dealerships have put together a massive counter-offensive against disruptors like Vroom to maintain their position in the used car market as a receding pandemic is likely to bring more people to dealerships. In addition, of the approximately 40 million used cars sold each year in the United States, about half are “peer-to-peer” transactions between individuals.
So there is a lot, a lot of runway for Vroom. And the best way for his company and colleagues to really take off, Hennessy believes, is to create the greatest possible contrast between their model and traditional used car sales. So the Super Bowl ad featured a man tied to a chair and painfully interrogated by a used car dealer. Then the script flips and the guy is still sitting in a chair – but now he’s sitting in his front yard next to his wife while a Vroom truck pulls up his new car.
Vroom offers consumers an alternative to both the showroom and the underworld of peer-to-peer sales. “Consumers take their car to a dealer and get a cheap deal and say, ‘I know I can make more money on it myself,’” said Hennessy. “They don’t want to take the low offer, so do your best on eBay Motors or Craigslist or with a cardboard sign in your driveway. But it’s awful.
“With Vroom, you can go to the website, give us a license plate or VIN number and just answer a few questions, and we’ll make a guaranteed offer for the car right there, unseen. The customer says “yes” and we send funds and a truck “to close a deal that can be undone if the customer acts fraudulently. “The added value for consumers is simply enormous.”
And when it comes to buying a used car, Vroom has an online inventory of around 16,000 vehicles, “while a typical dealer has 100 used cars in the parking lot and a larger one maybe 200. So customers have to go from lot to lot trying around Find the right car for you – or simply pull out our app. “