The used car retailers have all cut their advertising budgets over the last year
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by Brad Anderson
January 10, 2023 at 15:00
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by Brad Anderson
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Three of the U.S.’s largest used car retailers, CarMax, Carvana, and Vroom, are not going to air commercials during this year’s Super Bowl LVII.
All three companies have undertaken cost-saving measures in a bid to offset declines in revenue triggered by the slowing used-car market throughout 2022. Their decision not to air commercials during the big game this year despite all three having aired commercials in the past.
CarMax has run multiple Super Bowl commercials over the years while in 2022, Carvana aired its first Super Bowl commercial in the form of a 30-second spot. Vroom also ran a commercial at last year’s game as well as during the 2021 Super Bowl. But with some 30-second advertisements costing as much as $7 million this year, running commercials doesn’t seem to make sense for them.
Auto News reports that CarMax spent $58.7 million on advertising in the three months ending November 30, 2022, a reduction of 23 per cent from a year earlier. Meanwhile, Vroom’s advertising expenses in the three months ended September 30 was $14.9 million, a 58 per cent decline from the year prior. Similarly, Carvana spent 7 per cent less on advertising in its third quarter that ended on September 30 than last year, totaling $117 million.
Fox stated in September 2022 that 95 per cent of available commercial time for Super Bowl LVII had already been sold out.
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Full details of those companies running commercials during next month’s Super Bowl are not yet known but it is reported that Nissan is one automaker that will not air an ad. Kia will, however.
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