SANTA MONICA, Calif., Feb. 12, 2015 /PRNewswire/ -- TrueCar, Inc. (NASDAQ: TRUE), the negotiation-free car buying and selling mobile marketplace, finds Super Bowl advertising to be efficient, with the average automotive advertiser achieving a projected 2.4 percent increase in retail market share. Auto brands that advertised during the game gained a combined 0.9 percentage point of retail share compared to those that sat on the sidelines.
TrueCar's comparison of new vehicle order-generation activity in the week following the Super Bowl with a similar week of the prior month found that most auto advertisers got a retail share lift after the game. Nissan led with 0.4 percentage point of projected incremental retail share, for a total increase of 4.6 percent. Kia, Mercedes-Benz and Jeep also did well, with gains of 0.3, 0.2 and 0.1 percentage point and 5.9 percent, 5.6 percent and 2.9 percent increases in share.
"Isolating the incremental sales associated with Super Bowl advertising reveals that the game can be a really effective marketing channel," said John Krafcik, president of TrueCar. "The marginal unit economics of the auto industry are such that automakers are willing to pay a surprisingly high price tag for incremental sales."
Super Bowl participants Nissan, Kia, Mercedes-Benz and Jeep achieved more efficient cost per incremental sales unit than 2014's average blanket incentive spending. The cost for each incremental unit sale last year was $23,200 when using general market, untargeted incentives, such as rebates and other price reductions, TrueCar analysis shows.
"Super Bowl advertisers did much better than that, delivering incremental sales for just $9,344, 60 percent less than untargeted incentive spending," Krafcik said.
TrueCar's assessment results from its unique position within the automotive industry as a "bottom of the funnel" platform for consumers ready to buy, rather than a higher funnel car-browsing site.
"Our real-time, auto buying-centric data generates deep insights to help unlock the frontier of sales, pricing and spend efficiency," said Mike Swinson, chief data scientist of TrueCar. "The power of our data is immense, limited only by our imagination. Understanding marketing spend efficiency is just the tip of the iceberg in a sea of big data."
The cost of airing a 30-second spot during this year's game was as much as $4.5 million, according to AdAge. Even at that level, Super Bowl campaigns can be highly efficient.
"The great lesson here for automakers is that big strategic spending on big marketing platforms like the Super Bowl can make a lot of sense, especially when you've got a message that ties to the brand and resonates with car buyers," said Krafcik. "Combining those big strategic marketing initiatives with TrueCar's targeted incentive programs is a smart way for automakers to build their brands, grow market share and delight more car buyers."
About TrueCar
TrueCar, Inc. (NASDAQ: TRUE), the negotiation-free car buying and selling mobile marketplace, gives consumers transparent insight into what others paid and access to guaranteed savings off MSRP from TrueCar Certified Dealers. TrueCar's network of more than 10,000 trusted Certified Dealers is committed to providing upfront pricing information and a hassle-free buying experience. TrueCar powers car-buying programs for some of the largest U.S. membership and service organizations, including AARP, American Express, AAA and USAA. Not all program features are available in all states. TrueCar is headquartered in Santa Monica, California, with offices in San Francisco and Austin, Texas. For more information, go to www.truecar.com. Follow us on Facebook or Twitter.
TrueCar media line: +1-844-469-8442 (US toll-free) | Email: [email protected]
Logo - http://photos.prnewswire.com/prnh/20110118/LA31413LOGO
Photo - http://photos.prnewswire.com/prnh/20150212/175128-INFO
SOURCE TrueCar, Inc.
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article