AUTOMOTIVE ADVERTISING & MARKETING

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How Much for a Super Bowl 50 Spot? Glad You Asked.

JKRAdvertising / Auto Industry in the News /

December 8, 2015

images At the end of Super Bowl 50 (to be played on Feb 7 in Santa Clara, CA), there will only be one National Football League team celebrating victory. Additionally, it’s a good bet CBS will also be breaking out the bubbly.

Why? CBS is the network airing the big game, and advertisements are being sold at an astonishing rate of $5 million for a single 30-second spot – up 11% over last year’s figure of $4.5 million.

Why So Much for Super Bowl 50?

Here’s the question you are probably thinking: Who in their right mind would spend five million dollars on one commercial? The answer is, a lot of people; in fact, ad time is nearly sold out already, and we’re still a couple months away from kickoff.

The nation’s eyes will be watching … and many folks pay special attention to the advertisements. More than 114 million televisions were tuned to last year’s Super Bowl between the Seattle Seahawks and New England Patriots, making it the most-watched event in the history of television in our country. And that doesn’t take into account large gatherings such as parties, or folks gathered together to watch the game in their local watering holes.

So far, only two automakers have taken the plunge (actually one, if you take into account that they’re from the same parent company). Hyundai has committed to two spots, one each in the first and second quarters; meanwhile, sister company Kia will run one spot in the third quarter.

It remains to be seen whether the other big automakers will decide to take part in Super Bowl 50 advertising, but if past history is any indicator, chances are at least a couple of them will decide to throw their hats in the ring. But one thing is for certain: That is a LOT of money to be spending on one commercial, so it’d better be good – and memorable.

JKR Automotive Advertising: We Move Cars.

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Post-Pandemic Dealer Gross Profits are Down – But They Don’t Have to Stay There!
March 13, 2024
It is no secret that dealer gross profits per vehicle are down sharply in the post-COVID automotive world. According to a recent article in Automotive News, gross profits of the six largest publicly traded dealership groups plunged significantly from Q4 2022 to Q4 2023. One of them was actually down 35% per vehicle!

The article explains: High interest rates, more expensive vehicles and a steadier post-pandemic supply chain continue to soften demand and bring it closer to pre-pandemic levels. Still, new-car buying has remained strong overall …

This means that, while sales volume is similar, overall bottom lines are lower for many dealers due to the reduced gross profits. What about your dealership?

Being Realistic
It’s time to turn the page! The time for dealers to simply be order takers for people willing to pay MSRP for a vehicle (and in some cases more) has passed and dealers have to work hard once again to achieve acceptable gross profits.

Selling a high volume of cars doesn’t control gross profits, no matter how much you wish this was the case. Correct processes and menu pricing – and strict adherence to them – do!

What kind of processes?
∙ Slow down the transaction! Your sales staff has to once again sell the customer on the features and benefits of every new and pre-owned vehicle on your lot.

∙ Your salespeople and managers should devalue the customers’ trade-in value (politely, of course) as much as possible. After all, if the customer expects you to lower your price, shouldn’t you be able to do the same on their trade? Remember, you’ll have to fix it up, put your name on it and resell it to someone else with all the tenacity you would a brand-new car. So make sure you buy it right … because the profit is made when you buy it, not when you sell it!

∙ To that end, management should be ready and willing to leave the desk and do thorough walk-arounds on each trade to ensure the best outcome for the dealership.

The Cure for Low Gross Profits
If you are like a lot of dealers these days, you could use some good news. Here it is: while you may not have the capability to achieve profit margins similar to those you enjoyed during the pandemic, they could likely be improved. JKR’s clients enjoy the benefit of attracting not only more customers, but better ones, too!

If meeting and exceeding your sales goals (and increasing gross profits at the same time) sounds great to you, you need to call us. Don’t settle for reduced gross profits when help is out there to get you closer to where you’d like to be.

Want to know how we do it? Reach out to Senior Partner Richard Brauns (407) 701-4233 or Partner/Vice President Jon Albert (407) 718-2494 today.

JKR Automotive Advertising: We Move Cars.

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