AUTOMOTIVE ADVERTISING & MARKETING

Super Bowl TV Advertising

Super Bowl XLVIII TV Advertising SOLD OUT!

JKRAdvertising / TV Advertising /

January 6, 2014

Fox Sports executive vice president Neil Mulcahy revealed that Super Bowl TV advertising is sold out, with automotive advertisers Audi, GM, Hyundai, Jaguar, Kia and Volkswagen leading the way.

This year, interest in Super Bowl TV commercials was stronger than usual, with all available spots sold shortly after Thanksgiving.

Super Bowl TV Advertising: An Automotive Bonanza

Super Bowl Sunday is the single-most important day in the advertising calendar, with viewers as interested in the commercials as much as the game itself. It’s no wonder the average 30-second spot fetches over $4 million, an increase of $200k from last year.

Celebs Rule the Day in Super Bowl TV Advertising

Like most years, celebrities will be prominent in automotive TV advertising. For example, Laurence Fishburne, star of The Matrix science-fiction classic, pops up in an advertisement for the all-new Kia K900 luxury sedan. In a humorous twist on Morpheus, his Matrix character, Fishburne gives a married couple a choice of the red or blue pills as he offered to Neo in the movie classic. “Super Bowl viewers with preconceived notions of who I am may change their minds,” says Fishburne. Some experts also predict a return engagement for the Kia hamsters, who have been highly effective pitch-rodents for the Kia Soul.

The TV advertising world is anticipating Jaguar’s first-ever Super Bowl commercial. Featuring Jaguar’s new F-Type sports coupe, their spot will poke fun at the stereotype pitting most British actors as villains. In a prepared statement Jaguar said, “”villains disrupt the status quo and challenge the establishment, while living one step ahead of, and better than, the pack.” The ad will highlight the hashtag #GoodToBeBad.

South Korean manufacturer Hyundai makes its seventh Super Bowl appearance with a pair of 30-second spots. In a departure from their usual advertisements, Hyundai will use three yet-to-be-named celebrities in their ads.

Will 2014’s Super Bowl TV advertising be as good as those of recent years? Our guess is an enthusiastic yes, because every year they keep getting better. So while you’re going to the refrigerator for more food and drink, hurry back because you might miss something awesome!

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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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