Used Car Site in Review: Vroom
Steve’s breakdown: This one was announced in AdWeek so you’ll have to move fast if you want in!
NEW YORK, NY: If you’re not yet familiar with Vroom, you almost certainly will be soon.
The New York-based ecommerce company, which has been around since 2013, is looking to disrupt the entire used car sales industry, and some of America’s top ad agencies are very interested in promoting its business.
Vroom is in the midst of a creative agency review following several white-hot fundraising rounds. The company, which is led by former Priceline CEO Paul Hennessy, aspires to all but eliminate the traditional used car salesman by purchasing old autos, refurbishing them and guaranteeing them for buyers while handling all sales online and even offering free delivery. Most importantly, the process allows for no haggling over prices.
In short, Vroom would like to become the Zappos of used cars. It took a significant step in that direction by acquiring online sales platform Texas Direct Auto, and now it would like to show its new face to a world full of would-be car buyers eager to streamline the process.
The company’s most recent publicly announced round of fundraising brought in $50 million. As of last September, Vroom had more than $218 million in total funding and, according to its own estimates, “expected to generate well in excess of $1 billion of revenue in 2016.”
To date, Vroom has handled all of its own digital marketing. But its expansion will require a broader advertising effort—hence the agency review.
A representative for Vroom declined to comment for this story, as did Ark Advisors, the consultancy managing the review process.
According to a source with direct knowledge of the matter, however, the agencies pitching the business include the New York offices of Anomaly, 72andSunny and BBDO. Droga5 was reportedly invited to participate but declined. Representatives from all four shops have either offered no comment or not yet responded to Adweek’s queries about the review.
The same source estimated the budget for a future integrated campaign, which will include broadcast ads as well as out-of-home and radio work, at approximately $20 million.
In the meantime, Vroom is actively seeking new investors and scoring media mentions.