Carvana, the used car seller famous for its vehicle vending machines, is launching a national advertising campaign in August starring celebrity couple Kristen Bell and Dax Shepard. But don’t take this as a sign that the brand has fully healed from a brutal 2022.
After achieving significant success during the height of the pandemic, Carvana began losing its momentum in the latter half of 2021. Throughout the following year, it succumbed to increasing inflation and a cooled used-vehicle market, resulting in a 98% drop in its stock price and the erasure of $37 billion of market capitalization.
As a way to cut costs, Carvana slashed its advertising by 64% last quarter as compared to the year-earlier period. This conservative approach is still at play, despite several marketing efforts in May as well as its upcoming campaign in August.
The focus for Carvana remains returning to growth, not revitalizing advertising, said Ryan Keeton, co-founder and chief brand officer of Carvana.
“How are we being as efficient as we can be?” he told Ad Age.