Super Bowl Ads Hyped Electric Cars. But Will Anyone Buy Them?
Super Bowl ads featuring electric vehicles used to be rare. But this year, at least three car companies — GM, Porsche, and Audi — ran flashy commercials for new plug-in models. It’s a sign that a shift is underway as automakers try to persuade a skeptical public that electric vehicles really are the future.
Auto Ads at the Super Bowl
Ad for an electric vehicle
3 EV ads
this year
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3 EV ads
this year
Ads for non-electric cars, trucks and SUVs
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3 EV ads
this year
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On the biggest advertising day of the year, GM enlisted Lebron James to promote its new all-electric GMC Hummer truck. Audi had “Game of Thrones” star Maisie Williams belt out “Let It Go,” the hit song from Disney’s “Frozen,” as her e-Tron Sportback sped past polluting gas-guzzlers. Porsche raced its electric Taycan sports car through the streets of Germany.
(In some regional markets, Ford also aired a fourth ad with Idris Elba, showcasing the company’s upcoming electric Mustang S.U.V.)
The high-profile ads underscore a dilemma facing the car industry. Major automakers like GM, Ford and Volkswagen are investing billions of dollars to develop new electric vehicles, spurred by stricter emissions rules in places like California and concerns about climate change. More than 100 new plug-in models are expected to hit the United States over the next five years.
But so far, car buyers haven’t been overly enthusiastic. In 2019, automakers sold fewer than 330,000 electric vehicles in the United States. That marked a decline from 2018 and represented just 2 percent of the 17 million vehicles sold nationwide. Tesla alone accounted for more than half of all electric car sales.
Unless demand starts rising dramatically, “There’s going to be a fair amount of carnage with some of these new electric vehicle launches,” said Mark Wakefield, a managing director at the consulting firm AlixPartners.
Electric vehicles are also considered a crucial tool for tackling climate change, since they tend to produce less planet-warming emissions than gas-powered cars even when the electricity used to charge them is factored in. But if buyers aren’t biting, then the transportation sector, which is now the biggest source of climate pollution in the United States, will be much tougher to clean up.
To date, many automakers have put relatively less effort into advertising their electric cars.
The auto industry spent $8.6 billion last year on national and local advertising in the United States, but just 0.3 percent of that went toward promoting electric vehicle models, according to data compiled by Kantar Media for The New York Times. (Those figures include paid advertising from car makers and dealer associations, but do not include ads by local car dealerships or other types of marketing, such as social media campaigns.)
Car makers didn’t spend much to advertise electric vehicles in 2019
Ad expenditure was even lower than sales.
Not model-specific
Non-electric vehicles
EVs: 0.3%
85.7
14.0
Ad spending
98.1
Sales
1.9%
Ad spending
Not model-specific
Non-electric vehicles
EVs: 0.3%
85.7
14.0
Sales
98.1
1.9%
Roughly two-thirds of the ad spending on electric vehicles in 2019 went toward promoting just three models: Nissan’s Leaf, Chrysler’s Pacifica Hybrid minivan and Toyota’s Prius Prime. Yet more than 40 different electric vehicles were available in for sale the United States, including purely battery-powered vehicles as well as plug-in hybrids, which can drive in electric mode or use gasoline when the battery runs down.
Analysts note that many automakers still sell some of their electric models at a loss, which could explain the reluctance to advertise. These companies may prefer to sell just enough electric cars to comply with state mandates but not go too much further.
What’s more, the most successful electric-car seller, Tesla, barely pays for advertising at all, instead relying on the celebrity of its chief executive, Elon Musk, and word of mouth to generate buzz. But few other companies have that advantage.
Since 2014, Ken Kurani, a researcher at the University of California, Davis, has surveyed California residents every few years, asking if they can name a single battery-powered vehicle model. Only one-third of respondents can correctly name even one, and it’s usually a Tesla. “And this is in California,” he said, “the most active and sophisticated electric vehicle market in the country.”
Awareness of non-Tesla electric models is low
In a March 2019 survey, thousands of Californians were asked:
“Can you name a battery electric vehicle that is being sold in the U.S.?”
“No”
“Yes”
Other
Chevy
Bolt
55%
Tesla
24%
Wrong answer
12%
Nissan Leaf
5%
Partly
correct
In a Mar. 2019 survey, thousands of Californians were asked: “Can you name a battery electric vehicle that is being sold in the U.S.?”
“No”
55%
“Yes”
Other
Chevy
Bolt
Tesla
24%
Wrong answer
12%
Nissan Leaf
5%
Partly
correct
Dr. Kurani’s research has also found that, in 2019, fewer than 10 percent of California car buyers had either seriously considered or already owned an electric vehicle. That fraction had not significantly changed since 2014.
Of course, a lack of advertising isn’t the only reason people might be wary of electric vehicles. There’s also the price tag: Many plug-in cars still cost more than their conventional counterparts, and federal tax incentives are set to expire for some models. Some drivers may worry about the hassles of charging or running out of battery life. And surveys have found that car dealers are often reluctant to take the time to explain an unfamiliar technology.
In theory, these hurdles are surmountable. Congress has debated extending tax incentives, which would spur sales. Batteries keep getting cheaper, and some analysts expect electric cars to reach price parity with gasoline-powered cars later this decade. States are also adding charging stations, and many new electric vehicle models come with more than 300 miles of range, which could alleviate fears of being stranded.
But ultimately, analysts say, automakers will also need to work harder to create excitement around electric vehicles. “There’s been little effort to build a market for these cars,” said Chelsea Sexton, an auto industry consultant who worked on GM’s electric vehicle program in the 1990s. “We know they can do it — look at how automakers built demand for SUVs and pickup trucks.”
Some companies are already signaling a shift in emphasis in the years ahead.
Audi plans to devote 50 percent of its global marketing budget to its electric vehicles this year, up from less than 10 percent last year. Still, the German manufacturer faces a steep challenge: Last year it registered just 5,369 sales in the United States for its new e-Tron SUV, which was introduced midway through the year. (By comparison, the company’s best-selling Q5 SUV, a gasoline-powered vehicle, registered nearly 70,000 sales.)
“You need more than just one commercial at the Super Bowl,” said Sven Schuwirth, head of Audi’s digital business and customer experience. “We have to get people to think more positively about the future, to get them emotional about a new technology.”
And, as this year’s Super Bowl ads suggest, some automakers are starting to shift their messaging. “With some of the early electric cars, the message was that you needed to make a sacrifice to help the environment,” said Mr. Wakefield of AlixPartners. “But you’re starting to see a change in emphasis, now it’s often about how cool the cars are, how fast they are, how modern they feel. It’s no longer all about saving the planet.”