In advance of IPO, CarGurus tests first TV ads

CarGurus, a site that features car reviews, might be on the verge of making its first public stock offering. But it’s definitely testing its first TV ad campaign in three cities.

The site, which boasts roughly 23 million visitors per month, has not yet established broad name recognition in spite of its enormous site traffic. The budding ad campaign is designed to get CarGurus over that hump.

“We are at a point in terms of a scale perspective and a resource perspective that we can afford to make this type of investment as a business,” said Sarah Welch, GarGurus’ senior vice president of consumer marketing. “And we are trying to grow long-term growth in the business to make sure we don’t tap out our consumer marketing channels.”

CarGurus generated $98.5 million in revenue in 2015 but has declined to share updated revenue figures for 2016. The ad campaign is designed to show the ease of using the CarGurus mobile app compared with doing things “the old-fashioned way.” CarGurus makes money through paid ads on the site.

(Source: www.bizjournals.com)

Let us know! Do you advertise with sites like CarGurus? If so, which ones? What successes have you had with these sites?

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