- EV
- EV Charging Infrastructure
- Electric Vehicle Charging Infrastructure
- Consumer Preferences
- Incentive Programs
Super Bowl Ads Contribute to Mainstreaming EVs
February marks several staple American cultural events, including the pinnacle of commercialization known as the Super Bowl. This year, six of the seven car brands that advertised in the commercial spots (which cost an average of $6.5 million for 30 seconds) starred EVs. This is a record number, and there is a reason for it.
Why So Many EV Commercials in the US?
While 2022 could be known as the EV Bowl, EV advertising took off before this winter. 2020 was arguably an inflection point in EV advertising, with the GMC HUMMER EV and the Audi "Let It [Gasoline] Go" commercials. These commercials were major successes compared with the mixed messaging in previous EV commercials. Their success led to more EV commercials. Between 2019 and 2021, spending on EV ad airings increased from $83 million to $248 million, and total airings increased by over 300%.
Market data suggests that in the case of EVs, television advertisements are fruitful. For instance, 2021 Audi ads featuring EVs resulted in 90% more viewers researching Audi than when only non-EVs were featured. From a policy perspective, it makes sense for these car companies to gear up their EV brand recognition. The 2021 Infrastructure Investment and Jobs Act allocated $7.5 billion to install EV charging infrastructure in the US. Of this funding, $615 million will be available in the 2022 fiscal year. With increased access to charging infrastructure, EVs will become a more practical choice for Americans.
Limitations to US EV Market Despite the Advertising Boom
Even with the EV advertising boom, the US lags behind its Asian and European counterparts in EV purchases. Of the 6.5 million EVs sold in 2021, including battery EVs (BEVs) and plug-in hybrid EVs (PHEVs), 3.2 million sales were in mainland China and 2.3 million were in Europe. Only 535,000 of the EVs sold were in the US. For reference, that is about 4% of cars annually sold in the US. Europe and China’s market growth continues to outpace growth in the US.
Charging infrastructure is not broadly available throughout the US. While there is still a long list of federal incentives for BEVs and PHEVs, several were phased out in 2019—perhaps before the market was ready.
What Does This Focus Mean for the EV Market?
From an automaker perspective, a focus on EVs is crucial to survive in the mainland Chinese and European marketplaces. The market share of EVs is growing rapidly in both regions, still helped by numerous incentives. Automakers need to get Americans on board with their EV products—and they need to expand beyond luxury buyers located in tech-savvy cities. Part of selling these EVs will come from customer engagement through humorous Zeus and Hera advertisements in between Super Bowl plays, but the other part will need to come from continued government incentives and better access to charging infrastructure outside major coastal cities.
The US federal government will likely continue EV incentives, and the $12,500 in EV tax credit incentives from the original Build Back Better Act still have the potential to pass. Both of these incentives will be a huge help to automakers that are hoping to equalize the demand for EVs across their various markets and should be supported by EV producers and highlighted in EV advertising. American consumers are clearly curious about EVs. With more advertising, incentives, and consumer interest, the market for EVs in the US is poised for strong growth ahead.