Car Dealers Generating $1.46 Billion in Free Advertising

SURREY, BC – May 29th, 2017 – StreamlineJK Media and Design Corporation is pleased to announce the completion of a new study highlighting the prevalence of car dealer advertising on the license plate frames of passenger vehicles in the US and Canada.

 This study provides insights into the extent of free advertising automobile dealers are generating based on installing their branded license plate holders, mostly without the approval of the new car owner, at the time of purchase. It will help consumers understand the car dealers’ motivation and allow them to take action to negotiate a better price on their new vehicle or force the car dealer to modify their post purchase behaviors to break this cycle.

 Specifically, in this study StreamlineJK found:

  • 63% of cars and trucks on the road in the US and Canada have license plate frames with dealer advertising on them
  • $217/vehicle sold is the average annual value derived from the advertising a car dealer receives by installing a license plate frame printed with dealer branding onto a new or used vehicle
  • $136,710 in free advertising is generated on average per car dealership each year from license plate frames installed on new and used vehicles at the time of sale
  • $1.46 Billion in free advertising annually is generated for all car dealerships in the US and Canada from license plate frames installed on new and used vehicles at the time of sale
  • The overall value of the dealer advertising is likely much higher as observations support consumers who don’t remove the dealer license plate frame advertising in the first year of owning a vehicle typically leave it on for the life of the vehicle, compounding this annual tally

“This is almost an obscene amount of free advertising generated by a cheap $2.00 plastic license plate frame,” said Jorden Hall, Founder of StreamlineJK. “The message we are trying to get across to people is the car dealer needs to ask for their permission to install a license plate holder with dealer advertising on it.  At the same time the consumer should be asking for at least a $217 discount off the purchase price of their new car or truck in agreement to have the dealer frame on their vehicle. Hopefully this study arms the consumer with the information they need to opt out of the dealer advertising.”

The StreamlineJK survey was conducted from August 2016 to January 2017 in San Diego, CA, Los Angeles, CA and Vancouver, BC. 1000 cars were randomly surveyed in each location. Statistical accuracy is +/- 3%, 95% of the time.

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