Jamjar.com, the online car e-tailing brand owned by insurance giant Direct Line, admitted yesterday to avaerage sales of just 500 cars a month despite its $10million advertising campaign. To date, this has cost £1,666 for every car sold.
But Direct Line, a unit of the Royal Bank of Scotland, is playing down the massive cost of sales. The purpose of the campaign, it insists, is as much to build the brand as to sell cars – and the site is already moving more cars each day than would a small dealership in a month.
Direct Line plans to invest a total of £50m in Jamjar [Cockney rhyming slang for ‘car’] and predicts the venture will break even before the end of 2000.
News Source: CampaignLive (UK)