Car Advertising: Can You Still Make Money With It?

 TABLE OF CONTENTS

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• The idea: Use your own car as advertising space
• Advertising on the car: advertising costs at a glance
• Car advertising via mediation platforms
• Look for a direct conversation with an entrepreneur
• Do I have to pay tax on income from car advertising?
• Advertising on the car for car dealers
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For many, making money from car advertising sounds too good to be true. You put a few stickers on your own car and the household budget starts ringing every month. But actually car advertising works quite differently in practice. If you want to earn some extra money with your own car, you have to do a little more. We looked at the possibilities of car advertising as a passive income opportunity and would like to share them with you.

The idea: Use your own car as advertising space

The idea behind car advertising is very simple: a company wants to be noticed by many people. In cities, cars move on public roads, on motorways, stand in the city center, in front of shopping centers and thus receive a lot of looks and attention. The company is made present in all these places, because the "advertising car" usually moves everywhere and frequently. Thus, free-moving advertising could be quite advantageous for businesses. But is that how it works in practice?

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Advertising on the car: advertising costs at a glance

There is a problem with this type of advertising: it does not always reach the right target group because it is used in an untargeted manner. There is no way to control who should see the ad and who shouldn't. 

Accordingly, although a large number of people see the advertising, they do not always belong to the company's target group. Nevertheless, companies achieve a certain visibility with the help of car advertising.

As a comparison, one should look at the visibility on the Internet . Here, companies pay just between 10 and 15 euros for around 10,000 integrations. For the money, a company is therefore targeting several thousand people, making it significantly more likely that some people will become actual customers . In addition, Internet advertising can be controlled and displayed directly to the people who belong to the target group.                                

CAR ADVERTISING: A MATTER OF VISIBILITY

As a result, car advertising is less attractive for advertisers because it is difficult to control and does not address the target group directly. Apart from that, car advertising is comparatively more expensive than, for example, internet advertising . For the entrepreneur, there are also monthly costs for the stickers and for attaching the stickers to the vehicle. In addition, it is not possible to say with certainty how many people actually see the advertisement on the car . 

Finally, the motor vehicle could sit in the garage for a month or more and not be used.

For this reason, as a driver, you will only find a few good offers in this advertising area. This is also the reason why you see fewer and fewer private vehicles with stickers on German roads. If car advertising worked well, you would certainly see a lot more wrapped vehicles.

EXAMPLE: THE SMART SMART ADVERTISING

Some companies developed the idea of using rental vehicles as an advertising medium and sticking advertising on them. Smart can be mentioned here as an example. The Smart is a small city runabout that can be rented as advertising space for one euro per day. For the advertisers, this price is more than reasonable and fair. The companies stuck advertising on the vehicles and drove them a certain number of kilometers through the city so that the moving advertising space actually moved and had even more visibility.

However, it quickly became apparent that only a few advertisers were willing to place their advertising on the small city vehicles. For this reason, most companies failed with their smart concept. At this point, the problem of car advertising is quite clearly visible.

Car advertising via mediation platforms

Car advertising can also be organized via mediation platforms. But these platforms are known for their high fees and big promises. There are even fees for entry in the database. However, such mediation platforms do not give any guarantees that you will actually get advertising on your car and that you are guaranteed to earn money with it . Therefore, when in doubt, you should always think carefully about whether you want to invest your money because of fees.

Look for a direct conversation with an entrepreneur

It makes the most sense to seek direct contact with an entrepreneur if you travel a lot with your private car and often leave the vehicle in busy places. Presumably, large and well-known companies will have little interest in such cooperation. However, startups could be suitable as advertisers because they often want to address a broad target group and make their product or concept known to as many people as possible.

If you are striving for such a cooperation, it is advisable to keep a logbook and to present this to the company. In addition, all parking spaces should be specified in the logbook so that the entrepreneur can see whether it is worth working with you or not. After all, a company wants your vehicle to enjoy a wide reach with their advertising. For this it is necessary that your car is often on the road in the city center and that you park it in large parking areas. The remuneration should be between 20 and 300 euros per month. This depends on the movement pattern as well as the size of your vehicle and the size of the general advertising space. Once you have reached an agreement with the company, you should draw up a contract that contains all the relevant information such as remuneration, route, parking spaces and minimum monthly kilometers driven.

Do I have to pay tax on income from car advertising?

You have to pay tax on all income that you earn from car advertising. Consequently, the advertising revenue must be included in the tax return . Because this wage is taxable wages for the tax office, since the contract as an employer and employee means that putting advertising on the car can largely be seen as work activity. Therefore, be aware of the duties and tasks that await you.

Advertising on the car for car dealers

Another possibility is advertising for the car dealer. Once you've decided to buy a new vehicle, you could negotiate with the car dealership to lower the price of the vehicle if you put a dealer's company logo or promotional sticker on your new vehicle. You are suitable for a certain period of time (e.g. 1 year) and record this in writing in the purchase contract . 

Thus, the dealer could reduce 1,000 to 3,000 euros from the purchase price of the new car. Although you don't earn any real money, you save a few euros when you buy a new vehicle.

Conclusion: Only a few reputable partners for car advertising

In practice, it is difficult to make lucrative money with car advertising. You will often fail to find a reputable advertiser who is also willing to pay good money for the appropriate advertising. You should try your luck with smaller companies, because here the chance of finding an advertiser is much higher. 

At a car dealership, you could ask for a discount on the purchase of the new or used car when you place the ad on the new car. If you are seriously considering making some money with your own car, we recommend offering commuters a ride for an attractive payment. This is a good way to earn some money with a private car in between.