AUTOMOTIVE: Rivian keeps its marketing, digital efforts in-house as new Venice store opens

EV Maker Keeps Things In-House; Direct to Consumer

Rivian Automotive Inc.’s filing for an initial public offering continues to offer a trove of information about the company that, up until recently, had been fairly tight-lipped on its strategy.

One thing that was clear from the start: the Irvine electric vehicle maker’s business and brand is highly reliant on digital.

With the company opening the first of its experiential Hubs a week ago in Venice, not far from the neighborhood’s famous Abbot Kinney shopping district, Rivian’s marketing strategy is coming into focus quite clearly.

“Every consumer interaction comes directly from Rivian; whether it is attending an event, subscribing to our digital content or purchasing one of our vehicles. We do not rely on third parties or franchisees to engage with our consumers,” the company said in its filing.

The two-building Hub on Venice Boulevard, former home of author Ray Bradbury, includes a library, crafting area, gardens, place for workshops, outdoor seating and the company’s R1T truck on display.

The Venice Hub is one of four types of physical spaces the company will use as branding and marketing moving forward.

Hubs, Rivian said, “are everyday spaces meant to bring an appreciation of the outdoors to urban centers.” They’re also meant “to inspire and educate people about our brand, products and values,” the company added.

The plan is to open Hub concepts in cities Rivian expects to be filled with a large number of prospective customers.

Venice provides a good look at what could be in store for the historic Laguna Beach South Coast Cinemas, which Rivian paid $10.7 million for earlier this year.

The 15,890-square-foot property on Coast Highway is expected to serve as both experiential branding and community gathering place for screenings and other events.

The three other types of brick-and-mortar locations the company has planned are seasonal pop-ups it said could be open for a week to several months; outposts located “near adventure destinations”; and open spaces the company plans to use for conservation efforts.

The aim with the four concepts is to pull new buyers in while also being a place for the company’s membership, offering events and other brand experiences.

“We generate awareness without sacrificing authenticity,” the company said in its filing.

To that end, the company’s marketing, digital, content, event planning and analytics has been generated in-house to date.

“No agencies of record. No paid media. We rely on both shared and earned media to connect directly with our community through engaging content, rich digital experiences and immersive events,” Rivian said.

The company spent $24 million on marketing in 2019. That spend dropped to $5 million in 2020 during COVID.

The relatively low budget is about on par with Tesla Inc. (Nasdaq: TSLA), which is considered Rivian’s closest competitor within the electric vehicle automotive space.

Tesla, with a market cap of near $850 billion, has historically had lower marketing costs than other automakers and said in its 2020 annual report marketing and advertising costs were “immaterial” in 2018, 2019 and 2020. ■