Vehicle Wraps FAQs

Vehicle Wrap, Advertising, and Mobile Marketing Q & A

First, we ALWAYS and VERY HIGHLY recommend you consult with your CPA, tax prep professional, or legal advisors with this question. These people are the trusted source with first-hand knowledge of current tax law. Through them, you can provide the necessary items for them to make a proper assessment of your qualifying for specific deductions. That being said, According to IRS publication 535 chapter 11 “Advertising expenses.  You generally can deduct reasonable advertising expenses that are directly related to your business activities.” Vehicle Wraps, Graphics, and Mobile Marketing are an advertising expense that would apply. The caveat is that only the costs associated with the design, fabrication, and installation of your wrap and graphics would be deductible in this way and not the value of the vehicle itself.
First, we ALWAYS and VERY HIGHLY recommend you consult with your CPA, tax prep professional, or legal advisors with this question. These people are the trusted source with first-hand knowledge of current tax law. Through them, you can provide the necessary items for them to make a proper assessment of your qualifying for specific deductions. This question is a complicated and all too common conundrum for Business Owners, Accountants, and Tax Preparers alike. Most advertising has a rapid life cycle and will be treated as an expenditure with the standard deduction model. The difficulty lies in the fact that Mobile Marketing methods like Vehicle Wraps and Graphics have life cycles that are far superior to any other form of advertising. The IRS typically wants us to capitalize any expenditures that have an extended return period, thus reducing the potency of the initial tax deduction. Through extensive research, Our findings are showing that the IRS and Federal Government do not explicitly require businesses to capitalize a Vehicle Wrap or Graphics expenditure. A caveat is that this is continuously challenged in court, and the rules may change.
The short answer is YES! Most insurance carriers treat Vehicle Graphics and Wraps as an upgrade or vehicle enhancement and will cover wrap on your vehicle. Vehicle Wraps and Graphics are vehicle enhancements Vehicle graphics and wraps are treated like most any custom modification or adding aftermarket accessories to your vehicle. Regular updates include Ladder Racks, Tool Boxes, Lighting Kits, or GPS systems. Depending on your insurance company, these items may need to be individually listed on their schedule of coverage. What will you need to provide your agent? Typically, your agent will need the invoice for your vehicle wrap or graphics, along with photos of the completed work. For good measure, ask your Wrap provider for the material information and model numbers if it is not explicitly listed on your invoice. Beyond that, your agent will need to know the lifespan you expect the wrap and graphics to remain on your vehicle.

This is a complicated question full of specificity. As with everything that has legal or financial ramifications, please seek the counsel of your trusted legal advisors.

From the legal perspective, in many states, this does increase your liability. For instance, in Arizona, Any vehicle that is wrapped or covered with commercial graphics are required to be registered with Commercial status. There is also the liability of after-hours employee accidents that happen in marked vehicles; the company may have total responsibility no matter the activity that caused the accident.

There is also the thought that vehicle wraps and graphics are the liability. Many people fear that having markings on their vehicles will lead to theft, vandalism, and scams. There is not enough readily available data to support this. Fortunately, recording technology today is significantly less expensive. Many insurance companies are now recommending front-facing and cabin facing camera recording devices to mitigate these risks.

Yes, a Resounding, Yes! The data shows that even the most niche business can and will benefit from Mobile Marketing and, more specifically, Vehicle Graphics and Wraps. Your fleet is your best marketing vehicle! Here are some statistics to solidify this message: In the US today, “individual vehicle advertising generates between 30,000-70,000 daily vehicular impressions,” according to ARD Ventures. “Mobile advertising generates 2.5 times more attention than a static billboard,” says Perception Research. “Messages on outdoor mobile billboards have a 97% recall rate,” RYP & Becker Group indicates. All of this is excellent news. In a world flooded with marketing approaches and potential client touches, Vehicle Graphics has one of the most significant impacts on your presence to prospective clients. In a world where:
  • 82% of people now ignore Online or email ads
  • 37% of people shut off TV ads
  • 35% of people glance over Newspaper ads
  • 36% of people tune out of Radio ads
An overwhelming amount, to the tune of 96% of people notice Vehicle Wrap and Graphic ads, and even more importantly, 97% of those people can recall those ads candidly. The BEST part of all of these numbers, 75% of those people developed an impression of the advertised company. EVEN BETTER, 29% of all the people who see these vehicle ads make a purchase decision based on the ad! A recent 3M study showed that the average wrapped vehicle receives nearly sixteen million views per year! With a cost of only $0.48 per 1000 impressions (on average, lower when you account for 2+ year lifespan of the ads), you WILL benefit from the highest visibility at the lowest cost. These are some great statistics for an advertising medium with such a low cost of entry while being a wholly-owned media and having a 24/7 marketing potential in YOUR target market.
Yes, they are! Vehicle Wraps and Graphics are considered a long life advertising method. With duty cycles over two years on average, You can expect over $120,000 worth of free advertising per vehicle! Sound too good to be true? Well, it isn’t! Your investment of approximately $1000 – $3,500* in applying mobile advertising to your vehicle could generate, on average, $120,000 in advertising value over four years** – a spectacular 3400% return on investment. Based on this analysis, these mobile advertisements have the potential to pay for itself within the first three months! *Not including Branding or Advertising Design, Dependant on Market **According to a recent 3M study On top of that, Vehicle Graphics and Wraps provide you with a powerful advertising medium for a minimal cost that you wholly own. However, the branding on each vehicle needs to represent your company positively. Poorly executed vehicle graphic advertising negatively impacts your company’s brand. Great branding will deliver a positive image while multiplying the returns on the minimal investment involved. Therefore, managing the whole of life “WOL” branding for your vehicle is critical to maximizing your advertising return. The most significant benefit of vehicle-based mobile marketing is that these Brand ambassadors go to your target market, 24/7! Constant exposure in your target market provides the impression of familiarity, this familiarity will build trust, and trust leads to conversations.

Reasonably, Yes. While not as durable as paint, today’s technology for Vehicle Wraps and Graphics are highly durable and resistant to general use. There are new films on the market boasting self-healing abilities or chemical and abrasion resistance. The technologies built into the ink are allowing the pigments to resist sun fading far longer. When paired with a quality laminate, even in harsh climates like Arizona, your wrap will work hard for you for over two years. In other environments, wraps can consistently provide over four years of service when properly maintained.

No, they are not as long as your wrap provider is using quality materials intended for vehicle wraps. Unfortunately, some providers are using cheap materials that are not suitable for wrap use. These films can bond to the clear coat of your vehicle and damage it over time. A properly installed wrap using high-quality material designated for vehicle wraps will protect your painted surfaces when cared for properly. A significant caveat is that wraps also need to be removed when approaching its EOL. If the removal is not done at the proper time, the degradation of the vinyl material can create yellow staining of your clear coat or a whole host of other issues.

We only want to offer the best products to our clients, so we have chosen to provide the AVERY DENNISON ADVANTAGE. With vehicle graphics being so beneficial to your brand and marketing campaign, using the right products is paramount. We are continually testing materials, printers, processes, and products to provide industry-leading innovations to our clients. With all of our experiences, we have found that there is no better solution than the Avery Dennison ADvantage. As a leading manufacturer of innovative graphic industry products, amongst other things, they know what it takes to deliver! The Avery Dennison ADvantage is a combination of top-of-class products, paired with advanced testing, and followed up by industry-leading warranties and support. Their films not only out-perform the competition, but they are also easily removable to prevent damage to your vehicle’s painted surfaces.

Yes, the benefits list is long. From substantial advertising returns on investment to continuous marketing ability in your target market, vehicle wraps are probably the best form of marketing next to online social media marketing. I believe that Vehicle Wraps and Online Marketing are a 1 2 Knockout combo for today’s marketing landscape. Vehicle wraps are often your first impression with your potential clients. They will have a significant positive impact on your customer experience.

In today’s marketing environment, familiarity is a critical component of marketing. Leads are not what they used to be; we are beyond just a name and contact number. Our discerning clientele doesn’t want to be sold too, and they want to initiate the conversation. The best way to get them to start that conversation is through familiarity.

Many experts agree that today’s marketing has been molded by the rise of Social Media and its prominence in our daily lives. Currently, the average person is seeing up to 10,000 advertisements every single day, people no longer respond to traditional sales tactics. We urge our clients to treat vehicle wraps as Brand Ambassadors, not as sales pitches, and this is to encourage trust in your brand. That familiarity and trust will lead to conversations, and those conversations will lead to sales.

First, let’s put the term Advertising in into context. Do not consider using vehicle advertising as a traditional sales pitch Ad. Vehicle Advertising should be considered to be more along the lines of Brand Marketing. The most successful designs for vehicle wraps are direct and straightforward in nature, utilizing highly contrasting colors and quick messages. With most Ad mediums, you have 15 seconds to grab a client’s attention, with wraps cut that in half. Although the data shows we have heightened cognitive recall when it comes to wraps, the message has to be impactful. From studies and experience, we recommend keeping to the basics of Your Logo or Word Mark, A Single Contact method, and a 5-7 word quip about what you do. All this should be combined with your contrasting or harmonized brand colors with minor flourishes to portray your companies attitude.

Keep your design and message on point with all other advertising and marketing efforts to maintain a unified customer experience. Your message needs to be concise and easily recognizable to your clients. The constant reminder is the familiarity you seek in your client’s minds.

This age-old battle is not even a competition when it comes to mobile marketing through vehicle wraps and graphics. The days of intricately hand-lettered vehicles have gone away, and the high-resolution full-color digital imagery has taken its place. The most significant factor in this battle is that paint will destroy your investment while a wrap, when maintained, will protect it. Ultimately, when you decide to retire the vehicle, paint requires significantly more capital expenditure and effort to remove vs. a properly installed and maintained vehicle wrap.

Commercial Vehicle wraps vary in cost, mostly due to complexity, coverage, market, and the company providing the wraps. Vehicle wraps are more than a commodity; they are primarily successful due to the abilities of the company doing the design and execution. In Arizona, we have seen the market range from $2000 – $4500 for the average commercial wrap. The best companies in terms of design and execution are fetching $5000 – $6500 each, but the results for their clients is phenomenal vs. the average wrap, and the return on investment is vastly accelerated.

Beyond just abilities, some companies use inappropriate materials for your wrap application or even unproven low-grade materials, which may lead to early failure or defects. Requesting and comparing materials is paramount to a successful wrap. My company 2CT Media has spent the better part of a decade comparing materials and combinations of materials to find the best balance in cost to value. We are part of various manufacturers’ BETA programs. This privilege provides us the ability to test films and combinations before they hit the market and shape the evolution of technology in our field.

We highly recommend comparing wrap pricing based on merit and not solely on cost, so your investment is maximized in value.

Try Out Our Vehicle Graphics Cost Calculator