Online Advertising Solutions

1. ADP Digital Marketing Team Online Advertising Solutions Ralph Paglia Director - Digital Marketing OEM & National Accounts Cell: (505) 301-6369 Ralph_Paglia@ADP.com

2. Online Advertising Campaign Development & Management Solutions for Car Dealers Expanding the portfolio of business development tools that Dealers have available to them from the ADP Digital Marketing team. Designed for Dealers who want to promote their business using proven, powerful, measurable and interactive web based advertising strategies and delivery tactics… Digital Advertising Solutionsfrom ADP Dealer Services

3. Selected Slides Branding and Buying 2.0Digital Advertising Presented by: Charlie Vogelheim Vice President Automotive Development “ThinkDigital07” Conference Silverado Resort, Napa, CA May 31, 2007

4. It’s not just about pushing visitors to the dealershipHalf of automotive web site visitors are “just looking” …reviewing/exploring the brand for fit Manufacturer Sites – 41% Independent Sites – 52%

5. More vehicles are added to the customer’s selection criteria earlier in the shopping process and while on OEM sites 2006 Online Cross-Shopping Study

6. Upper-Funnel marketing on the Internet • Nearly 90% of new-vehicle buyers have access to the Internet – And they use it to learn about vehicles and dealers • Internet advertising presents a valuable opportunity for dealers to reach their target effectively and efficiently • Proliferation of sites for advertising may make choosing seem difficult, but the potential for finding a receptive audience is high through proper site targeting • As more dollars are put into online advertising, it becomes even more important to use those dollars wisely • The vehicle and dealer consideration set is built well before active shopping begins… Long before a lead is submitted

7. Branding to be at the top of shoppers’ consideration sets is extremely important, as is in-market advertising Source: 2006 New Autoshopper.com Study

8. Demographic targeting alone can miss the mark Targeting by Age can Misrepresent Your True Audience Total US Adult Population 209,000,000 18 - 34 Years Old (66,000,000) Compact CUV Buyers ~.5% of Total Adult Population Only 0.3% of 18-34 will buy a Compact CUV in a given year Source: Population figures from 2000 summary file 3 U.S. Census Data

9. The Media that delivered last year’s prospects will, by and large, deliver next year’s buyers. Logic of the Direct match between media usage and product behavior or attitudes: As established in academic research

10. Online Media Studies provides a targeting tools to address awareness and avoidance issues Awareness Branding Reputation Online Media Study Provides Efficient Placement Avoider Study Perception Image Styling Consideration Affordability Product Education New Autoshopper.com Provides Efficient Placement; Web Site Evaluation Study Provides Content Escaped Shopper Convenience+Prices+Selection Dealership Purchase

11. Even the best-selling Camry that literally defines the segment is only considered among 35% of Midsize buyers Camry Consideration among Midsize Conventional Buyers Increase Awareness Change Perceptions Awareness rates from 2006 Avoider Study; Consideration rates from 2006 Escaped Shopper Study (ESS).

12. Calculate what dealers are really paying for their true target audience - example Know what you are paying for This is what you care about This is what you are paying for Source: 2006 J.D. Power and Associates Online Media Study W2; Netratings April 2006 Data

13. Targeting Ads into small specialized sites provides excellent value by Serving Up a Dealer’s best prospects at a Low CPM Evaluate the cost by the number of your target delivered, not by total audience Illustrative Example Source: 2006 J.D. Power and Associates Online Media Study W2; Netratings April 2006 Data

14. How should you measure digital advertising? Aware Not Aware Did Not Consider Buy Reject • No “silver bullet” • Remember to examine three groups: • Avoiders • Rejecters • Buyers Avoiders Consider Rejecters Buyers

15. Ensure reach, messaging and execution applies to all three groups when considering campaign funding EXAMPLE CAMPAIGN DECISION MATRIX

16. Plan for cost efficiency and dealer awareness of campaign objectives and measurement methods • Don’t: • Focus solely on past buyers (they are already aware) • Look at everybody (Internet usage varies by vehicle segment) • Target sites based on reach alone (what’s your message?) • Look at irrelevant segments (increasing awareness is of little use if the wrong audience is being reached) • Do • First, define your objectives and targeted audience • Look where your competition is strong (exploit any weaknesses) • Compare groups of sites by category to determine which best fit your specific campaign objectives • Messaging is key… Right Message on Right Sites • Evaluate costs among placement options (ST vs BT vs CN)

17. Improving Online Buying

18. Enhance the value proposition of submitting an online lead… Today, 80% of car buyers see no value in it! • Online submissions still represent a large percent of new-vehicle buyers (21%) • Online buying is more efficient than it ever was – but it is hasn’t grown among new-vehicle buyers • The value proposition of submitting a lead does not work for about 80% of consumers who bought a new vehicle in 2004, 2005 and 2006… Why? Based to new-vehicle buyersSource: 2006 New Autoshopper.com Study

19. Sales Process Integration via Transaction Capable dealer web sites can provide a higher value proposition

20. What else can be done to engage the 80% of online car shoppers who do not submit leads? • Sales and Finance data integration between dealer web sites and DMS applications to facilitate online purchasing • Provide information that consumers are looking for: • Real-Time dealer inventory • Actual photos of New Vehicles (big lift in visitor/leads ratio) • Quick or real-time pricing • Consumer feedback ratings on dealers? • Create multiple purchase pathways that address different styles and tastes - For example, live chat can also help shoppers transition from the online store to the salesperson • Be creative in exploring different options – Build Your Own Process?

21. Offering multiple pathways, like chat, can please and engage more of the “80% no-lead” visitors

22. Key Digital Advertising Takeaways from J. D. Power Research and Analysis of online car buying activities • Digital Advertising will benefit from the largest budget shift in media spending that has ever occurred during the next 36 months • Build web sites with two targets in mind: branding and shopping • Plan for upper-funnel online advertising with research that determines what message to which audience visiting who’s targeted web sites • Don’t forget about lead submission avoiders – the larger population at 80% of all online car shoppers that buy within 90 days • Continue to create multiple pathways to the dealership including sales integration, transactional capabilities, specialized web sites and secure accounts used by vehicle shoppers to configure their purchase • Micro-sites built specifically for digital ad campaigns yield multiple marketing benefits to dealers and are more likely to please consumers seeking specific information within the least number of clicks

23. Questions? Charlie Vogelheim Vice President Automotive Development 714.621.6263 Charlie.Vogelheim@jdpa.com

24. Text based sponsored link ads • Image Ad design, production & hosting • Dynamic media enriched ads • Conversion Optimized Landing Pages • Specialized Micro-Sites • Deep-Linked URL Management • Campaign Management Services • Keyword Bid Management (PPC) • Site Targeting Bid Management (CPM) • Behavioral Targeting • Retargeting Campaigns to display your digital ads to your site’s visitors • Monthly budget and results reporting Digital Advertising Solutions that Provide the Missing Pieces of the Puzzle ADP Digital Advertising provides a full range of online advertising products and services ranging from creating click-grabbing ads with corresponding landing pages, all the way to pre-built campaigns that are proven producers.

25. Where do car buyers see ads? A: Search Engines & Web Sites CPM: A few examples of the 900+ sites we target for Ads… CPC: Search Engine Marketing

26. What is the “ADP Digital Advertising Network”? ADP’s Digital Advertising Campaign Managers place your dealership’s ads more effectively than SEM alone… • A Few Examples of ADP’s Content Network sites: • About.com • Lycos • InfoSpace • HowStuffWorks • Food Network • NYTimes.com • MotorTrend.com • Autotrader.com • CarandDriver.com • Autobytel.com • AutoWeekly.com • BusinessWeek.com ADP Search Network: • Google • Yahoo • MSN • AOL • Ask.com • AT&T Worldnet • CompuServe • Shopping.com • Netscape NetCenter

27. Site Targeting can produce more and better convertingtraffic at a lower cost per visitor in highlyCompetitive SEM Markets… April 2007 Example: Site Targeted Campaigns in Phoenix produced 1,018 car shoppers clicking on the dealer’s ads at a $1.41 Effective Cost Per Click and generated over 2.4 Million Ad Impressions at less than $.60 per thousand people! Digital Marketing Division

28. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into: 2buycars.net 4wheelz.net acarplace.com allautoreviews.com allcarsallthetime.blogspot.com americancarfans.com americandreamcars.com anythingcars.com aol.com arizonagasprices.com auto-dealer-website.net auto.howstuffworks.com autobaron.com autoblog.com autoclips.net autodealerbase.com autodealersfinder.com autoexplosion.com autofan.com autoforumz.com autofotos.com autogeek.com autogiant.com autoguide.net autohopper.com autoinfo.org autointell-news.com autointell.com 1

29. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into: automall.com automart.com automobilemag.com automotive-links.com automotivebuy.com automotivedigest.com automotiveforums.com automotivehelper.com autorepair.about.com autoseekandsell.com autospectator.com autoworld.com azreporter.com collectorcartraderonline.com bullz-eye-cars.com buyingadvice.com camaross.com car-advisor.org car-dealerships-by-city.com car-forums.com caranddriver.com caraudio.com carbuyersnotebook.com carbuytip.com carcentral.com cardealersnearyou.com cardealersusa.com cardealerz.com 2

30. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into: cardetective.com cardomain.com carfinderservice.com carjunky.com carnut.com carphotoalbums.com carpictures.carjunky.com carpictures.com carpredictor.com cars-directory.net cars-guide.com cars-on-line.com cars.about.com cars.mylounge.com cars.networktechs.com cars.stargeek.com carsandstripes.com carscarscars.blogs.com carsellersusa.com carshownews.com carspyshots.net carsurvey.org cartype.com carzunlimited.com chevrolet.jbcarpages.com chevroletforum.com chevy-camaro.com chevyhhr.net 3

31. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into: chevyreviews.com chevytrader.com classiccar.com classyauto.com clubavalanche.com cnn.com cobaltss.com coloradofans.com conceptcars.autoblog.com conceptcarz.com consumer-engine.com corvetteforum.com coupes.autoblog.com crashtest.com credit-union-4u.com creditunionaccess.com creditunionsonline.com db.theautochannel.com dealerrater.com dealsonwheels.com desktopmachine.com dieseltruckresource.com digi-go.biz discount-tires-online.com domesticsale.com edmunds.com excite.com f150online.com 4

32. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into: familycar.com fast-autos.com fastautosales.com fastcoolcars.com fhcars.com forum.thecarconnection.com forums.aaca.org forums.corvetteforum.com forums.roadfly.com forums1.roadfly.com fossilcars.com gassavers.org gaywheels.com gm-trucks.com gminsidenews.com gonnadrive.com greenhybrid.com hdforums.com hotautodeal.com hybrid.com hybridcarguide.com hybridcars.com hybrids.autoblog.com insidercarsecrets.com intellichoice.com invoicedealers.com jbcar.ca jbcarpages.com 5

33. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into: justout.net leaseguide.com leftlanenews.com lotpro.com lowridermagazine.com lycos.com mautofied.com modifiedcartrader.com motonews.com motoralley.com motorbase.com motorbooks.com motorcities.com motoringfile.com motortrend.com musclecarfinders.com musclecars-and-classics.com musclecars.net my-car-picture.com mycarwizard.com mydealerships.com mynewcarpurchase.com newautoseeker.com newcartestdrive.com nhra.com off-road.com oldcarandtruckpictures.com oldride.com 6

34. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into: phoenix.oodle.com phoenix.tribe.net phoenixgasprices.com pictures-of-cars.com powersportsnetwork.com pricealease.com racingjunk.com racingsouthwest.com realoem.com rebates.com reply.com reviewcar.com reviewcar.org ripoffreport.com roadandtravel.com roadfly.com rv.net safecarguide.com sedans.autoblog.com seriouswheels.com smartcarfinder.com sportscarforums.com spyphotos.autoblog.com streetfire.net streetsourcemag.com suddenlaunch.com supercars.net supplierprograms.com 7

35. A Few Examples of Web Sites found to be Effective that ADP Digital Campaign Managers “Push” Dealer Ads into: suvs.autoblog.com swapalease.com tenmagazines.com the-truckers-page.com theautobahn.com theautochannel.com thebiglot.com thecarconnection.com thecarfanatics.com thecityofphoenix.com thedieselstop.com thesamba.com townhall-talk.edmunds.com townhall.edmunds.com truck-guide.com trucks.autoblog.com usedcars.com usedcarsandtrucks.com usedcarsplus.com usnews.com v6performance.net velocityjournal.com videos.streetfire.net vrooomm.com wheelsdirect2u.com womanmotorist.com worldcarfans.com yourdreamride.com 8

36. ADP Digital Advertising provides dealers with CPM based Site Targeted Ads designed to drive traffic to showrooms and Landing Pages CPM Bidding (cost per thousand impressions) ADP Campaign Managers monitor each dealer’s bids per Geo-Targeted 1,000 Ad Impressions. Impression count when a Web page serves an ad, whether consumers click on it or not. • How Do ADP Digital Campaign Managers compare CPC and CPM Ads for effectiveness in achieving dealer objectives? • Effective CPC for Site-Targeted vs. Reported CPC for Keyword ads • Effective CPM for Keyword Ads vs. Reported CPM for Site-Targeted • Consider CPC, CTR, and relevance factors across 1,000 impressions • Result = eCPM and eCPC for all Digital Advertising Campaigns • Highest ranking ad per dealer objectives wins, bids are adjusted

37. Why Site Targeting? ADP Digital Advertising offers CPM based targeted web site Ads to dealers on a cost-per-thousand impressions bid basis…

38. ADP Digital Advertising Campaign Managers use Site Targeting to find web sites visited by a dealer’s local car buyers based on several criteria Site Targeting • ADP Campaign Managers choose individual sites within network • CPM (cost per thousand impressions) model • Minimum bid: 25 cents per Thousand Impressions • Find sites by URL, category, topic or demographics

39. ADP Digital Advertising Campaign Managers administer each dealer’s Google AdWords account and review the data with the dealer or ISM

40. Internet Sales Managers are taught how to understand the analytics in order to judge each campaigns results for the dealership as a whole

41. ADP Digital Advertising Campaign Managers work closely with dealers to monitor where and when campaign results are showing up as sales We coach dealership managers on how to review eBusiness campaigns and opportunities by categorizing the leads generated, then looking at volume, invalids and tracking all sales.

42. ADP Digital Advertising URL Portfolio • www.Chevy-New.com is used regionally as: • www.Chevy-New.com/Courtesy-Phoenix.htm • www.Chevy-New.com/Courtesy-SanDiego.htm • www.Chevy-New.com/Burt-Chevrolet.htm • www.Nissan-New.com is used regionally as: • www.Nissan-New.com/JayWolfeNissan.htm • www.Nissan-New.com/ABCNissan.htm • www.Nissan-New.com/MidwayNissan.htm • www.Toyota-New.com is used regionally as: • www.Toyota-New.com/JayWolfeToyota.htm • www.Toyota-New.com/LarryMillerToyota.htm • www.Toyota-New.com/CamelbackToyota.htm

43. ADP Digital Marketing Team Competitive Advantage and Unique Value to Dealers URL that displays in Ad is standardized… The regional Ad uses a dealer-specific Destination URL that goes to that dealer’s Landing Page.

44. Current Toyota URL Portfolio Examples: • RAV4-Toyota.com • Tundra-Toyota.com • Toyota-Camry-Solara.com • Yaris-Toyota.com • ToyotaFJ-Cruiser.com • Matrix-Toyota.com • Avalon-Toyota.com • 4Runner-Toyota.com • Toyota-SUV.com • Toyota-Scion-Lexus.com • Toyota-Certified.com • ToyotaTrucks.com • Drive-Toyota.com • Toyota-Cars-Trucks.com • Toyota-New.com • Toyota-Car-Truck.com • Highlander-Toyota.com • Landcruiser-Toyota.com • Tacoma-Toyota.com • Camry-Toyota.com • Arizona-Toyota.com • Prius-Toyota.com • Sequoia-Toyota.com • Sienna-Toyota.com

45. Current Ford & GM URL Portfolio Examples: • Chevy-Chevrolet.com • Chevrolet-Chevy.com • Chevy-Chevy.com • Chevy-New.com • Drive-Chevy.com • GM-Certified.com • Pontiac-GMC-Buick.com • Hummer-Cadillac.com • GMC-Pontiac-Buick.com • Chevy-Deals.com • FordInternet.com • Ford-Lincoln.com • F150-Ford.com • Ford-Car-Truck.com • Ford-Cars-Trucks.com • Ford-Certified.com • ChevyPriceQuote.com • Chevrolet-Car.com • Chevrolet-GM.com

46. Current Honda URL Portfolio Examples: • HondaCarsTrucks.com • Honda-New.com • Honda-Used-Cars.com • Honda-Cars-Trucks.com • Honda-Pilot-SUV.com • Honda-CRV-SUV.com • Honda-Civic-Sedan.com • Honda-Accord-Coupe.com • Honda-Accord-Sedan.com • Honda-Ridgeline-Truck.com • Honda-Odyssey-Minivan.com • Honda-Element-SUV.com • Honda-Certified-Used.com

47. Thank you for considering ADP Digital Campaign Services as a partner in your strategy to find, sell and keep more customers Key Executables with Digital Advertising Campaigns: • Build campaigns for strategic cohesiveness with dealership’s general market advertising and integrate with other media for management team “buy-in” • Clearly defined Keyword and Site Targeted advertising budgets and commit your management team to sustain that Online Advertising budget for at least 6 months • Your Lead Management Process (LMP) and the team that executes it must be staffed and trained to convert increased lead volume into incremental sales • Use Deep Links, Landing Pages and Micro-Sites that can be tracked • Avoid sending click-throughs to your dealership’s “home page” where both the customer and your ability to track results gets lost • Measure all traffic generated, along with phone calls and eLeads received… • Review results and online Advertising metrics at weekly manager meetings… Provide handouts to all Managers showing Impressions, CPM, CPC, Money spent and supplement with lead and sales counts as accurate as you are able • When first starting, give digital campaign budgets and metrics the benefit of the doubt. Increased leads can come from primary web sites through links on landing pages and deep links into relevant content within your primary sites. • Check your primary site referring URL’s for Form Views in Omniture Site Catalyst