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1. AUTOMOTIVE
Analytics Bulletin
Making Display Advertising the Engine
for Automotive Growth

2. Highlights
• During the economic downturn, average Display impressions per automotive
advertiser served by MediaMind showed a remarkable growth.
• The Cash for Clunkers program in America boosted Conversion Rate threefold,
and increased users’ responsiveness to automotive ads to a peak.
• On average, the three largest automakers spend an estimated $142 per car sold
on online Display advertising.
• Rich Media doubles Conversion Rate and nearly triples CTR.
• Mobile banners are performing well for automotive, achieving a similar Conversion
Rate to Expandable Banners and Polite Banners.
• Automotive websites have the highest Conversion Rate for the automotive
vertical.
• Synched Ads increase Conversion Rate by 67%.
• MediaMind’s Automatic Optimization, which uses a sophisticated algorithm to
deliver the most impactful creative, increases Conversion Rate by 79%.
• US automotive spending on online advertising is expected to grow by 20%
annually, while new car sales are expected to grow by 7%.
• In 2010, the automotive industry represents 6.1% of overall US online advertising
spending.
• US automotive advertising spending is forecasted to grow by more than twofold
from $1.5 billion in 2009 to $3.9 billion in 2014.
2

3. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Introduction
The past few years have been hard for the automotive industry. The effect of the recession on the automotive industry began
From the high fuel prices that hampered the sales of gas guzzlers early in 2008, while the sharpest decline was between Q3 2008
to the economic crash that has severely impacted the sales of to Q4 2008. On September 25, 2008 Lehman Brothers filed for
new vehicles, automakers had to compete even harder for every Chapter 11 bankruptcy protection and the world financial system
prospect. was close to a meltdown. In Q1 2009, light vehicle sales fell by
37.5%, as compared to Q1 2008, bringing some automakers to
The auto industry is cyclical, and sales tend to move together with
file for bankruptcy protection.
the economy. Buyers tend to buy cars when times are good, and
tend to hold off in an economic downturn. This downturn has Nevertheless, there is a silver lining. First, US demand has recovered
been particularly hard for carmakers for two reasons: in Q3 2009 after the introduction of the Cash for Clunkers program
in America that provided rebates for new cars. Second, demand
• First, the 2008-2009 economic slump is one of the worst in
from other countries, particularly China, is expected to elevate world
modern history, some say since the Great Depressions in the
sales. China, the world’s most populous nation, has succeeded
1930’s. In the US, which until this year was the largest auto
the US as the largest auto market in 2009.2
market, unemployment rate has reached 9.7% in December
2009.1 Prospective customers who lost their jobs, or are worried While sales are not expected to slump back to the lows of the
about their job prospects tend to postpone large purchases beginning of 2009, they are not expected to return to the pre-
such as a new car for better times. recession rates seen in early 2008 anytime soon. Wells Fargo
analysts estimate that it will take years for US car sales to reach
• Second, many consumers rely on credit and loans in order to
the pre-crisis sales figures. Even by Q4 2011, they do not expect
buy new cars. Banks and Financial Services firms that were
sales to reach the figures of early 2008. According to the forecast,
severely impacted by the current downturn tightened their
unit sales growth is expected to sum to 6.6% annually from 2010
credit facilities and made it harder for cash strapped consumers
to 2011.
to finance purchases.
Chart 1: US Quarterly Light Vehicle Sales
16
15
14
Units (millions)
13
12
11
10
9
Forecast
8
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Note: Seasonally Adjusted Annual Rate.
Source: Wells Fargo Securites, “U.S Economic Forecast”, June 2010.
1
US Bureau of Labor Statistics, January 25 2010.
2
Reuters. “China car sales top U.S.”, available at: http://www.reuters.com/article/idUSTRE60A1BQ20100111
3

4. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Still, depressed car sales are not expected to severely impact US automotive online advertising spending. Forrester Research estimates
that automotive online advertising spending in the US will increase exponentially over the next four years. According to Forrester, online
advertising for the automotive vertical is expected to grow by 21.2% annually from 2009 to 2014. Overall, spending is forecasted to
more than double from $1.5 billion in 2009 to $3.9 billion in 2014.
Chart 2: Automotive Online Advertising Forecast
$4,500
$4,000
$3,500
Dollars (Millions)
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
2009 2010 2011 2012 2013 2014
Note: Includes online display advertising, search, e-mail, social media and mobile marketing.
Source: Forrester Research, “Interactive Advertising Forecasts”, October 2009.
According to Forrester, in 2010, the automotive industry represents 6.1% of overall online advertising spending, and has the sixth largest
presence online. Expedited growth of online advertising indicates that many automotive dollars are going to switch hands from offline
advertising to online advertising.
Furthermore, the hard times in the automotive industry have not dented the industry’s advertising volume in Display – quite the contrary.
Even as automakers were experiencing declining sales, there has been a significant increase in automotive ad impressions served by
MediaMind, and specifically in the average impressions served per advertiser.
Chart 3: Average Impressions per Auto Advertiser 2007-2009
2,000
Average Impressions / Advertiser (‘000)
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Jan-07
Mar-07
May-07
Jul-07
Sep-07
Nov-07
Jan-08
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Source: MediaMind Research. Data: 2007 to 2009, Auto, Worldwide.
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5. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Data on online display advertising impressions served by MediaMind A global survey by Capgemini, a consultancy, indicates that
from 2007 to 2009 suggest that the global slowdown in automotive almost 90% of consumers today use the Internet to research new
sales has actually done well for automotive Display Advertising3. In vehicles, up from 61% in 2005. According to the survey, dealer
2008, the number of total impressions increased and there has been and manufacturer websites are the two most important sources
no decline in the average impressions per advertiser. Furthermore, of information for prospective car buyers.
from February 2009, impressions increased significantly, potentially
Capgenimi’s survey also indicates that the consumer buying cycle
reflecting tighter competition for every customer and plans by
has shortened. The survey points out that more than two thirds
governments in Europe and North America to launch new car
of respondents start their research two to four months before
rebate programs to stimulate the economy.
the purchase, as compared to the traditional buying cycle of six
months. Capgemini attributes the shrinking buying cycle to the
Almost 90% of consumers today use the
availability of more information on the web, so consumers do not
Internet to research new vehicles, up from have to go to the showroom to seek information.4 It appears that
61% in 2005. for automakers, reaching consumers at the showroom may be too
late to make a significant impact on buying intentions.
In 2009, one of the worst years in recent memory for automakers,
online Display impressions per advertiser served by MediaMind From February 2009, impressions increased
have shot up. This signals that when advertising budgets are significantly, potentially reflecting tighter
becoming tight, advertisers are trading off-line budgets for more
competition for every customer and plans by
targeted and efficient online campaigns. For automakers, online
display advertising represents a cost effective way to interact with governments in Europe and North America to
prospective customers. launch new car rebate programs to stimulate
This trend is partly derived from a change in consumer behavior. the economy.
3
The definition of the automotive vertical at MediaMind is not limited to auto manufacturers and dealers. For MediaMind, automotive includes all products and
services related to the automotive industry. They typically include manufacturers and dealers of cars, trucks and motorcycles. In addition, car rental agencies, car repair
shops, car parts manufacturers, and gas stations are also included. However, auto manufacturers represent the vast majority of advertisers in the verticals.
4
Capgemini. Cars Online 09/10.
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6. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Willing to Spend More
A new car is one of the single largest financial purchases that many individuals make during their lifetime. That explains why carmakers
and dealers are willing to spend more than other industries for each sales lead.
Chart 4: US Average CPM
$16
$14
$12
$10
CPM
$8
$6
$4
$2
$0
Automotive Other Verticals
Source: Adify, “Vertical Gauge Report Q3 2009”, November 23, 2009, and MediaMind Research.
An analysis by Adify indicates that carmakers pay twice as much, on average, for a CPM as compared to other online advertising verticals.
The main reason for the higher CPM is that automotive ads tend to be placed in sites that focus on automotive rather than on broader
and more general media and therefore tends to be pricier. Another reason is that automotive makes higher use of Rich Media – 53.3%
of automotive impressions are Rich Media, as compared to 50.6% in other verticals.
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7. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Top Advertisers
Chart 5: Top 10 US Automotive Advertisers by Impressions – November ‘09
Fuji Heavy Industries Hyundai
Chrysler
CarsDirect.com General Motors
AutoNation
Nissan
Park Auto Mall Ford
Toyota
Source: Nielsen Online AdRelevance, cited from eMarketer.
General Motors, Ford and Toyota represent more than half of the total spending of the top 10 automotive advertisers, according to
Nielsen. This is not surprising; these three advertisers represent 52.9% of light vehicle sales in the US in 20095.
Honda, the fourth largest carmaker by November 2009 sales volume is not even in the top 10 online display advertisers. Chrysler, the
fifth largest automaker is lagging way behind in seventh place. Thus, advertising spending per car varies greatly between automakers.
As more automakers increase spending in par with the three largest automakers, the online display advertising market for automotive
will grow significantly.
Spending per Car
On average, the three largest automakers spent an estimated $142 on online advertising per car sold in the US in 2009.6 While this may
seem high, considering the amount of money that changes hands with each new car sale, and the automotive marketing budget, there
is still room for growth. The three largest automakers served an estimated 9,465 impressions for every car sold on average in the US in
2009.
5
Wards Auto. “U.S. Light Vehicle Sales Summary – December 2009”. Available at: http://wardsauto.com/keydata/USSalesSummary/
6
The basis for these estimates is data from Nielsen on impressions, data from Adify on average CPM, and annual car sales from Wells Fargo.
7

8. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Getting the Most out of Your Campaign
There are four online metrics that are helpful for advertisers to to follow the mouse cursor movement with their eyes. Dwell
measure the effectiveness of their campaigns. Dwell Rate and measures the proportion of impressions that had a meaningful
Average Dwell Time measure users’ engagement with ads. CTR mouse-touch, lasting more than one second. While there have
and Conversion Rate measure the effectiveness of ads in generating been users who have seen the ads and have not touched them
traffic to the advertiser’s websites. with the mouse, Dwell allows us to gauge the number of users
that are very likely to see the ad.
Conversion tags allow advertisers to gauge
Furthermore, new research by MediaMind, Microsoft Advertising
how many users have advanced through the
and comScore shows that Dwell does have an actual effect on
purchase funnel and have shown intent to brand metrics. The results of the study indicate that users who
purchase. were exposed to campaigns with high Dwell are three times more
likely to search for brand related keywords as compared to users
Many automotive advertisers measure how many users seek more who were exposed to campaigns with low Dwell. Furthermore,
information on the product on their website using conversion tags. campaigns with high Dwell increased advertisers’ site traffic by
This allows advertisers to gauge how many users have advanced
through the purchase funnel and have shown intent to purchase. A new study indicates that high Dwell boosts
Nevertheless, users may also go directly to the dealership after
search for brand related keywords, increases
seeing the ad, without stopping at the website. Therefore, the
effectiveness of automotive campaigns should not be limited to advertisers’ site traffic and increases brand
counting conversions, and advertisers should also use Dwell, which engagement—page views and time spent on
measures the proportion of impressions that were engaged with.
the brand’s site.
Conversion Rate measures the total number of conversions from
the advertiser’s website, divided by the number of impressions
69% and increased brand engagement – increasing page views
served. Conversions are not necessarily a monetary transaction,
and time spent on the brand’s site.8
but signify an action that the advertiser would like users to take,
such as downloading brochures, submitting forms, requesting a For the purpose of this analysis, MediaMind Research has analyzed
quote or scheduling a test drive. Conversion Rate may vary between the results of nearly 26 billion automotive impressions. Impressions
advertisers based on the placement of the conversion tags on the were served by MediaMind between Q1 2009 and Q4 2009. This
website7. During their several months of research before buying analysis covers global data, unless noted otherwise.
a new car, users may view multiple ads and visit the advertiser’s
website multiple times, generating multiple conversions.
While it is important to measure the traffic that ads created, it
is also important to measure the proportion of impressions that
were engaged with. This can serve as a proxy for the branding
effect of ads. To measure the effectiveness of branding we use
two metrics: Dwell Rate and Average Dwell Time. Dwell Rate
measures the proportion of Rich Media impressions that were
intentionally engaged with by touch, interaction or click. Average
Dwell Time measures the duration of a Dwell in seconds for users
who engaged. In both cases, unintentional Dwell lasting less than
one second is excluded.
Dwell provides an estimate of the share of impressions that were
seen by users with high likelihood. A user’s natural tendency is
7
Conversions are attributed to an impression up to 30 days after serving.
8
Available for download at: http://advertising.microsoft.com/europe/dwell-on-branding
8

9. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Rich Media Outperforms Standard Banners
While online display advertising generates traffic to the advertisers’ website, Rich Media does it much better than Standard Banners.
This finding makes it easy for advertisers to improve campaign performance. Switching from Standard Banners to Rich Media may
double a campaign’s expected direct response performance.
This elevated performance has a few explanations. Rich Media outperforms Standard Banners by drawing users’ eyes away from the
publishers’ content to the ad. Furthermore, by enabling users to interact with the marketing message, Rich Media increases recall. Rich
creatives also have the ability to feed data dynamically and increase relevancy. When all of these effects are combined, the result is an
increase in clicks and conversions, as compared to Standard Banners.
Chart 6a: CTR by Format Chart 6b: Conversion Rate by Format
0.4% 0.5%
0.4%
0.3%
+181% +95%
Click Through Rate
Conversion Rate
0.3%
0.2%
0.2%
0.1%
0.1%
0.0% 0.0%
Standard Banner Rich Media Standard Banner Rich Media
Source: MediaMind Research. Data: Q1 2009 to Q4 2009, Auto, Source: MediaMind Research. Data: Q1 2009 to Q4 2009, Auto,
Worldwide. Worldwide.
While Rich Media costs more to produce and serve, new capabilities for dynamic creative such as MediaMind’s Smart Versioning allow
the advertiser to better control long term creative costs by dynamically generating multiple versions of the creative. Click Through Rate
for Rich Media is nearly three times higher as compared to Standard Banners. Conversion Rate is twofold for Rich Media as compared
to Standard Banners.
9

10. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Auto Goes Mobile
Chart 7: Click Through Rate by Format
2.5%
2.0%
Click Through Rate
1.5%
1.0%
0.5%
Average
0.0%
Floating Ad Commercial Expandable Mobile Polite Standard
Break Banners Banners Banners Banners
Source: MediaMind Research. Data: Q1 2009 to Q4 2009, Auto, Worldwide. Mobile Banner data is US only.
A deeper analysis of CTR and Conversion Rate by ad type shows surprising results. Mobile banners are rated right after Floating Ads and
Wallpaper Ads in the case of Conversion Rate and right after Expandable Banners in the case of CTR. While mobile Display advertising
is still in its infancy and includes a limited number of ads, this shows a promising future. Users are responding to mobile solicitations by
clicking on ads and are browsing to the advertiser’s website.
Chart 8: Conversion Rate by Format
1.2%
1.0%
Conversion Rate
0.8%
0.6%
0.4%
Average
0.2%
0.0%
Floating Ad Wallpaper Mobile Expandable Polite Commercial Standard
Ad Banners Banners Banners Break Banners
Source: MediaMind Research. Data: Q1 2009 to Q4 2009, Auto, Worldwide. Mobile Banner data is US only.
Mobile ads also have a similar Conversion Rate to that of Expandable Banners and Polite Banners. This shows that size does not necessarily
matter. A small mobile banner can be as effective as a browser based banner and generate similar results.
Typically, floating ads are still the best for direct response. Highly visible, Floating Ads appear above the publisher’s content and generate a
high breakthrough. The results of both high CTR and high Conversion Rate indicate that the clicks are not the result of users trying to close
the banner. On the contrary, the high Conversion Rate indicates that their very high visibility makes them successful in generating traffic for
automotive advertisers. Expandable Banners and Polite Banners have more or less similar performance both in CTR and Conversion Rate.
10

11. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Conversions During 2009
Another way to look at Conversion Rate is as a barometer for users’ intent to purchase. Users who browse to the advertiser’s website
after viewing an ad, with or without a click express their interest. The feeble sales of the automotive industry this year provide an
interesting test case for users’ behavior, and what increases or decreases users’ interest in buying a new car.
Chart 9: US Conversion Rate and Car Sales
0.16% 16
0.14% 14
Car Sales (Million Units)
Conversion Rate/CTR
0.12% 12
0.10% 10
0.08% Cash for 8
Clunkers
0.06% 6
0.04% 4
0.02% 2
0.00% 0
November
January
February
March
April
May
June
July
August
September
October
December
Conversion Rate CTR Car Sales
Source: MediaMind Research. Data: Q1 2009 to Q4 2009, US. Autodata Corp. “Total U.S. Light Vehicle Retail Sales (SAAR, Mil.Units)”.
Annual Rate (SAAR)
Following the global downturn, US car sales sustained a hit. The US During the Cash for Clunkers program, a
Conversion Rate for the first half of 2009 has been low as well. As significantly higher proportion of impressions
part of the stimulus plan and in order to help carmakers through
ended up as conversions since more users were
the recession, the American Congress created the Car Allowance
Rebate System (CARS), which is widely known as the “Cash for interested in cars and got the ad just in time.
Clunkers” program. The program was designed to provide incentives This shows the importance of reaching consumers when they are
to trade old gas guzzlers for new, fuel efficient vehicles. making their buying decisions. During the Cash for Clunkers program,
many users were deciding whether they would like to buy a new car
The program, which officially started in July 2009, turned out to be
and were highly receptive to automotive advertising. A significantly
a great success, and the initial $1 billion allocated for the program
higher proportion of impressions ended up as conversions since
was exhausted by the end of the same month. In response, Congress
more users were interested in cars and got the ad just in time.
budgeted another $2 billion for the program. The additional budget
was exhausted by the end of September 2009. While the Cash for Clunkers program is a unique episode in the
automotive industry’s history, it makes for a broader lesson for online
The result of the Cash for Clunkers program on sales was
advertising. Online advertising effectiveness is at its peak when served
overwhelming. Light vehicle sales increased by 15.8% in July, the
to users while in the process of researching a potential purchase.
first month of the program, compared to June. Light vehicle sales
Getting the message across to users who are seeking more information
peaked in August 2009, with an increase of 45.2% as compared
anyway generates an overwhelming increase in response. As this
to June.
research shows later on, in some verticals including automotive, sites
The Cash for Clunkers program has also boosted online interest with razor sharp segmentations perform much better than others.
in the automakers’ ads. Conversion Rate increased twofold in July Automakers and dealers are likely to increase their Conversion Rate
and threefold in August, as compared to June. An analysis of CTR when targeting users who have already signaled on their interest on
during 2009 has achieved similar results. a new car, and what better place to look for them than automotive
websites. 11

12. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Automotive by Placement
As one of the largest purchases in their lifetime, users are likely to conduct significant research before zooming in on a few models they
are considering. It is during this research that users’ responsiveness to online advertising is at its peak.
In automotive, conversions can serve as a measure of intent to purchase. For example, automotive websites attract car enthusiasts and
people who are looking to buy a new car. These people are conducting research and are more likely to end up on the website as compared
to other users. Therefore, catching users who are already actively looking for a car can significantly increase Conversion Rate.
Chart 10: Conversion Rate by Placement
1.0%
0.9%
0.8%
0.7%
Conversion Rate
0.6%
0.5%
0.4%
0.3% Average
0.2%
0.1%
0.0%
Auto
Travel
Weather
Finance
Music
Instant Messaging
Health and Beauty
Home Page
News
Other
Lifestyle
Sport
Maps
Social Network
Entertainment
Mail
Technology
Source: MediaMind Research. Data: Q1 2009 to Q4 2009, Auto, Worldwide.
Automotive placements include websites that specialize in reviewing cars such as the auto channels of the large portals and other sites
that are dedicated to automotive. Other automotive placement provides used car price quotes. Conversion Rate for an automotive
placement is double that of the next placement, and
demonstrates an extremely attractive proposition
for advertisers.
Other placements such as travel, weather, music
and news tend to have an average Conversion
Rate, and still, these placements have only half the
Conversion Rate of automotive sites. Technology,
mail, entertainment and social networks tend to
have the lowest performance for the automotive
vertical. Users are proving less responsive in these
environments than others, perhaps as users
associate them less with automotive.
12

13. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Chart 11: Dwell and Conversions by Placement
Conversion Rate
Technology
0.1%
60
0.2%
Instant Messaging
Mail 0.4%
50 0.6%
Finance
Average Dwell Time (seconds)
0.9%
Health and Beauty
Music
40
Home Page
Sport Other
Social Network
Lifestyle News
30 Weather Entertainment
Maps
Auto
20
Travel
10
0
0% 2% 4% 6% 8% 10% 12% 14% 16%
Dwell Rate
Source: MediaMind Research. Data: Q1 2009 to Q4 2009, Worldwide.
Chart 11 analyzes the link between Dwell Rate, Average Dwell This is a testament that the audience in automotive sites is the
Time and Conversion Rate. The x-axis measures Dwell Rate, the right target. One possible explanation for the lower engagement
y-axis measures Average Dwell Time, while the size of the circle is that users of automotive websites encounter fierce competition
measures Conversion Rate. from many other automotive ads, as well as from the publishers’
content that is automotive focused. Still, the precise targeting
This chart indicates that users on Instant Messaging, Music, Finance,
means a higher Conversion Rate, even with lower engagement
and Social Networks are more likely to engage with ads as compared
and Dwell.
to automotive placements. How can that be reconciled with
automotive placement’s high Conversion Rate? Other placements may have higher engagement and Dwell, but
less precise targeting and therefore a lower Conversion Rate. The
While automotive placements have the
audience in these placements may not be actively looking for a
highest Conversion Rate, users engage with car at the moment. Therefore, while they may be engaging with
ads more often in other environments. the ad, they are not likely to take the next step and go to the
advertiser’s website.
Users who convert in an automotive placement, are actively looking
for a car, and are more likely to convert by browsing or searching Chart 11 shows that there is a correlation between a high Dwell
for your brand, rather than clicking on ads. Only one in five of the Rate and a high Conversion Rate. Besides automotive sites, a high
conversions in automotive websites is post click, while the other Dwell Rate leads to a high Conversion Rate, because when users
four are post impression. When accounting only for Post Click engage with ads, they are more likely to retain the message and
Conversion Rate, automotive placements come in only fourth arrive at the advertiser’s site if they need more information.
after travel, finance and music.
13

14. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Increasing Campaign Performance
When you plan your next campaign, after you design a great engaging creative and choose the most effective placements, there are several
that can help you increase performance. MediaMind data shows that using Synched Ads and creative optimization can considerably increase
your Conversion Rate.
Synched Ads are designed to stand out from the clutter on the page. One of the challenges in automotive sites is to lure users’ attention from
the automotive related content and other automotive ads to your creative.
Chart 12: Conversion Rate for Synched Ads
0.6%
0.5%
0.4%
Conversion Rate
0.3%
0.2%
0.1%
0.0%
Other Ads Synched Ads
Source: MediaMind Research. Data: Q1 2009 to Q4 2009. Auto, Worldwide.
There is a way for automotive advertisers to attract attention, even
when the competition is tight. Synched Ads are two ads that appear
simultaneously on the same page as one unit. First, it means that
more space is delivering your brand message, rather than having more
messages from other advertisers at the same time. Second, it makes
the message stand out from the content more clearly. The result is
an increase in Conversion Rate of 67%.
Another way to boost performance through the MediaMind platform
is Automatic Optimization. Automatic Optimization chooses the best
performing creative and serves it the vast majority of the time. The
result is an increase in Conversion Rate of 79% on average. This is a
testament to the importance of the creative in advertising – creative
optimization does make a difference.
14

15. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Chart 13: Optimization and Conversion Rate
0.6%
0.5%
0.4%
Conversion Rate
0.3%
0.2%
0.1%
0.0%
Automatic Even Distribution Time-based Weighted
Optimization
Source: MediaMind Research. Data: Q1 2009 to Q4 2009. Auto, Worldwide.
In 2009, advertisers in the Automotive vertical leveraged MediaMind to perform the following optimizations:
• Automatic optimization: With automatic optimization, the system will automatically serve the best performing ad. Advertisers can choose
between Even Odds, where all ads are served, but the better performing ads appear consistently more, and Single Winner, where the best
performing ad appears most of the time and other ads only a fraction of the time. Ads can be optimized according to clicks, interactions or
conversions.
• Even Distribution: Ads are served equally across
impressions.
• Time Based: Serve different ads at different times.
• Weighted: Applying weights, or percentages for
distributing the ads between impressions.
Chart 13 clearly shows that Automatic Optimization is the
best performing method. The other methods achieve a
similar Conversion Rate.
15

16. Analytics Bulletin:
Making Display Advertising the Engine for
Automotive Growth
Automotive by Region
This analysis used mostly global data to dissect global trends in automotive advertising. There are, however, regional differences. Chart 14
analyzes regional differences in performance. The x-axis measures regional performance in CTR while the y-axis measures regional performance
in terms of Dwell Rate.
Regions can be roughly divided in two – low on CTR and Dwell that include North America and Australia and New Zealand, and high CTR and
Dwell that include South America, Europe and South Asia. East Asia is in between with high CTR and medium Dwell.
Chart 14: CTR and Dwell by Region
South Asia
10% South America
Europe
8%
Dwell Rate
6% East Asia
North Amerca
4%
Australia and NL
2%
0%
0.0% 0.1% 0.2% 0.3% 0.4%
Click Through Rate
Source: MediaMind Research. Data: Q1 2009 to Q4 2009, Automotive, Worldwide.
These differences can be largely attributed to differences in user’s habits. Users in North America and Australia and New Zealand tend to engage
less and click less on ads, as they are the more mature online advertising markets. In other markets, users tend to engage and click more. The
results of campaigns in each region should be compared to the benchmarks of the prospective regions. Benchmark tables are included as an
appendix to this research.
16

17. Conclusion
Even when facing hard times, automakers and dealers have increased their volume
and spending on online marketing and display advertising. They recognize that online
display advertising presents a more efficient and economical way to market cars than
traditional advertising.
Reaching prospective customers while they are researching a new car
significantly boosts the Conversion Rate.
For automotive, Rich Media generates significantly higher traffic as compared to Standard
Banners, both in CTR and in Conversion Rate. In addition, mobile banners are doing
well in terms of CTR and Conversion Rate and achieve similar and even superior results
to the traditional Expandable Banners and Polite Banners.
Reaching prospective customers while they are researching a new car significantly boosts
the Conversion Rate. Automotive placements have a far higher Conversion Rate as
compared to other placements. Users who visit automotive websites are interested in cars
to begin with, and therefore are more receptive to the advertiser’s message. Nevertheless,
many of these conversions are Post-Impression Conversions, and may be the result of
users who plan to visit your site anyway. Other environments tend to generate higher
Dwell, as users do engage with the ads but do not take the next step of browsing to
the advertiser’s website since they are not looking for a car at the moment.
Two simple ways of boosting conversions are the use of Synched Ads and Automatic
Optimization. Synched ads stand out of the clutter on the page and increase performance
by 67%. Automatic Optimization uses a sophisticated algorithm to deliver the most
impactful creative and increases conversion by 79%.
When 90% of car buyers use the Web to research vehicles, automakers and dealers cannot
afford to be left behind. Online advertising is providing great value for the automotive
industry, and advertisers are voting with their dollars. When users are looking for their
next car online, winning or losing a prospective customer to the competition may be
just an impression away.
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17

18. 

  

     
           
            
Analytics Bulletin:
            
            
            

            
            
Automotive Growth
            


           
            
            
            
            
            
 
 
 




  

Making Display Advertising the Engine for
     
           
            
            
            
            

            
            
            
            
            


           
            
            
            
            
            
            
            
 
 
 


18

19. 

  

     
           
Analytics Bulletin:
            
            
            
            

Automotive Growth
            
            
            
            


           
            
            
            
            
            
            
 
 
 


Making Display Advertising the Engine for


  

     
           
            

            
            
            

            
            
 
 
 


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