Ralph Paglia is a digital marketing expert with over 20 years of experience in the automotive industry. He presented on various digital advertising strategies that can generate thousands of leads and increase sales for auto dealerships. Some of the key strategies discussed include display advertising, search engine advertising, behavioral targeting, and social media marketing. Data from case studies show these digital channels can significantly increase brand searches, product searches, and click-through rates on search results.

1. Presented: August 11, 2009

3. Executed Digital Marketing strategy that generated144,000+ leads to single-point Chevy dealer in 2 years.

4. Built dealer team that sold 4,000+ Vehicles to Web Leads in 2006.

5. Worked with Ford in 2007 to develop first Tier 3 Digital Advertising program providing dealers with geotargeted Tier 1 marketing assets

6. Managed first retail automotive Behavioral Targeting Digital Ad pilot program while at Courtesy Chevrolet in 2005, 2006 and 2007

7. Started generating Internet leads in 1988 using CompuServe ISP access and vehicle listings on defense contractor BBS’s in SoCal

8. Internet Sales & Marketing Consultant to Ford, Mercedes-Benz, GM, Honda, Toyota, Mercedes-Benz, Hyundai and over 200 dealers.

9. Piloted the ADP Social Marketing & Reputation Management SolutionCell: 505.301.6369 ralph_paglia@adp.com www.ADMPC.com

10. Digital Advertising Measurability & Marketing Insights Gained Display Advertising Impact on Search

16. Impact on Search Click Through Rates for Display Advertisers Consumers exposed to an advertisers’ online display advertising were more likely to click on search results than those who were not exposed ORGANIC SEARCH: Automotive Consumers exposed to dealership display ads were 180% more likely to click an organic search link to that dealer’s web site. PAID SEARCH: Automotive Consumers exposed to a dealer’s display ads were 183% more likely to click a paid search link for that Dealer. Paid: Paid text-based search ads that describe the dealer’s website and products and services offered Organic: Non-paid text-based listings that describe dealer’s website and products and services offered. N/A: Insufficient data available

18. Digital Advertising One size does not fit all, and the mix is where dealerships get the greatest positive ROI from investment

19. Total Marketing and Advertising Impact in the Marketplace Car Companies and their Dealer Network Marketing Structures

20. Why does automotive advertising have less impact on showroom traffic in 2009 as it did in 1999? Source: DoubleClickTouchpoints III

21. Why does automotive advertising have less impact on showroom traffic in 2009 as it did in 1999? “Which one of these information sources was most important when making decisions about buying your vehicle?” R.L. Polk 2008

22. Why does automotive advertising have less impact on showroom traffic in 2009 as it did in 1999? ¹IDC Study, U.S. Consumer Online Behavior Survey Results 2007 ² 2008 National Automobile Dealers Association Data

23. 2009 Car Company Marketing Dilemma OEM’s each face considerable challenges in an automotive marketplace where their consumers now turn to the web when gathering information used to decide what brand and model vehicle to buy… …and where they will buy it! Dealers do not currently have the skills and know-how needed to advertise effectively online, but they continue to be masters at using advertising media that is no longer cost effective. Tier 3 Advertising spend dwarfs Tier 2 and even Tier 1, so Car Companies that educate their dealers the best, will win market share. Why do car dealers continue to spend over 85% of their advertising budgets on offline media? - NADA

24. 1. Online Display Advertising ADP Publisher & Network Consortium Automotive Websites Local Media Websites National Websites 2. Targeting Technology Behavioral Targeting Geotargeting Contextual Targeting 3. Search Engine Advertising CPC/PPC/Sponsored Links 4. Other Digital Advertising Media Mobile Phone Ads Google TV Video Advertising Interactive Email Marketing ¹Return On Marketing Investment ADP is only Tier 1 qualified supplier of these Types of Tier 3 Digital Advertising Solutions in a Managed Program that Meets OEM Branding and Distribution Standards MEASURABLE RESULTS QUALIFIED TRAFFIC EFFECTIVE TARGETING COST EFFECTIVE ROMI*

25. ADP Publisher Network Provides Scalable Tier 3 National Buying Power with Local Geotargeting delivers Lower Costs

27. Virtual Test Drive

28. Search Dealer Inventory

29. Browse Model-Specific Inventory

30. Offer or Incentive Driven

31. Maximize Your Trade-in Value

32. Make Buy-Back Campaigns

33. Preapproved Finance Solutions

35. ADP AdVantage:OEM Co-Op Preapproved Campaign Asset Manager

36. ADP Places Dealer Ads on Thousands of Relevant Sites when Local Car Buyers visit them…

37. ADP uses Behavioral Targeting and Retargeting to show Dealer Ads to Car Buyers… On Automotive Sites and when they Visit Non-Auto Sites.

38. Campaign Examples at www.FordDigital.com

39. Also called Cost-Per-Click (CPC) andPay-Per-Click (PPC), Google calls Search Ads: “Sponsored Links” Google Search Engine Advertising

41. Impression Share

42. Clicks

43. Click through rate (CTR)

44. Cost per click (CPC)

45. Average Position

46. Tier 3 – 2 – 1 Keyword & Geotargeting Optimization

47. Bid Strategy excludes keywords that dealers already have SEO rank

48. ROI Enhanced by Display AdvertingDealers/Suppliers Competing with OEM’s and Regional Ad Associations for Keyword Bids used in Search Advertising

49. Search Campaign Tracking & Reporting- Sent to Dealers and OEM Stakeholders

50. Search Placement / Keyword Report- Dealers and OEM Stakeholders

51. Omniture Post-Click Reporting Dashboards- Tracking code can be installed within any site, regardless of supplier

52. Organic to Paid Keywords Report- Allows Optimization of Dealer Spend by Eliminating Redundant Bids

54. Visitor Length

55. Demographics

56. Competitor Keywords

57. Advertising Opportunities

58. Upstream traffic

60. HitWise CompetitiveAnalysis: Search Terms

61. Compete, Inc. – Unique Visitors

62. Google AdPlanner and Keywords by Site Trends- Extends Search Effectiveness to Display Advertising on Websites

63. Communicating Reports – VMAR and Analysts- Best Tier 3 Account Management in the Industry Roles & Responsibilities: PLAN EXECUTE MEASURE/REPORT This equates to: Evaluate dealership current marketing and advertising activities Develop annual, quarterly and monthly advertising calendars Work with dealer on budget development and spend Execute marketing campaigns Report and assess results to improve dealer ROI Benchmark results and recommend best practices Coordinate campaigns

64. Dealer Dashboard – Tying it all together- Aggregated by Nation, Region and Zone for OEM

65. Reporting DashboardTying it all together with industry’s first systemthat consolidates data feeds from multiple sources of DA campaign performance reporting, providing relevant reporting for Tier 1, Tier 2 and Tier 3 digital marketing stakeholders

67. Integrating Online Advertising for the Brand Connecting Tier 3 with OEM to Drive Efficiencies

69. Using Keyword Enriched Domains for Competitive Advantage

70. Social Marketing and the Power of 21st Century Word of Mouth Selecting a Targeted Site for Focus and use with Kenny Ross Strategy

71. Social Marketing & Reputation Management Value Proposition Overview: It’s as Easy as ADP to leverage the overwhelming growth in consumer use of Social Networks and User Generated Content (Web 2.0) to develop your Social Marketing and Reputation Management Strategy that utilizes “Positive Word of Mouth” amplified with the power of the Internet to enhance your good reputation, create top of mind awareness and elevate your dealership’s brand in a more cost effective manner than either CRM or advertising alone. It’s Easy as ADP to tap into consumer adoption of Social Networking and User Content Creation by creating your own online community of customers, employees and suppliers filled with high quality content such as Videos, Photos, the latest reviews and road tests, interviews and articles supplied by car companies, enthusiast publications and consumers.

72. Social Marketing & Reputation Management Value Proposition Specifics: ADP will build your dealership sponsored online community using the most powerful social networking platform technology available to make it easy and fun for your customers to participate… Using a combination of OEM and enthusiast publication content , we incorporate highly desirable content which is automatically updated daily to create an engaging and rich experience for people in your local market area. ADP Social Marketers will publish blogs, forum discussions, photos and videos that will stimulate your community members to respond and create their own content, triggering others to join in! ADP will build and deploy a comprehensive syndication strategy that uses Really Simple Syndication (RSS) and embedded HTML code (Widgets) built into your dealership sponsored community to push content and member activities out to the most popular sites on the web.

74. Twitter

75. MySpace

76. Flickr

77. LinkedIn

78. Blogger

79. Wordpress

80. Typepad

81. Digg

83. Dealers currently see the Social and UGC Online Landscape as a bewildering array of brands and sites!

84. Social Marketing/Reputation Management StrategyADP Organizes into Solution Component Categories Social Networks Professional Networks Video Hosting Sites Photo Hosting Sites DIY Publishing (Blogs) Consumer Reviews & Ratings SMS, Status & Bookmarking Social Network Platform Tools

85. SM/RM Solution Components by Category www.SandersonCommunity.com Dealer Sponsored Online Community DigitalRalph says: “Use a network of Web 2.0 sites connected to your online community as a social marketing strategy”

86. Social Marketing & RMComponent Integration = Value ADP connects and manages components to deliver turn-key Social Marketing/Reputation Management … DigitalRalph says: “Use your network of connected Web 2.0 sites for push-pull syndication of OEM supplied and User Generated Content assets. Leverage your car company’s daily updates and get your customers to create content that provides most of the updating work needed to keep your site relevant!”

87. ADP SM/RM Solution Component Deployment Example www.Ford-Community.com Dealer Sponsored Online Community

88. Google Adsense to be replaced by ADP Ad Network Space www.Ford-Community.com Dealer Sponsored Online Community Created and Managed by ADP & Dealer

89. Google Adsense to be replaced by ADP Ad Network Space www.Ford-Community.com/video Dealer Sponsored Online Community Created and Managed by ADP & Dealer

90. www.Ford-Community.com/photo Dealer Sponsored Online Community Created and Managed by ADP & Dealer Google Adsense to be replaced by ADP Ad Network Space

91. Google Adsense to be replaced by ADP Ad Network Space www.Ford-Community.com/members Dealer Sponsored Online Community Created and Managed by ADP & Dealer

92. Google Adsense to be replaced by ADP Ad Network Space www.SandersonCommunity.com Dealer Sponsored Online Community Created and Managed by ADP & Dealer

93. www.SandersonCommunity.com Dealer Sponsored Online Community Created and Managed by ADP & Dealer

94. www.MyJeepCommunity.com Dealer Sponsored Online Community Created and Managed by ADP & Dealer Google Adsense to be replaced by ADP Ad Network Space

95. Google Adsense to be replaced by ADP Ad Network Space www.MyJeepCommunity.com Dealer Sponsored Online Community Created and Managed by ADP & Dealer

96. www.MyJeepCommunity.com Dealer Sponsored Online Community Created and Managed by ADP & Dealer

97. Reputation Management Selecting a Targeted Site for Focus and use with Kenny Ross Strategy

98. ADP Social Marketing/Reputation Management Pilots to date have used DealerRater.com as the Customer Review content supplier and partner

99. ADP Reputation Management:DealerRater.com Filtered Review Integration DealerRater.com Certification Benefits Build Your Online Reputation, Get Certified!

100. ADP Reputation Management Solution: DealerRater.com positive review generation

101. ADP Reputation Management Solution: Additional DealerRater.com features for dealers

102. Current pricing levels will be maintained with DealerRater using ADP as a reseller with a negotiated margin… Cost will be included in the price charged to dealers with ADP in control of the accounts

103. Solutions Summary

104. Kelley Blue Book Digital Advertising Programs for Ford and Lincoln Mercury Dealers KBB.com is the #1 automotive web site* 53% of KBB.com visitors plan to buy within the next 3 months** Half of online shoppers come to KBB.com† KBB.com is the most visited automotive information web site† Our online advertising packagebased on your individual needs, Kelley Blue Book will create custom advertising packages for ford and Lincoln Mercury dealers leveraging many different ad placements‡ resulting in reaching more lower funnel car shoppers.

105. Dealer Showcase Package Reach in-market shoppers in your local area • Exclusively target local car shoppers by make and territory • Customize your ad placement based on dealer-defined territory Prominent placement and special Showcase Dealer recognition • Be the only advertiser in your market area to showcase on kbb.com • Maximize brand exposure on new-car pricing report page and 130+ additional premium pages • Secure top dealer placement on search result pages • Enhance your marketing message using dynamic, expanding rich-media ads Drive more traffic to your Web site • Link your banner ad and listings directly to your dealer Web site • Generate high quality leads from kbb.com

106. Auto Intender Package Reach local car shoppers by advertising on the used-car home page and used-car category pages. Premium ad placement and branding opportunity • Reach new-car shoppers researching their trade-in information in the used-car section • Secure top-of-page positioning to ensure your ad message is seen first and every time • Maximize ad investment by marketing only to targeted customers • Target local car shoppers researching any make and model • Enhance your marketing message using available rich-media ads • Align your brand with the #1 automotive Web site trusted by millions of car shoppers

107. Run of Used Package – Leaderboard, Skyscraper Target local car shoppers researching their next vehicle purchase. Maximize brand impact • Customize your ad placement based on make and dealer-defined territory • Effectively shut out your local competition by owning multiple ad units (leaderboard and skyscraper combined) • Reach new-car shoppers researching trade-in information in the used-car section • Premium page takeovers increase brand recognition and purchase consideration • Maximize brand exposure on make-specific content pages • Powerful add-on for your Dealer Showcase ad package

108. Behavioral Targeting Network (BT) Target local in-market shoppers as they visit other relevant network Web sites. Dealer Ads are delivered to the following category of niche Web sites: • Automotive • Business/Finance • Career • Family • Music • Photo/Video Sharing • Sports • Social Networking • Technology • And More! Premium ad placement on top local Web sites • Identify your target shoppers while they research their next vehicle purchase on kbb.com • Qualify and track those shoppers as they leave kbb.com • Display your marketing message to the same kbb.com visitors when they enter other network sites • Increase purchase consideration by reaching intended shoppers in the right place, at the right time