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

2. Kenny Ross Auto Group Digital MarketingOnline Advertising Strategy Ralph Paglia Director – Digital MarketingADP Dealer Services20+ year automotive industry leader in Digital Marketing, Advertising, Lead Management and dealership CRM process design and execution.

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 GainedDisplay Advertising Impact on Search

12. REPORT METHODOLOGYDisplay Advertising Impact on SearchResearch leveraged 12 months of proprietary Specific Media Advertising Effectiveness data backed by comScore

13. Scientifically Validated – Utilized Control vs. Test GroupREPORT SUMMARYStudy shows a strong correlation between display advertising and searchKEY TAKEAWAYS:Display advertising has an impact on both paid and organic searches and clicksConsumers exposed to display advertising were more likely to search for brand and segment terms than unexposed consumersConsumers exposed to display advertising are more likely to click through on search listings

14. Display Ads Increase Dealer Name and Branded SearchRigorously conducted marketing research using scientific methods shows a strong association between display advertising and lifts search activity

15. Automotive shoppers exposed to website placements of display advertising were more likely to search for brand terms (i.e. automotive manufacturers) and segment terms (i.e. vehicle class)Display Advertising Impact on Consumer SearchesConsumers exposed to an advertisers’ online display advertising searched more than consumers who were not exposedBRAND: Although the most significant lifts were seen in Travel, Health and Personal Finance for branded terms, Automotive showed dealer name and brand search lift of 123%... More than double the search volume for display advertising dealer’s name!SEGMENT: Personal Finance, Travel and Automotive showed the highest lifts for the more general product related search terms. Display ads drove a 137% increase in vehicle related search terms!Brand Terms: Names and nouns search terms associated with an advertiser (i.e. SandersonFord)Segment Terms: General terms associated with a product, service or industry (i.e. pickup trucks)

16. Impact on Search Click Through Rates for Display AdvertisersConsumers exposed to an advertisers’ online display advertising were more likely to click on search results than those who were not exposedORGANIC 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 offeredOrganic: Non-paid text-based listings that describe dealer’s website and products and services offered.N/A: Insufficient data available

17. Strategic Action Items for Dealer AdvertisingAdd targeted display advertising to maximize overall search marketing results and search advertising cost efficiencyOnline Display Advertising increases car buyer exposure to your dealership’s paid and organic search listings:A higher number of automotive shoppers see your search listingsMore people click on your search listings, both organic and paidOnline Display Advertising keeps a dealership’s name at the top of each car buyer’s mind when they start searching for information about the makes, models, service and parts you sell.Display boosts branded term searches because they are advertiser specificIncrease Search click-through rates and quality scores by adding online display advertising to your monthly ad budget.Higher quality score = Lower CPCDealers with large Search Advertising budgets should shift funds from inefficient keyword terms and geos to display. This increases cost effectiveness for dealer’s entire search marketing strategy…

18. Digital AdvertisingOne 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 MarketplaceCar 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 AdvertisingADP Publisher & Network ConsortiumAutomotive WebsitesLocal Media WebsitesNational Websites2. Targeting TechnologyBehavioral TargetingGeotargetingContextual Targeting3. Search Engine AdvertisingCPC/PPC/Sponsored Links4. Other Digital Advertising MediaMobile Phone AdsGoogle TV Video Advertising Interactive Email Marketing ¹Return On Marketing InvestmentADP 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 RESULTSQUALIFIED TRAFFICEFFECTIVE TARGETING COST EFFECTIVE ROMI*

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

26. Scalable Dealer Display Advertising: High Quality, Animated Flash Display AdsTargets 9 key “in-market” consumer behaviorsDigital Advertising CampaignsGet a Quote

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

34. Get Your Payment ADP AdVantage Compiler Software: Scalable, Automated and Efficient Ad Creative System

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

40. ADP Managed Tier 3 Search Engine Advertising- Dealer Campaigns Integrated with OEM Tier 1 and Association Tier 2 Search Advertising Impressions

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

53. Competitive AnalysisCompare Competitive SetBenchmark growth

54. Visitor Length

55. Demographics

56. Competitor Keywords

57. Advertising Opportunities

58. Upstream traffic

59. Downstream trafficHitWise Competitive Analysis: Clickstream

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 IndustryRoles & Responsibilities: PLANEXECUTEMEASURE/REPORTThis equates to:Evaluate dealership current marketing and advertising activitiesDevelop annual, quarterly and monthly advertising calendarsWork with dealer on budget development and spendExecute marketing campaignsReport and assess results to improve dealer ROI Benchmark results and recommend best practicesCoordinate 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 MouthSelecting 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.

73. Social Marketing & Reputation Management Specific Services to Dealer:Your dealership will achieve a highly positive presence within today’s most popular sites where customers spend hours and hours of their online time. Your community’s content syndication will grab people’s attention and pull them into your online community. ADP will use your online community’s syndication power to connect your dealership to the millions of people using sites such as:Facebook