Presentations by Colin Barnard, Auto Industry Head, Google

1. • Delighting the auto buyer
24th August, 2010
Google Confidential and Proprietary 1

2. • Delighting the auto buyer
The online journey
Colin Barnard, Head of Automotive
August, 2010
Google Confidential and Proprietary 2

3. Agenda
1 Today’s car buyer
2 The impact of car manufacturer websites
3 Measuring the right outcomes
Google Confidential and Proprietary 3

4. Automotive marketing model
TV & Cinema Press
Ambient Online Media
Google Confidential and Proprietary

5. Most buyers start with a small consideration set
82%
1-3 Ford
Toyota
Holden
82%
Ford
Google Confidential and Proprietary 5
Source: CapGemini Cars Online 09/10

6. Google Confidential and Proprietary 6

7. Online is most influential pre-purchase buying activity
“ It’s important to get as much
unbiased information as possible
”
35%
Online
30% Reviews
25%
Influence on purchase
20% OEM Website
Friends &
15% Family Dealership
10% Car section of
newspaper
5% Car
Brochures
Magazines
0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Did Activity
Google Confidential and Proprietary
Source: TNS – Google Website branding study
7

8. Mix of generic & brand terms used by buyers
Search terms used leading to purchase
Top 10 Auto Search Terms
in purchase month
Rank Keyword
49% 48%
56% 57% 57% 55% 1 kelly blue book
2 toyota
3 honda
Generic 4 nissan
Branded 5 edmunds
6 carmax
51% 52%
44% 43% 43% 45% 7 hyundai
8 ford
9 kelley blue book
10 nada
6mths 5mths 4mths 3mths 2mths Month of
purchase
Google Confidential and Proprietary
Base: Total search referrals to automotive sites in each time period among buyers in the Compete panel/Polk vehicle registration matched dataset with six months of consecutive clickstream data 8

9. You have reached your destination!
Google Confidential and Proprietary 9

10. But what role is the website playing?
1 Brand Survey
2 Website Survey
Google Confidential and Proprietary 10

11. Aim: See how opinions change after visit
WEEK 1 WEEK 2 WEEK 3
Brand survey Visit OEM Website Brand Survey
Google Confidential and Proprietary 11

12. Aim: Understand what is most visited/valued
Didn’t visit test Free browsing on Visited specific areas
website OEM website of OEM website
Website Survey Website Survey
Google Confidential and Proprietary 12

13. Aim: Understand which metrics change
Classic Funnel Consumer Metrics
Model Awareness How familiar are you with [make/model]?
Favourable Opinion How does the [make/model] stack up for…..
Consideration Which make/models would you consider?
Purchase Intent Would you be likely to purchase [make/model]?
Google Confidential and Proprietary
13

14. Model awareness increased significantly
Model Awareness
Favourable Opinion
Relevant Set
21% Purchase Intent
12%
13%
Google Confidential and Proprietary 14

15. Favourable opinion increased for all metrics
Tries to reduce safety
impact
IsHas excellent driving
Has the latest
A a on environment
modern brand with
brand people admire
features
performance
technology
flair
Would suggest to others 32%
Good range of models 30%
Has attractive styling 20%
Good value for money 19%
Appeals to women 16%
15
Google Confidential and Proprietary
Source: Q18 (Stage 2) / Brand Value - 28562 / TNS Australia – July 2010 Base n = 325

16. Up to 3x lift in consideration
Model Awareness
Favourable Opinion
Relevant Set
+289% Purchase Intent
Google Confidential and Proprietary 16
Source: Q11a, Q11b (Stage 1), Q6a, Q6b (Stage 2) / Brand Value - 28562 / TNS Australia – July 2010 / Base n = 1173

17. Increased purchase intent with all models
Model Awareness
Favourable Opinion
Relevant Set
Purchase Intent
14% 9% 22%
Google Confidential and Proprietary 17
Source: Q12 (Stage 1), Q8 (Stage 2) / Brand Value - 28562 / TNS Australia – July 2010 / Base n = P=23, S=80, VW=28

18. Customers using buying tools most
Pre-Purchase Website Feature Visited
Car manufacturer sites
3rd party sites
70%
52%
48%
31% 32%
26% 26% 26%
23%
18%
15% 15%
11% 10%
Build Your Own Offers Dealer Locator Req Quote Fin Calculator Reviews Brochure Used Car Values
Google Confidential and Proprietary
18
Base: New vehicle buyers visiting at least one OEM site during the six months prior to vehicle purchase Base n = 44,865

19. Let’s start measuring the things that count!
Stage of Funnel
Model Awareness Visitors
Favourable Opinion Time on model showroom and/or page views
Consideration Completed configurations / visits to special offers
Purchase Intent Dealer locator results page (& click to dlr site)
Google Confidential and Proprietary 19

20. ROI is complex when no online transaction occurs
Activity on site Measure July 10 Actual Cost Target CPA Actual CPA
Total
Brochures # brochures 500 $15,000 $5.00 $30.00
downloaded
# brochures 250 $15,000 $10.00 $60.00
ordered
Test Drives TDs booked 25 $2,000 $50.00 $80.00
Was this campaign good value?
Google Confidential and Proprietary 20

21. Different goals should have different metrics
Activity on July 10 Actual Target July 10
Measure
Stage of Funnel site Total Cost CPA CPA
Model Awareness Whole site UBs 20,000 $20,000 $1.05 $1.00
UBs spending
Model page 8,000 $1,000 $0.25 $0.13
Favourable Opinion more than 30s
Build your # of completed
4,000 $4,000 $2.00 $1.00
own configurations
Consideration
Offers UBs on offers 600 $2,000 $2.00 $3.33
Purchase Intent Dealer locator # visits 2000 $2,000 $2.00 $1.00
# brochure PDFs 500 $2,500 $5.00 $5.00
Brochures
# brochures sent 250 $2,500 $10.00 $10.00
Test Drives TDs booked 25 $1000 $50.00 $40.00
Google Confidential and Proprietary 21

22. If you remember nothing else…..
1 Online is the most used & influential sales & marketing tool
2 Websites impact classic brand funnel metrics
3 Focus on site engagement & buying tools not brochures
Google Confidential and Proprietary 22

23. • Thank You!
Google Confidential and Proprietary 23