This study analyzed data from intercept interviews with customers exiting 59 dealerships across 17 markets to understand what drives walk-in traffic. The key findings were: 1) 80% of walk-in customers did not contact the dealership prior to their initial visit. 2) The primary source leading customers to dealerships was driving by (31%), followed by advertising (27%). 3) The internet was found to be the number one media source driving walk-in traffic, accounting for over half (54%) of walk-ins attributed to advertising. However, dealers still spend heavily on more traditional media.

1. Objectives
Northwood University and AutoTrader.com Present:
2008 Dealer Walk-In Traffic
Study Results
January 25, 2009
1

2. Chip Perry
– President and CEO, AutoTrader.com
2

3. State of the Industry - Current Observations
• Since the advent of the Internet, manufacturers and
dealers continue to seek the most effective and efficient
media strategy.
• Traditional media continues to garner a large share of
advertising spend.
• Automotive advertisers often treat the Internet as a lead-
generator and define its impact based on e-mails and
phone calls alone.
3

4. State of the Industry - Current Observations
Yet, e-mail leads have stagnated over the last several years.
80% 75%
75%
71%
71%
6 %
67% 68%
68%
64%
64%
60%
40%
20% 21%
21% 21% 22%
22% 22%
22%
20% 20%
0%
2004 2005 2006 2007 2008
Online New Car Shopper as % of Total Buyers
Email Lead Requestors as % of Total Buyers
Source: JD Power 2004-2008 New AutoShopper.com Study
4

5. Why conduct the “Dealer Walk-In Traffic” Study?
• To better understand the “missing link,” what was
previously immeasurable:
The impact of advertising on the volume
of walk-in traffic at dealerships nationally
nationally.
5

6. Objectives
Keith Pretty
– President, Northwood University
6

7. Study Objectives
Specific Objectives
• D t
Determine h
i how walk-in t ffi initially establishes contact
lk i traffic i iti ll t bli h t t
with dealerships (i.e., phone, e-mail or walk-in).
• Measure the impact that all forms of advertising have on
dealer walk-in traffic.
7

8. How did we conduct this study?
Methodology
• Intercept interviews conducted among customers as they
exited the dealership.
dealership
• Interviews administered by research firm Morpace, Inc.
and Northwood University students.
• Interviews were conducted over a two-day period at each
dealership.
Sample
• Must have been visiting the dealer to shop for a vehicle
(Those visiting for service or to make a car payment were
not included in this study).
• Data has been weighted to reflect the actual market *
market.
* Geography weights determined by population;
Customer type weights determined by share of units sold
8

9. Where did we conduct this study?
• 59 dealerships (mix of manufacturers, independent and franchise,
luxury and non-luxury)
• 17 markets
Eugene, OR
Boston, MA
Syracuse, NY
La Crosse, WI
Detroit,
Detroit MI
Reno, NV Philadelphia, PA
Chicago, IL
Sacramento, CA
Denver, CO
Kansas City, KS
Richmond, VA
Louisville, KY
Phoenix, AZ
Macon, GA
Austin, TX
Tampa, FL
9

10. The Focal Point Question of the Survey
What was the primary source that led you to
visit this dealership today?
10

11. How do walk-ins establish contact with the dealer?
• 80% of car shoppers who walk through a dealership’s doors do not
establish contact with the dealer prior to their initial visit.
Dealers’ Perception Reality
Phone
17%
Walk-In
Email
Walk-In
Walk In 80%
2%
41% Phone
42%
Email
17%
Source: 2008 Dealer Brand Image Study & Dealer Walk-In Study
11

12. What are the primary sources that drive dealer
walk-in traffic?
Primary Source Leading to Dealership
Driving by 31%
Advertising drives
Advertising 27% over one-fourth of
dealer walk-in traffic
Prior Experience 22%
Friends or family 20%
Source: 2008 Dealer Walk-In Study
12

13. What advertising drives dealer walk-in traffic?
• The Internet is the number one media source driving dealer walk-in traffic.
• More than half of all walk-in traffic generated by advertising can be
attributed to the Internet.
Dealers’ Perception Reality
Internet 32% 54%
Newspapers 27% 13%
Classified Maga ines
Magazines 11% 15%
Radio 9% 4%
Television 8% 8%
Direct Mail 7% 3%
Outdoor Advertising 6% 0%
Phone Book 0% 3%
Source: 2008 Dealer Brand Image Study & Dealer Walk-In Study
13

14. What advertising drives dealer walk-in traffic?
• Of the 54% brought to the dealership by the Internet, 61% do not
contact the dealership first.
Internet 54%
Newspapers 13%
Walk-In
Classified Magazines 15%
61% Phone
25%
Radio 4%
Television 8%
Direct Mail 3%
Email
Outdoor Advertising 0% 14%
Phone Book 3%
Source: 2008 Dealer Walk-In Study
14

15. It’s important to invest in efficient and effective media.
• The Internet is the number one media source at driving walk-in traffic.
However, dealers are still spending heavily on more traditional media
such as Newspaper, Radio and TV.
54%
Internet
17%
13%
Newspaper
27%
8% Primary Media Source Leading to Dealership
TV
17% Dealer Advertising Spend
4%
Radio
17%
3%
Direct Marketing
10%
Source: 2008 Dealer Walk-In Study & NADA Data 2008 Report.
15

16. Objectives
Thank You!
16