1. John Potter VP Interactive Revenue Development Director Radio Training Academy jpotter@rab.com Automotive: Part III Internet’s Effect on Advertising

2. 1.Automotive slow down 2.Auto ad budgets 3.Where dealers are advertising 4.Lead buying 5.Win back the bucks 1.Automotive slow down 2.Auto ad budgets 3.Where dealers are advertising 4.Lead buying 5.Win back the bucks Here’s What We’ll Cover… Goal’s For Today

3. FFF Error Foreign Fuel Financing Foreign Fuel Financing Automotive Webinar

4. Automotive Drives America $924 billion in sales in 2007 23% of total retail sales in the US 1.3 million employees Another 6.6 million related employees US Largest ad category - $19.8 Billion $924 billion in sales in 2007 23% of total retail sales in the US 1.3 million employees Another 6.6 million related employees US Largest ad category - $19.8 Billion Automotive Webinar Sources: US Dept. of Commerce, 2008; University of Michigan; Advertising Age, June, 2007

5. Automotive Drives America Automotive Webinar Total US Units Sold In Millions A Sales Slowdown Sources: JD Power & Associates, January, 2008

6. Automotive Drives America Domestic off 15.5% in August –GM down 20% –Ford down 26% YTD industry down 11.2% Pickups and SUVs are stalled Chrysler no longer leasing Toyota & Honda short on small vehicles Nissan up 14% Domestic off 15.5% in August –GM down 20% –Ford down 26% YTD industry down 11.2% Pickups and SUVs are stalled Chrysler no longer leasing Toyota & Honda short on small vehicles Nissan up 14% Automotive Webinar A Sales Slowdown Sources: New York Times, September, 2008

7. Automotive Drives America Ad spending down 6.1% through May DownUp ToyotaGM FordChrysler Honda Nissan Ad spending down 6.1% through May DownUp ToyotaGM FordChrysler Honda Nissan Automotive Webinar A Sales Slowdown Sources: Advertising Age

8. Turning To The Internet GM moving half of its $3 billion Hyundai’s VP Marketing: “Online may be more important than spot.” Audi more than doubled online advertising GM moving half of its $3 billion Hyundai’s VP Marketing: “Online may be more important than spot.” Audi more than doubled online advertising Automotive Webinar Moving Traditional Ad Budgets Sources: Advertising Age, August, 2008; e-Market, June, 2008;

9. Turning To The Internet Automotive Webinar Moving Traditional Ad Budgets Sources: Advertising Age, August, 2008; e-Market, June, 2008; -6.1% 21.6%

10. Turning To The Internet 2.1 billion automotive online impressions in July 5.5% of all Internet impressions in the US 2.1 billion automotive online impressions in July 5.5% of all Internet impressions in the US Automotive Webinar Moving Traditional Ad Budgets Sources: Nielsen NetRatings, July, 2008

11. Turning To The Internet 80% of consumers consult the Internet at least once during the car- buying process (up from 71% in 2006, 64% in 2004) Internet reviews are replacing recommendations from family and friends 78% of Internet users who read an online review said it influenced their purchase decision 40% of leads are from the Internet 80% of consumers consult the Internet at least once during the car- buying process (up from 71% in 2006, 64% in 2004) Internet reviews are replacing recommendations from family and friends 78% of Internet users who read an online review said it influenced their purchase decision 40% of leads are from the Internet Automotive Webinar Moving Traditional Ad Budgets Sources: Capgemini, 2008; comScore/Kelsey Group, 2008; RAB, 2008

12. Online Advertising Types Classifieds –New –Used Display (banner ads) Search / Keywords Rich Media –Video –Audio –Animation Promotions Micro-sites Lead Generation Classifieds –New –Used Display (banner ads) Search / Keywords Rich Media –Video –Audio –Animation Promotions Micro-sites Lead Generation Automotive Webinar

13. Classifieds – New

14. Classifieds – Used

15. Classifieds – Local CBS Dallas

16. Classifieds – Local Columbus Fizmo

17. Classifieds – Local Mineola, TX

18. Classifieds – Local WOOD-TV, Grand Rapids

19. Classifieds – Local Columbus Dispatch

20. Classifieds – Local Vehix –White Label

21. Display Ads

22. Search / Keywords Clear Channel

23. Rich Media

24. Promotions

25. Micro-sites

26. Lead Generation Automotive sites collect leads Sell to dealers –Screened Address check Phone check 3 rd Party check –Not screened –Exclusive –Non-exclusive $25 per lead average Automotive sites collect leads Sell to dealers –Screened Address check Phone check 3 rd Party check –Not screened –Exclusive –Non-exclusive $25 per lead average Automotive Webinar

27. Lead Generation Marty Johnson Internet Manager Nelson Auto Group

28. Lead Generation

31. Classifieds sites Paid leads sites Factory site Dealer site Classifieds sites Paid leads sites Factory site Dealer site Automotive Webinar

32. Win Back The Bucks Promote the value of your on-air product Use marketing information Develop an automotive Internet strategy –Online advertising –Online classifieds –Online search / keywords –Online promotions Contests Micro-sites Custom ideas (virtual test drive, “find the key” video game, online used car auction…) –Online directory Promote the value of your on-air product Use marketing information Develop an automotive Internet strategy –Online advertising –Online classifieds –Online search / keywords –Online promotions Contests Micro-sites Custom ideas (virtual test drive, “find the key” video game, online used car auction…) –Online directory Recapturing Auto Dollars Automotive Webinar

33. RAB Resources

41. You will be receiving an e-mail with a link to download a PDF copy of these slides, glossary Please share your thoughts in the evaluation form RAB Member Response 1-800-232-3131; member_response@rab.com John Potter jpotter@rab.com Thank you for joining us! Automotive Webinar