THE RISE OF THE MOBILE WORLD

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1 THE RISE OF THE MOBILE WORLD

2 Mobile ad spend will surpass desktop spending in just 3 years.

3 4/18/2014 The mobile audience continues its rapid growth millions US Smartphone & Tablet Users Smartphone + 123% Tablet + 381% Smartphone Users Tablet Users Market Research Source: emarketer, Sept

4 4/18/2014 Mobile has surpassed desktop for time spent online with all adults hours Desktop: 35.2 hours hours Desktop: 49.1 hours hours Desktop: 43.6 hours Market Research Source: comscore Media Metrix Multi-Platform 4

5 4/18/2014 In 2014, desktop spending will peak and mobile will be the primary driver of growth. Digital Ad Spending by Channel $40 $35 $30 billions $32.43 $32.98 $33.12 $32.12 $ $27.21 Mobile + 717% $25 $ $ Desktop - 16% $10 $5 $ Desktop* Mobile** Market Research *Includes spending primarily on desktop-based ads. **Includes classified, display (banners and other rich media and video) , lead generation, messaging-based and search advertising; ad spending on tablets is included. Source: emarketer, Dec

6 Mobile requires marketers to think differently.

7 Re-evaluate the Customer Journey 4/18/2014 Standard Path Analysis PC PAGE PAGE PAGE Tablet PAGE PAGE PAGE Mobile PAGE PAGE PAGE Multi-Platform Path Analysis PAGE PAGE PAGE PAGE 7

8 This fast adoption of mobile is changing the way consumers shop for vehicles.

9 4/18/2014 The PC is still the primary device but car shopping is expanding to mobile. Devices Used by Online Buyers to Shop for Vehicles tablet smartphone % 19% 28% 28% 32% MULTI-DEVICE USAGE IN 2014 (23% IN 2013) pc/laptop % 88% Automotive Research Source: 2014 AutoTrader.com Automotive Buyer Influence Study, IHS Automotive driven by Polk 9

10 Multiple devices are changing the shopping process. 4/18/2014 REASONS FOR MULTIPLE DEVICE USAGE 80% 78% 77% 57% ENHANCES the process INCREASES knowledge EMPOWERS the shopper INCREASES efficiencies Automotive Research Source : 2013 AutoTrader.com Multi-Device Study, Ipsos - Among 23% who use multi-screens 10

11 Mobile ads have significant impact throughout the purchase decision.

12 4/18/2014 Mobile ads are effective at moving ALL brand metrics. Average Brand Metric Deltas For Automotive Mobile Campaigns Aided Brand Awareness 3.0 Ad Awareness 10.4 Message Association 6.2 Brand Favorability 2.9 Purchase Intent 3.5 Automotive Advertising Research Source: Dynamic Logic s AdIndex for Mobile Norms last 3 years; Overall Mobile N=75, campaigns Delta (Δ)=Exposed-Control 12

13 The AutoTrader.com Mobile Audience is growing. 13

14 4/18/2014 Type of website used when researching a vehicle 58% 27% OEM WEBSITE 13% THIRD-PARTY DEALER AUTO WEBSITE WEBSITE Automotive Research DMEautomotive auto[mobile] survey Sep

15 Percentage of Visitors 4/18/2014 Growth in mobile audience. Devices Used to Access AutoTrader.com AutoTrader.com Visitors 100% 94% 90% Q Q % 60% 40% 20% 25% 23% 13% 16% 17% 26% 0% -4% -8% +23% +53% Home computer Work computer Tablet Mobile phone YTD % 25% 16% 25% AutoTrader.com User Research Source: AutoTrader.com User Profile Study 15

16 AutoTrader.com Mobile Users are highly engaged. 16

17 4/18/2014 Growing Mobile Engagement + 46 % + 40 % AutoTrader.com Mobile Activity (2014 vs. 2013) + 33 % + 25 % + 25 % Unique Visitors Sessions SRPs VDPs Page Views AutoTrader.com User Research Source: AutoTrader.com Site Data 17

18 4/18/2014 AutoTrader.com Mobile Users Visit Often Giving your brand the opportunity to keep them engaged and interested in your models. # of Visits to AutoTrader.com from your smartphone in the last month: More than 15 times: times: 6 10 times: 22% 8% 16% AutoTrader.com User Research Source: AutoTrader.com Mobile Foresee Study (2013) 18

19 You may not reach this valuable audience anywhere but their smartphone. Other mobile users also visited from: Home Computer 54% 4/18/2014 My Tablet 31% I only visit AutoTrader.com on my smartphone 21% Work Computer 17% Other 6% AutoTrader.com User Research Source: AutoTrader.com Mobile Foresee Study (2013) 19

20 AutoTrader.com Mobile Activity 80 % Look at photos of vehicles 63 % Look at prices of vehicles 18 % Locate a dealer 16 % Look-up trade-in values Top PC Activities 59% Search for a specific vehicle 55% Research vehicles 40% Finding pricing information Source: 2013 AutoTrader.com User Profile 20

21 Best Practices

22 A few different factors contribute to mobile s effectiveness as a medium. 4/18/2014 THE SIZE OF THE AD COMPARED TO THE SIZE OF THE SCREEN MORE FOCUSED AD COPY AND CONTENT DUE TO SIZE OR TECHNOLOGY CONSTRAINTS CONSUMER ACCEPTANCE OF MOBILE ADVERTISING BETTER TARGETING Market Research Source: Millward Brown Digital, Dynamic Logic 22

23 4/18/2014 A full logo (with brand name) should be placed in the corner of every frame Use no more than two messages including the tagline Text should take up less than 50% of the layout Clear and persistent branding is important for building brand awareness A striking color palette can drive ad recall, but legibility is paramount MOBILE CREATIVE BEST PRACTICES Short, focused messaging plays well in mobile s small format Consumers respond to mobile ads that give them something back Use at least one but no more than two bright colors It can be difficult to read text against a dark background; however, white backgrounds may blend into site content Offers with tangible value (coupons, games, useful information) can yield high impact Interactive elements (like social integration) can be more engaging in rich media Market Research Source: Millward Brown Digital, Dynamic Logic 23

24 Mobile display ads need clear branding, crisp messaging, and compelling calls to action. What makes a good mobile display ad? 4/18/2014 do: clearly brand your creative make sure your message is concise and compelling create engaging ads that offer something back don t: use partial logos or creative assets make it difficult for consumers to read ad content expect consumers to engage without an exchange of value Market Research Source: Millward Brown Digital, Dynamic Logic 24

25 THE RISE OF THE MOBILE WORLD THANK YOU!

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