VW UPFRONT MEETING. September 2, 2015

Transcription

1 VW UPFRONT MEETING September 2, 2015

2 Connecting shoppers with Volkswagen on KBB.com 12.6 Million total pricing reports including new, owners, CPO, used, private party, trade in etc. 5.3 Million total Volkswagen visitors (Desktop and Mobile) 814,000 hours spent on Volkswagen Pages 1.7 Million Volkswagen owners on the site 86,209 clicks on Volkswagen ads (T1&T2) 52 KBB.com awards & accolades earned since Timeframe: 1/1/2015 7/31/2015

3 Positive ad performance trends have emerged with highimpact home page sponsorships. Home Page Sponsorship (Mar 4-10) Home Page Showroom (May 27-June 2) 8x BENCHMARK Gained 6.7% Traffic Share on Volkswagen s New Car Shopping Pages 0.23 % TOTAL CTR Exceptional engagement 3,318 clicks sent to Volkswagen s New Car Shopping Pages 3

4 AUTO SHOPPER INSIGHTS 4

5 70% Of KBB.Com Users Are Purchasing In 2 Months KBB.com core structures: Develop presence to connect with consumers who display various shopping behaviors o o Adopt consumers early on during the non-linear path to purchase and sell vehicles Given that the online automotive market is a multi-need framework, create awareness about KBB s offerings, besides vehicle values 27% Knowledge 36% 45% Transact Ready 21% 59% 32% 47% 41% Assessment 43% 5 Source: KBB.com Market Structure / Audience Segmentation, Q2 2015

6 In 2016, a main focus for KBB.com will be better serving shoppers in the KNOWLEDGE and ASSESSMENT mindsets o Mindset: I am interested in various types of vehicle information o Find info on: Performance Features I need Warranty New car introductions Reviews/Ratings o Look at cars: 360 o photos Watch video Knowledge 36% Transact Ready 21% Assessment 43% o Mindset: Deciding what is the best option to maximize consumer value o How much could I sell my car for? o Am I better off selling my vehicle on my own or trading in? o How much should I pay for my next vehicle? o Websites visited: KBB Craigslist ebay Motors 6 Source: KBB.com Market Structure / Audience Segmentation, Q2 2015

7 KBB.com Is the First Destination for Shoppers Returning to the Market Returning shoppers are just entering the purchase path and are Checking their current vehicle value on the Owners Homepage 76% of visits to the Owners Homepage originated from an organic search or direct visit 1 Further away from purchase 70% of surveyed visitors to the Owners Homepage indicated they were more than 3 months away from purchase 2 What s my car worth? What will my next vehicle be? What should I pay for my next vehicle? 7 1: Kelley Blue Book Web Analytics. Visits to Owners Section for the full year of : KBB.com Combined User Profile 2014

8 VOLKSWAGEN SHOPPERS ON KBB.COM 8

9 Page Views VW s new car shopping activities are trending up. 450, , , ,000 Volkswagen New Car Retention Page Views 250, , , ,000 50,000 0 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15

10 But traffic share is still lowest among VW s competitive set. 25% Share of New Car Retention Page Views Among Competitive Set 20% 15% 10% 5% 0% Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Chevrolet Ford Honda Kia Mazda Nissan Subaru Toyota Volkswagen 10

11 Low familiarity and awareness places VW 13 th in overall brand consideration across non-luxury brands. Less than a third of non-luxury shoppers are familiar with the Volkswagen brand Only 7.3% of non-luxury shoppers will consider Volkswagen vehicles 11 Source: KBB.com Brandwatch Q N=2760

12 Shopper opinions of VW have declined due to low familiarity of the overall brand. Factor Importance Non-Luxury Brands Durability/reliability Safety Driving comfort Affordability 69% 63% 62% 82% Top Ranked Brands across the Top 6 Categories: Honda, Subaru, GMC, Kia Driving Performance 56% Reputation 49% Fuel efficiency 46% Interior layout 36% Exterior styling 31% Ruggedness 30% Technology 29% Prestige/sophistication 7% 12 Source: KBB.com Brandwatch Q N=2760

13 Top ranked brands are influencing shoppers on KBB.com through consistent presence on high-impact pages. Homepage sponsorships and custom always-on programs keep brand familiarity and consideration high for OEMs. 13

14 SEGMENT TRENDS AND IMPACT FOR VW 14

15 One in four new vehicles purchased in the U.S. is a crossover. 3.8 million crossovers sold in 2014, surpassing midsized sedans and becoming the new family car. 15 Source: 2015 Auto sales. Bloomberg.

16 Percent Traffic Share Compact SUV has led all segments in traffic for the last 5 months. Current VW SUVs Tiguan MSRP: $26,255 16% 14% Traffic Share Between All KBB Segments Compact SUV/Crossover 12% 10% Mid-size SUV/Crossover Compact Car Touareg MSRP: $44,705 8% 6% 4% 2% Mid-size Car Hybrid/Alternative Energy Car Subcompact Car 0% Source: KBB.com July 2014 July Source: KBB.com July 2014 July 2015

17 Subcompacts are strengthening consideration within the compact SUV/CUV segment % of HR-V shoppers also looked at the CR-V Launch of the new subcompact boosted consideration for both the HR-V and the CR- V, helping both models become stronger contenders in the segment. Upcoming launch of Mazda CX-3 is expected to have the same effect. 17

18 Contrary to common notion, the launch of the Honda HR-V did not cannibalize from the CR-V. Honda CR-V continues to be the most shopped SUV on KBB.com 1 Traffic trends show that HR-V is bringing in a completely new audience of shoppers. 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% -0.50% Trends traffic for CR-V and HR-V (New Car Visit) Honda CR-V Honda HR-V 18 1: KBB.com Omniture Q

19 CX-3 launch is expected to bring in shoppers from outside the compact SUV/CUV segment. Mazda CX-5 Mazda CX-3 VW needs to step up presence across the subcompact and compact SUV segment to stay top of mind. 19

20 VW Tiguan fits the segment but has extremely low familiarity. 20

21 Meanwhile, shoppers are paying a lot of attention to the Golf. Golf had the largest YoY increase in retention page views. 21 Source: KBB.com Analytics Insights,

22 4-door Golf is comparable to subcompact SUVs when it comes to interior room, fuel economy, and pricing. VW Golf (4-door) Honda HR-V Mazda CX-3 Head Room 38.4 front / 38.1 rear 39.5 front / 38.3 rear 37. front/ 37.2 rear Leg Room 41.2 front / 35.6 rear 41.2 front / 39.3 rear 41.7 front / 35 rear Shoulder Room 55.9 front / 53.9 rear 56.8 front / 54.5 rear 53.5 front / 50.4 rear EPA Passenger 93.5 cu.ft cu.ft cu.ft. EPA Trunk or Cargo MPG 52.7 cu.ft cu.ft cu.ft. City 25/Hwy 36/Comb 29 MPG City 28/Hwy 35/Comb 31 MPG City 27/Hwy 32/Comb 29 MPG MSRP $21, $20, $22,

23 Small Cars and Small SUVs are being cross-shopped with the Golf. 23 Source: Q KBB.com Shopper Activity

24 After viewing the Golf, shoppers continue on to visit a variety of segments. Golf Shopper Path Analysis 24 Source: KBB.com Omniture (1/1/15 7/31/15)

25 With its high familiarity and comparable features, Golf is best positioned to sway consideration from undecided shoppers and cross-segment shoppers. Modern and versatile hatchback or sporty compact SUV Leverage Golf s familiarity to bring awareness of VW s versatile line-up Position Golf as an alternative to subcompacts and small cars Bring awareness to sister model Tiguan Recapture traffic share from shoppers leaving the small cars segment in favor of small SUVs 25

26 Key opportunities to capture familiarity & consideration and influence shoppers as they return to the market Boost familiarity and consideration through core on-site sponsorships that leverage KBB.com credibility Maintain an always-on presence to support retention shoppers and increase loyalty through VW owners Stay top of mind with Golf and Tiguan to recapture traffic share from the bustling new small SUV segment

27 2016 PRIORITIES: CORE ON-SITE SPONSORSHIPS 27

28 KBB.com is the top online source for new and used car buyers. 4 in 10 *NEW* car shoppers use Kelley Blue Book 6 in 10 *USED* car shoppers use Kelley Blue Book 28 Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: You mentioned using the Internet while shopping for your vehicle. Please tell me if you used any of the following websites? Base: New car purchasers who used the Internet while shopping for vehicle, Used car purchasers who used the Internet while shopping for vehicle

29 75% of Time Spent Researching is Online Almost half of that time is spent on third-party sites Shoppers spend 75% of total research time on the Internet 45% of Internet research is allocated to 3 rd -party sites 12h 30m 5h 36m Average time spent on KBB.com is 1h 30m, more than any other 3 rd -party site Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: How much total time did you spend researching information on the new/used vehicle you recently purchased? Q: What percentage of time researching did you allocate to each website Base: Internet car shoppers

30 Top Reasons for Internet Research Align with Top Activities on KBB.com Primary Reasons Used Internet 1 Research car pricing 62% Compare different models using reviews, options or pictures 60% Find actual vehicles listed for sale 55% Find out what your current car is worth 39% Locate a dealer or get dealer info 38% Find info on special offers 31% Determine how much I could afford to spend 21% Request dealer price quote Find a private seller of a vehicle you wanted to purchase Other 1% 10% 20% Top 3 Activities on KBB.com 2 30 Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader 1. Q: Which of the following are primary reasons you used the Internet when shopping for your [insert make and model]? 2. Q: For each of the websites you used that are shown below, please indicate which you used to [insert each task]? Base: KBB.com visitors

31 Over 18M Unique Visitors Every Month 1 KBB.COM IS THE MOST USED 3 RD PARTY SITE AMONG NEW AND USED VEHICLE BUYERS : KBB Web Analytics (All Platforms monthly average for the full year 2014) 2: 2015 IHS/AutoTrader.com Automotive Buyer Influence Study Base: New Buyers (953), Used Buyers (691)

32 Command Attention LIGHT ACCELERATOR Immerse shoppers in your campaign with takeover media event Desktop Homepage Takeover New Car Shoppers Homepage Owners Homepage Mobile & Tablet *NEW* Tablet Homepage Billboard *NEW* Mobile Marquee Grows awareness and consideration with a concentrated 1-month media event Reaches undecided auto shoppers with rare home page ownership opportunity and coordinated cross-site, cross-platform extensions Brings your model to life with a bold, immersive Home Page Takeover experience Comprehensive campaign recap with insights from KBB.com s Market Intelligence and Advertising Analytics teams KBB.com production and creative agency collaboration included 32 Mocks are concept only. Actual design and layout of product is subject to change upon production.

33 2016 LIGHT ACCELERATOR Homepage Takeover Featuring an immersive look and feel on the KBB.com homepage NEW FOR 2016: CLICKABLE WALLPAPER NEW FOR 2016: VIDEO OVERLAY Exclusive 1-week homepage takeover to command full attention and create maximum awareness Create a custom animated pushdown that resolves into a large billboard unit. Custom wallpaper creates a unified and immersive look & feel 33 Mocks are concept only. Actual design and layout of product is subject to change upon production.

34 2016 LIGHT ACCELERATOR Mobile Marquee Featuring an immersive look and feel on the KBB.com homepage Exclusive 1-week sponsorship on the mobile homepage and 1-month flight on mobile interior pages User clicks to expand a full screen video 34 Mocks are concept only. Actual design and layout of product is subject to change upon production.

35 Amplify Awareness Home Page Sponsorship Quickly accumulate large in-market audience on highest traffic page Create an impact on the most trafficked page of the most visited third-party auto site with a concentrated 1-week campaign Focus undecided shoppers attention on your message before they begin their knowledge gathering and assessment tasks Engage shoppers in your brand, model or sales event content with high-visibility, including clickable Wallpaper upgrades NEW FOR 2016: CLICKABLE WALLPAPER 35 Mocks are concept only. Actual design and layout of product is subject to change upon production.

36 Bring It Home Home Page Showroom & Showroom XL Connect via KBB.com s credible content style on our highest traffic page Build quick awareness among undecided shoppers early in their research process Prompt consideration before shoppers head down a competitor s path Add credibility to your model tout with KBB.com s look and feel Maximize the impact with a Showroom XL KBB.com production included HOMEPAGE SHOWROOM XL: HOMEPAGE SHOWROOM 1, 2, &/or 3 Panel: 36 Mocks are concept only. Actual design and layout of product is subject to change upon production.

37 KBB.com Owners Homepage is the hub for pre-qualified auto shoppers. 98 MILLION Trade-In Reports 1 (74.5 million on Desktop, 23.7 million on Mobile) conversion rate from Owners Homepage to Owners Trade-In Value Page 3 89 % checking their current car 37 % value visited both trade-in and private party values 2 75 % of KBB.com users visiting both new car & owners pricing pages visited an Owners Value Page first 3 More people use KBB.com to determine trade-in values than all other sources combined : Kelley Blue Book Web Analytics. Visits to Owners Trade-In VDP for the full year of : Omniture Site Catalyst. Jan-Mar 15 3: Kelley Blue Book Web Analytics. Q Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: By the way, did you trade in your vehicle? Q: What sources did you use to determine the trade-in value?

38 Make an Impactful FIRST IMPRESSION with a Pre-Qualified Audience Win over a newly inmarket audience on the most visited section of KBB.com Generate mass awareness at the entry point where shoppers first begin their purchase process Leverage branding assets to engage shoppers before they form consideration sets 38 CONCEPT

39 Make an Impactful FIRST IMPRESSION with a Pre-Qualified Audience Upgrade leaderboard to enlarged Billboard (970x250) Add on clickable wallpapers (two 250x550 panels) FIRST IMPRESSION PACKAGE Core Models Focus: Freshen brand perceptions and familiarity by presenting full vehicle lineups Sales Events Focus: Draw attention to key features by placing them front-and-center 39 CONCEPT

40 CASE-STUDY: HOMEPAGE TAKEOVER 40

41 Case-Study: New Car Hub Page Views Jumped 71% During Homepage Takeover 6,000 5,000 Sponsor s- New Car Hub Page Views Sponsor s Homepage Takeover 4,000 3,000 71% Lift 2,000 1,000 Pre- Period - Week 1: Jun 25 - Jul 1 Week 2: Jul 2-8 Week 3: Jul 9-15 Campaign Week: Jul Week 5: Jul Source: Omniture 2014 Source: KBB Shopper Activity Pre Campaign (June 25 June 30) Placements (July 1 July 31) HP Takeover (July 16 July 22)

42 Case-Study: Gained 53% Competitive Share in New Car Hub Visits During Homepage Takeover 7.00% 6.00% 5.00% New Car Hub - Share of Competitive Set 5.13% Sponsor s Homepage Takeover 5.76% 5.54% 4.00% 3.77% 4.23% 53% Lift 3.00% 2.00% 1.00% Pre- Period 0.00% Week 1: Jun 25 - Jul 1 Week 2: Jul 2-8 Week 3: Jul 9-15 Campaign Week: Jul Week 5: Jul Source: Omniture 2014 Source: KBB Shopper Activity Pre Campaign (June 25 June 30) Placements (July 1 July 31) HP Takeover (July 16 July 22)

43 Case Study: Sponsor Gained 24% Share in NC Hub Visits During the Homepage Takeover and Maintained a 10% Lift Two Weeks After Campaign 30.00% New Car Hub Activities - Share of Competitive Set 25.00% 20.00% 15.00% 13.23% 16.40% 14.59% 10.00% 5.00% Pre- Period 24% Lift 10% Lift 44K Visitors to OEM site 0.00% Week 1: Sept 3-9 Week 2: Sept Week 3: Sept HPTO: Sept Week 5: Oct 1-7 Week 6: Oct Source: Omniture 2014 Source: KBB Shopper Activity Pre Campaign (June 25 June 30) Placements (July 1 July 31) HP Takeover (July 16 July 22)

44 2016 PRIORITIES: VOLKSWAGEN RETENTION & LOYALTY 44

45 Researching: Loyalty and Cross Shopping Matrix Currently Owner of: Trading In VOLKSWAGEN MAZDA NISSAN FORD TOYOTA HONDA KIA HYUNDAI CHEVROLET SUBARU Researching VOLKSWAGEN 38.3% 4.2% 2.9% 2.2% 2.8% 3.5% 2.8% 3.3% 2.0% 3.9% MAZDA 6.5% 40.4% 5.6% 4.1% 5.0% 6.1% 5.7% 6.8% 3.6% 6.3% NISSAN 7.1% 9.3% 44.9% 5.8% 7.2% 7.9% 8.4% 8.7% 5.7% 6.7% FORD 10.4% 11.8% 10.4% 53.5% 9.6% 9.5% 11.1% 11.1% 12.3% 9.2% TOYOTA 11.2% 12.8% 13.4% 9.5% 54.6% 15.4% 10.3% 11.9% 9.0% 12.3% HONDA 10.8% 12.2% 11.2% 7.1% 12.6% 50.1% 9.6% 12.0% 6.9% 10.6% KIA 3.6% 4.7% 4.0% 3.1% 3.2% 3.5% 46.4% 6.5% 3.1% 3.0% HYUNDAI 4.3% 5.9% 4.8% 3.3% 4.3% 4.8% 6.5% 45.1% 3.1% 3.5% CHEVROLET 7.5% 8.4% 8.8% 10.9% 7.3% 7.1% 9.0% 8.1% 50.9% 6.3% SUBARU 7.5% 7.8% 5.2% 4.0% 6.2% 7.2% 5.0% 6.8% 3.5% 54.5% 45 Source: KBB.com Shopper Behavior Q2 2015

46 Researching Trading In Loyalty and Cross Shopping Matrix VOLKSWAGEN MAZDA NISSAN FORD TOYOTA HONDA KIA HYUNDAI CHEVROLET SUBARU VOLKSWAGEN 38.3% 4.2% 2.9% 2.2% 2.8% 3.5% 2.8% 3.3% 2.0% 3.9% MAZDA 6.5% 40.4% 5.6% 4.1% 5.0% 6.1% 5.7% 6.8% 3.6% 6.3% NISSAN 7.1% 9.3% 44.9% 5.8% 7.2% 7.9% 8.4% 8.7% 5.7% 6.7% FORD 10.4% 11.8% 10.4% 53.5% 9.6% 9.5% 11.1% 11.1% 12.3% 9.2% TOYOTA 11.2% 12.8% 13.4% 9.5% 54.6% 15.4% 10.3% 11.9% 9.0% 12.3% HONDA 10.8% 12.2% 11.2% 7.1% 12.6% 50.1% 9.6% 12.0% 6.9% 10.6% KIA 3.6% 4.7% 4.0% 3.1% 3.2% 3.5% 46.4% 6.5% 3.1% 3.0% HYUNDAI 4.3% 5.9% 4.8% 3.3% 4.3% 4.8% 6.5% 45.1% 3.1% 3.5% CHEVROLET 7.5% 8.4% 8.8% 10.9% 7.3% 7.1% 9.0% 8.1% 50.9% 6.3% SUBARU 7.5% 7.8% 5.2% 4.0% 6.2% 7.2% 5.0% 6.8% 3.5% 54.5% Brand Shopping Health Index SHOP DEFECT TARGET TARGET MULTIPLE TOYOTA FORD HONDA CHEVROLET NISSAN SUBARU MAZDA KIA HYUNDAI VOLKSWAGEN Source: KBB.com Shopper Behavior Q2 2015

47 Competitors are eyeing VW shoppers VW competitors conquested almost 16 million lower funnel impressions in Source: KBB.com Analytics Insights, Competitive Set: Chevrolet, Ford, Honda, Kia, Mazda, Nissan, Subaru, Toyota 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 7% 5% 88% 2013 Qtr 1 12% 10% 79% 2013 Qtr 2 Share of Impressions - VW 20% 19% 18% 9% 71% 2013 Qtr 3 16% 65% 2013 Qtr 4 12% 70% 2014 Qtr 1 23% 14% 10% 64% 60% 2014 Qtr 2 30% 30% 2014 Qtr 3 14% 56% 2014 Qtr 4 40% 42% 15% 44% 2015 Qtr 1 Retained Conquested % Conquested by Competitor 22% 36% 2015 Qtr 2

48 When Retention Is Not Purchased Shoppers are likely to visit makes that are conquesting Next Make Flow 14% 12% 10% 8% 6% 4% Conquest Increased 210% 270% Conquest Increased 798% 97% 2% 0% Ford Honda Mazda Toyota Nissan Chevrolet Lexus BMW Jeep Hyundai Q Q

49 Shop & Showcase Integrated Brand Channel Immerse shoppers in the brand and move them from awareness to consideration Captivate shoppers with a fully immersive, branded Make Page experience Reinforce brand image with customizable assets Capture consideration by educating shoppers about new models, special features, and competitive advantages Drive shoppers further down the shopping funnel Combine KBB.com s trusted data and content with your brand s image 49

50 Influence & Inform New Car & Owners Make/Model Retention Target shoppers during their vehicle research and assessment process Reinforce VW considerers and owners interest or gain consideration from your competitors Create exceptional relevance for your new car message with these make and/or model targeted units Surround users primary task with a strong visual presence while they research their vehicle consideration set 100% share of voice available to retention advertisers Optional IAB Sidekick upgrade from 300x250 50

51 Convert Consideration Shopping Tools Module Move shoppers researching your vehicle to take the next step Drive conversion with key buying activity tools, making it easy to take the next step Capture task-focused shoppers through integration within the KBB.com content flow Add credibility with KBB content style KBB produced Shopping Tools Module 51

52 KBB.COM OWNERS STRATEGY 52

53 Compared to the rest of the industry, shoppers on KBB.com begin the purchase process earlier. 53 Source: 2014 J.D. Power New Auto Shopper Study (NAS) Base: AIUs Q1: How long before you bought your new vehicle did you first decide it was time to buy a vehicle? Q2: start using the Internet and/or apps for vehicle shopping information? Q29: begin visiting dealers/looking at vehicles in person? Q32: narrow your vehicle selection down to the model you purchased? Q34: visit the dealership website of the dealer where you purchased your vehicle?

54 Our bread and butter, the Owners audience is unique to KBB.com with unparalleled reach as the most visited section on KBB.com. 54

55 Comparison: Owners vs New Car Shoppers New Car Shoppers Researching their next vehicle or deciding which vehicle is best for them Owners Looking for the value of their current vehicle Owners Advantage Limited awareness of new vehicles and are more susceptible to advertisement In-market with likely a solid consideration set Just entering the purchasing path, pre-market Shape opinions early on Shopping profile based on new vehicles researched Shopping profile based on current vehicle history Able to provide more relevant, personalized messaging using Owner s data 55

56 KBB.com is conducting studies to assess consumer needs when moving from trade-in to new car shopping. Future enhancements could include: Examples of Studies Use of data for relevant recommendations Surface the best new car content and editorial resources More helpful tools for selling and shopping 56 Note: Screenshots are from testing environments or concept mockups only. Final experience is likely to change based on test results and internal approvals.

57 Examples of Test Cases Close-up 57 Note: Screenshots are from testing environments or concept mockups only. Final experience is likely to change based on test results and internal approvals.

58 Upcoming Opportunities for 2016: LOYALTY & AWARENESS Tailor messaging to promote loyalty and keep VW shoppers within the same brand by showing more than one vehicle Leverage KBB.com content or data to resonate with current VW owners Executions can also be used for conquesting owners of competitive vehicles Owners Make/Model Pages Owner s Text Link (Clicks to overlay) Multi-Segment Consideration Module 58 Note: Opportunities are concept only and NOT guaranteed to be included in proposals. Products will be subject to final site design, feasibility and advertiser reservation priorities.

59 Step up to the Latest Model - TRADE EVALUATOR Maximize relevancy with personalized calculation that drives action Prove how affordable and easy a trade up to your model could be Capture competitive owners attention at earliest trigger point KBB.com s Trade-In Values page with value-focused message Instantly demonstrate affordability using vehicle value, incentives, loan term, and interest rate Motivate shoppers to upgrade to the latest model 59 Mocks are concept only. Actual design and layout of product is subject to change upon production.

60 Tap Into Our Unique Data to Tailor Creatives and Serve the Most Relevant Message KBB.COM API Infuse KBB.com s content and data in to your creatives, allowing consumers a simple tool to research their next GM vehicle Enhance ad products on KBB.com with data Off-site test opportunity available for VW 60 Note: Opportunities are concept only and NOT guaranteed to be included in proposals. Products will be subject to final site design, feasibility and advertiser reservation priorities.

61 Types of Data Available Through the KBB.com API 5-Year Cost to Own Vehicle Specifications Fair Purchase Price & MSRP Consumer Ratings Expert Ratings & Reviews Data-infused ad placements available on KBB.com as a custom solution built in-house by KBB.com production Currently seeking partners for an off-site test opportunity to enhance your media campaigns with unique KBB.com data 61

62 2016 PRIORITIES: SEGMENT AWARENESS 62

63 Only 4 in 10 Shoppers Know the Exact Make They Want Returning shoppers are undecided not just about make, but also segment Initial Make/Model Purchase Intentions You knew the exact vehicle you wanted 30% You knew the vehicle make that you wanted 11% You knew the body style of the vehicle that you wanted, but not the make or model 27% You didn't know the specific vehicle you wanted, but you had a certain class of vehicle in mind You didn't know what you wanted, but the vehicle had to have certain features You didn't know what vehicle you wanted when you started looking 7% 10% 15% 32% of shoppers have not determined a body style or segment 63 Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: Thinking back to when you first considered purchasing a vehicle, which of the following best describes your purchase intention? Base: All Buyers (Asked on Web Surveys Only)

64 Among the 94% of Shoppers Who Are Repeat Buyers, Over Half of Purchasers Trade in an Old Vehicle Buyers Who Traded in Their Old Vehicle at the Time of Purchase (All Buyers, Among 94% Repeat Buyers) Sources Used to Determine Trade-in Value 67% 54% More purchasers used KBB.com for trade-in values than all other sources combined 64 Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: By the way, did you trade in your vehicle? Q: What sources did you use to determine the trade-in value?

65 New Car Shoppers Are More Likely to Research First, Then Set Budgets New Car Buyers Set Budget First 37% Research First 63% 65 Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: When it came to the vehicle you purchased, which of the following did you do first? Base: New Car Buyers (asked on Web surveys only)

66 KBB.com Shoppers Are More Engaged More time spent and pages viewed than our competitors 5.9 KBB.com vs Competitive Time Spent 1 (Average minutes per visit) minutes per visit pages per visit KBB.com Yahoo Autos Edmunds Autoblog.com U.S. News Best Cars TrueCar 83% of KBB.com users are engaged in research activities : ComScore Media Metrix January 2015 (Multi-Platform) 2: KBB.com Omniture 2014 Annual Research Share (mobile excluded)

67 KBB.com Serves Valuable Content for The "Typical" Car Buyer Researching Their Next Vehicle Latest News Buyer s Guides Editor s Pages 10 Best Lists KBB Editorial Content provides every bit of info necessary to make an intelligent carpurchase decision Awards New Vehicle Reviews 67

68 Audience-Focused Segments to Align with Consumer Shopping Behavior Entry Luxury Cars Luxury Cars Luxury SUV/CUV Small Cars Mid to Full-Size Cars Mid to Full-Size SUV/CUV/ Minivan/Van Buyer s Guides: Small Luxury Sedan Buyer s Guides: Midsize Luxury Sedan Buyer s Guides: Luxury SUV/CUV, Luxury Compact SUV Buyer s Guides: Compact Cars Buyer s Guides: Midsize Sedans Buyer s Guides: Minivan, Midsize SUVs Small SUV/CUV Pickup Hybrid/Electric/ Diesel New Car News Buyer s Guides: Compact SUVs 68 Buyer s Guides: Pickup Truck

69 Target In-Market Shoppers Researching By Segment and Consuming Relevant Editorial Content SPONSORSHIP USED CAR SEGMENT SHOPPERS SEGMENT SHOPPERS SPONSORSHIPS NEW CAR SEGMENT SHOPPERS NEW CAR TABLET EXPERIENCE IMPRESSION-BASED ALL SEGMENT SHOPPERS KBB CONNECT & KBB.COM BEHAVIORAL TARGETING Target to users on KBB.com who fall into purchased segments based on their on-site behavior NEW CAR SEGMENT SHOPPERS NEW CAR SEGMENT SHOPPERS Entry Luxury Cars Luxury Cars Luxury SUV/CUV Small Cars Mid to Full-Size Cars Small SUV/CUV Mid to Full-Size SUV/CUV/ Minivan/Van 69 Pickup Hybrid/Electric /Diesel New Car News

70 Make an Impression NEW CAR SEGMENT SHOPPERS Target shoppers by segment and by relevant research content on KBB.com Move shoppers to consider your vehicle before they form hard opinions New Car Editorial Pages Target undecided shoppers while they are open and actively seeking new vehicle advice Feature your vehicle prominently within KBB.com s trusted content, editors top picks, awards, auto show coverage, and car buying advice One buy lets you reach segment shoppers at multiple touch points New Car Category & Content Pages New Car Segment Pages 70 Mocks are concept only. Actual design and layout of product is subject to change upon production.

71 Raise the T2 Bar with Broad Reach Local Toolbar Yields awareness and inspires undecided shoppers to dive into your model content Generate top-of-funnel and/or lower funnel awareness (by make/model and/or segment) among inmarket shoppers while driving engagement with a persistent, attentiongetting opportunity above the fold Grab attention with an eye-catching, graphical layout that makes short, feature-specific messages stand out 71 Mocks are concept only. Actual design and layout of product is subject to change upon production.

72 Prompt Local In-Market Shoppers Featured Content Tab Immerse shoppers in your local incentives or sales events Targeted for awareness or by vehicle segment, is an attention-getting ad opportunity anchored above the fold in the mid right margin Ensures awareness among undecided local shoppers with its attention-getting, non-traditional ad position, and invites content engagement The lower funnel Featured Content Tab is now available for purchase by make/model and/or segments: Sedan, Coupe, Convertible, Hatchback, Wagon, Crossover, Hybrid/Electric, Luxury, Pickup, SUV, Van/Minivan 72 Mocks are concept only. Actual design and layout of product is subject to change upon production.\

73 2016 PRIORITIES: MOBILE 73

74 Most popular activities are the same for all devices Shoppers compare models, seek pricing and find actual vehicles What type of activities did you do on your device. Compare different models using reviews, options or pictures Find out what your current car is worth Find info on special offers Locate a dealer or get dealer info Find actual vehicles listed for sale Request dealer price quote Research car pricing Determine how much I could afford to spend Find a private seller of a vehicle you wanted to purchase Downloaded an automotive related app Other Desktop/Laptop Tablet Smartphone 77% 75% 53% 60% 44% 34% 47% 40% 31% 55% 45% 57% 73% 67% 57% 31% 22% 16% 67% 66% 52% 35% 26% 19% 16% 19% 14% 7% 16% 24% 3% 5% 4% Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: What type of activities did you do on your device or devices prior to purchasing your vehicle? Base: Respondents who used the Internet while shopping

75 Mobile Device Usage Continues to Increase as Desktop/Laptop Usage Decreases Smartphones have surpassed tablets in usage Devices Used to Shop for a Vehicle 91% 87% 82% 19% 19% 28% 28% 39% 35% Desktop/Laptop Tablet Smartphone Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: Prior to purchasing your vehicle, which of the following devices did you use to access automotive information, either through the Internet or by using a mobile device? Base: Buyers who used the Internet while shopping

76 Multi-device Usage Has Increased to 42% of Internet Shoppers 24% 33% 42% Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: Prior to purchasing your vehicle, which of the following devices did you use to access automotive information, either through the Internet or by using a mobile device? Base: Buyers who used the Internet while shopping

77 The Majority of Smartphone Shoppers Use Their Device at the Dealership 1 in 4 tablet shoppers use their devices on lots Used Their Smartphone While at the Dealership Used Their Tablet While at the Dealership 65% 25% 77 Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: Prior to purchasing your vehicle, which of the following devices did you use to access automotive information, either through the Internet or by using a mobile device? Base: Buyers who used the Internet while shopping

78 Multi-device Usage Is Projected to Reach 80% in 2020 Total population will catch up to millennials by 2018 Projected Multi-Device Usage 50% 80% 44% Total Population Millennials 2016F 2017F 2018F 2019F 2020F 78 Source: Cox Automotive Marketing Analytics Forecast

79 Time Spent on Mobile Devices Is Almost Evenly Split Between Smartphone and Tablet Percentage of Time Researching Allocated to Each Device None 2% Tablet 17% Smartphone 18% Desktop/Laptop 63% 79 Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: What percentage of time researching did you allocate to each source?

80 A Gateway to Awareness Smartphone Home Takeover Connect with auto shoppers as they land on KBB.com Mobile Target a rapidly growing, unique audience of car shoppers with timely, relevant, optimized messages Engage buyers with a commanding fixed position on the KBB.com homepage the gateway to our award-winning site 80 Mocks are concept only. Actual design and layout of product is subject to change upon production.

81 Capture Consideration Mobile Compare & Consider Influence segment shoppers by reinforcing your new model s advantages Grows awareness and consideration of your model among KBB.com s mobile audience, enticing them to compare your vehicle head-to-head with key competitors Native, data-infused solution educates and reassures shoppers by illuminating your vehicle s key beneficial features beside two competing models Leverage KBB s trusted, credible vehicle data, prompting mobile new car intenders to insert your model into their consideration set via a Compare Now MMA unit clicking to a customized compare landing page 81 Mocks are concept only. Actual design and layout of product is subject to change upon production.

82 Smartphone Targeting by Segment, Sub-Segment, and Audience Retargeting Mobile Targeting By Traditional Segments and Audience Sub-Segments: Sub-segments are consistent w/ desktop Offers advertisers more granular targeting based on audience shopping behavior Alternative Fuel NEW FOR 2016: SUB-SEGMENT TARGETING ON MOBILE Small Cars Entry Luxury Cars Luxury Cars Mid to Full-Size Cars Small SUV/CUV Luxury SUV/CUV Pickup Mid to Full-Size SUV/CUV/ Minivan/Van Mobile Behavioral Targeting: Targeting based on session ID Available for Top 100 Standard Segment NEW FOR 2016: MOBILE BT 82 Mocks are concept only. Actual design and layout of product is subject to change upon production.

83 Intercept & Announce SMARTPHONE INTERSTITIAL Takeover mobile screens and create a big splash for your model Large, full-screen segment-targeted canvas ensures message awareness and can elevate model consideration Ideal for high-profile messages Initiate a new model s share of consideration among category shoppers Announce sales events across multiple categories Target by segment - One OEM per segment. Frequency is capped at 1x24 hours. 83 Mocks are concept only. Actual design and layout of product is subject to change upon production.

84 KBB.com is enhancing its mobile layouts to better serve shoppers and advertising partners Tablet Tablet Smartphone Smartphone Rather than serve separate layouts for tablets and smartphones, KBB.com will adapt to the optimal layout for any device Note: Screenshots are from testing environments or concept mockups only. Final experience is likely to change based on test results and internal approvals.

85 In addition, navigation across devices will align for a consistent shopping experience Tablet Tablet Smartphone Smartphone Note: Screenshots are from testing environments or concept mockups only. Final experience is likely to change based on test results and internal approvals.

86 KBB.com Mobile Redesign New redesigned experience benefits both consumers and advertisers Provides users a consistent experience across mobile devices Allows users to efficiently navigate through KBB.com and engage with more content Owners Section Supports more integrated placements as a result of improved navigation and page layouts New Car Section 86 Note: Screenshots are from testing environments or concept mockups only. Final experience is likely to change based on test results and internal approvals.

87 2016 PRIORITIES: VIDEO 87

88 Curious Consumer: Problem, Solution, Value Prop Consumer Problem Summary: I want to learn about cars in the market I need validation about my decisions I want to know what other people think I need info in an easily digestible format Solution Summary: Vicariously experience many cars through Expert Editorial Reviews Surface Editorial videos in relevant places throughout shopping cycle Value Prop: Consumers will be presented with video that is both useful and easily accessible to them in any format they choose to use (connected TV, mobile, tablet, desktop) 88 88

89 Advertisers Expanding Efforts Across Multiple Devices Opportunity to capture share of revenue with cross-device media Share of US cross-device video ad campaigns rose from 17% to 51% in 2014 Among ads served by Videology, those across PC, mobile, and connected TV were 2 nd most popular at 39% of impressions served emarketer expects the number of US digital video viewers to hit million this year Representing 78.6% of internet users 63.5% of the country s population 89 Source:

90 Digital Video Success Measured on Brand Impact Rising consumption across platforms means casting a wider net Measurement capabilities are becoming more advanced as a result of rise in cross-device campaign efforts Advanced cross-screen measurement/analysis capabilities still only a small percentage among marketers Brand impact drives majority of how video ads are being measured 90

91 A Visually Impactful Experience: VIDEO SEGMENT BUYER S GUIDE Sponsored Video Overlay Upon click of Sponsored Content Tile, video overlay will initiate and play sponsor s video content Sponsored Content Tile Feature your brand s relevant video content naturally within KBB.com s editorial page Persistent Companion Message Ensure your brand message continues to resonate within a particular segment with a persistent 300x250 banner 91 Mocks are concept only. Actual design and layout of product is subject to change upon production.

92 Evoke emotion with strong branding elements at the earliest touch point: OWNERS VIDEO MARQUEE Connect with owners returning to market as they begin their search for a new vehicle Reach a pool of new car shoppers establishing their budgets by looking up the value of their current vehicle on KBB.com Build consideration on the highest visibility position on the most trafficked sections of KBB.com Keep your brand/vehicle top of mind as consumers are developing their consideration sets 92 Mocks are concept only. Actual design and layout of product is subject to change upon production.

93 Validate Consideration - NEW CAR VIDEO MARQUEE Elevate your brand perception and evoke emotion with this visually impactful experience Persistent branded presence down the new car path leads consumers through your digital showroom and reaffirms their interest in your vehicle Animated backdrop clicks into a video pushdown 93 Mocks are concept only. Actual design and layout of product is subject to change upon production.

94 Video Product Development Tracks Video Integration KBB TV & Off-Site Distribution DBM Video Buying Video Player Upgrade Engaging In-Video Ad Formats Keep video content relevant to user Integrate video across multiple platforms Update video player across desktop and other platforms Note: Screenshots are from testing environments or concept mockups only. Final experience is likely to change based on test results and internal approvals.

95 Video Product Development Early Previews Video initiatives that may be launched or redesigned in 2016 KBB TV on Roku Launch of KBB.com channel within Roku, featuring editorial videos Additional distribution for pre-roll to KBB shoppers Mobile Video Integration Placement of relevant videos in tablet and smartphone category or brand centers Opportunities for sponsored elements such as trigger points, fast-forwarding users to where GM models appear Alt_Driver Partnership Co-branded destination for viral automotive video content on KBB.com Potential for branded video content featuring sponsored models and KBB.com editorial 95 Note: Screenshots are from testing environments or concept mockups only. Final experience is likely to change based on test results and internal approvals.

96 Video Product Development Early Previews Ad products that may be enhanced for 2016 Segment Buyer s Guide Enhancements Additional placements for Buyer s Guide Overview video, which may include sponsor s model Click launches overlay, where a sponsored vehicle may appear New Pre-roll Placements Surfacing relevant video on more pages within KBB.com, such as model pages Each environment will be tested for potential pre-roll placement 96 Note: Screenshots are from testing environments or concept mockups only. Final experience is likely to change based on test results and internal approvals.

97 Video Product Development Early Previews New ad products that may be launched for 2016 Video Audience Extension Purchasing pre-roll via Doubleclick Bid Manager (DBM), using KBB.com data segments Video Billboards Integrating large-format video players for advertisers throughout model paths and potentially high-traffic pages Engaging In-Video Ad Formats Enhancing video ad experiences with calls for further interaction (e.g., rich media, photos, maps) 97 Note: Screenshots are from testing environments or concept mockups only. Final experience is likely to change based on test results and internal approvals.

98 Upcoming Opportunities for 2016: VIDEO EVERYWHERE Sponsored presence at every video touchpoint in 2016, new and existing SHORT/LONG FORM CONTENT PRE-ROLL Test Partnerships for New Video Ad Products Integrated Sponsorships & Priority Pre-roll Placement in Launch/Redesigned Video Products 100% SOV in Enhanced Existing Video Ad Products Off-Site Video through DBM Engaging In- Video Ad Formats New Pre-roll Placements KBB TV on Roku Mobile Video Integrations Alt_Driver Partnership Retention Video Billboards 2016 Segment Buyer s Guides 98 Note: Opportunities are concept only and NOT guaranteed to be included in proposals. Products will be subject to final site design, feasibility and advertiser reservation priorities.

99 THANK YOU! 99

100 APPENDIX

101 KBB.COM CUSTOM SOLUTIONS See how KBB.com responded to unique challenges with custom ad solutions executed in partnership with OEMs/Agencies 101

102 KBB.com Custom Ad Solutions: GMC s Search by SUV Match Advertiser Challenge Needed to create a value-based research tool for female shoppers to discover the brand Create awareness and favorability around SUV lineup KBB.com Custom Solution Create an interactive native-like tool that allows shoppers to interact with and discover the right SUV based on their practical needs 102

103 KBB.com Custom Solutions: Jeep s Most Awarded Advertiser Challenge Needed to improve opinion and consideration of Jeep s Grand Cherokee KBB.com Custom Solution Create a custom overlay highlighting Jeep s advantages over competitor models Combined with high-impact placements targeted by segment to conquest competitor shoppers 103

104 KBB.com Custom Solutions: Luxury Experience Filmstrip Advertiser Challenge Needed to generate buzz on their luxury vehicles Drive engagement with a luxury audience KBB.com Custom Solution Custom Luxury Experience Filmstrip that targets competitors owners seeking their Trade-In Value Integrates consumer and expert reviews as well as KBB.com editorial content featuring the luxury OEM 104

105 KBB.com Custom Solutions: Owners Consideration Module Advertiser Challenge Need to increase performance of KBB.com Owners KBB.com Custom Solution Personalized, large, impactful execution based on what current owners are considering Functional tool that helps undecided Owners discover new models Integrated with KBB.com crossshopping data to populate models within the creative 105

106 ADDITIONAL DATA SLIDES 106

107 70% of KBB users are purchasing in 2 months KBB.com core structures: Develop presence to connect with consumers who display various shopping behaviors o o Adopt consumers early on during the non-linear path to purchase and sell vehicles Given that the online automotive market is a multi-need framework, create awareness about KBB s offerings, besides vehicle values 27% Knowledge 36% 45% Transact Ready 21% 59% 32% 47% 41% Assessment 43% 107 Source: KBB.com Market Structure / Audience Segmentation, Q2 2015

108 In 2016, a main focus for KBB.com will be better serving shoppers in the KNOWLEDGE and ASSESSMENT mindsets o Mindset: I am interested in various types of vehicle information o Find info on: Performance Features I need Warranty New car introductions Reviews/Ratings o Look at cars: 360 o photos Watch video Knowledge 36% Transact Ready 21% Assessment 43% o Mindset: Deciding what is the best option to maximize consumer value o How much could I sell my car for? o Am I better off selling my vehicle on my own or trading in? o How much should I pay for my next vehicle? o Websites visited: KBB Craigslist ebay Motors 108 Source: KBB.com Market Structure / Audience Segmentation, Q2 2015

109 Market Structure: Automotive Websites Automotive Websites Knowledge 36% o Mindset: I am interested in various types of vehicle information o Find info on: Performance Features I need Warranty New car introductions Reviews/Ratings o Look at cars: 360 o photos Watch video 109 Assessment 43% o Mindset: Deciding what is the best option to maximize consumer value o How much could I sell my car for? o Am I better off selling my vehicle on my own or trading in? o How much should I pay for my next vehicle? o Websites visited: KBB Craigslist ebay Motors Transact Ready 21% o Mindset: I m getting ready for a smart buy o Search vehicle listings o Find out: Where can I buy vehicle I m interested in? Dealer contact info What vehicles dealers have on their lots Price quote from dealer Promotions/incentives Financing info Credit report o Use monthly payment calculator

110 Third-party Sites Are the Top Online Source for All Internet Shoppers Online Sources Used to Shop 77% 63% 45% 45% Third-party Site Dealer Site Search Site OEM Site 110 Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: You mentioned using the Internet while shopping for your vehicle. Please tell me if you used any of the following websites? Base: All online buyers

111 Shoppers See Third-party Sites as the Most Useful Among New Car shoppers, however, OEM sites are closing the gap Of all the websites you visited while shopping, which one did you find most useful? New Buyers Used Buyers 3rd-party 37% 3rd-party 63% OEM 34% Dealer 20% Dealer 19% OEM 6% Social Media <1% Social Media <1% Other 2% Other 4% None 8% None 7% 111 Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: Of all the websites you visited while shopping, which one did you find to be the most useful? Base: Internet Car Shoppers

112 ...Especially for Vehicle Valuations and Pricing OEM sites are used for comparisons and dealer sites for listings/quotes Which of the following websites did you use to. Compare different models Find out what your current car Find info on special offers Locate a dealer or get dealer Find actual vehicles listed for sale Request dealer price quote Research car pricing Determine how much I could Find a private seller of a Other OEM Sites Dealer Sites 3 rd -Party Sites 59% 30% 53% 8% 6% 46% 26% 32% 10% 19% 29% 20% 14% 59% 42% 5% 24% 6% 40% 46% 59% 7% 12% 12% 2% 2% 10% 4% 3% 4% 112 Source: 2015 IHS Automotive Buyer Influence Study, in partnership with Autotrader Q: Which of the following types of websites did you use to [insert each task]? Base: Respondents who used the Internet while shopping OEM, Dealer or third-party sites

113 Viewability has greatly impacted an already evolving digital media landscape And the industry is working non-stop to fully understand its implications 56% Share of ad impressions that are not being seen across all of Google s display platforms 1 the intense focus on the topic of viewability over the last year is reflective of the seriousness with which marketers take this matter. David Gunzerath Sr. VP, Associate Director Media Ratings Council Google The Importance of Being Seen: Viewability insights for Digital Marketers and Publishers, Nov Source: Real-Time with MRC s Gunzerath on Viewability. MediaPost Real-Time Daily RT Blog, Apr

114 As The Trusted Resource, KBB.com strives to create the best possible advertiser experiences Ongoing evaluation of advertising placements in partnership with MOAT Continuing consideration of advertising and content viewability during product ideation and development Top-notch account servicing and KPI-based optimizations for all KBB.com clients

115 115 Home Page Sponsorship (Mar 4-10) 0.54% CTR vs. 0.09% Benchmark +3% New Car Hub Visits WoW

116 116 Home Page Showroom (May 27-June 2) 0.06% CTR vs. 0.06% Benchmark +2% New Car Hub Visits WoW

117 117 Home Page Showroom (July 29-Aug 4) 0.07% CTR vs. 0.06% Benchmark +1% New Car Hub Visits WoW

118 118 Home Page Sponsorship (Aug 5-11) 0.11% CTR vs. 0.09% Benchmark -2% New Car Hub Visits WoW

119 Next Make Flow From Volkswagen to: Q Q Q

120 120 VW Shopper Path Analysis

121 121 Passat Shopper Path Analysis

122 122 Jetta Shopper Path Analysis

123 123 Golf Shopper Path Analysis

124 124 Tiguan Shopper Path Analysis

125 125 Touareg Shopper Path Analysis