Digital Media Strategy

XXX DIGITAL UPFRONT STRATEGY

10.10.12

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The purpose of this presentation is to outline consumer and industry trends as well as changes in brand positioning for XXX and XXX, align those with business and communications objectives, and make recommendations for media purchases in the coming year.

Purpose

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Agenda

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• Executive Summary• Trends• Brand Positioning• XXX Actions and Competitive Actions• 2012 Media Performance• XXX Objectives• Strategic Implications• XXX Tactical Media Plan• XXX Messaging & Production Alignment• Assessing Performance in XXX• Mobile Closed Loop Measurement• XXX Media Investment Plan• Next Steps

• XXX’s XXX Business objectives and challenges served as the basis for our planning

– Continue to grow, deliver on XXX brand promise– Support Super Segment strategy– Strengthen brand image and consideration within the coastal regions– XXX on driving XXX market share within the luxury space

• The knowlXXX gained through this endeavor will allow us to XXX in the following areas for XXX:

– Deeper Sponsorship Integrations– Mobile– Video– Paid Search– Messaging

Executive Summary

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TRENDS

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Industry Trends: Non-Luxury

• The market is ‘normalizing’ or ‘rebalancing’– Toyota, domestic competitors recovering

• Marketplace shift to smaller vehicles: 60% – Main priority vehicles are key to boosting XXX brand opinion– Top 3 segments: C, CD, Small Utility

• Government FE/CO2 regulations means all investing in technology to boost FE

– How to stand out

• Better vehicles, better competitors– Less true distinction, but image gaps still wide

• “Intangible” aspects of the brand will become increasingly important

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Industry Trends : Luxury

• Despite lackluster economy, luxury sales will continue to grow – In 2011, Audi and Mercedes posted their highest sales ever; BMW now

#1

• Luxury has been humbled– Consumers are refraining from flaunting wealth, even those who can

actually afford it are out of respect for those whose lives are in turmoil

• Luxury is being democratized– Young adults who grew up during healthy economic times continue to

expect luxury as an everyday aspect of their lives– New competitors continue to do well

• In-vehicle technology is readily accessible and social boundaries are diminishing, making it easier to do business

• The Hyundai Equus was the highest-ranked large premium sedan in J.D. Power and Associates in 2011

Sources: Autotrader, Feb, 2012; L2 Think Tank, 2012; Socialnomics, Eric Qualman; Reportlinker, 2012; Mintel, 2012

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We continue to track the innovation / disruption in the third party digital space.

Players Consumer value proposition Implications for OEMs, FD and Dealers

Pric

e O

ffer Ability to obtain fair price, research incentive offers, and

receive first pencil payment estimateSeeking to sell “prepackaged” sale to OEMs and Dealers, 30% retail sales goal

Reducing customer anxiety & time spent haggling through transparent price information

TrueCar expanding reach through partnerships with multiple referral services

Providing customers assurance of a "fair price; testing AutoNationDirect white glove service

Selling enhanced leads directly to Dealers bypassing OEM; extracting large margins

Providing consumers with convenience of completing vehicle purchase from home

Vehicle purchase model moving online; tied to a viable distribution network

Fina

ncin

g Customer has convenience of gaining vehicle-specific online loan preapproval

Customer able to gain online financing before visiting the dealership

Provide convenience of completing vehicle purchase online through single platform

XXX is lagging behind other OEMS

Price transparency, inventory transparency, customer anonymity

Potential market entrant with capability to quickly develop platform & establish presence

Inve

ntor

y

Reducing customer angst through online tracking for Build-to-order vehicles

Other OEMs addressing customer angst & uncertainty around vehicle wait time

Quick access to ideal vehicle through central pooling, 2 weeks BTO turnaround & pipeline redirect tools

Other OEMS embracing innovative inventory model to better serve the customer

In-market Trends – Aggregator Strategy / BCG Update

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Google’s pilot in San Francisco is combining elements from several of the emerging models.

In-market Trends – Aggregator Strategy / BCG Update

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• How consumers view brands is changing– Brand loyalty has decreased on in-market properties by an average of

15%

• Consumers still look to usual sources for different content

• But, consumers are accessing that content from a variety of devices, using them to complete different tasks within their shopping process

– RAD research on XXX customers is on par with industry– In-market sites report the same findings for their customers

• And their expectations for technologically advanced experiences/content/functionality has increased

Consumer Trends

10Sources: Third-party in-market media properties, August 2012; “XXX Up Front Meeting: **In-Market Shopper and Demand Trends** Behavioral Data Through June 2012,” Compete; Mendelsohn 2012 Affluency Survey (Adults w/ 100k+ HHi); Nielsen, 2012); Comscore, 2012.

XXX - Consumer Device Use

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Serious Machine

Casual/ Relaxed (Setting & Mindset)

Digital Snacking(on the go)

Source: “RAD Marketplace Assessment,” Team Detroit, 3/22/12.

Consumers are using all devices for shopping activities - but differently.

• In-market sites have just begun to optimize for mobile devices• Most OEMs maintain a retail look/feel across

brands/sites/experiences– Competitors are not pushing beyond rich media

• Major opportunity to do something new/different• Some brands are choosing to take users to other channels that are

up funnel (E.g. YouTube)• Brands have started using social, curated, and brand advocacy

content in their OLA• Brands don’t seem to be targeting ads based on region

• Often same template of ad with CTA targeted to local market or broad local message that links to local dealer site

• Overall, luxury brands are taking a similar approach on in-market sites as non-luxury brands

In-Market Competitive Analysis Findings

Source: In-market Competitive Analysis, TDI Cross-Channel Strategy, 8.30.12.12

BRAND POSITIONING

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XXX

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The XXX Promise & Core DNA

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The fundamental differentiation of the brand is the Human XXX.

Going to Market Differently

• Old Way– Tier 1

• Lower support of Super Segment vehicles

• Nationally XXXed plans vs. utilization of Regional media channels (spot, cut-ins, OOH)

• No regional execution of media

– Tier 2• Traditional support levels

• New Way– Increased emphasis on

Super Segment– Strategy to grow share in

coastal markets– Regional emphasis/media

used to overlay national support

– Always on approach in segments vs. launch/sustainment

– Regional execution of media– Increased support

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We’ve made adjustments to our marketing strategy and planning based on emphasizing our main priority vehicles

1.Core direction of the Tier I briefs and QGSS Pillars continue to be relevant across markets. Use as foundation, and adjust based on regional nuances.

2.Priority Message is Fuel Economy: Good Gas Mileage is more than a MPG#. It contributes to important key FO drivers like Value, Innovation, Fun to Drive, Quality.

1. Fuel Economy will be paired with a regional message that resonates in that particular area Fuel Economy + [regionalized message]

3.Quality (as expressed by Safety) - Is more than a claim or award. While biggest contributors of Quality are not based on advertising, there are things we can do help build. And Safety is a big contributor.

4.Smart – Smart Technology is the thread that runs through everything including Fuel Economy, Safety, Design, Performance, etc.

5.The importance of Emotional or ‘Expressive’ reasons --While the QGSS pillars tend to be more ‘rational’ or ‘pragmatic’, the more ‘emotional’ or ‘expressive’ attributes (style/design/looks /fun/performance) are also important in building opinion and a strength of XXX super segment vehicles. The degree varies by vehicle and by market.

SS Messaging: Core Foundational Truths Across Regions

Source: “Super Segment Tier 1 5 XXX Example”, TDI Brand Planning, 8.29.12.

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SS Messaging: Core Foundational Truths Across Regions, cont.

• Media properties can support our regional efforts

• In-market will align primary brand regional messaging with media properties’ consumer digital behaviors

– Media properties provided great insights on the types of content their customers consume regionally, which we will access when devising messaging strategies with Brand Planning

18Sources: Third-party in-market media properties, August 2012.

XXX

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THE NEW XXX TARGET

CONQUEST TARGET: MOVING OVER AND UP

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TALKING TO THE CULTURAL PROGRESSIVE

Targeted CPs are driven by four key motivations:

Be seen as people of substance

They desire to be respected as people of

depth and character, and work hard to get their ideas noticed, without

seeming to be bragging.

To connect with people

They enjoy the cross-pollination within their

eclectic network. Mastery of digital tools lets them

connect and express themselves.

To be in the know

They dive below the surface to make

connections that others can’t see. Sharing their discoveries with others

becomes a social reward.

To have powerful tools

They seek products and services that give them more power and control, not to impress others, but

as a means to drive creative change.

To communicate with them we must be PERSONAL AND UNEXPECTED. We will shake up the luxury automobile category by misbehaving gracefully. Communications must be unexpected and disrupt luxury car advertising conventions. Create moments of surprise, delight, provocation, appreciation, depth, wonder and astonishment. Core opportunities include:

Telling stories of brand character

and shared values.

Bringing them together with

kindred spirits.

Empowering them with inside

knowlXXX so they’re in the

know.

Equipping them with powerful

tools.

To affect favorability XXX can improve upon it’s four new brand vision pillars, which are brought to life in the product and service experience.

1)STUNNING: Distinctive design language, expressing elegant simplicity of unbroken lines, sweeping roofline and unexpected details. A change from mundane, stifling, complicated, expected and extravagant.

2)WARM: Elegant yet approachable design that’s visually inviting. Service delivery welcomes you in. A change from cold, impersonal and unapproachable.

3)CHARISMATIC: Athletic grace - refined and engaging drive that adapts to the driver. Adaptive features that allow owners to interact in their own unique way. A change from the showy, snobby, ostentatious and rigid.

4)IMAGINATIVE: Technology that is so easy and seamless it feels like an extension of oneself. A change from the predictable, obvious, inert and lifeless.

XXX MESSAGING

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XXX ACTIONS & COMPETITIVE ACTIONS

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Vehicle Priorities

• XXX XXX Vehicle Priorities – Super Segment (SS): XXX (launch, sustainment), XXX (pre-reveal,

launch, sustainment), XXX (sustainment), XXX (sustainment), XXX (sustainment)

• 18-month/XXXCY XXX campaign support in Tier 1, beginning with XXX, XXX then XXX, XXX

– Secondary: XXX, XXX, XXX, XXX

• Regional Importance– Emphasis on East/West Coasts

• Preliminary order of importance: West, East, Southeast, Central and Great Lakes

• XXX will have greatest regional presence in its GTM strategy

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XXX XXX Vehicle Priorities

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XXX(Sustainment)

XXX(Sustainment)

CCUV

XXX

?

Launch: Dec 2012 – March XXX

Concept Reveal: Jan XXX at Detroit Auto ShowProduction Reveal: Summer XXX, exact date TBDOKTB: March, 2014

Within 3 years, there will be 363 new models, redesigns, new styles, and refreshes. Which ones affect our XXX media investment planning / messaging?

Significant Competitive Actions

27Source: CarsDirect, August 2012.

XXX Brand Q1 Q2 Q3 Q4

XXX Toyota Prius 5 major redesign

XXX Nissan Versa major redesign

Honda Fit Hatchback Major Redesign

XXX XXX Honda Accord PHEV – Launch

XXX Nissan Altima Major Redesign

Nissan Altima All New Hybrid

XXX GMC - Sierra 1500 – RedesignChevy Silverado - Redesign

Toyota Tundra - Major Change

363 Competitive Actions, cont.


XXX Brand Q1 Q2 Q3 Q4

XXX Infiniti G Redesign Lexus IS 250/350 - Major Change

Infiniti G Hybrid Launch

Cadillac CTS Sedan All new

Acura RLX Launch

Acura TSX Redesign

XXX Acura RL - All New Acura TLX all new vehicle launch

XXX Acura MDX Redesign

Infinity FX Major Change

CCUV Lexus Entry Lux - CUV

2012 MEDIA PERFORMANCE

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2012 In Review

2012 Strategy

2012 Learning XXX Recommendations

100% Coverage of Retention

• Efficient/Effective driver of onsite KBAs and leads

• Conquest executions influence consideration- defensive strategy important

• Expandable, interactive units improve performance

• Continue retention support at top levels

• Use expandable units on a larger scale

Increased Sponsorship Support

• Sponsorships increase incremental ecosystem behavior

• Not all users who reach a 3rd party homepage are recognized by third party data sources

• Continue high level of sponsorships support

4 partners and Dynamic CPM for Retargeting

• Increased KBA volume and reach • Continue strategies for increasing reach of retargeting pool

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XXX OBJECTIVES

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High-Level Business Objectives

Impact

ShopperMarketing

Sphere of Influence

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High-Level Shopper Marketing Objectives

• XXX– Increase consideration among

conquest targets• Coastal emphasis• Emphasis on Super

Segment vehicles– Increase Shopping/Purchase

Intent conquest targets– Maintain consideration among

owners / loyalists

• XXX– Increase consideration among

conquest targets– Increase Shopping/Purchase

Intent among conquest targets– Retain current XXX buyers

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STRATEGIC IMPLICATIONS

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• We have an opportunity to produce digital experiences that are optimized to a device’s role and the consumer’s context within the shopping process

• The “Intangible” aspects of the XXX and XXX brands will be much more important

– We have an opportunity to leap-frog the competition by pursuing more engaging functionality, units

• XXX and XXX’s messaging will be multi-layered: regional and device-influenced

– Increased relevancy puts a strain on production resources • Where appropriate, pursue sponsorships in Fuel Economy, Safety,

Smart/Innovative Technology to support new messaging strategy

Implications

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• Look to competitive actions and heavy-up or respond to market demand:

• Q1, Q2-3 for XXX; Q1-Q4 for XXX• For XXX, align with Tier 1 footprints by vehicle and investigate sales

messaging vs. competitive-actions messages in Q3.• We should maintain Retention coverage• We should maintain the use of our four retargeting partners • We should identify which placements and partners are not serving

our ads in the U.S. and negotiate accordingly

Implications cont.

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XXX TACTICAL MEDIA PLAN

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Our Core Principles…. (Retention, Sponsorship, Retargeting, Search)

• Purchase 100% coverage on XXX & XXX inventory – Retention is our top performing tactic for lower funnel Key Buying Activities – Exceptions are Autotrader and Jumpstart due to efficiency issues

• Increase Sponsorship investment, specifically high profile /high impact positions and ad units

– Increase XXX SOV within luxury in-market space especially surrounding Super Bowl• Continue Retargeting efforts with current portal & DSP partners

– Retargeting is a top KBA driver– Look to expand RTG opportunities in XXX

• Maintain heavy Search investment, maximizing cost efficient return on ad spend leveraging Adobe AdLens technology (formerly Efficient Frontier):

– Pre/Post technology adaption results*:• 47% increase in unique KBA volume• 107% decrease in cost-per KBA* Based on Tier 1 XXX, full year before and after evaluation 6/1/10-5/30/12

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Going Further….

• Via Partnerships, Mobile…

• Create strategic partnerships that leverage XXX & XXX overall investment and allow for deeper site integrations which drive innovation in the marketplace

– High Impact/High Awareness placements to influence consumers early in the shopping process

– Strategic use of site offerings at every level of the purchase process

• Sites have indicated large increases in mobile site visit and application usage in the in-market space

– Test in-mkt messaging – Develop best practices

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Going Further….

• Via Video, Database Targeting,…

• Video usage is growing, both in terms of time spent and overall value to online automotive shoppers, especially within the luxury space

– Test video effectiveness across various in-market sites in XXX

• Database targeting initiative to allow for constant communication with current owners, specifically those about to come off leases and those whose vehicle ownership length indicates they may be in-market for a new vehicle purchase

– Currently executing Private Offer Conquest (Launch Nov. 5th)– Extend program to include “owner retention” efforts– Start date TBD

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Going Further….

• Via Paid Search,…

• Reduce cross-tier overlap in search [keywords] to improve KBA/Lead efficiencies and better define the optimal roles of Tier 1 and Tier 2 search

• Start to optimize efforts across all screens (wired, mobile, tablet)• Observe and analyze the total search ecosystem and aggregate of

click patterns on search result pages between SEO, SEM and competition.

– Test reduction in Tier 1 paid search brand investment and evaluate trade-offs between organic search, nameplate and segment.

• Exploring You Tube search investment support (dependant upon YouTube channel strategy)

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Partnerships & High Impact Placements: KBB

• Kelly Blue Book

• Leveraged increased site spend with KBB to capitalize on exclusive XXX/XXX opportunity: “Own The Segment”

• XXX Partnership secures a prominent ORGANIC position for XXX/XXX within every segment homepage on KBB for the entire year

• Additional strategic sponsorships and high impact ad units secured as part of partnership deal, including:

– Shop By Sponsorship– Trade Calculator Sponsorship– Why Buy Used Sponsorship– Multiple homepage “Accelerator” takeovers

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KBB Own The Segment

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KBB Accelerator

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KBB Shop BY Sponsorship

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KBB Why Buy Used & Trade Evaluator Sponsorships

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Partnerships & High Impact Placements: Cars.com

• Cars.com

• Working toward securing 2 exclusive XXX/XXX sponsorship opportunities: – Payment Calculator Sponsorship– Shop By Sponsorship

• Payment Calculator Sponsorship offers XXX/XXX a prominent placement within an environment where consumers are researching how much car they can afXXX

– Returns a suggested XXX/XXX vehicle in their price range

• Shop By Sponsorship allows XXX/XXX to insert itself into the shopping process by intercepting consumers as they look for vehicles that fit their specific needs and showing XXX/XXX in favourable positions

– “Search for vehicles with 40+ MPG”

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Cars.com Payment Calculator Sponsorship

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Dynamically inserts XXX/XXX vehicle based on consumer price inputs

Cars.com Shop By Sponsorship

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XXX MESSAGING & PRODUCTION ALIGNMENT

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• Retention, Retargeting, Sponsorships, Paid Search and Sales Events– Same approach as today

• Market Response – Depends on the program – will use existing assets where

available, otherwise, custom creative message will be built• Video

– TBD depends on placement and timing• XXX Super Segment Conquest

– Super Segment vehicle messaging driving to FDAF sites• XXX Conquest

– Brand / Feature Why Buy Messages driving to XXX.com

XXX / XXX – Tactic Messaging Allocation (Jan. 1)


• XXX Mobile– Branded messaging driving to XXX.com

• XXX Mobile – Branded messaging / National Offer driving to FSE.com

• XXX Hispanic – Brand / Feature Why Buy Messages driving to XXX.es (all

translated in Spanish)– Will be testing running Zubi creative along with the above MYCO

messages

XXX / XXX – Tactic Messaging Allocation (Jan. 1) cont.


XXX Retention – New MY Page Test (Starting Q2)


XXX

New! 728x90 MYCO Expandables created for Super Segment Vehicles – Rotate Features and

Photos units. Link out to XXX.com

300x250 / 160x600 MYCO– Rotate 4 Feature

/ Why Buy Messaging

Link out to XXX.com

XXX Retention – Older MY Pages Test (Starting Q2)


728x90 2012 MYCO Tier 1 Units – 4 Rotating Feature/Why Buy

Messages

Links out to FDAF sites

300x250 / 160x600 Tier 2 Library Creative or Sales

Event


• Create XXX 728x90 Expandable photos and feature ad units (like XXX.com) to run within retention pages

• Break out new XXX model year creative from older model creative within retention pages similar to XXX only driving to XXX.com

• Testing Launch creative within Sponsorships and Conquest placements

XXX – Moving Forward / Messaging Tests


• Team working closely with Cross-Channel Strategy, Brand Planning, and Advanced Analytics to define messaging / production effort for the Digital In-Market space

XXX – Super Segment Regional Messaging Strategy


• Will be revisiting our Retargeting Strategy and Rules overall in XXX– Identify and test other data sources in the space to identify at what point

the consumer is in in the shopping process– Look to expand retargeting beyond XXX.com / FDAF sites and XXX.com– Possibly retarget identified Smart Sponsorship conquest audience

XXX / XXX – Retargeting Strategy


ASSESSING PERFORMANCE IN XXX

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2012 Measurement Evolution

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1. Consumer Centric2. View of Incrementality

Incrementality determined based on a control and exposed methodology

3. Fair Attribution4. Measurement of purchase

consideration objective with the following metrics: AUTO INTEREST RESEARCHERS – Key Engagement

Activities SHOPPER PLUS – Key Buying Activities

Third Party Visit

Third PartySite KBA

Site Visits

KBA

Ecosystem Measurement

Full Ecosystem Measurement

1. View of users’ depth of engagement with controlled content2. Last click attribution model3. Activity Count based4. Measurement of consumer purchase intent objective with the following metrics:

OEM site visits Creative engagement where applicable Key Engagement and Buying Activities on XXX OEM sites

Mapping Objectives to Goals

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Interest

Research

Shopper+

KBAs & Leads

Mapping Goals to Tactics

• Above represents the goals to tactic that will be part of the XXX upfront– Search RTG was included in 2012, but after evaluation, it did not provide lift

in any of our goals• Sponsorships on third party endemic sites have proven to be effective and

efficient driving incremental interest, research and shopping• Retention, Retargeting, and branded search are tactics via which a user has

already indicated some interest in XXX therefore creates an opportunity to drive them to our sites and control their conversation and content with XXX brands

Tactic Interest Research Shopper + KBA Lead

Conquest Targeted

In-Market Conquest

Homepage Sponsorships

Segment Sponsorship

Retargeting

Retention

Search

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Measuring Goals/Reporting

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• The overarching goal we will work to attain in XXX will be effectiveness and efficiency within all upfront tactics

– Retention, Retargeting and Search• Monitor and optimize by KBA/Lead effectiveness and efficiency

– Interest Tactics• Effective and efficient at driving incremental influenced consumers

– Research & Shopper Plus Tactics• Effective and efficient at driving incremental researcher/shopper plus

consumers

• Reporting:– XXX clients

• Quarterly analysis and presentation– Tier 2/FDAFs

• Monthly report outs sent to field representatives

MOBILE “CLOSED LOOP” MEASUREMENT

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August ’11TDI tasks PR to come up with a solution for Tier 2 mobile close-loop tracking

Sept/Oct ‘11PR, XXXDirect, and TDI worked together to implement site events on templated 38 FDAF sites - Mobile to go live 12/19/2011

Oct/Nov ‘11PR site event tags implements and tested on mobile sites

Nov ‘11Site JPEG tags sent

Dec ‘12Site Rich Media Tags Sent

Dec ‘12Rich Media Tags Live - ●Most sites could NOT get tags live due to not enough time testing RM and/or capability restrictions●The sites that did get RM tags live, went live after 12/22/2011

Jan-March ‘12Tier 1 Mobile Blackout

Feb ‘12PR disabled all Mobile site event tags

Closed-Loop to Date

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4Q ‘12Test Closed loop tracking for Sales Event with Phluant tracking.

Upcoming Issues•XXX Adserving RFP

• Decision between partners could impact mobile measurement methods

Next Steps•XXX Direct to implement tags on FDAFs•Phluant costs for test in Q4 are $50k for 2 campaigns•Implement Phluant pixel tracker

Closed-Loop Next Steps

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XXX Mobile Ad Serving 3rd party tracking solution – 1x1

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1. Identify pages to be tagged on mobile properties

2. Place tag on page to be last tag to load, in the event that it does not fire, it does not affect page load

3. Report out corresponding KBA/KEA actions per media site and per placement and depending on site content

Site Tracking

1. Any ad server/rich media provider can be utilized

2. Rich media, dynamic creative delivery, video all can still be utilized

3. Will pay additional for tracking from Phluant

4. 1x1 pixel placed in ad, tracks site activities

Ad Delivery - Anyone

1. Phluant serves advertising into placement

2. Tracking tags included as well as ad delivery

3. Rich media, video and all front end reporting through Phluant delivery method

4. More efficient CPMs without double-dipping

Ad Delivery – Phluant - Preferred

XXX MEDIA INVESTMENT PLAN

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XXX Negotiations Recap YOY Percentage• Previous Reductions include:

• 2012- 8.4%, 2011 – 4.7%, 2010 – 9.6% 2009 - 5.3%, 2008 - 1.2%, 2007 - 0.7%, 2006 - 1.2%

• XXX Rate Negotiation Landscape

• Open Rate Card: 4% increase YOY

• Proposed: 8% rate increase 2012 negotiated rates

• Total rate reduction of 1% decrease for XXX

– 3% rate reduction on retention– 0.4% rate reduction on sponsorships– 5% rate reduction on used– 0% rate reduction on conquest/segment

68* XXX savings reflects rate discounts negotiated and applied based on site spend provided by Planning- (numbers may change due inventory availability and/or spend allocation)

*Still in negotiations with AutoTrader and JAC

• Leads - Goals (as defined by XXX Direct)–maintain quality–receive 100% visibility (i.e. all leads given to XXX Direct)–increase volume–decrease CPL–TDI will continue to work closely with XXX Direct and XXX, to ensure that as many of these goals are achieved.

Site 2012 YOY Rate Card Delta % XXX YOY Rate Card Delta %AOL -17.2% -3.2%

Autobytel -4.8% -2.1%AutoTrader -2.1%

Cars.com -6.2% -1.2%CarsDirect -16.1% 0.0%Edmunds -15.2% 0.0%Jumpstart -0.1%

KBB -3.5% -2.1%MSN -9.0% -0.3%

Nada Guides -5.0% NASAW & Autoweek -11.9% 0.0%

SIM -6.1% -0.6%Yahoo -11.8% .-0.7%

Totals -8.4% -1.1%* 2012 percentages captures Point Roll and OBA fees savings

* Nada Guides is now part of Jumpstart

XXX Shopper Marketing Budgets

• Total XXX XXX Budget: $111,500,000

• XXX Total budget increased 3.5% YOY driven by projected increase to DSS budget via increased generations

2012 2013Retention 15,401,980.35$ 18,026,039.10$ 2,624,058.76$ Sponsorship 13,088,993.91$ 13,379,643.24$ 290,649.33$ Retargeting 4,925,284.00$ 4,613,607.00$ (311,677.00)$

Partnerships DSS -$ 3,850,000.00$ 3,850,000.00$ Search T1 & T2 46,000,000.00$ 46,000,000.00$ -$

Conquest BT Super Segment -$ 1,000,000.00$ 1,000,000.00$ Mobile DSS -$ 1,500,000.00$ 1,500,000.00$

Sales Events DSS 15,000,000.00$ 15,000,000.00$ -$ Hispanic DSS 1,000,000.00$ 1,000,000.00$ -$ Research T1 & T2 1,000,000.00$ 1,000,000.00$ -$

Video DSS -$ 1,500,000.00$ 1,500,000.00$ Market Impact T1 & T2 11,038,911.65$ 4,630,710.66$ (6,408,201.00)$

107,455,169.91$ 111,500,000.00$ 4,044,830.09$

Upfront

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• XXX XXX Media Mix

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• Tier 1 & DSS Contributions by Tactic

•Tier 1 budget flat YOY•DSS overall budget increased 6% to account for projected increases in generations

2012 2013Retention 5,001,428.00$ 2,741,521.21$ (2,259,906.79)$

Sponsorship 6,217,252.00$ 13,379,643.24$ 7,162,391.24$ Retargeting 2,938,125.00$ 2,560,184.00$ (377,941.00)$ Partnerships -$ -$ -$

Search 20,250,000.00$ 20,250,000.00$ -$ Conquest BT -$ -$ -$

Mobile -$ -$ -$ Sales Events -$ -$ -$

Hispanic -$ -$ -$ Research 500,000.00$ 500,000.00$ -$

Video Test -$ -$ -$ Market Impact 5,093,195.00$ 568,651.55$ (4,524,543.45)$

40,000,000.00$ 40,000,000.00$ (0.00)$

Tier 12012 2013

Retention 10,400,552.35$ 15,284,517.90$ 4,883,965.55$ Sponsorship 6,871,741.91$ -$ (6,871,741.91)$ Retargeting 1,987,159.00$ 2,053,423.00$ 66,264.00$ Partnerships -$ 3,850,000.00$ 3,850,000.00$

Search 25,750,000.00$ 25,750,000.00$ -$ Conquest BT -$ 1,000,000.00$ 1,000,000.00$

Mobile -$ 1,500,000.00$ 1,500,000.00$ Sales Events 15,000,000.00$ 15,000,000.00$ -$

Hispanic 1,000,000.00$ 1,000,000.00$ -$ Research 500,000.00$ 500,000.00$ -$

Video Test -$ 1,500,000.00$ 1,500,000.00$ Market Impact 6,038,911.65$ 4,062,059.11$ (1,976,852.55)$

67,548,364.91$ 71,500,000.00$ 3,951,635.09$

DSS

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• XXX Tier 1 Media Mix

•Shifted all Retention funding to DSS and all Sponsorship funding to Tier 1

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• XXX DSS Media Mix

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•Shifted all Retention funding to DSS and all Sponsorship funding to Tier 1

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• XXX Total XXX Budget: $20,000,000

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•Recommending $2.5MM yearly budget increase primarily to fund increased sponsorship investment to drive XXX Brand Awareness

2012 2013Retention 1,104,480.00$ 1,292,404.41$ 187,924.41$ Sponsorship 792,370.00$ 3,257,871.88$ 2,465,501.88$ Retargeting 513,548.00$ 605,477.00$ 91,929.00$

Search 6,000,000.00$ 6,000,000.00$ -$ Partnerships -$ 1,250,000.00$ 1,250,000.00$

Conquest -$ 1,100,000.00$ 1,100,000.00$ Mobile -$ 1,000,000.00$ 1,000,000.00$

Sales Events 4,500,000.00$ 4,500,000.00$ -$ Research 250,000.00$ 250,000.00$ -$

Video -$ 500,000.00$ 500,000.00$ Market Impact 4,400,000.00$ 244,246.71$ (4,155,753.29)$

17,560,398.00$ 20,000,000.00$ 2,439,602.00$

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• XXX XXX Media Mix

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•Increased Sponsorships substantially YOY

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NEXT STEPS

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Next Steps

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• Client Feedback• Overall Budget Approval by 10/11/12• Finalize media partner recommendation

THANK YOU

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APPENDIX

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In-market Competitive Analysis Methodology

• What is happening in the in-market (T1.5-T2/FDAF) advertising space? Is there anything new, different, or out of the norm in terms of:

– New functionality within ads– Different executions across devices– Different types of messaging (aside

from typical feature/in-market messaging)

– Unusual destinations from banners – Anything beyond Rich Media ad

units– Different look and feel from typical

retail branding

• Competitors– Toyota, Honda, Hyundai, Chevrolet,

any other exemplary brands

• Media Properties– In-market & Endemic Sites

• cars.com • edmunds.com • kbb.com • carsdirect.com • autotrader.com • Car & Driver • Motor Trend

– Portals• MSN Autos • Yahoo! Autos • AOL Autos

– FDAF Sites

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Smart Technology/Innovation (XXX Ingenuity) is the Thread

Smart Innovative Technological Advancements – XXX Ingenuity -- runs through everything

Quality

Source: “Super Segment Tier 1 5 XXX Example”, TDI Brand Planning, 8.29.12.81

XXX Future Vehicle Actions

• Hatch/Sedan– ’14 XXX – Refresh Minor Change 2nd

Quarter XXX.– ’16 XXX – Major Change 4th Quarter

2015– ’12 XXX – All-new 1st Quarter 2011– ’13 XXX – Add New Models 3rd

Quarter 2012– ’16 XXX - Minor change 2nd Quarter

2015• BEV

– ’12 XXX – All-New 2nd Quarter 2012– ’16 XXX – Minor change 2nd quarter

2015• MAV Multi Activity Vehicle

– ’13 XXX XXX – All-new 4th Quarter 2012

– ’16 XXX XXX – Minor Change 2nd Quarter 2015

• MAV Multi Activity Vehicle– ’13 XXX Hybrid – All-new 4th Quarter 2012– ’16 XXX Hybrid – Minor Change 2nd Quarter

2015• Small Utility

– ’13 XXX – All-new 2nd Quarter 2012– ’15 XXX – Minor change 3rd Quarter 2014

• Sedan– ’13 XXX– All-new 2nd Quarter 2012– ’16 XXX– Minor change 3rd Quarter 2015– ’13 XXX Hybrid – All-new 4th Quarter 2012– ’16 XXX Hybrid – Minor Change 3rd Quarter

2015

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Competitive Actions by Vehicle, 1/5

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Major Mid-Cycle Minor

XXX Q4 2012 Q1 XXX Q2 XXX Q3 XXX Q4 XXX

CMAX Hybrid Toyota Prius 5DMajor Redesign

Chevy Spark EV Launch -

Hatchback

XXX XXX Chevy Volt

Hatchback Minor Change

XXX

KIA Sportage Release of Fleet Test/Sportage

Fuel Cell

Nissan Rogue Major

Redesign/Engine/Look (3rd row add)

Mazda CX-5 - Moderate Change

Toyota Rav 4 EV Major Redesign Jeep Liberty -

Major ChangeSubaru Forester -

Minor Change

XXX

Nissan Versa Major Redesign

Honda Fit

Hatchback – Major Redesign

Suzuki to launch Swift in US

XXX ST Subaru WRX VW GTI

Source: AutoSource, 8.30.12.


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XXX

Mazada 3 Redesign

Hyundai Elantra - Minor Change

Toyota Corolla Add new ZR Series

Chevy Cruze - Minor Change

Honda Civic - Moderate Change

Kia Forte Koup - Major Change

Mitsubishi Lancer PHEV - Major

Change

Mitsubishi Lancer - Major Change

Nissan Sentra - Major Change

Subaru Impreza HEV - Major Change

Kia Forte Hatchback

Volkswagon Jetta Minor Change

XXX Electric Nissan Leaf - Minor Updates

BMW i3

Chevy Spark EV

VW Eup!


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XXXXXX

Honda Accord PHEV - Launch

XXX

Honda Accord - Major Redesign

Mazada 6 Redesign

Nissan Altima Major Redesign

Nissan Altima All New Hybrid

Subaru Legacy - Minor Change Buick Regal - Minor

ChangeBuick Regal - Minor

Change

Volkswagon CC - Minor Change Chrysler 200 - All

NewChrysler 200 - All

New Hybrid

Mitsubishi Galant Redesign

Chevy Impala Redesign

KIA Optima - Minor Change

Suzuki Kizashi - Minor Change

XXX

GMC - Sierra 1500 - Redesign

Toyota Tundra - Major Change

Chevy Silverado - Redesign

Nissan Titan Redesign



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XXX

Honda Accord All-New 4th Qtr. 2012 Infiniti G Redesign Lexus IS 250/350 -

Major ChangeBuick Lacrosse Minor Change

BMW 3 Series Major Redesign

BMW add 4WD to 328i and 335i

modelsAcura RLX Launch Infiniti G Hybrid

LaunchBMW all new 3

series GT

Volvo S60 - All New

Mercedes C Class adds 248 3.5l

Acura TSX Redesign Cadillac CTS Sedan

All new

XXX

BMW 5 to add high powered M5 version Acura RL - All New Chevy Impala

RedesignMercedes E Class

Minor ChangeBMW 5 Series + GT

Minor Change

BMW 5 Series Hybrid - Minor

ChangeToyota Avalon Styling Change

Audi A6 - Diesel Launch

Infiniti M Minor Change

Hyundai Genesis Redesign

Volvo S80 - Add Turbo Version

Audi A7 - Launch Performance Car

Cadillac XTS New High Powered

Vehicle

Acura RL - Hybrid - All New

Volvo XC70 - Add Turbo Version Acura TLX all new

vehicle launchAudi A6 - Hybrid

Launch

Chrysler 300 Minor Change



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XXX

Buick Enclave Minor Change

Audi to Add All-New Full Hybrid

Gasoline- Electric Version of Audi Q5

Acura MDX Redesign

Audi Launch Clean Diesel model

BMW X5 - Major Change

Chevy Traverse - Moderate Cadillac SRX Minor

Change

Porsche Cayenne - Minor Change

Infinity FX Major Change

CCUV

BMW X3 Hybrid Launch

Audi Q5 Sports Utility Minor

Change

Mini Countryman Minor change

Audi Q5 Clean diesel version

Land Rover 4 Major Redesign

Land Rover Evoque launch ERAD Electric Rear Axil Drive

Mercedes GLK Minor Change

Mini Paceman Launches

BMW X3 Minor Changes

Lexus Entry Lux - CUV

Mini Countryman add top performing

model

Range Rover Redesign

Volvo XC60 Minor Changes

Volvo XC60 launches high

efficiency vehicle

Buick Encore Vehicle launch

Volvo XC90 Redesign


A Key Filter For Strategic Development:Enabling Our Customers

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CONSUMER INSIGHTRich, deep, current insight

into our target customers’ needs, goals, dreams and

aspirations

PRODUCT INSIGHTThorough understanding of how

XXX ‘goes further’ (than any other brand) - demonstrated with surprising, dramatic & interesting product support

and evidence against the four pillars (QGSS)

We XXX… … So You Can

COMMS PROPOSITION

How can XXX enable our target customers

to reach their greatest goals and aspirations?

…delivered in our vehicles: Rewarding Technology / Liberating Technology / Reassuring Technology / Enabling Technology

…and

…Delivered Through Our Digital Communications

• Via digital experiences that are:– Helpful

• Easy to use, meet shopper needs, make tasks easier– Conversational

• In tone, but also functionally– Example: social experiences where shoppers need that kind of help

– Rewarding• Solve problems via contextually relevant content

– Authentic• Experiences/content that ring true because they are based on consumer

behaviours/insights & needs– Inclusive

• Does your consumer need to shop with another person? Do you have an idea that may include content we would traditionally not include?

– Technologically in step with Millennial expectations

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XXX Measurement – Building Blocks for Optimization

Our XXX goal is to task our partners to deliver the fundamentals and optimize as such1.Delivery to planned impressions in the US•Our terms and conditions require all impressions served within the U.S

2.Requiring our units to be visible or paying accordingly•Currently in progress of vetting out metrics and will work with partners on details once established

3.Audience alignment•Ensuring our understanding of our partners’ audience attributes to be able to deliver relevant messaging

1. Delivery of planned against US audience

2.Viewability

3. Audience Alignment

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XXX / XXX – Retention – ALL Make / Model Pages (Jan. 1)


728x90 MYCO Tier 1 Units – 4 Rotating Feature/Why Buy

Messages

Links out to XXX.com

300x250 / 160x600 Library Tier 2 Units –

Incentive & Offer Based Messages


• Retargeting (Split Tier 1 & DSS Funded)– Same ad units today – 4 MYCO messages driving to XXX.com and

Library Creative driving to FDAF sites• Sponsorships (Tier 1 Funded)

– Homepage = priority homepage MYCO message driving to XXX.com

– Segment = priority segment MYCO message driving to XXX.com– Conquest = priority conquest MYCO message driving to XXX.com

• Super Segment Conquest (DSS Funded)– Super Segment vehicle messaging driving to FDAF sites

• Hispanic (DSS Funded)– Same as today - 4 MYCO messages driving to XXX.es (all

translated in Spanish)– Will be testing running Zubi creative along with the above MYCO

messages

XXX – Remaining Tactic Messaging Allocation (Jan. 1)


• Mobile (DSS Funded)– Branded messaging / National Offer driving to FSE.com

• Paid Search (Split Tier 1 & DSS Funded)– Same as today

• Video – TBD depends on placement and timing

• Sales Events (DSS Funded)– Same as today

• Market Response (Tier 1 Funded)– Depends on the program – will use existing assets where

available, otherwise, custom creative message will be built

XXX – Remaining Tactic Messaging Allocation (Jan. 1) cont.


• Retention– Same as today (4 MYCO messages + Library creative driving to

XXX.com )• Retargeting

– Same as today (4 MYCO messages + Library creative driving to XXX.com )

• Sponsorships– Homepage = priority homepage MYCO message driving to

XXX.com– Segment = priority segment MYCO message driving to XXX.com– Conquest = priority conquest MYCO message driving to

XXX.com

XXX – Tactic Messaging Allocation (Jan. 1)


• Conquest– Rotation of 4 MYCO Messages driving to XXX.com

• Market Response– Depends on the program – will use existing assets where

available, otherwise, custom creative message will be built • Mobile

– Rotation of 4 MYCO Messages driving to XXX.com• Paid Search

– Same as today• Video

– TBD depends on placement and timing• Sales Events

– Same as today

XXX – Tactic Messaging Allocation (Jan. 1) cont.


XXX / XXX – Retention, Sponsorship – Text Based Ad Unit Test

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XXX – Retention, Sponsorship – Click Thru Tests

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• Update exit URLs to direct to both XXX.com and FDAF pages– Rotate through several different Brand / Shopping Tools that

direct to XXX.com and FDAF site pages to determine which combination is the most effective

• MYCO (XXX and XXX)–Only 4 main messages will be produced by vehicle in the

various sizes needed–Strategy to define which of the 4 are the priorities from a

Segment, Conquest, and Homepage perspective–Standard Build will consist of:

• - 728x90s in all 4 messages for purchase + brand tools • - 160x600s in all 4 messages for purchase + brand tools• - 300x250s in all 4 messages for purchase - no brand tools• - one 300x250 - no message + brand tools (rotates with the

300x250 above – due to can’t fit messages and tools within same unit)

• - one 160x600 - no message + shopping tools (for divisional pages)• - one 300x250 - no message + shopping tools (for divisional pages)

Creative to be Produced per vehicle


• Tier 2 Library Creative (XXX and XXX)– Incentive and Offer Based

• 728x90 Rich Media Expandables (XXX)–Photos and Features 728x90 expandables will be created

for super segment vehicles

Creative to be Produced per vehicle cont.


Brand Communications Objectives

XXX:•Continue to evolve, deliver on “XXX” brand promise

– Humanize, regionalize foundational pillars (Quality, Green, Safe, Smart)

– Empower our customers– Emphasize relationships

• Conversation, in all forms• Across funnel, channels, tiers

– Emphasize brand personality across tiers but message appropriately for the consumer’s context/needs

•Grow favorable opinion– Vehicle importance– Regional importance

•Change how we go to market

XXX:• Create relationships with the Cultural

Progressive target, XXXing on conquest• Evolve the “Respecting Individuality”

brand promise• Ensure communications build

relationships and trust by responding to context

• Stand apart, not out• Help clientele be seen as people of

substance affecting positive change• Be personal and unexpected

• Disrupt luxury car advertising conventions by misbehaving gracefully

• Facilitate target aspirations by:• Sharing stories of brand character• Bringing together kindred spirits• Empowering consumers with inside

knowlXXX• Equip them useful tools/solutions

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