LUXURY AUTO

WHEN

WHAT

HOW

MEDIA iQ CAMPAIGN STRATEGY When

What

How LUXURY AUTO US |

P1

A positive increase in purchase of large cars and luxury autos are strongly indicated owing to drop in oil prices

SNAPHOT

Syncing digital campaigns with auto events has shown a significant uplift in online conversions (finding dealerships and test drives). Post codes within 5kms of the event location has shown to generate a large chuck of conversions. Good correlation between online search trends and TV spends is seen across brands making a case for syncing your TV spends with Digital advertisements to maximize impact Auto Buy is a long purchase cycle, average consideration time being 2- 3 months. From an advertising perspective this gives plenty of opportunity to intervene and create a good brand perception Strategies capturing search intent through keywords URL and page semantics have shown to have 50% better conversion rates than broader strategies AiQ Auto Intenders has shown to have on an average 65% better conversion rates than broader reach strategies;

Retargeting strategies play a crucial role due to the purchase cycle window being longer. Personalized creative messaging to drive people to the closest dealership using user post code identification and targeting can be a great way of improving engagement and stickiness

LUXURY AUTO US |

P2

WHEN is the right time to run campaigns? Consumer purchase cycle and macro economic trends in the US indicates that the latter half of the year is the optimum period to make use of marketing spends to gain traction

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P3

I. CONSUMER PURCHASE CYCLE CONSUMER DECISION CYCLE TO PURCHASE/LEASE A CAR 25% 20% 15%

23%

10% 5%

17%

17%

10%

7%

4%

0%

More than a year before

7- 12 months before

4-6 months before

5%

2- 3 A month 3 weeks 2 weeks months before before before before

Majority of the shoppers start the process of decision making about 2-3 months before.

6%

2%

3%

2%

A week 4 -6 days 2 -3 days One day before before before before

1% 9 - 12 hours before

0% 5- 8 hours before

1% 3 -4 hours before

1% 1- 2 hours before

1% 1% Withing Few the hour moments of before decision the decision

Surprisingly, there is an aggregate of 14% of shoppers who actually report spending less than a week on the decision making process.

Seasonal Trends: Auto Trader recommends consumers to buy a new car in late summer or early fall when new-model-year vehicles are rolling into dealers' inventories. Consumer Buying Trends: Buying at the end of the year increases generally due to bonuses, better deals etc., Source: https://www.thinkwithgoogle.com/research-studies/zmot-auto-study.html

LUXURY AUTO US |

P4

Oil Prices have plunged and continue to remain low US Economy is recovering well Consumer Confidence is Increasing

IMPACT

TREND

II. IMPACT OF MACRO ECONOMICS A positive increase in purchase of large cars and luxury autos are strongly indicated An overall increase in purchase of CUVs and SUVs A drop in purchase of Hybrid or Fuel Efficient Cars

Plot shows oil prices vs search trends for main brands. Dotted lines indicate projected search trends based on last 4 months. A General upward trend in interest especially from April onwards can be seen though variations are not very dramatic

LUXURY AUTO US |

P5

PURCHASE CYCLE – STAGES OF INFLUENCE We recommend employing a different strategy at each stage of consumer purchase cycle

AWARENESS Phase where the user is introduced to the product / category and recognizes the need for it

RESEARCH Pre-shopping phase where the audience is actively researching about the product

PURCHASE DECISION Phase where the user has zeroed down his research to one or two brands and is in the process of getting more information around them

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P6

BRAND AWARENESS & PERCEPTION PHASE

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P7

EVENT SYNC CASE STUDY I

SYNCING WITH AUTO SHOWS Running a brand awareness campaign starting a week prior to and during the auto shows can go a long way in creating good awareness and also lead to good performance. CASE STUDY II

SYNCING WITH PRODUCT LAUNCHES Creating a brand perception campaign around and a couple of weeks after the Product Launches can further help in cementing brand perceptions and continued awareness SEE LIST OF UPCOMING AUTO SHOWS

LUXURY AUTO US |

P8

TV SCHEDULES FOR VARIOUS BRANDS TV AD VOLUME – JULY 2015

AVERAGE TV AD VOLUME BY DAY

Lexus

98199

Mon, 81

Sun, 116 Mercedes-Benz

88540

Audi

69188

Cadillac

Sat, 119

45427

BMW

Also, night times from 9 till 12pm is the peak time for ads

Wed, 87

29578

Land Rover Jaguar

Weekends see an increase in TV activity

Tue, 93

Thu, 88

Fri, 90

12154 1109

PEAK TIME

TIME OF DAY TRENDS

18000 16000 14000 12000 10000 8000 6000 4000 2000 0

0

1

2

3

4

5

6 Audi

7 BMW

8

9

Cadillac

10 Jaguar

11

12

13

Land Rover

14 Lexus

15

16

17

18

19

20

21

22

23

Mercedes-Benz

Source: AiQ Data

LUXURY AUTO US | P9

TV SCHEDULES & DIGITAL IMPACT ON BRANDS AUDI

LEXUS

4500

105

8000

4000

100

7000

3500

95

6000

3000

90

5000

2500

85

2000

80

1500

75

1000

70

No. of TV Ads

Google trends Audi

105 100 95

4000 90

3000 2000

85

1000 0

80

No. of TV Ads

Google Trends

There is a good correlation between TV ads broadcast vs digital search interests. This impact is more significant with Lexus where interestingly the ad volumes are also higher. Such trends are observed across verticals and brands indicating a strong uplift potential from digital and TV sync activity Source: AiQ Data

LUXURY AUTO US | P10

TV SYNC TV Sync allows advertisers to support or disrupt TV advertising via simultaneous delivery of digital ads.

77% 41%

of TV watchers also use a second screen

of second-screeners search for TV-advertised brands on their mobile

Driving Engagement Audi TT saw 300% higher engagement rates when they synced to TV ads

Source: Mobile Marketing Association GMI UK custom survey, September 2013 http://adwall.teletrax.net/adwall/ Username: smaris Password: Dh99ty(%

Source: AiQ Data

LUXURY AUTO US | P11

AUTOMOTIVE BRANDS & SOCIAL MEDIA BMW was more popular garnering 2X tweets, while Jaguar was favoured more positively by the Twitterati TWITTER VOLUME (15-30TH JUNE 2015)

TWITTER VOLUME BY DATE

6000 5000

Audi

18,577 4000

BMW

34,590

Cadillac

13,946

Land Rover - Jaguar

14,652

3000 2000

1000 0

Lexus Mercedes-Benz

23,517 3,321 Audi

BMW

Cadillac

Whilst users continue to take to social media platforms to share experiences and reviews and twitter is highly chosen, Brands still favor Facebook and Youtube

MiQ recommends running social media campaigns as well social synced digital campaigns, especially around Auto Shows to gain maximum brand penetration

Land Rover - Jaguar

Lexus

Mercedes-Benz

On the 24th June, news reports on Lexus having made a hoverboard called ‘Slide’ inspired by the movie ‘Back to the Future’ resulted in a spike in twitter volume on that day

Source: AiQ Data

LUXURY AUTO US | P12

SOCIAL SYNC Advertisers can deliver impactful messages during significant Social Moments. • Gain cut-through during moments of influence • Align your brand to social trends in real-time

Source: AiQ Data

LUXURY AUTO US | P13

RESEARCH PHASE

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NICHE CONTEXTUAL STRATEGY Auto shoppers use on an average 18.2 different sources of information in the decisioning process, many of which are online sources.

use comparison sites only

DEALERSHIPS

netcarshow.com jaguarownersclub alfaowner.com motorauthority.com

58% of the consumers

49% of the consumers

38% of the consumers

sought info from dealership websites

read automobile reviews online

used a build/configure online application

FORUMS

REVIEW SITES

talkford.com jaguarforum.com myaudiq5.com audiworld.com a5oc.com

cars.com motorcycle.com cargurus.com popularmechanics.com

NICHE

59% of the consumers

LUXURY AUTO US | P15

BROAD CONTEXTUAL STRATEGY We recommend targeting sites with tech, sports and travel related content in addition to auto content, as these interests overlap for audiences with auto interest and tend to show good conversions

BORAD

TECH FORUMS

theultralinx.com greenbot.com thedigitallifestyle.com motorauthority.com cnet.com extremetech.com

SPORTS

nba.com fantasyleague.com royals.org golfwrx.com bikeradar.com

TRAVEL

travelsupermarket.com aplaceinthesun.com swifty.com thomascook.com

LUXURY AUTO US | P16

CAPTURING SEARCH INTENT – AIQ SOLUTION Brand specific keywords to target audience with specific brand interest Example used: BMW

71% of the users search for information using specific searches

Competitor keywords to target audience who are interested in other brands as well Generic search keywords to target audience with luxury auto intent

AiQ parses URLs to identify keywords within them; AiQ also ingests keywords found in the content of millions of pages to identify keywords, building up a repository of 8 billion keywords. These keywords are analysed for their density, intent, semantics and category and then used for targeting accordingly

Negative or brand sensitive keywords can be excluded from targeting to avoid brand dilution

AiQ’s Keyword targeting usually provides 10 times better results than a broad reach strategy and can be tailored for scale vs efficiency

LUXURY AUTO US | P17

BRANDED FORUMS: PMP DEALS & PROGRAMMATIC BUYS Brand forums and Car Forums have consistently proven to be the best domains for driving performance

FORUMS jaguarforum.com Jaguar Forums

Xfforum.com

PERFORMANCE 200X better CVR & 70% better CTR

myaudiq5.com audiworld.com Audi Forums

a5oc.com

audiforums.com

2X conversions, 90% better CVR, & TWICE the CTR Compared to broader domains

CVR is the average conversions generated from 1000 impressions*

Data is from the campaigns we have run for these advertisers P18

REACHING THE RIGHT AUDIENCE – USER PROFILING AND TARGETING LUXURY AUTO - AUDIENCE ATTRIBUTES

MEDIAiQ AUDIENCE SOLUTION

AiQ Audience* AiQ - Demographics (based on US Census data) Income Level > $75,000; Age: 35-44, Age: 45-54 Potential # of impressions – 5,923,131

DEMOGRAPHICS

Married + Family Income Level - $75,000 Plus Age: 35-44 ;Age: 45-54

AiQ - Auto Intenders Reach – 177,048,475 Daily unique users – 26,571,628 INTENT

Auto Owners Auto Seekers Auto - Buyers - Luxury

3rd Party Audience Segments Auto - Buyers – Luxury (Exelate)

Daily unique users – 491,101 Business Travelers (Exelate)

Daily unique users - 21,241,417 Travel - Vacations Packages (Exelate) INTEREST & HOBBIES

Business Travelers Vacation Seekers

Daily unique users - 45,989 *AiQ Auto Intender segment performed 3x better than reach line and 1.7x better than 3rd party audience segments

LUXURY AUTO US | P19

PURCHASE DECISIONING PHASE

LUXURY AUTO US | P20

RETARGETING STRATEGY About 65% of the users go through this transition within a day

HOME PAGE

BUILD YOUR OWN CAR PAGE

About 66% of the users go through this transition within a day

OR

DOWNLOAD BROCHURE PAGE

Users move between generic pages fairly frequently within the day. The most optimum strategy for these users would be to reach them with higher frequencies and lower recencies

About 50% of the users go through this transition in a span of 1 day to 10 days

FIND YOUR DEALER PAGE Dynamic creative messaging showing the location of the dealer based closest to the users postcode could make the message more personalized and hence more effective in converting

User Postcode: 48335, Detroit Visit Audi Farmington Hills In Detroit

LUXURY AUTO US | P21

APPENDIX

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CASE STUDY I Impact on Auto Sales During Dallas Auto Show Dallas Ft. Worth International Auto Show, 25- 29th Mar 2015

30000

10 9

25000

8 7

20000

6 15000

5 4

10000

3 2

5000

1

Impressions

CVR

30-Mar-15

29-Mar-15

28-Mar-15

27-Mar-15

26-Mar-15

25-Mar-15

24-Mar-15

23-Mar-15

22-Mar-15

21-Mar-15

20-Mar-15

19-Mar-15

18-Mar-15

17-Mar-15

16-Mar-15

15-Mar-15

14-Mar-15

13-Mar-15

12-Mar-15

11-Mar-15

10-Mar-15

9-Mar-15

8-Mar-15

7-Mar-15

6-Mar-15

5-Mar-15

4-Mar-15

3-Mar-15

2-Mar-15

0

1-Mar-15

0

%conversion

During International Dallas Ft. Worth Auto Show, campaign performance in Dallas saw

200

% lift in conversions and CVR during the period of the auto show Further, 3 of the top 10 performing zip codes for this time period, which account for 22%

of conversions, were located within 2 miles of the auto show location LUXURY AUTO US | P23

CASE STUDY II Search Trends during NYC International Auto Show New York International Auto Show, 8-12th April 2015

10000 100

9000 8000

90

7000 6000

80

5000 70

4000 3000

60

2000 1000

50

Impressions

Google search trends

3 of the top 10 post codes in NY for this time period were located 1 mile from the auto show and contributed 17% of the total conversions

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UPCOMING AUTO SHOWS

Altcar Expo North California 18 - 19th September 2015

Charlotte International Auto Show Charlotte nd 19 – 22 November 2015

Seattle Auto Show Seattle th 8 - 11 October 2015

Los Angeles Auto Show Los Angeles 20 - 29th November 2015

Orange County International Auto Show California 15 - 18th October 2015

San Francisco Auto Show San Francisco 21 - 28th November 2015

LUXURY AUTO US | P25

SOURCES OF INFLUENCE AT DIFFERENT PHASES Auto shoppers use on average 18.2 different source of information in the decisioning process.

SOURCES INFLUENCING CONSUMER DECISION

97% of auto shoppers engage in Research phase, on par with that of Shortlist stage RESEARCH 97%

97%

OLINE SOURCES

AWARENESS

86%

Stimulus Zero Moment First Moment RESEARCH SHORTLIST AWARENESS of Truth

of Truth

PURCHASE DECISION

Source: https://www.thinkwithgoogle.com/research-studies/zmot-auto-study.html

LUXURY AUTO US | P26

CONSUMER TRENDS: AGE Younger shoppers use more than double the sources during the descisioning phase They exhibit much more ZMOT, sharing and mobile behavior

Younger shoppers use more than double the sources during the descisioning phase They exhibit much more ZMOT, sharing and mobile behavior

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WHAT will be the MEDIA iQ strategy at awareness stage? MEDIAiQ recommends employing a BRAND strategy in the stimulus stage to remain at the top of the mind and generate interest among users.

TV SYNC

SOCIAL SYNC

EVENT SYNC Event sync wth auto shows, new car launches of brand or competitor

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THANK YOU