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QUESTIONS? Call: (800) 353-9350 Or visit: www.WeWorkForYou.com© 2011 AutoTrader.com, Inc. All Rights Reserved. “AutoTrader.com” is a registered trademark of TPI Holdings, Inc. used under exclusive license.

TABLE OF CONTENTSNew Marketing Platforms A. Online Reputation Management B. Social Networking C. Video D. Live Chat E. Mobile

To receive your copy of the complete Online Marketing Handbook, please contact your AutoTrader.com Advertising Consultant.

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INTRODUCTION

To influence car shoppers, it’s imperative that your brand and inventory are in front of as many in-market shoppers as possible, as often as possible. But to take your marketing to the next level, you should also consider leveraging the latest online technologies that allow you to more effectively engage car shoppers online. Engagement in the online space is key to driving influence and conversion. This special addendum to the Online Marketing Handbook will introduce you to the latest tools and tactics that offer the most opportunity for consumer engagement and exposure for your inventory.

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ThE EvOLUTION OF TRADITIONAL ADvERTISING TO DIGITAL & SOCIAL MEDIA First, think about the role the Internet plays in our daily lives and how communication has transformed in the Digital Age. Understanding this evolution will be important because it may affect how you use online media. Consider the parallels in how car shoppers consume traditional and online media. Then consider how you can evolve you marketing message and/or media plan to most effectively reach your audience given these correlations.

Television Video is the “new” television. In fact, YouTube is now the second largest search engine, second only to Google. 1

RadioPeople now listen to radio content online. Not only are music and news streaming online through sites like Pandora, but traditional radio stations also allow listeners to hear live and archived programs online. Podcasts are also a popular form of online radio.

NewspaperRSS feeds keep subscribers informed by pulling the latest news and content from designated websites and deliver it right to subscribers’ email inboxes. In addition, most newspapers today have online versions of their print paper, and in fact, many newspapers have become exclusively web-based publications due to low consumer demand for print.

Display AdvertisingBanner ads on websites and search engines are the digital equivalent of out-of-home advertising like billboards and print ads.

TelephoneChat, instant message and text message are the new version of the telephone.

EmailEven in the digital arena, some forms of communication, such as email, are becoming outdated. Instead, Facebook and Twitter are the often the preferred methods for online communication.

1 Source: Socialnomics

ThE EvOLUTION OF TRADITIONAL ADvERTISING TO DIGITAL & SOCIAL MEDIA

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IMPORTANT SITES FOR MANAGING YOUR REPUTATION

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With the majority of the U.S. population online, especially on Social and User-Generated Content sites, it is very important that you are effectively managing your online reputation. Because content is peer-to-peer generated, consumers turn to these sites for opinions and reviews of other shoppers’ experiences with your products and services. These sites are a powerful component in how the Internet influences consumers. Do you like what’s being said about your dealership, and more importantly, do you know?

However, that doesn’t mean that you don’t have any control over shoppers’ perception of your brand. In fact, you can easily have an active voice in creating and sustaining a good online reputation.

YOUR ONLINE REPUTATION CAN DEFINE YOUR PUBLIC IMAGE.

25% of search results for the world’s top 20 largest brands are links to user-generated content

34% of bloggers post opinions about products and brands

78% of consumers trust peer recommendations

Source: Socialnomics

REPUTATION BY ThE NUMBERS

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ONLINE REPUTATION MANAGEMENT

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1. Monitor the web for comments from consumers. Google Alerts is a free service that will notify you when your dealership name appears online.

2. Offer your dealership’s perspective, and don’t hide behind an alias. By taking ownership of your name, you can add comments, videos, pictures and links in your responses.

3. Respond to posts that are factually incorrect to set the record straight, but be respectful and considerate with your tone and choice of words. Refrain from commenting on negative posts that have no merit.

4. It is a good practice to acknowledge positive comments as well as negative reviews. If a shopper posts about a bad experience with your dealership, offer to try to resolve the customer’s issue, and take the conversation offline. Remember to provide your contact information. Once the issue has been resolved, ask the customer to update their review.

5. Don’t worry about having a flawless record among consumer reviews. Even the best businesses get occasional bad reviews.

Reputation management is about more than just reacting, however. It’s about being in control of your brand image. While keyword alerts and quick responses are your first line of defense against negative mentions, you don’t have to wait for negative comments to happen in order to diffuse them. Here’s how to “stack the deck” in order to stay in charge of your online reputation:

1. Encourage your happy customers to review your dealership on major consumer review sites. Consider having a computer available in your dealership where they can post reviews while they’re at the dealership.

2. Create a Facebook business page, and let sales and service managers, ser vice writers, and salespeople par ticipate as dealership representatives. Any activity conducted by your staff should be separate and distinct from any personal social networking activities.

3. Develop relationships with the local media. Let them know about news related to your dealership, including events (e.g., grand re-opening), charitable activities or other community-related involvement. This will help get coverage of your business in local media and help establish a good reputation.

GUIDELINES FOR MANAGING YOUR REPUTATION STACkING ThE DECk

DEALER RESPONSE TO CONSUMER REvIEW

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My Review of Dealership:This is the worst dealership we have ever dealt with! Totally misleading and not truthful about the deal. Instead of being honest, they had us going back and forth over and over again. We walked out of their dealership and they coerced us back and then didn’t honor their contract. They didn’t even have the professionalism to apologize or admit their mistakes. They cheated & cost us several hundred dollars. We highly recommend avoiding this dealership.

Response from Dealership:I am very sorry to hear you had this experience at our dealership. In this situation, everyone loses. I’d like to try to fix it for you. We are committed to your satisfaction, so please contact me directly at (123) 555-4567 or manager@dealership.com so we can resolve this problem for you immediately.

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NOTES

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SOCIAL NETWORkING

Social Networking isn’t a fad – it’s a fundamental shift in the way we communicate. However, social media is not going to replace traditional or “non-social” online media, which should still be the main focus of your marketing strategy. A good rule of thumb is to plan for the rest of your traditional and online marketing first, and when resources are available, participate in Social Networking.

Social Networking Is an Engagement and Communication ToolSocial Networks provide a forum for interactive conversation. It’s not a place to push your product. Think of it as a cocktail party. If all you do is talk about yourself, then soon you’ll be all alone. Instead, ask interesting questions or offer engaging information. For example, “What’s your favorite thing about driving a Chevy ?”

Social Networking Extends the Transaction Beyond Vehicle PurchaseSocial Networking is a customer relationship and retention tool. It provides an opportunity to stay engaged with your customer base and even generate post-purchase revenue. One idea is to consider creating service specials for your social network. Car owners need to service their cars and dealers need to fill the service bays.

Social Networking Is an Online Reputation Management ToolWe’ve already talked about how to effectively manage your reputation online, but one other way that Social Networking can work for dealers is as a social influencer. For example, when one person “likes” your dealership on Facebook, then that activity is seen by your social network as well. Just remember that a great presence on Facebook will never make up for a bad product or a poor customer experience in the store.

ThE ROLE OF SOCIAL NETWORkING IN YOUR DEALERShIP

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SOCIAL MEDIA CONSIDERATIONS FOR DEALERS Define Your Social StrategyFigure out what it is you want to say to your social network before jumping in head first. Is it to maintain contact with your customer base or something different? Social media is a tool to support greater business goals. Understand what your overall dealership marketing objectives and messages are first, then determine how you can use social media to support them.

Internal Resources Required to Maintain Social StrategySocial media is neither cheap nor free when you are dedicating time and resources against it. Think about how much time you want designated employees to spend on social media and consider including these guidelines in a Social Media Employee Policy.

Stay “In-Brand”Staying “in brand” not only means look and feel but also the relevancy of your posts. Tie your social media activity back to your marketing strategy and ultimate consumer engagement goals.

Social “Investments” that Offer the Most “Return”Social Networking is typically not a prospecting tool. Most consumers do not go to Facebook to shop for cars, so listing inventory here may not be the best use of resources.

Also consider how much effort you are putting into your social strategy and how much return you are actually getting from it. Have you created a large network of friends/followers/fans? If so, then it may be worth the effort to allocate money and resources to it. However, if you are not actively building your network, then it may not be worth it to spend time and money creating meaningful content or developing special “apps” if not many people will be seeing or using it.

Get Involved in the ConversationGive reasons for people to “like” you. Offer unique content that is interesting and that will motivate your network to respond and engage. Just keep in mind that anything you post has the potential to go viral and enter mainstream media. Great content does not always goes “viral.” In fact, sometimes it’s the unflattering messages that go viral, so be diligent and use discretion.

Create “Events” on FacebookMany dealers have great success with the “Events” feature and hold events monthly or quarterly. When an event is created, an invitation can be sent to all your Facebook connections. This is a good way to keep your brand in front of customers and further create opportunities for consumer engagement.

have an official dealership policy contract for your employees to sign. The contract should include guidelines for appropriate vs. inappropriate conduct as a dealership representative on social networking sites. For example, “No offensive or vulgar language.”

SOCIAL MEDIA EMPLOYEE POLICY

STAYING IN-BRAND

Brand Identity

Brand Message

Welcome Message

Video Events Specials

Social Influence

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NOTES

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vIDEO

Today’s consumers are empowered by the latest technology and have even come to expect it. One advertising tactic that continues to increase in popularity among online shoppers is video. In fact, 66% of vehicle shoppers say that they would watch more online video if more were available.1 Video is compelling to shoppers because it brings vehicles to life in a way that photos can’t. Sight, sound and motion make video more emotional and engaging for viewers. If you are not using video, then you are missing opportunities to engage and influence shoppers.

As you work to target your ad spend and adjust your creative budgets, it’s important to understand the video options available to you, as well as consumers’ expectations of video content.

hOW vIDEO INFLUENCES CAR ShOPPERS

Not Likely

Likely

Car Shoppers Would Watch More Video if Available

Source: AutoTrader.com Video Survey (9/09)

34%66%

More than 75% of Internet users watch video online 1

50% of consumers watch videos while shopping for a car 2

72% of shoppers are more likely to buy a product or service when a video is used 3

vIDEO BY ThE NUMBERS

Sources: 1 – eMarketer Jan 2009, 2 – AutoTrader.com Site Statistics 2010, 3 – Wharton School of Business December 2009

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vIDEO DISTRIBUTION IS kEYFirst, let’s talk about where you should be posting videos online. It’s not just about the content. The key is the distribution and exposure for your videos. It doesn’t matter how good the content is if it’s not being seen by car shoppers.

According to a 2009 AutoTrader.com Video Survey, shoppers expect to find videos on Dealership sites, Manufacturer sites and Independent sites. Therefore, it is critical for you to place video content in front of all potential customers.

Video sharing sites like YouTube are also important to your video distribution strategy. In fact, 62% of consumers agree that companies that have channels on YouTube are forward-thinking and innovative brands, according to the 2010 U.S. Edition YouTube Report by Entertainment Media Research.

vIDEO CONTENTNow that you know where you’re going to be posting your videos, let’s talk content. According to Todd Smith of ActivEngage, successful videos educate, entertain and enlighten. Dealers need to help car shoppers understand the value of their inventory and services in the context of an educational video that meets the shopper’s needs. Your brand should play a supporting role. Focus on helping the viewer first and endorsing your brand second — the value of video in the online space comes from usefulness to the consumer. Too hard a sell and you may diminish the positive experience. 1

YouTube

Facebook

3rd Party Sites

video on AutoTrader.com

Dealership website

Consider using pan-and-scan videos. This option allows you to turn vehicle photos into a virtual “walk-around” video, narrated by a voiceover with a custom script. If you are taking the time to write custom comments for your vehicles, make sure your video is showing the features showcased in your custom comments. It may be one of the most important factors for influencing a shopper’s decision between two vehicles.

There are convenient and easy tools to help you create pan-and-scan videos. Ask your AutoTrader.com Advertising Consultant for more information about pan-and-scan video solutions.

USE PAN-AND-SCAN vIDEO

1 Source: Forrester (9/09)

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PAN-AND-SCAN vIDEO

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Your video doesn’t have to be studio-production quality to build interest and consideration among consumers. Since much of the shopping process is taking place online, think about the “do-it-yourself” video as your virtual salesperson.

Do a Complete Video Walk-AroundGive shoppers a sense of what it would be like to drive and own the car. The most popular videos highlight the cars themselves, according to a 2009 survey from Forrester. Make sure to include basic views of both the interior and exterior of the car. Reinforce the retention of information by showing what you are talking about (e.g., the odometer while talking about mileage).

Keep Videos to Less Than Two Minutes Shoppers will often lose interest if a video is too long.

State the FactsInclude price but keep information objective to avoid a sales pitch.

Include Information that Cannot be Gained from PhotosOnline video is perfect for showcasing features that static images cannot fully convey. While it’s nice to know that a car is equipped with the latest high-end accessories, a video showing it in action will help shoppers decide if it’s the option they need. Don’t forget to explain less tangible qualities about the car as well, such as the warranty, single owner, non-smoker, etc.

DO-IT-YOURSELF vIDEO

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Most OEMs have video assets available for your use, so use these assets when you can’t use the other options mentioned, or use them in conjunction with do-it-yourself or pan-and-scan videos. In addition, your manufacturer likely has a video distribution network that you can take advantage of. Another great idea is to repurpose your TV commercials as online videos.

Regardless of what type of video you decide to use, just remember that the most important thing is getting your videos in front of as many in-market shoppers as possible, especially because car shoppers are asking for more of them.

LEvERAGE MANUFACTURER ASSETSYour online marketing is about much more than the vehicles you sell. You also want to build consideration for your dealership. What is your dealership’s unique value proposition? What do car shoppers want to know about your dealership? What questions do you get on the phone or in e-mail before shoppers schedule a visit? These are all great topics for your dealership video. This information is important in getting car shoppers to not just choose the cars you sell, but to CHOOSE YOU.

Tell Your StoryDo a store video tour and highlight amenities and departments. You can even introduce employees. Show customers why you are a dealership they should do business with.

Use Customer TestimonialsBuild a strong image for prospective customers. Just remember to get customers to sign a release form authorizing you to use their testimonial in your marketing. Sample release forms can be downloaded from the Internet. Ask your legal counsel for more information.

Include Dealership Information Be sure to incorporate your contact information, website address, map and directions.

help your videos stand out from the crowd. Shoppers only see the first 140 characters of your video description during a Google search, so make your words count!

vIDEO TIP

MERChANDISE YOUR DEALERShIP

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LIvE ChAT

Chat is not just about new technology. It is a different way of communicating. Where else can a single person maintain four or five simultaneous conversations across a range of subjects without any of their correspondents knowing that the others are there?

In the U.S., some form of Chat is used by the majority of Internet users leisurely and/or professionally. For dealers, Chat allows car shoppers to connect anonymously with a live person at the dealership. This opportunity is priceless because of the influence it can yield.

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Car shoppers love Live Chat because it puts them at ease. They are anonymous, and they are in control of the conversation. They ask questions that are important to them, and they can end the conversation whenever they want. Nevertheless, it is a personal, interactive conversation with qualified, in-market shoppers, and it is rife with opportunity for dealers who take advantage of it.

Chat Brings Consultative Selling BackChat offers dealers a rare and unique opportunity: to be consultants to online shoppers in real time. No other online marketing tool or tactic offers this level of personal engagement with in-market shoppers. Dealers can once again provide advice and recommendations in a personal way. Not only does it provide you the opportunity to be consultative, but it also gives you an opportunity to sell a car.

Chat Creates Activity that Would Not Have Otherwise HappenedUsing Chat bolsters a dealer’s communications with qualified shoppers without cannibalizing emails or phone calls. In fact, chat may increase lift and prospect activity by upwards of 20%.Source: Oct 2009 AutoTrader.com Internal Testing Data

The Dealer-Consumer Conversation on Live Chat• 75% talk about inventory and the dealership• 30% discuss financing options• 5% talk about specials, trade-in, warranty and delivery Source: ATC/ATP Internal Data

New and Additional Activity Created by the Dealer-Consumer Chat Exchange• One in four yields a name• One in four yields a phone number• One in five yields an email address Source: ATC/ATP Internal Data

ThE OPPORTUNITY WITh ChAT

Consumers DealersAnonymity & Access

A New Way to Engage More Customers

Take Advantage of “Think Time” to Provide More Complete Responses to InquiriesChat affords dealers the ability to buy time. For example, a shopper asks whether a specific car is on the lot. On the phone the answer “no” might be met with a hang up. But in a live chat, the answer “no” can be followed up with, “But I do have this similar car which actually has less miles and is a year newer for nearly the same price. Take a look here: 2007 Audi A4 in stock.” You can also say something as simple as, “Just a moment while I check on that.”

Speak to the Needs of Shoppers Based on the Page They Launched the Chat FromIf a shopper launched the Chat from a new car list page, they will have a different set of questions and needs than a shopper looking at an early model used car vehicle details page (VDP).

Tie Chat to Other Activity (e.g., Scheduling a Test Drive)By making appointments over Chat, you can track the source of that lead. You can also identify when Chat leads to a dealer website visit by using your web analytics tool.

Hide Your Chat Icon When No One Is AvailableAsk your chat vendor about “turning off” the Chat icon when no staff is available to answer shopper questions. Essentially, a visible yet unavailable Chat feature is like a virtual “closed” sign to shoppers.

Use Natural Language. Shoppers Need to Feel They Are Speaking to a Human.Most people do not have formal conversations over Chat, so be as informal as your brand will allow. Have a personality and share details about yourself to lead to a more open and trustworthy conversation with the shopper.

Be Fast to ReplyYou have about 15 seconds to answer an incoming message before the consumer jumps ship. Be there to reply immediately or have a fallback plan. Also, ask shoppers only one question at a time. Remember, it’s a conversation.

Be There During Normal Business HoursHow would you feel if you went to a dealership during normal office hours and the doors were locked? Chat has a similar feel, and remember, there is no voicemail to leave a message. More time online means more Chats, and more Chats mean more sales!

Use Chat as an Opportunity to Expand Upon What Shoppers Can Already See OnlineAdd content that is new or that they may not have already seen on the VDP (e.g., send them a picture of you or share the link to apply for credit). Remember, this is your chance to be a consultant.

LIvE ChAT BEST PRACTICES

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Car shoppers who prefer Chat are typically in “buying mode.” They tend to be highly deal-centric and adverse to negotiation.

ChAT CONSUMER PROFILE

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NOTES

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MOBILE

The Mobile Web refers to Internet access via a mobile phone. As a dealer, the key to your mobile strategy is staying connected to vehicle shoppers when they take their shopping experience from “PC to Pocket.”

Culture of “Real Time”Consumer today are accustomed to being instantly gratified. Especially with Mobile technology, communication and access to information are at our fingertips at nearly all times. Think of the mobile web environment today like it’s the Internet circa 1995. A new generation of shoppers is upon us, and dealers cannot afford to wait to get in line (and online) with how they shop. It’s about gaining control of the shopping process now.

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There are approximately 6.2 million mobile auto shoppers at any given time,1 and these shoppers have different needs and expectations when shopping “on the go.” For example, the majority of mobile car shoppers are:

• Closer to making a purchase • Not close to a PC and not expecting to conduct research• More likely to be looking at content related to final selection and purchase

According to AutoTrader.com site statistics, mobile auto shoppers also exhibit certain patterns that offer insight into how and when they use the mobile web.

On any one day, up to a million auto shoppers visit AutoTrader.com from a “wired” computer (i.e., a laptop or PC), but that pattern varies by day of week. Wired site traffic is the highest on Mondays, and as the week progresses, there is a gradual decline in the number of visitors. By the weekend they’re less active. Traffic picks up again on Monday, and the cycle repeats.

CONSUMER BEhAvIOR AND ThE MOBILE ShOPPING CYCLE

Yet AutoTrader.com site statistics demonstrate the opposite traffic cycle for its mobile site. In fact, mobile site traffic gradually increases as the week progresses, and mobile site traffic peaks on the weekend when car shoppers are away from their computers.

The pattern and message are clear: Consumers are going mobile on the weekend. The key is staying connected to them. There is a natural continuity between the research auto shoppers are doing Monday through Friday and trips to dealerships at the weekend.

1 Source: 2009 Forrester

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Mon Tues Wed

Wired Site Traffic Ratio of Mobile Visitors to Wired Visitors

The Weekly Desktop: Mobile CycleThurs Fri Sat Sun Mon MonTues Wed Thurs Fri Sat Sun

MOBILE ShOPPING CYCLE

* The above graph demonstrates a relative proportion only of shoppers on the AutoTrader.com mobile site compared to the wired site. The number of mobile site visitors are less than the daily number of visitors to AutoTrader.com from wired devices.

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Talk to Your Website ProviderAsk your website vendor if your site is currently mobile device-friendly. Check out your dealership website from your own phone. What do you see? As you evolve your dealership marketing, think about how you can incorporate mobile into the future of your dealership.

Optimize Your Existing Site for Mobile VisitorsIf you are not prepared to invest in a mobile site, consider making simple changes to your existing site to facilitate mobile shopping. Remember that consumers can access your regular website even if you haven’t created a mobile one.

For example, keep contact information front and center. In general, consumers don’t like to navigate a lot of pages to find what they are looking for, even on a wired device. They are even less likely to do it on their mobile phone where the screen is smaller and page loading time is slower. If most mobile visitors are in the final stages of making a final purchase decision, then they may just need basic information about your dealership, like your address or phone number. Make it easy for them to locate and/or contact you.

MOBILE CONSIDERATIONS FOR YOUR DEALERShIP

Basic Blocking and Tackling Is Still the Most Important ThingAdvances in the technology for the mobile web are great opportunities for dealers to stay connected to car shoppers during all stages of the shopping process. However, effective online merchandising should be the higher priority before investing time and money in new mobile platforms. Keep Your Listings In Front of In-Market Car Shoppers Wherever They AreAdvertise on third-party classified sites where the majority of consumers shop for cars. Sites like AutoTrader.com have streamlined mobile websites that offer a satisfying mobile shopping experience to consumers, so take advantage of their advancements in the mobile marketplace.

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Mobile websites are specifically designed for optimum viewing on small mobile devices and are relatively easy to create. Regular websites can also be viewed on mobile devices, and how well they appear on the small screen of a mobile device depends on the site and whether it has been optimized for mobile viewing. With a mobile website, there is also no need to create separate apps for the iPhone, Blackberry, and other smartphones. Mobile websites, for the most part, run universally on smartphones, as well as most feature phones.

The most obvious difference between a mobile website and a mobile application (“app”) is that an app is downloaded from an online store like iTunes or the Android Market and installed on the mobile device. Apps are specific to the mobile device’s operating system, meaning that an app created for the iPhone will not work on a Blackberry and vice versa. An app may also have different content from the brand’s website.

Choosing between a Mobile Website and a Mobile AppDeveloping a mobile app that is specific to your dealership can be expensive, and the return on investment may not be worth the cost given that car shoppers are not in the market for a new vehicle often. Instead, focus first on the overall consumer mobile shopping experience on your dealership website, then determine if you need a dealer-specific application.

ThE DIFFERENCE BETWEEN MOBILE WEBSITES AND MOBILE APPLICATIONS

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Online Marketing Handbook Addendum, January 2011.