1. Selling Cars with Google 104:
US Online Automotive Dealer
Advertising Executive Survey
Jupiter Research
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2. Internet Generating New Car Sales Leads
A dealer survey revealed that the portion of dealers generating over 10% of their new car sales from
online leads jumped from 36% in 2004 to 51% in 2006.
Internet-Generated New Car Sales 2004 - 2006
70%
% of Dealers by Internet-Generated Sales
59%
60%
55% 2004
51%
as a Share of Overall Sales
2005
50%
2006
40% 38%
36%
34%
30%
20%
15%
10% 7%
5%
0%
More than 10% 10% or less Not sure/don't measure
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); JupiterResearch/NADAguies.com 2
Executive Survey (9/06), n = 98 (US); JupiterResearch/NADAguies.com Executive Survey (5/05), n = 162 (US)

3. Internet Generating Used Car Sales Leads
A dealer survey revealed that the portion of dealers generating over 10% of their used car sales from
online leads jumped from 40% in 2004 to 56% in 2006.
• Used car sales tend to be more profitable, making this a critical aspect of a dealer’s business
Internet-Generated Used Car Sales 2004 - 2006
60%
56%
54% 54%
% of Dealers by Internet-Generated Sales
50% 2004
as a Share of Overall Sales
43% 2005
2006
40%
32%
30%
20%
12%
10%
10%
6% 6%
0%
More than 10% 10% or less Not sure/don't measure
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); JupiterResearch/NADAguies.com 3
Executive Survey (9/06), n = 98 (US); JupiterResearch/NADAguies.com Executive Survey (5/05), n = 162 (US)

4. Dealers Increasing Online Ad Spending
Survey data reveals that 47% of dealers in 2006 allocated over 10% of their overall marketing budget to the
Internet, up from 35% in 2005.
• 43 % of dealers spent more than $30,000 in online advertising in 2006, up from 14% in 2003
• 28% spent over $50,000 in 2006, up from an average of 12% between 2003 & 2005
Dealers’ Online Advertising Spending 2003 - 2006
50% 2003
2004
45% 43% 2005
2006
40%
Percentage of Dealers
35% 34%
31%
30%
27%
25% 24% 24%
23%
22% 22%
20%
20% 19%
15%
14% 14%
15% 13% 13% 13%
12%
11%
10% 8%
5%
0%
Less than $5,000 $5,000 to $10,000 $10,001 to $30,000 More than $30,000 None/not sure
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); JupiterResearch/NADAguies.com Executive Survey 4
(9/06), n = 98 (US); JupiterResearch/NADAguies.com Executive Survey (5/05), n = 162 (US); JupiterResearch Executive Survey
(7/04), n = 133 (US)

5. 2007 Dealer Internet Ad Spending Growth
Survey data reveals that 47% of dealers are increasing their online ad spending in 2007, while 44% said they were
maintaining current spending levels.
• Dealers who are able to successfully convert leads into sales are more likely to increase their online advertising
budgets (60%) vs. those who are not as successful (35%)
Expected Change in Dealers’ Online Advertising
60% Spending by Lead-to-Sale Conversion Rates
54%
Conversion rate of new car leads
to sales greater than 10%
50%
Conversion rate of new
44% car leads to sales equal
to 10% or less
40%
30%
30%
22%
20%
16%
13%
10%
7% 7%
4%
2%
0%
Increase by 25% or more Increase by 1 to 25% Stay the same Decreased by 1% to 25% Decreased by 25% or more
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 43 (dealers w/conversion rate of new car leads to sales 5
greater than 10%, US), n = 46 (dealers w/conversion rate of new car leads to sales equal to 10% or less, US)

6. Dealer Online Ad Spending Breakout
Dealers spending <$30,000 in online marketing tend to spend more money on
third-party lead sources than any other online advertising tactic.
Dealers’ Online Advertising Budget Allocation
60%
Dealers with online ad
spending less than $30,000
50% 49%
Spending Allocation per Tactic
Average Online Advertising
Dealers with online ad
spending greater
than $30,000
40%
31%
30% 28% 28%
20%
17%
15%
11%
10%
7%
5% 4%
3% 2%
0%
Third-party Online Search engine Online Special lead Other
sources classifieds keywords sponsorships/ sources
banner type ads
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 53 (dealers w/online advertising spending of 6
$30,000 or less, US), n = 45 (dealers w/online advertising spending greater than $30,000, US)

7. Dealers are Utilizing Paid Search & Display
Survey data shows that 74% of dealers are planning to use paid search & 66% are planning to use online
auctions in 2007.
• This is an expected increase of 85% in the use of paid search & an expected increase of 47% use of online
auctions in comparison to 2006
• 61% are planning to use display advertising in 2007, an increase of 47% from 2006
100% Dealers’ Use of Online Advertising Tactics in 2005 & 2006,
92% Planned Use in 2007
90%
82% Expected 2007
80% 79%
76% 76%
74% 2006
70%
66% 2005
62%
Percentage of Dealers
61%
60%
51%
50% 47%
45%
43%
40% 39%
40%
30%
20%
10%
0%
Third-party Online Search engine Online Online sponorships/
leads classifieds keywords auctions banner-ad types
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US); 7
JupiterResearch/NADAguides.com Executive Survey (9/06), n = 98 (US)

8. Dealers Use Online Advertising for Branding
Survey data demonstrates 74% of successful dealers (those who convert more than 10% of
Internet leads into sales) use online advertising to increase the number of email leads.
Only 51% of less successful dealers invest in online advertising to increase e-mail leads.
Reasons for Dealers’ Online Advertising Usage
100%
by Share of New Car Sales Generated Online
Percentage of Dealers That Advertise Online,
91%
90% More than 10% of new
car sales generated online
80%
74% 10% of fewer new car
72% 71% sales generated online
70% 69%
63%
60%
54%
51%
50%
40%
30%
20%
10%
0%
Driving traffic to Increasing number of Increasing number of Display inventory
dealership website email leads phone leads online
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 54 (dealers w/more than 10% of new 8
car sales generated online, US), n = 36 (dealers w/10% or fewer new car sales generated online, US)

9. Dealers Use Online Advertising for Branding
Survey data demonstrates that 82% of successful dealers (those who convert more
than 10% of Internet leads into sales) use online advertising to increase the number
of consumers who see the dealership name.
Only 69% of less successful dealers invest in online advertising for branding.
Reasons for Dealers’ Online Advertising Usage
90%
82%
by Share of New Car Sales Generated Online
Percentage of Dealers That Advertise Online,
80%
76% More than 10% of new
car sales generated online
70% 69%
10% of fewer new car
sales generated online
60% 57% 56%
50%
46%
40%
30%
20%
10%
0%
Increasing number of consumers Increasing dealer’s Building customer
who see dealer name brand awareness loyalty
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 54 (dealers w/more than 10% of new 9
car sales generated online, US), n = 36 (dealers w/10% or fewer new car sales generated online, US)

10. Dealer Online Advertising Challenges
55% of dealers surveyed claim that determining which tactics will yield the
highest-quality leads is their biggest challenge. Almost all dealers find it difficult
to plan & implement online advertising.
Notice that only 19% cited competition with offline media budgets as a challenge.
Challenges Dealers Face in Planning & Implementing Marketing & Advertising
60%
55%
50%
Percentage of Dealers
40% 38%
31%
30%
26% 26% 26%
20% 19%
14%
10% 7%
0%
Determining Internet Lack of Performance Increasing Capturing Competition Management Don’t see any
which advertising & staff that tracking competition valid lead with offline commitment challenges
advertising & marketing is understands online information media budget w/implementing
marketing getting more how to use online
tactics bring complicated online marketing
the highest everyday marketing &
quality leads advertising
JupiterResearch/NADAguides.com Executive Survey (7/07), n = 106 (US). 10
Question: Please indicate top three challenges in planning online marketing & advertising. Select up to three.

11. Key Takeaways
Dealers are generating more new & used car sales leads from the
Internet. However, almost all dealers still find online marketing &
advertising challenging to plan & implement.
Dealers are utilizing online advertising for both lead generation
and branding purposes.
Planning & implementing online advertising is easier than it seems!
You can learn how easy it is to actually plan & implement online
advertising. More information is availabe at: www.adwords.google.com
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12. Thank you & stay tuned for
future videos…
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