1. Cobalt’s “Breakfast of Champions” Building an Online Marketing Strategy Association of Automotive Internet Sales Professionals AAISP National Conference – Nashville, TN March 13 – 15, 2007 Dean Evans Vice President Field Marketing The Cobalt Group, Inc.

4. Are You Off-Target? Your Customers Are Online. Why Isn’t Your Advertising? Newspaper Radio Television Yellow Pages Online Marketing

8. You Need to Rethink Your Entire Advertising Strategy… Dealer Website Internet Search Television Direct Mail Billboard Newspaper Radio

17. Smart Dealers Already Profiting from Internet Search Leading Acura Dealer (WA) Email / Phone Lead Volume Before Internet Search With Internet Search Before Internet Search With Internet Search Leading Hyundai Dealer (NJ) Internet Sales / Month Leading Subaru Dealer (OR) Internet Suzuki Sales / Month Before Internet Search With Internet Search

22. 3 rd -Party Sites Are Becoming More Specialized 20 in1999 250+ in 2007

24. Your Customers Don’t Need to See you as Frequently… Are you letting them forget you? Yesterday’s Average Service Interval The Widening Awareness Gap 3 Months Today’s Average Service Interval Six Months, a Year, More? BMW’s oil changes: 15,000 miles Acura’s 1 st service: ~ 100,000 miles GM vehicles: oil changes at varying intervals

26. Ensures You Communicate to Your Customers at the Right Time with the Right Message Dealership Consumer Continuous Email Collection from Nine National Databases! OnStation Automated Sales & Service Promotions Service Reminders Customer Surveys Online Appointments On-demand Campaigns Service Sales To make sure they return to you!

30. Dealership responsiveness to leads is improving Quality is diminishing 23.9% NA Used Brand or Product Highlights 25.9% 38.2% Answered the Shoppers Questions Quality of Responses: 6.5 9.5 Response Time Average (hrs) 69.7% 60.0% Overall Responsiveness 2005* 2004* Industry eMystery Shop Metrics

32. Brand Defection is High What is the primary reason you bought a vehicle from another dealership? Other Brand (customer decided to buy a different brand new vehicle) Dealership Response (poor) Price (too high)

33. Putting it all Together People & Process: Developing the Skills for Success Hi [Customer Name], Why Me? Why Make? Why Model? Hyundai Sonata Dethrones Camry and Accord Thank you for your request for additional information on the exciting new 2006 Hyundai Sonata. My name is Tony Bell, I am the Internet Director and it is my job to ensure that you get all of the information you need to make a good buying decision. We are extremely pleased with the new 2006 Sonata as well as all of our customers that already have a new Sonata in their driveway. When you look at the long list of standard features and read what the “experts” have written about this car, you will understand why Toyota and Honda Dealers are worried. I, or one of my staff will be contacting you to gather some additional information, answer any questions, schedule a test drive or arrange a home delivery. I have included in this email links to various sources for reviews, comparisons, and pricing guidelines. I have included a link to Edmunds.com, they have a very accurate pricing guide to follow. They publish a TMV price to give the customer a figure that they should expect to pay for a vehicle. Edmunds.com is constantly surveying dealers as well as customers to arrive at these prices. Please keep in mind that every car deal is as unique as every customer and you may qualify for additional rebates and incentives. Reviews for the Sonata Hyundai Sonata Dethrones Camry and Accord http://www.autoblog.com/entry/1234000897051169/ http://cars.about.com/od/hyundai/fr/bk_06sonata.htm http://money.cnn.com/2005/08/03/Autos/carreviews/hyundai_sonata/ http://www.caranddriver.com/article.asp?section_id=3&article_id=9741

34. Customers Have a Short Purchase Timeframe 0-30 31-60 61-90 91+ Elapsed time between the date of lead submission and date of lead closure Based on registration information supplied by R.L. Polk & Co. Sales/leases have been adjusted for matching efficiency by a factor of 1.36, which represents a 73% historical match rate 273,886 103,130 63,455 204,486 Days to Close 42% 16% 10% 32% Number of Closed Leads 68% of leads closed to a sale within 90 days

35. Research Summary and Implications More dealers are responding to leads, and doing so more rapidly – what’s your dealership average? Quality of lead response matters – do you use ‘auto responses’ or do you try to answer the consumer’s question? Avoiding price / skirting questions may cost dealers business – do you provide price responses in your emails? Customers are buying sooner, Internet leads are hot!