Autotrader Group Plc · LSE:AUTO
Autotrader — Investor Day (March 2018)
111 slides from Autotrader's investor day presentation, Mar 15, 2018
Slide 1: Capital Markets Day
Capital Markets Day Improving the Car Buying Journey from search to transaction Jason Biffin & Karolina Edwards-Smajda
Slide 2: Disclaimer
Disclaimer Not for publication, transmission, distribution or release, directly or indirectly, in or into any jurisdiction in which the publication, transmission, distribution or release of this document would be unlawful. By attending the meeting where this presentation is made or by reading this d
Slide 3: Agenda
Agenda 1.00pm-2.15pm HAVAS OFFICES Introduction Jamie Warner Overview: 3 Years On Trevor Mather & Nathan Coe Q&A Session Break – 15 mins 2.30pm-3.50pm HAVAS OFFICES Improving the car buying journey Jason Biffin & Karolina Edwards-Smajda from search to transaction How we help improve a retailers busi
Slide 4: Overview: 3 years on
Capital Markets Day Overview: 3 years on Presented by Trevor Mather, CEO & Nathan Coe, COO & CFO
Slide 5: In the past 3 years we have delivered on the key investment highlights
In the past 3 years we have strengthened and delivered on the key investment highlights outlined to analysts and investors at the IPO Source: Unconnected analyst presentation 22nd April 2015 5
Slide 6: We also delivered on financial commitments
We also delivered on financial commitments Revenue Profit margins Capital policy We said: We said: We said: High single digit revenue We would continue to increase We would leverage to under 2x, growth profit margin increase dividends to 1/3 of net income and start a share buy- back programme We del
Slide 7: Continuing to invest in building a multi-generational business
Whilst continuing to invest in building a multi-generational business For car buyers For retailers & manufacturers and for Auto Trader On average 93 advert Added Premium level for Released 11,000+ product views every second of retailers wanting to grow changes since every day faster March 15 Added p
Slide 8: Underpinned by our people, culture and environment
Underpinned by our people, culture and environment #32 Principle and values-led culture, Passionate and Working in leading environments promoting diversity talented people and being community -minded
Slide 9: Overview: 3 Years On
Overview: 3 Years On How we think How we think How we think about our long- about current about our term opportunity market competitive position 9
Slide 10: Auto Trader exists to lead the digital future of the UK automotive marketplace
Auto Trader exists to: ‘lead the digital future of the UK automotive marketplace’
Slide 11: Auto Trader is the largest digital player in a huge ecosystem
Auto Trader is the largest digital player in a huge ecosystem ripe for digital disruption to improve the consumer experience and industry efficiency Total UK Automotive Turnover £78bn Mobility Services >£22bn Service & Maintenance £22bn Car Insurance £12bn OUR CURRENT FOCUS IS THE BUYING AND SELLING
Slide 12: Multiple horizons of growth with our customers over time
Our position as the leading digital player in the automotive market provides multiple horizons of growth with our customers over time Horizon 3 Horizon 2 Enable transactions online Horizon 1 Become to new cars what we are in used Enhance the core Helping retailers • Core listing products source, dis
Slide 13: Auto Trader has become the largest, most influential destination
As car buyers have moved their research online, Auto Trader has become the largest, most influential destination Prompted brand awareness (used and new car) Which Whichwebsite website would youyouconsider considerthe themost most influential whilst used influential usedvehicle vehicleshopping? shopp
Slide 14: Which has radically changed the world of the retailer
Which has radically changed the world of the retailer… THE OLD WORLD TODAYS WORLD • Power sits with the retailer • Power sits with the consumer • Low tech, people-centric • High -tech, internet centric • Focus on local area • The market is UK wide • Opaque pricing • Finance is key to success • Finan
Slide 15: Which has radically changed the world of the retailer
Which has radically changed the world of the retailer… LESS SUCCESSFUL SUCCESSFUL • Were good when they started • Open minded • Don’t adapt • Borrow from other sectors • See new things as a threat • See data as an opportunity • Resent consumer empowerment • Meet consumer on their terms • Margins squ
Slide 16: Opportunity to dramatically improve car buying and retailing
This provides Auto Trader, progressive retailers and manufacturers the opportunity to dramatically improve car buying and retailing
Slide 17: Moving more of car buying and selling online
By moving more of the car buying and selling experience online we can improve the consumer experience, dealer profitability and Auto Trader’s influence Used car research is largely done online, however this is not the case for new cars Most car transactions are Research DIGITISATION: MED-HIGH comple
Slide 18: Core growth underpinned by continuous improvement of the experience
Core growth is underpinned by continuous improvement of the car buying experience and helping retailers improve profitability There is a mismatch between used car retailing costs and the buying process Online share of Split of retailer used Opportunity to drive Strategy research time gross margin do
Slide 19: Retailers who spend more generate more sales and gross profit
This is validated by our own data that shows retailers who spend more (ARPR), generate more sales and gross profit More spend = More cars sold More cars sold = More gross profit 80 100 Proxy Monthly Gross Profit (000) 70 90 Proxy Sold Car Count 80 60 70 50 60 40 50 30 40 30 20 20 10 10 0 0 £0 £1,000
Slide 20: New car is critical to unlocking the full £1.9bn ad spend
New car is critical to unlocking the full £1.9bn in automotive advert spend. We have the audience and the influence 3/4 of car buyers Which website do you find the most influential whilst vehicle shopping? consider new cars 60 Almost 2x more than nearest 44 competitor for 75% new cars 25 10 7 6.8m u
Slide 21: Early stages of developing our new car buying experience
However we’re only at the early stages of developing our new car buying experience, manufacturer relationships and products £1.9bn 2017 UK Automotive Digital Strategy Advertising With 7 million people on Auto Trader every month potentially considering a new car £0.5bn versus 2.5m new car registratio
Slide 22: c.3.4 million B2B transactions where we are yet to play
In addition to our B2C position, there are c.3.4 million B2B transactions, fueled in part by the c.3.4million part-exchanges, where we are yet to play a material role Retailers source of vehicles (m) Strategy Part- Car Sourcing vehicles is our customers’ number Fleets / exchange buying one challenge
Slide 23: Multiple horizons of growth with our customers over time
Our position as the leading digital player in the automotive market provides multiple horizons of growth with our customers over time Horizon 3 Horizon 2 Enable transactions online Horizon 1 Become to new cars what we are in used Enhance the core Helping retailers • Core listing products source, dis
Slide 24: Overview: 3 Years On
Overview: 3 Years On How we think How we think How we think about our long- about current about our term opportunity market competitive position 24
Slide 25: Value to retailers has grown ARPR through price, stock and product
The value we give to retailers has allowed us to grow ARPR through price, stock and product upsell ARPR (£pcm) ARPR levers (£pcm) £93 £71 £132 £162 162 IPO 153 143 £1,546 86 £1,384 £1,181 £1,252 £1,088 58 £996 52 48 41 33 28 28 30 28 13 13 2012 2013 2014 2015 2016 2017 2014 2015 2016 2017 Total Bala
Slide 26: Largest choice of trusted car stock
Combined with a continued investment in retailer relationships this has meant we have continued to provide the largest choice of trusted car stock Retailers and live cars on site Live cars per car retailer (1) 34 16,000 Average number of live cars per 440 Average number of retailers for the Average
Slide 27: Limited consolidation within core customer base
We are seeing limited levels of consolidation within our core customer base, however large customers have grown Distribution of customers by stock bands Distribution of live stock by bands 30% No real decline in 160 core customer Although a larger base (11-100) proportion of our 25% 140 stock is now
Slide 28: Larger retailers invest more on Auto Trader
However the larger, consolidating retailers invest more on Auto Trader Stock Package level Managing products % of forecourt stock advertised Average package level (1=Starter, % of retailers with a managing with Auto Trader 2= Basic, 3=Standard, product 4=Advanced, 5=Premium) 89% 3.2 43% 2.8 66% 33%
Slide 29: Continued growth in revenue per car
Which partly offsets their volume discount leading to continued growth in revenue per car Advertising rate card (1) Total advertising revenue (£) per live car per Average rate card month IPO 2014 – 2017 CAGR: 6% 2012 – 2014 CAGR: 5% Economies of scale for retailer Cost per car 41.9 35.2 35.2 35.4 38
Slide 30: Drop in new car registrations in 2017
We saw a drop in the number of new car registrations in 2017 and early signs of a downturn in used car transactions New car registrations YoY growth of NCRs vs UCTs Last 12 month rolling total 3.0 30% 30% 90.0% 2.5 20% 20% LTM rolling NCRs (millions) YoY growth for the month 70.0% YoY growth in NCRs
Slide 31: A growing used car market has helped ARPR growth through stock
A growing used car market has helped ARPR growth through stock Average car stock (1) vs. last 3 months UCTs 500 i We did experience a 2.5 drop in stock at the Last 3 months UCTs (million) end of 2008 450 Average car stock ('000) 2.3 400 2.1 1.9 350 1.7 300 1.5 250 1.3 Jul Jul Jul Jul Jul Jul Jul Jul
Slide 32: Marginal declines in used car volumes expected for 2018 and 2019
However we expect marginal declines in used car volumes for 2018 and 2019 Used car transactions 8.5 Forecast 8.1 Used car transactions (million) 8.0 8.0 7.9 7.9 7.9 7.5 7.7 7.5 Likely expectation is for a 1-3% 7.3 decline in 2018 7.0 7.1 7.2 7.0 7.0 7.0 6.9 6.5 6.0 2007 2008 2009 2010 2011 2012 2013
Slide 33: UK car parc will continue to grow
However the UK car parc will continue to grow, making used car transaction volumes less volatile than new UK Car Parc Average turn 4.00 36.0 5.0 3.50 35.0 4.0 3.5 3.5 3.5 3.5 3.4 3.4 3.3 3.0 3.3 3.3 New/ scrapped cars (millions) 34.0 3.00 3.1 3.2 3.1 3.1 2.0 2.9 UK Car Parc (millions) 33.0 Car parc
Slide 34: In summary
In summary • Consolidation is happening slowly, continuing the trend of the last 10 years • Large customers have grown and tend to be more engaged • We expect used car transactions to fall, similar or slightly more than last year 34
Slide 35: Overview: 3 Years On
Overview: 3 Years On How we think How we think How we think about our long- about current about our term opportunity market competitive position 35
Slide 36: Competitive landscape remains active
In terms of competition, the landscape remains active, but this is no different to every year of our 40+ year history Main competitors throughout history Competitors Traditional Regional Press Competitors Brand Thames Acceleration Valley Autotrader.co.uk Price indicator of print to Mobile push Revie
Slide 37: Competitor audiences already on Auto Trader
With the majority of competitor audiences already on Auto Trader, it limits their ability to offer incremental car buyers Percentage of competitor audience visiting Auto Trader 82% 85% 84% 69% 80% 80% 80% 78% 72% 76% 71% 69% 67% 63% Auto Express WhatCar CarGurus Carwow VCars Parkers Pistonheads RAC
Slide 38: Vast majority of our audience is unique to Auto Trader
And the vast majority of our audience is unique to Auto Trader Percentage of Auto Trader audience not visiting competitor site 98% 96% 98% 100% 98% 91% 93% 92% 87% 86% 81% 81% 71% 76% RAC Cars Top Gear Trusted Dealer WhatCar Pistonheads Carwow Motors Mart eBay Motors Motors.co.uk Gumtree Exchange &
Slide 39: We have maintained our position and trust with car buyers
As a result we have maintained our position and trust with car buyers Total minutes spent in Jan 2018 Minutes spent per visitor in Jan 2018 (millions) 74.6 678 34.8 138 127 12.7 10.7 9.2 66 16 Auto Trader Gumtree Other Manufacturer Dealer Sites* Auto Trader Gumtree Other Motoring Manufacturer Dealer
Slide 40: Conclusion
Conclusion • We have delivered on what we said we would at IPO • There is still plenty of opportunity within our core • And there is a significant opportunity in adjacent markets which we are yet to address • There are industry headwinds ahead • But we will continue to leverage our very strong compe
Slide 41: Questions?
Section title Questions? 41
Slide 42: Capital Markets Day
Capital Markets Day Improving the Car Buying Journey from search to transaction Jason Biffin & Karolina Edwards-Smajda
Slide 43: Capital Markets Day
Capital Markets Day How we help Improving the car Delivering value improve a buying journey for car retailer’s from search to manufacturers business transaction 43
Slide 44: The Auto Trader model
The Auto Trader model Largest consumer audience Investment in growing audience Investment in Best car buying relationships & Most effective experience for Strong financials insight sales channel consumer enabling investment Investment in platform Stock based revenue model Largest choice of trusted c
Slide 45: Improving the car buying journey from search to transaction
Capital Markets Day Improving the car buying journey from search to transaction Presented by Jason Biffin & Karolina Edwards-Smajda
Slide 46: The Auto Trader model
The Auto Trader model Largest consumer audience Investment in growing audience Investment in Best car buying relationships & Most effective experience for Strong financials insight sales channel consumer enabling investment Investment in platform Stock based revenue model Largest choice of trusted c
Slide 47: Improving the car buying journey from search to transaction
Improving the car buying journey from search to transaction Why are we doing it? How are we responding? What’s next? Consumer trend Building trust into The journey around trust and the consumer towards online transparency experience transactions 47
Slide 48: Why is trust & transparency so important?
Why is trust & transparency so important? 94% of consumers conduct their car buying research online 13 hours spent researching online on average by car buyers 23%of car buyers find visiting a dealership daunting 22%of consumers see car dealership websites as being untrustworthy Source: Google Gearsh
Slide 49: Consumers don't trust car dealerships
Consumers don’t trust car dealerships The perception amongst consumers is that they Levels of trust don’t trust car dealerships, with only 7% claiming to trust them And with physical retailer forecourt visits declining, it’s imperative that retailers start to build trust online first Q8 Please rate
Slide 50: Auto Trader operates as a trusted intermediary
But Auto Trader operates as a trusted intermediary #1 trusted brand Auto Trader is the most trusted automotive How trusted are each of the following brands? classified brand in the UK 59 million visits …and is the most visited automotive website - 3x larger audience than our 55% nearest competitor 6
Slide 51: What Auto Trader users said about car retailers
What Auto Trader users said about car retailers… Trust in the car they want to buy Is the Do you mileage Why only not offer correct? one finance? How do I know picture? Trust in the seller Why no I won’t get Have you not got part-ex ripped off? any satisfied values? customers? Are your Has the car I
Slide 52: Improving the car buying journey from search to transaction
Improving the car buying journey from search to transaction Why are we doing it? How are we responding? What’s next? Consumer trend Building trust into The journey around trust and the consumer towards online transparency experience transactions 52
Slide 53: Trust in the car they want to buy
Trust in the car they want to buy The problems we are trying to solve 20% of car buyers found information to be vague, hard to find or misleading when researching cars Of those , 36% of consumers claim to delay or put off buying BASIC altogether CHECK What have we done? Exposed cars which have been
Slide 54: Trust in the seller
The problems we are trying to solve Trust in the seller The lack of trust consumers have with retailers Provide retailers the opportunity to differentiate themselves on the marketplace What have we done? Built relationships with the leading 3rd party review sites and aggregated over 450,000 reviews
Slide 55: Trust in the price of the car they are selling
The problems we are trying to solve Trust in the price of the car they are selling 33% of buyers walk away from a negotiation due to a disagreement “We use the part exchange system on the part-ex valuation in the interests of transparency. We are finding people would Agreeing the value of their pref
Slide 56: Trust in the price of the car they are buying
Trust in the price of the car they are buying The problems we are trying to solve Over 75% of car buyers believe that transparent pricing is the most important factor when buying a car Buyers consider it more important than history checks and the interaction with salespeople when looking to purchase
Slide 57: Retailer finance and monthly price search
The problems we are trying to solve Trust in the price of the car they are buying Consumers are keen to see monthly Retailer finance and monthly price search finance prices especially when many of the finance deals being offered are seen as confusing or not easily found With retailer used car financ
Slide 58: Retailer finance and monthly price search
Trust in the price of the car they are buying Retailer finance and monthly price search Buyers have the ability to search on Buyers can then compare Buyers can then choose And finally tailor their deposit the basis of a monthly price affordability between a total retail between a PCP and HP option a
Slide 59: Improving the car buying journey from search to transaction
Improving the car buying journey from search to transaction Why are we doing it? How are we responding? What’s next? Consumer trend Building trust into The journey around trust and the consumer towards online transparency experience transactions 59
Slide 60: The appetite for transacting online
The appetite for transacting online Response to buying online 33% Auto Trader Research July 2017 42% 36% 75% Source: Auto Trader online transactions research 2017 60
Slide 61: Bringing all components into one online journey
It’s about bringing all components into one online journey Part- Vehicle Car history exchange finance check Price Text her indicator Dealer Vehicle reviews delivery 61
Slide 62: Conclusion
Conclusion • We have the experience, resources and technology to continue leading innovation in the UK marketplace • We win with consumers because we are the most trusted and we have a clear vision that responds to car buyers’ demand for transparency • We improve complex buying experiences at scale
Slide 63: How we help improve a retailer's business
Capital Markets Day How we help improve a retailer’s business Presented by Le Etta Pearce & Darren Moon
Slide 64: The Auto Trader Model
The Auto Trader Model Largest consumer audience Investment in growing audience Investment in Best car buying relationships & Most effective experience for Strong financials insight sales channel consumer enabling investment Investment in platform Stock based revenue model Largest choice of trusted c
Slide 65: Our key themes
Our key themes Data to improve a Products to help Partnering with retailer’s retailers appeal to our retailers performance consumers 65
Slide 66: Our key themes
Our key themes Data to improve a Products to help Partnering with retailer’s retailers appeal to our retailers performance consumers 66
Slide 67: Helping retailers leverage our data to manage performance
For the past 20 years we’ve helped retailers leverage our data about their business to manage performance, in a digitally evolving marketplace 67
Slide 68: Fragmented marketplace, engaged consumers, generating transactions
Fragmented Engaged Generating marketplace consumers transactions • c.1.5bn searches, • Part of the 5.1m • 13,200 retailers generating c.53bn used car B2C • On average 420k advert search transactions adverts per day appearances and c.3bn Full Page Advert Views per year Source: Internal Auto Trader da
Slide 69: Tools to manage performance within every retailer package
We offer tools to manage performance within every retailer package Group Retailer 69
Slide 70: As well as a stock management system
70,000 As well as a stock management logged in users each month system… 700,000 sessions each month 3m page views each month 88% of retailers log-in each month Source: Internal Auto Trader data 70
Slide 71: Data on where do I sell my cars?
And data on: “where do I sell my cars?” 71
Slide 72: Our key themes
Our key themes Data to improve a Products to help Partnering with retailer’s retailers appeal to our retailers performance consumers 72
Slide 73: Products created to meet a number of different needs
Products have been created to meet a number of different needs 1 2 3 Attract and interact Compete with other Manage their forecourt with consumers retailers efficiently • Images • i-Control • Prominence products • Video • Auto Trade Mail (packaged & unpackaged) • Chat • Retailer display • Reviews •
Slide 74: Products that increase vehicle prominence
Retailers can increase vehicle views not only by being in the right place online, but through products that increase their prominence Advert quality Advert exposure Starter Basic Standard Advanced Premium Engage your buyers through the Stand out and encourage Improve visibility of your stock on Boos
Slide 75: Delivering better informed consumers and better quality enquiries
Delivering better informed consumers You have a new Part-Exchange lead from Auto Trader and better quality for Craig's Cars. enquiries to retailers Reply to customer Customer details Name Michael Smith Telephone number 07762647695 through a number of Email address berkan.kurtoglu@autotrader.co.uk In
Slide 76: Dealer finance brought higher up the buying funnel
Dealer finance has been brought higher up the buying funnel, making conversion at the forecourt easier 13 hours of online research Dealership visit Introduce the concept of finance earlier In the process Source: Auto Trader Market Report 2017 76
Slide 77: Data-driven forecourt management products (eg. i-Control)
Data-driven forecourt management products (eg. i-Control) 77
Slide 78: Our key themes
Our key themes Data to improve a Products to help Partnering with retailer’s retailers appeal to our retailers performance consumers 78
Slide 79: We develop and support customers through c.300 people
We develop and support our customers through c.300 people in sales, and support delivering wider added value initiatives 1,347 400 Regional and bespoke conferences >23,000 Face -to -face meetings retailers have 1,415 attended our Masterclasses and Discovery c.260,000 inbound and Days Retailers subsc
Slide 80: Variation in customer performance is significant
The variation in First price position Price position drop customer 105 Last price position performance is 104 significant, so we 103 utilise our teams 102 internally to embed Price Position our products and 101 100 Last Price Position 99 Price Position Drop First Price Position improve our 98 custom
Slide 81: Opportunity to bridge gap between top and bottom quartiles
The opportunity to bridge the gap between the top and bottom quartiles is significant 50 71% of sold 50 54% of sold 49% of the top quartile have a 43 cars cars 45 45 40 managing product vs. 40 14% of those in the 34 35 35 bottom quartile Sold Cars % Sold Cars % 30 30 28 25 25 25 20 20 20 15 15 12 11
Slide 82: Conclusion
Conclusion • Retailers have had to digitally evolve with consumers, however we give unrivalled insight on their performance • Auto Trader has developed products to generate leads, compete for prominence and manage forecourts efficiently • All delivered by a digitally skilled sales team, partnering r
Slide 83: Delivering value for car manufacturers
Capital Markets Day Delivering value for car manufacturers Presented by Ian Plummer & Naomi Hahn
Slide 84: The Auto Trader Model
The Auto Trader Model Largest consumer audience Investment in growing audience Investment in Best car buying relationships & Most effective experience for Strong financials insight sales channel consumer enabling investment Investment in platform Stock based revenue model Largest choice of trusted c
Slide 85: Delivering value for car manufacturers
Delivering value for car manufacturers Realising the new Building valuable Evolving our car opportunity relationships using product set and our data, insight and ways of working expertise 85
Slide 86: Delivering value for car manufacturers
Delivering value for car manufacturers Realising the new Building valuable Evolving our car opportunity relationships using product set and our data, insight and ways of working expertise 86
Slide 87: Automotive industry spends a huge amount on advertising
The automotive …and the addressable digital market industry spends a huge continues to grow amount on advertising every year… Manufacturers spend on digital £1.9bn 50% c. total auto advertising spend +13pp = Source: eMarketer & Ebiquity 2017 Digital advertising 950m £475m market share growth £ H1 20
Slide 88: To increase our share, we need to challenge manufacturer perceptions
To increase our share, we need to challenge manufacturer perceptions “It’s good that you are coming to us with a new car story, which you haven’t done before; that surprised us as 40 year we didn’t see you in that way, heritage as a it sounds compelling and is printed starting to make us think magaz
Slide 89: Built a team with industry expertise
To do this we’ve built a team with industry expertise to strengthen our relationships with car manufacturers 89
Slide 90: Auto Trader is ideally placed to help brands reconnect with consumers
Auto Trader is ideally placed to help brands reconnect with consumers Every month we see 9 million users who 94% They spend Over If they do visit spend 75 car buyers use 13hours 60% the site, they’ll spend just minutes on online research researching won’t visit the average to make their purchase the
Slide 91: Our audience scale is unparalleled
10x Our audience scale is unparalleled… 59m More minutes on site visits a than all manufacturers month combined Total minutes/month Source: comScore MMX Multi- Platform, Cross Visiting, January 2018, U.K 4x 678m minutes 66m More automotive minutes searches than Google All manufacturers Auto Trader S
Slide 92: Users' onsite journeys generate high quality data
And our users’ onsite journeys generate high quality data £ Full end-to-end visibility with sales match capability 92
Slide 93: Car buyers don't see themselves as a new or used buyer
Car buyers don’t see Auto Trader is seen as …and our “next car” themselves as a new the best source for user journey now or used buyer… new cars… reflects this ¾ of buyers are 2x more influential than the next open to new nearest cars competitor Source: Auto Trader Car Buying Journey Report 2017 Whi
Slide 94: Vision to partner with manufacturers and move to online transactions
But our vision is to partner with manufacturers more closely, and move together towards online transactions Online transactions Physical new car stock Looking ahead. We will facilitate online transactions in partnership Finance offers with manufacturers and Partnering with retailers. manufacturers a
Slide 95: Delivering value for car manufacturers
Delivering value for car manufacturers Realising the new Building valuable Evolving our car opportunity relationships using product set and our data, insight and ways of working expertise 95
Slide 96: Our tools help brands understand consumers at each stage
Our tools help brands understand their consumers at each stage of the journey £ Why and where Did my Who are my Who am I losing am I losing advertising competitors? out to? buyers? work? Bubbles Snakes Ecosystem Sales match 96
Slide 97: Bubbles tool
Bubbles tool Car buying stage Active consideration Brand’s question Who are my competitor set? Insight tool Bubbles Our answer Bubble size: percentage share of the competitor set advert views Real world competitor Bubble colour: set (not segments) Higher percentage of ad views than my car Lower perc
Slide 98: Snakes tool
Snakes tool Car buying stage Deciding preferences Brand’s question Who am I losing out to? Insight tool Snakes Our answer Visualise competitor Our data shows competitor models and how they change through the journey model evolution from research to decision phase 98
Slide 99: Delivering value for car manufacturers
Delivering value for car manufacturers Realising the new Building valuable Evolving our car opportunity relationships using product set and our data, insight and ways of working expertise 99
Slide 100: Products designed to achieve manufacturer objectives
Our products have been designed to achieve manufacturer objectives £ I need to I want I need to convert consumers to I need to build explain the interest and purchase awareness benefits of my hijack my directly from products competition me Branded content Virtual Stock Online High impact display tra
Slide 101: Reflecting digital advertising market trends
And in parallel, reflect digital advertising market trends Shift to truly Continued market Continued Concerns over Shift towards cross-platform investment in usage of data brand safety the automated native advert video to target and viewability purchase of formats (such as campaigns media, often in
Slide 102: InSearch is our native performance product
InSearch is our native performance product 102
Slide 103: InSearch delivers high performance
InSearch delivers high performance Average CTR performance is up Defence campaign – volume brand to 10x times better Click Through Rate (CTR) than standard 1.00% formats 0.90% 0.80% 0.70% Accurate targeting 0.60% meets brand 0.50% marketing 0.40% strategies e.g. defend / conquest 0.30% 0.20% 0.10% 0
Slide 104: InSearch delivers high performance
InSearch delivers high performance Average CTR performance is up Competitor conquest campaigns – multiple brands to 10x times better Click Through Rate (CTR) than standard formats 0.45% 0.40% 0.35% 0.30% Accurate targeting 0.25% meets brand marketing 0.20% strategies e.g. 0.15% defend / conquest 0.1
Slide 105: ae On we, vous) ion KIA) ate CLED
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Slide 106: Video will mean access to new budgets
Video will mean access to new budgets Brands are increasingly looking for brand safe Video is becoming an increasingly important environments to surface £699m factor in many purchase video content decisions +46% £480m 58% H1 2016 H1 2017 of car buyers now state Online video is driving they used vide
Slide 107: Introducing our new video product
Introducing our new video product 107 107
Slide 108: Enabling easy trading through programmatic & self serve
Enabling easy trading through programmatic & self serve 90% • c.50% of our inventory is already traded of the UK’s digital display advertising will be traded programmatically programmatically by 2019 Source: Zenith Programmatic Marketing Forecast • Automated purchase of media continues to grow, with
Slide 109: Conclusion
Conclusion • There is a huge opportunity to help manufacturers sell more new cars to consumers • Our manufacturer relationships are strengthening – we have the team, audience and insights to become a valued partner • We have a high performance product suite that meets manufacturer and industry needs
Slide 110: Questions?
Section title Questions?
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