Mobile Enabling the Automotive Industry

An overview of mobile marketing concepts, strategies, tactics and technologies with industry & iLoop Mobile case studies. Prepared and presented by:

Michael Ahearn, VP Strategic Marketing

michael.ahearn@iloopmobile.com

• Leading technology and services making it fast and easy to create, manage and analyze mobile marketing campaigns and content delivery initiatives worldwide

• Award winning iLoop Mobile Platform is a self-service SaaS solution with open APIs for creating state-of-the-art SMS campaigns, mobile sites, mobile coupons, mobile-enabled Web sites and other mobile marketing initiatives

•  Industry leader in mobile marketing strategy, managed service campaign delivery and professional services

• Customers include Fortune 500 brands, agencies, media companies, and other tier-one companies

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About iLoop Mobile

Why Mobile Marketing for Automotive?

• Customer acquisition with database build

• Generate Web and dealer traffic

• Consumer brand awareness

• Customer loyalty and trust with brand affinity

• Customer retention

• Viral marketing/word of mouth

•  Increase top line revenue

Marketing objectives mobile can achieve:

•  Improved customer service and satisfaction

• Deliver highly contextual and personalized messaging

• Cross selling and up-selling

• Lead generation and prospecting

•  Increased interactivity with customers or audience

•  Increased use of traditional & Web marketing channels

What Mobile Marketing Brings to Automotive Brand/Manufacturer Marketing

• Product awareness & new model launches • Brand awareness and affinity • Customer engagement & dialogue • Lead generation/customer acquisition • Dealer support • Educate, especially after sales services

Dealer Marketing • Drive dealership traffic • Customer acquisition • Drive sales of new and pre-owned vehicles • Promote after sales services and sales • Dealer loyalty and customer retention •  Improve and streamline customer service

Retail: Automotive Parts and Accessories • Product information • Retailer loyalty • Promotions to increase top line revenue • Segmented messaging with CRM integration • Location based messaging

234M

156M (67%) 87M (37%) 63M (27%) 22M (9%) 77M (33%) 234M (100%) 72M (31%) 93M (40%)

Voice Video

Mobile Phone Capabilities Use

Comscore Q3 2010. 234m is number of people in US 13 or older who used mobile devices.

Comscore Nov. 2010

Mobile By the Numbers

• 1 in 5 mobile of ALL mobile subscribers today use mobile automotive sites—nearly 50 million and growing exponentially

• 38% of car searches for a vehicle are done from mobile phones

• 23% of all auto shoppers use mobile during car buying process*

• 40% of mobile searches occur when customer is on the dealer lot*

• Manufacturer sites are the most frequently accessed sites, followed by dealers

• Consumers equally interested in upper funnel (vehicle reviews, images, comparisons) and lower funnel (pricing, dealer locations) information on mobile devices

• 20% of vehicle shoppers who use mobile devices in shopping process indicate they have downloaded a mobile app…a majority of these mobile app users prefer to obtain shopping info from mobile sites rather than apps

J.D. Power & Associates October 2010 Automotive Internet Roundtable *ChannelNet January 2011

The Impact of the Smart Phone

Looking Ahead to Q3 2011 Estimates: Mobile Subscribers: 300M+ Smartphone User Base: 150M Mobile Internet Users: 120M Mobile Video Viewers: 90M Neilsen Nov. 2009

US smart phone penetration Dec. 2010: 27% EU smart phone penetration Dec. 2010: 31%

30% US SMART PHONE PENETRATION

FEB. 2011

BY END OF 2011… 50% Comscore Feb. 2011

The Impact of the Smart Phone

• 25% of smart phone users (iPhone, Android) users plan to buy a car in the next year • 78% of these people will use their mobile device as part of the buying process • The proportion of smart phone users planning to buy a car is 3 times that of the

general US adult population • 48% use their phones for doing initial research on a purchase • 44% use their phones for price comparison on the lot • 32% to find a dealership • 23% for contacting dealerships or sellers • Mobile ad networks saw 2-6 times increase in spend for mobile advertising

(Greystripe & Millennial Media)

“Touch-based, rich media and campaigns and customer mobile apps will be the biggest trend in automobile marketing in 2011 and 2012”

—Dane Holewinski, Director of Marketing Hyundai

Greystripe Mobile User Study 3 month period ending 2/15/11

The Mobile Channels • SMS

• MMS: advantage of unlimited text + rich media (video, images, audio)

• Mobile Internet

• Apps: interactive brand/product environments

• Mobile Coupons & Promotions with POS redemption integration

• Location Aware Service (LBS)

• UPC/2D barcodes and picture recognition

9

SMS/MMS

SMS Promotion Campaigns • SMS/MMS Sweepstakes, Poll, Quiz, Vote etc.

• Keyword + Short Code call to action integrated into all traditional and digital media

Mazda 40th Year in NA Promotion

• Objectives: Engage/dialogue with customers, build database, drive traffic (web or dealer), drive new revenue (new and existing customers), promote after sales service

•  Mobile sweeps entry to drive traffic to Web site: Text MAZDA to 62932 for chance to win eco-adventure trip to Ecuador

•  Promoted on print (service reminders, aisle back posters, direct mail) •  SMS provided unique PIN codes to be entered at web site to drive

traffic to target Web content on dealership services and increase service loyalty

•  Registering PIN also offered coupon on services work •  Results: Traffic to dealer service sites and work orders are up •  65,000 entries into the Mazda contest

Web Opt-in with Data Capture

• Web/Mobile Web Opt-in: Get more data than keyword based opt-in • Web offers user selectable

content • Web: All preference and

profile data is captured for CRM database build, analysis, targeted messaging, and use in other marketing channels (email, print, direct marketing etc.)

Customer Acquisition & Mobile Messaging

Mobile Site Opt-in

SMS: Customer Service Alerts & Coupons

• 9 different service reminders

• 4 different coupons

• Alert opt-in for continued promotional messaging

Full Cycle Mobile Coupon Redemption 1

5

6

4

3

2 SF BMW: 15% off all major service checks this week, ends 4/31/11. Txt STOP to stop.Txt HELP 4 help. Msg & Data Rates May Apply.

SONIN BMW

FREE BMW TIRE CAPS

Free set of 4 custom BMW tire caps with brake repair over $100.

UPC/EAN or 2D (QR, Matrix, Microsoft etc.)

SMS for Dealership Customer Service • Calterdon BMW dealership, Inverness, Scotland • SMS for cost savings in customer service • Reduced phone bills for bookings, updates and service reminders • Increase in-store attention • SMS customer service notifications less costly than voice • Reduced cancellations

Reminders for: • Pick up cars • Courtesy messages after their car has been serviced • Notification that parts are in stock • Customers can send SMS messages for additional work while care is in shop

SMS Dynamic Messaging & CRM Integration

• Use CRM databases for dynamic messaging—insert names, use profile data and preferences to personalize messaging and create rule sets that increase relevance and conversion

• Integrate mobile campaigns with existing or external CRM databases, data feeds and content management systems

• Integrate with your existing reporting systems—send data from the mobile platform to external reports and view reports in your reporting systems

Hello John, San Francisco BMW invites you to preview the 2011 BMW 1 Series this Sunday. Txt STOP to stop.Txt HELP 4 help. Msg & Data Rates May Apply.

Message components sourced from existing CRM database and dynamically integrated into the message

Smart Messaging: Database Integration

Daimler Autowerks The heat wave continues here in LA! Keep your AC running smooth,10% off all AC repair services or coolant changes. Exp.9/31/11

Advantages to Smart Messaging: !  Personalization and point-of-need relevance

increases participation !  Time and place relevance increases

participation !  Contextually relevant messaging increases

acquisition, conversion and loyalty

“Everyone receives the same offer” mobile promos or coupons can have unknown relevance when delivered.

•  Smart Messaging integrates with data sources such as news, weather, finance, CRM consumer profile, inventory etc. instantly adding relevance

•  Smart alerts can know: !  Who the customer is !  Where they are !  What’s happening around them !  When they want something !  Why they need or want it

Smart Messaging: Example User Flow

Text opt-in for either single promo message or to opt-in to alert group e.g. “Text LEXUS and your zip code to 12345”

62407

Miami

Lexus 33128

Database

Weather Stock Market

Location Look Up Product Inventory

Past Consumer Purchases Any Other Event or Data Sets

Consumer Profile Data

Database receives keyword opt-in and delivers a message or coupon based on external events or information in the database

Here’s something special for you to celebrate your birthday. Great deals on leases on our most luxurious models. Code f5mt Exp. 5/31/11

Messages sent based on stored customer profile data with unique redemption code.

By Consumer Profile Data

SMS Only Coupon: Contextually relevant coupon is delivered based on keyword + database referencing with unique redemption code.

It’s a scorcher in Miami today! Keep your AC running smooth,10% off all AC repair services. Code 46eyw Exp. 3.31/11

Ready to go skiing? Lexus ski racks 25% off this week only. Code 34r39r Exp. 10/31/11

Contextually relevant coupon delivered based on keyword/zip referenced against weather database

STORE + 10507 Sends coupon for cold weather gear based on cold weather reading for zip code

By Weather

Multimedia Messaging (MMS)

•  Multimedia Messaging Service (MMS) is a rich media messaging service that allows mobile users to send and receive messages that can include graphics, animations, slide shows, photos, audio, video, and unlimited text (no 160 character SMS limit)

•  It can it provide marketers with increased ad effectiveness over SMS

•  Unlike the Mobile Web, this media resides on the user’s mobile phone

•  Today, available on most mobile phones/carriers but some handset/carrier support variations which may require WAP offload

Barcode Coupons

Video & Rich Media Delivery

•  Location aware messaging for single SMS offers or alert group/subscription campaigns

•  Geo-fencing for just in time messaging

•  Choice of Cell ID/Sector ID or Assisted GPS for best case position fixing using carrier cell towers

Location Based Services

SF Honda Come into the SF Honda dealership on Market and S. Van Ness for test drive of new 2011 Prius.

2D Codes for Information Delivery

• Lead customer to mobile site for information of any kind: vehicle specs, gas mileage, safety, comparison of different models/brands

• Deliver rich media content, especially video, games and branded content

• Deliver promotional marketing e.g. coupons & promotions in other media

2D Codes for Information Delivery

• 2D codes can be promoted in any graphic based marketing channel • Option of SMS keyword & short code delivering link for

same information • Note: NYT lifestyle content for brand affinity, not dry auto

specs or standard auto marketing content

Ford ad in New York Times Sept. 2010

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Mobile Internet & Apps

•  Banner ads on mobile portals such as cars.mobi, MSN.mobi, Yahoo Mobile and the Admob ad network to generate traffic

•  30 million ad impressions across the mobile Internet, 140,000 new unique visitors to the Jaguar XF mobile site. (Nov 07-May08)

•  Target audience: male, 35 to 54 years old, and with a high level of household income

•  12,000 videos downloaded •  18,000 wallpapers downloaded •  For users who visited beyond the home page,

the average dwell time was 2 minutes •  1.2% requested an email brochure by

entering email into the WAP site •  2.6% located their nearest dealer to arrange

a test drive

Mobile Internet: The “Early Days” Circa 2008

•  Jaguar Australia •  Banners ran in mobile sites for The

Australian, News.com, Cnet, ZDNet, business & finance sections of carrier portals, other mobile ad netoworks

•  19,000 display banner click thrus •  4 percent turned into qualified leads

(700) •  Site includes SMS test drive

appointment and alert opt-in

Mobile Internet: 2010

Integrated Marketing: TV/SMS Alerts/Mobile Web

Experience the 2011 Jaguar XJ. Exclusive 360 tour, videos & more at http://www.jaguar.mobi/r/T66080477DFC Data rates may apply. To optout send STOP

Join the Jaguar Platinum Celebration. Test drive a 2011 Jaguar http://www.jaguar.mobi/r/T66042872400 or reply DRIVE + ZIP. Data rates apply. Optout send STOP

Drive a stunning new Jaguar. Reply with your ZIP code & your local Jaguar dealer will contact you to arrange an exclusive test drive. To opt out send STOP

Text JAGUAR !to 524827 !

National TV ad campaign for 2011 Jaguar XJ

iPad & iPhone Apps

Rich Media Delivery

Dealer Service Dept.

Dealer Info & Pricing

iPhone App “iConfigurator” Design Your Own Jaguar

Click Through Experience with Display Ads

• Site localized for the user by zip code query–system then delivers local dealer’s site built from standardized template •  Individual dealer sites feature

content and information specific to that dealership from data feeds (used car inventory etc.) • Content includes new model info,

pre-owned inventory, directions with map, specials, and service & parts info • Videos of Lexus models • Click-to-call triggers call to

dealership • Viral “tell-a-friend” site forwarding

Mobile sites for local Lexus dealerships. Auto-generation of site pages for individual dealerships via integration with national Lexus content database.

Scalable + Location Relevant Dealer Marketing

A Scalable Solution for National Dealer Networks

Auto Parts: Utility and Relevance is Key

Advance Auto Parts Mobile Site • Store location • DIY videos • Step-by-step instructions for

customer support in-store for specific activities • Barcode coupons (POS code entry

with roadmap to scanner redemption)

Smart Phone Apps Aston Martin “Explore” iPhone App 2010

• Start app with in-car ignition sequence • Rev engine with accelerator • Judge the speed of your own car

with speedometer • Engine sounds of V12 & V8 • Tour of headquarters • Rev James Bonds’ car of choice the

DBS using the accelerator • Brand emphasizes the viral

“shareability” of the environment with social network tie-in • Great demographic match for target

audience

Phone App Evolution

Aston Martin “Experience” iPhone App 2011

• Uses phone’s GPS to discover the nearest roads and destinations • Exclusive content “product leaks” • Explore exotic road courses • City guide of 40 cities with exotic

places (bars, restaurants) that associate with Aston Martin lifestyle • Uses telemetry using the iPhone’s

accelerometer and gyroscope to display the G force placed on the vehicle • $5.99 to download…”premium

brand reinforcement”

More Than a Game: Immersive Brand Environments

VW GTI Race to Win iPhone App 2010

• New GTI launched with state-of-the-art racing game totally branded VW GTI…all cars in game are GTIs • Product info • Post scores and replays could be

posted on YouTube • Dealer lookup and info

RESULTS • #1 app in 36 countries • 6M downloads • 81% increase in sales leads at

dealers • 80% increase in test drives • 86% increase in quote requests • Executed at 3% of normal launch

budget • No paid media for promotion:

social, viral, live events and PR powered promotion

Industry Resources

Industry Portals !  Mobile Marketing Resource Center (open community) www.mobilemarketingresources.net !  Mobile Marketer: www.mobilemarketer.com !  Mobile Commerce Daily: www.mobilecommercedaily !  Mobile Thinking: www.mobithinking.com

Trade Associations & Industry Enablers !  Mobile Marketing Association: www.mmaglobal.com !  Direct Marketing Association: Mobile Marketing Council http://www.the-dma.org/segment/mobile !  US Short Codes Administration www.usshortcodes.com

Thank You

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