AUDIENCE BUYING:

WHY BUY SEGMENTS?

2|

The Vehicle Market has Fragmented, Blurring

Traditional Segments…

sedan SUV

crossover

luxury non-lux

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

3|

…Making It Harder to Effectively Reach the Right

Auto Shoppers

Kelley Blue Book. © 014 Kelley Blue Book Co., Inc. All Rights Reserved.

4|

Focus On The Right Audience - Those Seeking Info In the digital auto shopping landscape there are shoppers that are either Decided, Money-Focused, or Evaluating

ALREADY DECIDED Shoppers that bee-line to a vehicle selection, they

are Direct & Determined

BARGAIN SEEKERS Everyone is price-sensitive, but getting the best deal

is all that matters to Price Conscious shoppers

KBB.com auto shoppers

are heavily cross-

shopping models

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

KNOWLEDGE SEEKERS The majority of auto-shoppers are Cross-Shoppers,

learning about and evaluating their options

5|

Knowledge is Power AND Where Consideration

Sets are Formed Shoppers are progressively using more of KBB.com’s research tools and

enhanced New Car content during the “Knowledge Phase” of car shopping

Source: KBB.com Omniture: 1/1/2013 – 12/31/2013 Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

26% 28%

34% 35%

Q1 2013 Q2 2013 Q3 2013 Q4 2013

Share of Traffic to KBB.com Knowledge Content

6|

Knowledge Seekers are Engaged

1: Q2 2014 KBB.com Omniture SiteCatalyst Most Popular Section

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

OUR CONTENT TYPES

Latest News Buyer’s Guides Editor’s Pages 10 Best Lists

Awards

of visitors to KBB.com editorial content pages viewed

more vehicle details onsite.1 80%

7|

KBB.com Site Redesign Boosts Segment Shopping

Impressions to New Car Category pages surging, due to improved visibility

on site entry-points and the Shoppers intent module refresh…

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

Before: After:

…resulting in additional opportunities

to target by segment in 2015.

8|

Missing Segment Presence is a Valuable Audience Loss The KBB.com content landscape aligns with Shoppers Segments

New Vehicle

Expert Reviews

350+

100+

Top Tier Content

• Car-buying oriented Latest News

• Top 10 Lists & Other Editorial Accolades

• Comparison Tests

• Advice Articles • Automotive Feature & Advice Videos

• Expert & Consumer Reviews & Ratings

Our Valuable Audience

16.5MM

Metrics sourced from Omniture SiteCatalyst.

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

Page Views within New Car News &

Advice Monthly

9|

KBB.com’s Content Delivers Valuable Audiences

Offer Valuable Content

KBB.com’s content goal is to deliver valuable content

such as 10 Best lists, reviews, photos, and videos to the

highest-interest segments of the market

Reach Undecided Shoppers

Valuable content for our consumers means advertisers

can reach undecided shoppers in those segments with

a relevant message about their products

Quick & Easy Access to Information

Our knowledge seeking visitors get quick and easy

access to information that can help guide their car-

buying choices

Influence Shopping Audiences

Advertising partners have the opportunity to reach ready-

to-buy audiences as they form their purchase decisions

Relevant content for the most efficient market-segments on KBB.com

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

10|

Increased Relevancy of Advertising Next to our

Segment Content Sharply Improves Performance In just four weeks, advertiser’s model overtakes two key competitors

Source: Omniture Data 1/1/2013 – 1/26/2014

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14

Tra

ffic

Sh

are

Sponsor Model’s Share of Competitive Traffic

Model 1 Model 2 Advertiser Model Model 3 Model 4 Model 5 Model 6

Sponsor’s

January

Jump

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

11|

Combat the blurring of segment definitions with a strategic audience approach to

effectively get in front of auto shoppers within your cross-shopped set.

NEW CAR

SHOPPERS SEGMENT

KBB.com’s turnkey, relevant new car model opportunity

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

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Strategically Reach Knowledge Seekers Align your buy to cross-shopping behaviors

Source: Kelley Blue Book Market Intelligence Cross-Shopping Information. Omniture SiteCatalyst Q2 2014. Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

+216% Reach Increase in

Shoppers Segments vs. Traditional Segments1

Traditional Segments do not align with shopping

behaviors where SHOPPERS SEGMENTS account

for vehicle size & luxury model options

impacting cross-shopping behaviors

Traditional Segments Shoppers Segments

• Mid to Full-Size SUV/CUV/Minivan/Van

• Small SUV/CUV, Luxury SUV/CUV

• SUV

• Crossover

• Minivan/Van

Traditional Segments Shoppers Segments

• Hybrid

• Electric • Hybrid/Electric/Diesel

Related shoppers

segment groupings align with cross-

shopping behaviors

13|

A New Way to Buy Vehicle Segments for 2015

Buyer’s Guides:

Small Luxury

Sedan

Entry Luxury

Cars

Luxury Cars Luxury SUV/CUV Small Cars Mid to Full-Size

Cars

Buyer’s Guides:

Midsize Sedans

Small SUV/CUV

Buyer’s Guides:

Compact SUVs

Mid to Full-Size

SUV/CUV/

Minivan/Van

Buyer’s Guides:

Midsize Luxury

Sedan

Buyer’s Guides:

Compact Cars

Buyer’s Guides:

Minivan, Midsize

SUVs

Pickup Hybrid/Electric/

Diesel New Car News

Buyer’s Guides:

Pickup Truck

Buyer’s Guides:

Luxury SUV/CUV,

Luxury Compact

SUV

Introducing An Audience-Focused Strategy: Shoppers Segments

14|

Capitalize on KBB.com’s Strategic Audience

Approach – NEW CAR SEGMENT SHOPPERS

• Be present where your competitors

are to highlight your model’s

advantages

• Refined segments defined by

vehicle type and similar price-point

• One buy lets you reach segment

shoppers at multiple touch points –

New Car Category & Content

Pages

• A 2014 segment audience

package helped the advertiser’s

share of KBB.com traffic jump 50% --

surpassing two competitors in 4

weeks

Source: DFP-P Data – Jan 1,’14 – Jan, 31,’14 *Benchmarked Against: OEM Advertisers (2013) ‘All Car Placements’

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

15|

Our National Ad Solution Segment Opportunities

USED CAR SEGMENT SHOPPERS SEGMENT SHOPPERS SPONSORSHIPS

NEW CAR SEGMENT SHOPPERS NEW CAR SEGMENT SHOPPERS

NEW CAR SEGMENT SHOPPERS NEW CAR TABLET EXPERIENCE

ALL SEGMENT SHOPPERS KBB CONNECT &

KBB.COM BEHAVIORAL TARGETING Target to users on KBB.com who fall into purchased

segments based on their on-site behavior

SPONSORSHIP IMPRESSION-BASED

Entry Luxury Cars Luxury Cars Luxury SUV/CUV

Small Cars Mid to Full-

Size Cars Small SUV/CUV Mid to Full-Size

SUV/CUV/ Minivan/Van

Pickup Hybrid/Electric/

Diesel New Car News

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

16|

Subtext

APPENDIX

Top-Tier Media Coverage of KBB.com 10 Best Lists

Sedan or SUV – which makes a

better family car?

Nissan Leaf tops Kelley Blue Book's

latest 10 best 'green' car list

Top 10 fuel-efficient cars for

2013 Six Greenest Cars Made in

America

KBB.com names the Best

Family Cars of 2013

Top 10 Green Cars for 2013

How do you find the best green cars?

The 10 Best Green Cars

Fuel-efficient vehicles fill out best

family cars list for 2013

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

19|

KBB.com’s Content is a Pivotal Touch Point

Auto-Shoppers Tap The Trusted Resource® to Make Informed Decisions

Consumer-focused

Simple Clear

Concise

Authoritative

Trustworthy

Helpful

Friendly

Accessible

KBB.com’s Editorial Voice Features Tons of Helpful Segment Content

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.

20|

New Car Segment Shoppers Existing segments and its association with sub-segments:

How this works:

• Advertisers who purchase the Mid to Full-Size Cars New Car Segment

Shoppers will have their ads running in the Sedan, Wagon, Coupe,

Hatchback and Convertible (All Cars) New Car Segment pages

• Advertiser will no longer purchase the category icon segment names.

They will purchase the New Car Segment Shoppers refined sub-

segment names.

• The ad impressions from the category icon path will feed the sub-

segments. In the case of sedan, those impressions will feed into mid

to full-size cars product.

• New Car Segment Shoppers is a bridge solution to offer you a more

relevant audience for your message, in the future, we hope to

redesign the category navigation and category icons to align more

with how people shop and how advertisers market cars,

Kelley Blue Book. © 2014 Kelley Blue Book Co., Inc. All Rights Reserved.