DMI Video Overview Presented August, 2014 Confidential & Proprietary DMI & Video Our Role in the Video Marketplace 5-10 MILLION DMI makes 5 to 10 million vehicle videos available to the automotive retail marketplace each month, domestically and abroad. 250 MILLION Celebrating “over 300 million videos served”...we’re the largest automotive video provider in the world. Clients such as GM CPO, Ford Direct, Cars.com, Edmunds.com and more. We’re trusted to deliver the best video by the biggest names in the business. Page 2 Discussion Preview The Latest Video Solution from DMI…Video 5 Demos Best Viewed in Google Chrome. Page 3 Why Video Marketing? “If a picture’s worth 1,000 words, a video is worth 1.8 million words per 1 minute of video” - Dr. James McQuivey, Forrester Research Why Video Why is Video So Popular All of a Sudden? It’s become cheap, commoditized and distributed, thanks largely to YouTube Video is better than text and images (and is replacing them) De-complicates complex products such as automobiles, real estate, etc. Page 5 Why Video of consumers report that videos increase their likelihood of making a purchase on a mobile device.1 of video researchers plan to watch auto videos for the next time they shop for a car, compared to 78% last year.2 shoppers visited a store online or in-person as a direct result of watching a video.3 1. Adobe Mobile Consumer Survey, 2012 2. Millward Brown Digital/Google Vehicle Shopper Path to Purchase Study, September, 2013 3. ReelSEO, August 2012 Page 6 Why Video Of all ad formats, 61% of vehicle shoppers research with online video.6 online video is #1 for driving consideration among shoppers.7 Internet video traffic will be 69% of all global consumer Internet traffic in 2017.4 YouTube’s Vice President of Global Content Robert Kyncl said that video would soon be 90% of Internet traffic.5 of marketing professionals worldwide cite video as the type of content with the best ROI.8 4. Cisco, 2013 5. Forbes, 2012 6,7. Milward Brown Digital/Google Vehicle Shopper Path to Purchase Study, September, 2013 8. eMarketer, 2013 Page 7 Why Video A Major Growth Opportunity for Resellers Online videos will account for $9.12 billion in dealer ad dollars in 2018 up from $1.14 billion last year, and $690 million the year before, according to a Borrell forecast.9 IAB predicts 2018 to be over $12 billion. 9. Borrell Associates, July, 2013 Page 8 Why Video “J.D. Power to Third-Party Automotive Websites: Video Content is King” “More than two-thirds (68%) of vehicle shoppers surveyed by J.D. Power reporting that video viewed on third-party websites is "important" in their online shopping process.” * The Top 2 Video Experience sites are DMI video clients * Automotive News, Jeff Youngs, March 27, 2014.. Citing J.D. Power 2014 Third-Party Automotive Website Evaluation Study,SM Page 9 Why Video • Increases Sales Volume & Revenue – Critical, low-funnel sales tool that helps close sales • Increased Engagement Rates – 71% of DMI Videos are Played – 84% Completion Rate – 48% Increase in “View Time Per Vehicle”—the #1 predictor of propensity to buy • Lead Generation Lift – 13-19% Lift – Less than Half the Cost of a Traditional Lead • Syndication & Search Engine Optimization (SEO) – Increased Site Traffic & Usability – Greater listing distribution means more exposure and increased sales velocity Why DMI Video? Slick, fast, reliable, engaging, responsive, affordable and smart…it’s “video advertising that learns” Why Video The Only Real-Time Solution in the Market • No out-of date videos and slow turnarounds • No clunky, static hardfiles (except where required for SEO) • No high costs of production, editing, and re-deployment Frank describes the advantages of Real-Time Video Benefit: It’s affordable, easy, and always up-to-date regardless of the size of client or inventory…set it & forget it. Page 12 Why Video The Only Dynamic Solution in the Market “Relevance Marketing”-This platform knows the consumer’s shopping history, device and connection speed and tailors the video content onthe-fly. Benefit: It’s more relevant to each user and more likely to sell the vehicle…it’s video advertising that learns. Page 13 Why Video Video 5 is the Fastest Solution in the Market DMI Video is Faster in all Respects… - Faster and easier to deploy and update for clients - Faster to download for car buyers on mobile Benefit: Faster availability to help dealers turn inventory and more views from buyers because fewer drop or “time-out”. Page 14 More About Video 5 Frank Describes the Benefits of V5 Video 5 Overview The Next Generation of Video Video 5 Player - Customizable Layout Custom Dealer-Level Branding, Messaging, Promotion Elements, Colors, etc. Device Detection—expand player size, shape in any direction. Can Interact with VDPs—pull page data into video, and expand into content Vehicle Marketing - Enhanced CPO Overlays Voiceover Syncs to Text Enhanced Video Scripts Enhanced Voice Talent Video Player Framework - High-Definition Fast download Platform Customization Additional Demo on a VDP Page 16 Video 5 on Mobile In a World Where Half of Your Traffic Comes from Mobile Devices, You Need the Solution that Functions Best on Mobile V5 Downloads instantly because it’s HTML… - Better than HTML5 because it works on all browsers - Several times faster than any competitive offering on mobile - Lifts video engagement and completion rates - Reduces wait-time frustration, download pauses, and consumer video exits Page 17 Video 5 on Mobile Mobile Video 5 Maximizes Screens on ALL Devices • Custom-tailored to adapt and maximize any mobile-device screen— horizontally or vertically. • Doesn’t leave gaps on either side of the player…fills screen for maximum viewability. Vertical: 3-Screen Demo Rotated to Landscape: Page 18 Video 5 Benefit Summary Features Advantages Benefits HTML Based Downloads instantly - faster than any competitive offering More views and completions - users won't give up on downloading Dynamic, Real-Time Updates made to your listings automatically change in the video player Users see the most current and up-todate information, such as price Customizable The player can have your own look and feel - meets your brands standards and selling objectives Maximizes impact and leads Immersive Can include other videos and links to information, such as financing Provides users the information they really need/want Device Detection The system detects the device and can instantly adjust the length, content, and shape of the video accordingly Users get a video experience tailored to their connection and device Behavior Detection Instantly reacts to the user. Selects, suppresses and arranges content based on user shopping history Learns with each view what a customer’s shopping for to give them personalized, relevant info Integrates w/ Web Page – w/o Blocking Page Content Can extract data from a Web page Video data is consistent with page Premium Video Services Add-Ons Add-On Premium Services New-Vehicle Video • Provides Additional Data for New Inventory • Includes Localized Incentives & Financing Info that Drive Purchase • Shows Down-Funnel Consumers the Exact Vehicle They Can Buy • May Be Eligible for OEM Co-Op Funding Note: Best for dealers whose on-the-lot processors capture new-vehicle inventory. According to KBB Market Research… “90 percent of vehicle shoppers would prefer to view actual photos of new vehicles currently on the dealer's lot than view stock photography of a vehicle they are interested in buying.” Add-On Premium Services “Similar Vehicles” Option • Keeps prospects on the lot if they don’t find the exact vehicle they want right away • Also great for upselling into better trim packages. • Great for dealer and dealergroup websites. When dealers use their On-The-Lot Processors to capture images of new inventory (as well as used) this is a strong lead-retention tool. Add-On Premium Services vSEO & Syndication Services You’ve Come to Expect • Syndication to Dealer YouTube Accounts • Model-Level video that’s non-VIN-specific can be deployed into dealer YouTube accounts to maximize traffic from general search criteria • Unlimited Syndication to Dealer Sites & Major Portals - AutoTrader.com, Cars.com, EveryCarListed, Vast, etc. - TubeMogul = dozen additional video destination sites • Additional SEO services - Microsites add another location for SEO, provide alternative vehicle selections and drive traffic back to your site - Video Site Maps help search engines find and list video • Foreign Language Integration Page 23 Add-On Premium Services Facebook Video Inventory - Socialink • Automatically Keep Your Inventory & Videos in Sync w/ Latest Inventory Updates • Connect Your Inventory to Over 500 million* Users • Application Easily Installs on Dealer’s Existing Facebook Page • Fully Integrated into your Dealer Facebook page Page 24 Monetization Monetization Video From DMI is a High-Margin Re-Sale Opportunity… • Mark-ups can range from 100% to 300% depending on volume. • Even with high margins, you stay price competitive at retail. • Real-time technology allows DMI to keep wholesale pricing lower than competition. • DMI provides the opportunity to pilot and test…to grow with you to validate your success. …Or, It’s a Low-Cost, High-Value Marketing Tool for Your Dealer Base Q&A Contacts: