DIGITAL IN THE DRIVER’S SEAT thinkLA AUTOMOTIVE BREAKFAST 2014

HYUNDAI/KIA/INITIATIVE

2011 2012 2013 2014

INITIAL PUBLIC OFFERINGS

• Internet IPOs Slide

TRP

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DIGITAL IS NOT IN THE DRIVER’S SEAT (at least not yet for auto marketing)

2-3% OF VIEWERS IN-MARKET

70-80% OF BUDGET IN TV

CAN WE TELL THE DIGITAL STORY?

COMPETITIVE MEASUREMENT

• Competitive measurement problems

SHARE OF VOICE FOCUS

Noise of TV hampering measurement

DIGITAL SPEND GETS SHORTCHANGED

MULTI DEVICE COMPLICATES

80%

B

U

I

L

D

I

N

G

20% ANALYSIS

DIGITAL BUSINESS MODEL

*subject to change

COST TO SERVICE PER DOLLAR OF SPEND

$0.05-0.09

$0.02-0.04

$0.15-0.20

P R O G R A M M A T I C

Problem Two – Wild West

WILD WILD WEST

ESTIMATED TRAFFIC FRAUD PERCENTAGE

MURKY ENVIRONMENTS REMAIN

Problem Four – Complexity

COMPLEXITY

COMPLEXITY DOESN’T SCALE WITH SPEND

P R O G R A M M A T I C

MANY BIDDERS FOR THE SAME TARGET

IN SOME CASES 50+ BIDDERS!!!! IN SOME CASES 50+ BIDDERS!!

The Essence of Strategy is

Choosing What Not to Do

- Michael Porter

DEFINED INNOVATION

SCALE WINNERS

FOCUS & EXECUTION