Video Merchandising for Video Merchandising for AutomotiveAutomotive

Presented August, 2014Confidential & Proprietary

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Our Role in the Video Marketplace

Celebrating “over 300 million videos served”...we’re the largest automotive video provider in the world.

Liquidus makes 5 to 10 million vehicle videos available to the automotive retail marketplace each month, domestically and abroad.

Clients such as GM CPO, Ford Direct, Cars.com, Edmunds.com and more.

MILLION5-10

MILLION250

We’re trusted to deliver the best video by the biggest names in the business.

Liquidus & Video

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The Latest Video Solution from Liquidus…Video 5

Discussion Preview

Demos Best Viewed in Google Chrome.

Why Video Marketing?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

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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.

Why is Video So Popular All of a Sudden?

Why Video

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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

Why Video

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61% of vehicle shoppers research with online video.6

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 all ad formats,

online video is #1 for driving consideration among shoppers.7

of marketing professionals worldwide cite video as the type of content with the best ROI.8

Why Video

4. Cisco, 2013 5. Forbes, 2012 6,7. Milward Brown Digital/Google Vehicle Shopper Path to Purchase Study, September, 2013 8. eMarketer, 2013

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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.

Why Video

9. Borrell Associates, July, 2013

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“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.” *

Why Video

* Automotive News, Jeff Youngs, March 27, 2014.. Citing J.D. Power 2014 Third-Party Automotive Website Evaluation Study,SM

The Top 2 Video Experience sites

are Liquidus video clients

Why Video

Increases Sales Volume & RevenueCritical, low-funnel sales tool that helps close sales

Increased Engagement Rates71% of Liquidus Videos are Played 84% Completion Rate48% Increase in “View Time Per Vehicle”—the #1 predictor of propensity

to buy

Lead Generation Lift13-19% Lift Less than Half the Cost of a Traditional Lead

Syndication & Search Engine Optimization (SEO)Increased Site Traffic & UsabilityGreater listing distribution means more exposure and increased sales

velocity

Why Liquidus Video?Why Liquidus Video?

Slick, fast, reliable, engaging, responsive, affordable and smart…it’s “video advertising

that learns”

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The Only Real-Time Solution in the Market

Why Video

• 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

Benefit: It’s affordable, easy, and always up-to-date regardless of the size of client or inventory…set it & forget it.

Frank describes the advantages

of Real-Time Video

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The Only Dynamic Solution in the Market

Why Video

Benefit: It’s more relevant to each user and more likely to sell the vehicle…it’s video advertising that learns.

“Relevance Marketing”--This platform knows the consumer’s shopping history, device and connection speed and tailors the video content on-the-fly.

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Video 5 is the Fastest Solution in the Market

Why Video

Benefit: Faster availability to help dealers turn inventory and more views from buyers because fewer drop or “time-out”.

• Liquidus Video is Faster in all Respects…• Faster and easier to deploy and update for clients. • Faster to download for car buyers on mobile

More About Video 5More About Video 5

Frank Describes the Benefits of V5Frank Describes the Benefits of V5

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The Next Generation of Video

Video 5 Overview

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

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In a World Where Half of Your Traffic Comes from Mobile Devices, You Need the Solution that Functions Best on Mobile

Video 5 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

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Mobile Video 5 Maximizes Screens on ALL Devices

Video 5 on Mobile

• 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.

Rotated to Landscape:

3-Screen Demo

Vertical:

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-to-date 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-OnsPremium Video Services Add-Ons

Add-On Premium Services

•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

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.”

New-Vehicle Video

Note: Best for dealers whose on-the-lot processors capture new-vehicle inventory.

Add-On Premium Services

•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 dealer-group 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.

“Similar Vehicles” Option

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vSEO & Syndication Services You’ve Come to Expect

Add-On Premium Services

• 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

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Facebook Video Inventory - Socialink

Add-On Premium Services

• 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

MonetizationMonetization

Monetization

•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 Liquidus to keep wholesale pricing lower than competition.

•Liquidus provides the opportunity to pilot and test…to grow with you to validate your success.

Video From Liquidus is a High-Margin Re-Sale Opportunity…

…Or, It’s a Low-Cost, High-Value Marketing Tool for Your Dealer Base

Q&AQ&A

Contacts: Contacts:

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Overview

Topics

• Why Video?

• Video Objectives for Retail

• Optimum Test Verticals

• Critical Factors for Success

• Demonstration

• Business Model