AUTOMOTIVE ADVERTISING Jon Swallen TNS Media Intelligence Please step into my time machine Travel back to Sept. 6, 2007 TVB Forecast Conf. Jon Swallen TVB Forecast Conference September 6, 2007 The auto category has been a bloody mess since the middle of 2005. I Said To You. Jon Swallen TVB Forecast Conference September 6, 2007 We keep thinking it cant get worse but there are no indications a corner has been turned. We still havent found that corner. But we did find a cliff. $10 Billion of Lost Ad Spend In 5 Years -3.7% -6.1% -7.3% $20.2 $19.4 $18.2 $16.9 $14.3 Source: TNS Media Intelligence -15.7% $ % All Segments Are In Decline Source: TNS Media Intelligence Index of Total Ad Spend (2004=100) Segment (e) Factory Dealer Association Local Dealers Total Category % -57% -40% -31% H1 09 Where Did The Money Go? Natl TV 28% Spot TV 26% Newsp 26% Other 16% Web 4% Where Did The Money Go? Natl TV 28% Spot TV 26% Newsp 26% Other 16% Web 4% Natl TV 38% Spot TV 18% Newsp 23% Other 13% Web 7% Spot TV Is Losing Share Of Spend $1.72 $5.2$4.7$5.1$4.6$3.7 Source: TNS Media Intelligence 25.5% Share 24.4% Share 27.7% Share 27.2% Share 26.1% Share $ % +6.4% -9.2% -19.1% -50.5% 18.8% Share As All Segments Pulled Back In H1 09 Source: TNS Media Intelligence - $423 million - $303 million - $179 million Automotive Cutbacks On Spot TV H vs H Source: TNS Media Intelligence -68% -27% -42% -52% -70% -52% -$26 -$82 -$21 -$77 -$55 -$66 Automotive Cutbacks On Spot TV H vs H Source: TNS Media Intelligence -68% -27% -42% -52% -70% -52% Large Markets Have Suffered The Most Source: TNS Media Intelligence % Change In Spot TV Automotive Ad Spend H1 09 vs. H1 08 DMA 1-10 DMA DMA DMA DMA %-49.7%-46.6%-44.6%-38.4% Cash For Clunkers Program Weekly # of :30 Ads Aired By Auto Advertisers May- June 7/67/137/207/278/38/10 National TV9,0569,85110,27111,3927,3027,3667,963 Spot TV (101 DMAs) 133,31374,834146,121202,223160,67688,933135,372 * Includes Factory, Dealer Association and Local Dealers Source: TNS Media Intelligence Key Indicators To Track New vehicle sales Key Indicators To Track New vehicle sales Model introductions and redesigns Key Indicators To Track New vehicle sales Model introductions and redesigns Ad spend per vehicle sold Sources: TNS Media Intelligence; Wards AutoInfo Bank Index of New Vehicle Sales and Ad Spend (2004=100) (e) New Vehicle Sales Ad Spend Per Vehicle Sold Ad Spend vs. Unit Sales Key Indicators To Track New vehicle sales Model introductions and redesigns Ad spend per vehicle sold Dealership closings (GM, Chrysler) AUTOMOTIVE ADVERTISING
