March, 2010

Outdoor Poster CampaignMeasuring ROI in Billboard Advertising

1. Honda Market Master Report Sales of certain models below expected in certain

area of assigned ASA (Area of Statistical Analysis) Models: Accord, Civic, Odyssey Area for improvement: Lehigh Valley, PA

2. High In-Sell from competing Honda

dealership In-Sell: Sales into another dealer’s ASA

Problems

Strategy: o 10 Posters,1 2-Week campaign (March & April)o Requested different panel locations in March and Aprilo Taking advantage of overlap posting time2

Target: o In-town drivers in areas of Easton, Bethlehem, & Allentown,

PA

Message: o Competitive lease pricing on Honda target models

1 Posters: 20-ft wide billboards located in urban & suburban areas2 Due to business relationship, each poster remains posted for an additional 14 days, on average

Solution: Outdoor Campaign

Poster Location Map & ExposureAverage Poster

DEC*: 12,530

Total Daily Views: 125,300

Total Campaign Views: 1.75 M(not including “bonus”

posting period)

* Daily Effective Circulation

Creative: Honda Civic

Creative: Honda Accord

Creative: Honda Odyssey

Auto Sales (March, 2010): Record month (New + Used)

Method – Post-Purchase Survey:n=68 surveys returned (189 cars sold in March, 36% response)

Purchasers indicating they came in because of posters:3 cars (4.41% of surveys)

Estimated portion of total sales: 189 sold x 4.41% = 8 cars3

3Limitations: Estimate does not take into account: - Service & Parts revenue attributable to posters - Outdoor ads as a subconscious branding & awareness tool (influencing future behavior) - Outdoor as one component of overall advertising causing purchase (not indicated on

surveys)

Campaign Response

Gross Profit:8 cars x $3,0004 = $24,000

Costs: $5,000 (10 Posters) + $693 (Production) = $5,693

Net Profit: $24,000 - $5,693 = $18,307322% Return (1-month return)

4Conservative estimate for average profit across new & used vehicles

Campaign Return