AutoTrader.com Posts New Records in Site Traffic, Revenue; Marketing, Advertising and New Strategic Partnerships Boost Results
ATLANTA--Aug. 28, 2001--AutoTrader.com, the Internet's largest automotive marketplace, today announced record gains in site traffic, advertising revenue and leads to car sellers in the second quarter 2001 -- despite a weakened economy and softness in the auto classified advertising category.AutoTrader.com averaged 5.1 million unique monthly visitors this quarter, an increase of 31% over the same period last year. Monthly page views and vehicle searches grew even faster, up 74% and 82%, respectively. Site visitors conducted an average of 25 million searches per month in the second quarter, and more than 1 million daily searches were conducted on several occasions. Leads to car sellers increased 50% to over 5 million per month in the second quarter.
This second quarter growth was fueled in large part by the broadening acceptance of the Internet auto classifieds business model by dealers and consumers, as well as their recognition that AutoTrader.com is the number one player in the industry.
Other key factors driving AutoTrader.com's second quarter growth include:
| -- | Ongoing marketing and advertising campaigns, including sponsorships of NASCAR racing events and NBA and NCAA basketball games on network television. |
| -- | Full implementation of a broader relationship with America Online. This resulted in a 300% increase in traffic from AutoTrader.com's exclusive placements as the sole provider of auto classifieds across all of AOL's brands. |
| -- | Announcements of a new partnership with FordDirect, through which AutoTrader.com is powering the used car search engine on FordDirect.com. |
| -- | Marketing partnerships with manufacturers including Lexus, Toyota, Honda and Audi, who are listing their certified used cars on the AutoTrader.com. |
AutoTrader.com said the number of auto dealers advertising on its site increased 94% over a year ago, which helped fuel a 150% increase in total revenue to $13.4 million in the second quarter. These results were achieved despite a decline of 3.5% nationally in auto classified advertising reported by the Newspaper Association of America during that same period.
"More dealers are advertising with us because they're getting stronger results and a better return on their investment than with traditional media such as newspaper classifieds and TV and radio ads," said Chip Perry, president and CEO, AutoTrader.com. "Our traffic and financial results show that the Internet automotive classified market is real and growing, despite a tough economy. It's one of the few Internet sectors where demand from customers and advertisers is actually increasing."
Two other areas showing strong triple digit growth in the second quarter were auction revenues, driven by AutoTrader.com's exclusive marketing partnership with eBay, and advertising placed by private car owners on the AutoTrader.com site. "Over the past year, we've seen a huge increase in the number of private owners listing their car on AutoTrader.com or selling their car on the eBay-AutoTrader.com site, which shows the power of Internet classifieds and auctions as new sales channels for consumers," Perry said.
About AutoTrader.com
AutoTrader.com is the Internet's largest auto classifieds marketplace and a comprehensive main source for consumers interested in buying or selling a new or used vehicle, or seeking information on price comparisons, safety tips, financing, insurance or warranty information. Through its strategic alliances with Manheim Auctions, Trader Publishing Company, ADP, Inc., America Online and eBay, AutoTrader.com aggregates in a single location a comprehensive database of 1.5 million vehicle listings from 40,000 dealers and 250,000 private owners, which provide consumers the largest selection of used vehicles in their local market.
AutoTrader.com was created in 1997 and is a majority-owned subsidiary of Manheim Auctions, Inc., the world's largest operator of wholesale auto auctions since 1945. Manheim Auctions, a wholly owned subsidiary of media conglomerate Cox Enterprises, Inc., is AutoTrader.com's principal stockholder and a key investor along with Landmark Communications, ADP, Inc., eBay, Inc., and the venture capital firm Kleiner Perkins Caufield & Byers. For more information, visit http://www.autotrader.com or call 404/269-7359.