AutoTrader.com Concludes ''Action-Packed'' Year, Accelerates Toward Profitability in 2002
ATLANTA--Jan. 23, 2002--Building off the momentum of 2000, AutoTrader.com, the leading Internet auto classifieds destination and marketplace, further distanced itself from the competition in 2001 by implementing key product and marketing programs other online auto companies have simply been unable to offer their customers. Initiatives including a Certified Vehicles Program with seven leading auto manufacturers, the addition of new vehicle listings to its online classifieds site, a new consumer advanced search tool to help locate the exact car they are looking for more easily and enhanced real-time, user-friendly tools for dealers to better manage inventories and maximize sales potential, have all contributed to solidifying AutoTrader.com's position as the richest online vehicle information resource for consumers and dealers.
"AutoTrader.com further extended its leadership in the online auto industry this year by growing and enhancing the world's largest online auto classifieds site and improving site functionality for everyone -- consumers, dealers, manufacturers and private sellers alike," said Chip Perry, president and CEO, AutoTrader.com. "We are anticipating profitability in Q3 2002 and are committed to delivering an even higher level of value for our customers. This year, more than ever, we will continue to take on the traditional newspaper classified advertising industry by proving to dealers and manufacturers the value of AutoTrader.com as a lower cost and more targeted advertising medium that delivers an enormous audience of prospective buyers."
Tough economic times and remnants of the dot-com shakeout have resulted in a bumpy road for many companies nationwide throughout 2001. In contrast, AutoTrader.com has established clear leadership in the online auto sector and has forged ahead in its objective to become an efficient, revenue-building mainstay by expanding its strategic partnerships and employing creative marketing initiatives. Additionally, AutoTrader.com continues to distinguish itself by providing dealers and private sellers with advertising savings and a highly qualified consumer base, as well as providing buyers with access to the largest online vehicle selection and information.
AutoTrader.com's success throughout 2001 can be attributed to a variety of significant advantages and milestones.
Achievements
1. From Q4 2000 to Q4 2001:
-- Experienced an 89% increase in total revenue,
grossing $17 million in Q4 2001 alone.
-- 31% increase in dealers who have purchased
AutoTrader.com's low-cost and highly-targeted
classified advertising services - 7,000 dealers
nationwide.
-- Average monthly unique visitors increased 57% from
3.9 million in Q4 2000 to 5.8 million in Q4 2001,
breaking 6 million in August and October.
-- 69% increase in vehicle searches - jumping to 25
million per month in Q4 2001.
-- Average monthly page views increased 59%, from 94
million Q4 2000 to 149 million Q4 2001.
2. Ranked the No. 1 automotive site on the Internet by
Nielsen NetRatings.
3. The leading site among consumers locating used vehicles
for sale online - the 2001 J.D. Power and Associates' Used
Autoshopper.com Study.
4. The top automotive site on all AOL properties and one of
the top 20 "keywords" on AOL - passing Amazon, Monster,
HotJobs and Realtor.com.
5. Achieved the highest unaided consumer awareness among all
online automotive sites with in-market car shoppers (2001
Morepace International Study).
6. Named to InfoWorld's 100 innovative organizations
exemplifying 2001's greatest IT achievements.
Inherent Competitive Advantages
1. Unrivaled database of nearly 2 million new and used
vehicles, updated daily by dealers and a quarter of a
million private owners. This database encompasses one-half
of all used cars for sale in the United States.
2. Strong brand recognition among users - half of
AutoTrader.com's monthly visitors access the
AutoTrader.com site by directly typing the URL.
3. Cost-efficient tools for dealers including AdManager,
Dynamic Display Ads and Who's Calling give dealers greater
control over their inventories and maximizes leads.
4. Broadened exclusive relationships with top online services
- placements across all AOL brands and access to eBay's 34
million qualified customers ready to bid on a car.
5. Secured marketing partnerships with numerous leading OEMs
including Lexus, Toyota, Honda, Ford, Chrysler,
Lincoln-Mercury and Audi, creating the largest inventory
of certified cars anywhere on the Internet.
6. Sponsorship strategies with NASCAR, NBA, NFL and NCAA
Basketball to attract highly targeted, qualified
audiences.
7. Innovative online programs such as streaming ads,
interactive newsletters and advergaming promotions to
strengthen brand awareness and generate site traffic.
Moving forward in 2002, AutoTrader.com will focus its efforts on maintaining the largest new and used car marketplace in America, growing dealer partnerships and establishing new revenue streams to support the core business. AutoTrader.com has the realistic and attainable goal of tackling the $5 billion dollar automotive classified newspaper business by continuing to move the advertising budgets of the 78,000 auto dealers in the U.S. to its site, a more targeted and cost effective way of reaching qualified shoppers.
About AutoTrader.com
AutoTrader.com is the Internet's largest and busiest 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 nearly 2 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.