Longtime industry change agent Chip Perry wrote the playbook for how to use “internal disruption” as a positive force within a traditional media environment. Back in 1997, Atlanta-based Cox Communications tapped Perry as employee No. 1 of a new venture that came to be AutoTrader, easily among the most successful online B2C verticals, with revenues today topping $1 billion.

Perry stepped down from AutoTrader about a year ago, giving him the chance to reflect and observe changes in the local media marketplace. Perry will bring his observations to BIA/Kelsey’s Leading in Local: The National Impact conference, May 7-9 in Atlanta. Perry will speak first at a luncheon for BIA/Kelsey clients and then will kick off the conference with an executive session with BIA/Kelsey CEO Tom Buono and Managing Director Rick Ducey.

We talked to Ducey about Perry and the important role he’ll play at the conference.

“Chip is a pioneer in Internet marketing, Internet advertising and in internal disruption within big companies,” Ducey said. “After taking the year to take stock and see what is going on in the industry, I am so excited to hear what kind of insights he has, what kind of observations he has.”

Check out this video for more of Ducey’s comments on Perry.

The post Looking Ahead to Atlanta: Chip Perry’s Unique Perspective appeared first on BIA/Kelsey - Local Media Watch.

Longtime industry change agent Chip Perry wrote the playbook for how to use “internal disruption” as a positive force within a traditional media environment. Back in 1997, Atlanta-based Cox Communications tapped Perry as employee No. 1 of a new venture that came to be AutoTrader, easily among the most successful online B2C verticals, with revenues today topping $1 billion.

Perry stepped down from AutoTrader about a year ago, giving him the chance to reflect and observe changes in the local media marketplace. Perry will bring his observations to BIA/Kelsey’s Leading in Local: The National Impact conference, May 7-9 in Atlanta. Perry will speak first at a luncheon for BIA/Kelsey clients and then will kick off the conference with an executive session with BIA/Kelsey CEO Tom Buono and Managing Director Rick Ducey.

We talked to Ducey about Perry and the important role he’ll play at the conference.

“Chip is a pioneer in Internet marketing, Internet advertising and in internal disruption within big companies,” Ducey said. “After taking the year to take stock and see what is going on in the industry, I am so excited to hear what kind of insights he has, what kind of observations he has.”

Check out this video for more of Ducey’s comments on Perry.

The post Looking Ahead to Atlanta: Chip Perry's Unique Perspective appeared first on BIA/Kelsey - Local Media Watch.

Prior to his position with AutoTrader, Perry led several digital initiatives at Times Mirror. He has been a true pioneer in the development of vertical online media, making up the rules for what a vertical site should be as he went along. His personal style has also been unique. Any walk through the hallways of AutoTrader’s headquarters with Perry was a joyful exercise in Meet and Greet – he knows almost everyone.

Inside the industry, he is known as a very tough competitor who doesn’t give an inch. The same attitude was reflected in his relations with industry analysts. He challenges every critical comment, but is personally gracious at all times. A model top executive, he could often be found sitting in the back at BIA/Kelsey conferences and auto industry events, taking it all in and ready to exchange ideas with just about anyone.

Some Favorite “Chip Perryisms” Over the Years:

*The secret to success in the auto space is to focus on unmet needs. When it comes to auto sites, what people want are “cars, inventory and specials.”

*We always operate on the assumption that horizontal companies are coming after us.

*Online’s real value is that it is closing the information gap. The biggest gap was making used cars visible. We used to have three percent of them visible; now we have 50 percent.

*The automotive industry is an influencing medium rather than a direct response medium.

*The fundamental role of an intermediary is to influence consumers.

The post AutoTrader Head Chip Perry Resigns; Favorite ‘Chip Perryisms’ appeared first on BIA/Kelsey - Local Media Watch.

Cars still need to be sold by salespeople and that never changes. And most people still want to get on the phone to talk to their dealer. What does change is the ability to find cars on the Web, notes AutoTrader CEO Chip Perry, who was speaking at the Borrell show last week in New York.

The automotive industry is “an influencing medium rather than a direct response medium,” adds Perry. “The fundamental role of an intermediary is to influence consumers” rather than get involved in transactional or pay-per-click models. Just 3 percent of used cars had been listed in the pre-digital days, he noted. But now it is a requirement to have comprehensive listings up on the site. Digital media revenue models such as featured listings won’t work if you can’t get comprehensive listings up, he says.

It also holds down the cost of selling every car. “It’s an efficiency model,” says Perry. AutoTrader’s effective CPM for an association campaign is $375. The effective CPM for a spot TV campaign, on the other hand, will run around $7,346.

AutoTrader itself has been rapidly growing like “a rocket ship,” due in part to key acquisitions, such as KBB.com and backend tools for dealers, which boost value. While AutoTrader hasn’t raised base rates on its dealers for three years, it still is seeing 15 percent annual growth due to addition of tools, says Perry. Revenues have climbed from $626 million in 2009 to $720 million in 2010, and are projected to reach $1.037 billion this year. There has been rampant speculation that AutoTrader is preparing itself for an IPO, but Perry did not address these.

Long term, Perry says AutoTrader’s business will be sustained by drilling down deeper beyond listings. “We always operate on the assumption that horizontal companies are coming after us.” Recently, the company has added features such as comparison shopping for both new and used cars. “What new car cars shoppers really want is inventory,” he says.

The company is also becoming more of a media entity that offers a range of solutions related to auto marketing. With KBB, which lives on as a separate brand, for instance, AutoTrader has developed a trade-in marketplace.

“Trade-ins are the biggest pain point in auto shopping,” says Perry. With KBB’s new deal, dealers can make an offer online and allow users to redeem it at their dealership. It makes sense to do it on KBB since 80 percent go on the site to research the value of their used cars. The new effort is being heavily marketed with TV advertising.

The post AutoTrader’s Chip Perry: ‘We’re an Intermediary, Not a Sales Channel’ appeared first on BIA/Kelsey - Local Media Watch.

Cox Enterprises has sold 25 percent of AutoTrader.com to Providence Equity Partners, a company that manages $22 billion in its portfolio and whose Web site says it likes to take equity shares “between $250 million and $2.5 billion.” Terms were undisclosed. Providence has shares in a wide range of companies, including Univision, NexTag, Hulu and WhitePages.com.

The deal with Providence comes after a tumultuous period in the auto industry that has seen AutoTrader pull back from tentative plans to be spun off entirely with a valuation of $1 billion plus. AutoTrader recently reported annual income of $629 million for 2009, down 3 percent from 2008. The revenue picture, however, is expected to brighten as the auto industry begins to recover from a multi-year slump.

In addition to Providence, Kleiner Perkins has an undisclosed share in AutoTrader dating from its launch in 1997. Those shares are estimated at 8 percent to 10 percent. According to an AutoTrader spokesperson, there are no current plans for KP to divest its shares.

Under terms of the deal, Cox maintains operating control of AutoTrader, but Providence will assume two seats on AutoTraders’ board of directors. CEO and President Chip Perry said in a release that Providence’s “support will enable us to pursue the many organic growth opportunities, as well as strategic acquisitions, that will help improve the products and services we offer our customers.”

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Cox Enterprises reports that AutoTrader.com’s revenue declined three percent from 2008 to 2009,but increased its total revenue by one percent to $629 million, largely due to the addition of print operations formerly managed by AutoTrader Publishing.

The company considers its results very positively, given overall automotive advertising results that it says were down by 15-20 percent. It also noted a five percent overall pickup in user traffic, which increased from 14.2 million unique visitors in 2008 to 14.8 million in 2009.

“2009 was an incredibly challenging year, especially for the automotive industry,” notes CEO Chip Perry. “AutoTrader.com weathered the storm well and has many opportunities that lie ahead.”

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