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TrueCar and Yahoo Autos End Exclusive Marketing Agreement

Jason Stein, Editor for Automotive News, broke the story today that TrueCar has ended their exclusive relationship with Yahoo to drive traffic and leads to the TrueCar platform.  The breakup was due to the lack of traffic and leads that Yahoo Autos was producing.


According the the article by Stein:


"Under the revised deal, TrueCar's payments to Yahoo will be triggered when TrueCar receives a minimum number of leads and a minimum number of high-quality leads from Yahoo Autos, according to a TrueCar source. Terms of those minimums were not disclosed."


This does not surprise me especially when walked away from Yahoo Autos.  It would seem that the price that Yahoo thinks exposure on Yahoo Autos is worth is highly overpriced.  It seemed expensive to me that anyone would pay $50 million over three years for the Yahoo deal. 

So I give TrueCar credit for going back to Yahoo and renegotiating their deal.  


On another note, has been working hard with dealers and regulators to get their business model in full compliance with state laws.  Get ready for TrueCar 2.0.


Brian Pasch, CEO

PCG Digital Marketing


Views: 1021

Tags: 50 million dollars, truecar, yahoo, yahoo autos


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Comment by Jason Manning on July 7, 2012 at 8:18pm
I'd stick to MyCars and MyDealer (.com) and manage my own pricing and inventory marketing. Essentially we could hand over everything about our dealers to a variety of Large, Medium and Small vendors out there, but that threatens the idea of a Franchise...period. I believe owners will have to say "No" to Google too. Otherwise, be prepared to give up your franchise. They will not survive. It's ok to say "no" to Google too. They want a big piece of business control and profit. They are on Wall Street too, lest we forget their motive.
Comment by Cliff Banks on July 6, 2012 at 10:33am

Judging from the article, Yahoo's traffic was not translating into leads. This is similar to a few years ago when AutoTrader and would switch "dance" partners each year. One year it would be a partnership with Yahoo while the other had a deal with KBB. It seemed like they would switch back and forth for several years.

What AT and found with both is that the traffic never turned into actual leads for their dealers. In fact, AutoTrader ended a partnership with KBB six months early (2009 If I remember correctly) turning $16 million of potential revenue for KBB into only $8 million.

Comment by Keith Shetterly on July 6, 2012 at 7:46am

Exactly John!

Comment by John L Mecham on July 6, 2012 at 7:43am

Google cars moving into this space is akin to a Walmart moving in next to a Safeway...Time for all dealers to re-evaualte their vendor's value.

Comment by Kathleen Perley on July 6, 2012 at 7:32am

It will be interesting to see how dealerships will utilize both TrueCar and Google Cars.  I think a lot dealerships forget that Yahoo & Bing represent 1/3 of the market share.  Yahoo and Bing's  older and more affluent users are a key demographic that many dealerships can't afford to miss.  

Comment by Ralph Paglia on July 5, 2012 at 10:16pm

It's time... I am headed to TrueCar's office in Santa Monica, CA on Monday to meet with their executive team and learn as much as I can about the changes at TrueCar... Inquiring minds want to know!

Comment by Keith Shetterly on July 5, 2012 at 7:32pm

So, Google launches a pilot of its own search-engine-driven automotive lead service, complete with a tie-in to Google Reviews and G+.  FWIW, a) TrueCar is smart to do this as you point out, and b) TrueCar and other lead providers have to be very worried about Google.  As well as review providers.

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