After the Cars.com iPhone application received more than 200,000 downloads in its first month, Lexus signed on to sponsor the new offering.

Lexus, Toyota's upscale marquee, clearly understands that shoppers are researching their purchase from a mobile device. So the automotive advertiser is taking note of the opportunity to reach in-market car shoppers.

"The Cars.com iPhone app provides true ownership of voice to in-market car shoppers," said Nick Fotis, mobile product manager of Cars.com, Chicago. "As this is our first advertiser, we are beginning with relatively standard positions - an interstitial page and banners."

The Lexus in-application ad units were created by Medialets, New York.

Great reach
The Cars.com Web site, which launched a mobile site in 2007, has seen a surge in mobile shopping activity since the launch of its car shopping application for the Apple iPhone in February.

As much as 10 percent of Cars.com's traffic now comes via a mobile device, and mobile activity now accounts for a quarter of the site's total page views.

Upon opening the Cars.com application, consumers are shown the Lexus Hybrids logo via an interstitial page ad.

Consumers that click on the ad are taken to the Lexus Hybrids results section of the application.

Car shopping application
Launched just two months ago, the iPhone application already accounts for 60 percent of Cars.com's overall mobile traffic.

In addition to its new iPhone application, Cars.com recently launched several enhancements to its mobile product, including a new search option that allows shoppers to search specifically for certified used vehicles.

Also, to better serve consumers who access the site directly from touch screen devices without using the application, Cars.com Mobile now leverages device detection capabilities to provide dropdown menus and optimized styling for seamless operation on more than 200 devices.

Cars.com featured its mobile site in its 60-second ad during the 2010 Super Bowl, which reached the largest audience in television history.

As a result, in the 30 days since the Super Bowl, the mobile site experienced a 42 percent gain in average daily unique visitors compared to the same time period last year.

"Our strategy with this is pretty simple: to provide a tool for consumers to quickly identify cars and dealers near them and monetize the traffic with advertising positions," Mr. Fotis said.