Derry 3-9 Kerry 4-24: Derry may have taken the lead at Dean McGlinchey Park, Ballinascreen with a superb catch and strike by Paddy McCloskey in the eighth minute, but that was as good as it would get for the remainder of the first half.
Kerry's top scorer Shane Nolan put them on course for victory with a goal in the 15th minute that put them 1-5 to 1-0 ahead.
Nolan also scored six points in the opening half, three from '65's.
With Daragh O'Connor landing 0-4 from the middle of the field and full forward Aidan Boyle flicking two long balls to the net in the 30th and 35th minutes, Derry were 17 points adrift until an Alan Grant free eluded all.
Derry did not throw in the towel. Continued good play from keeper McDermott, Brendan Rodgers and Paddy McCloskey giving Kerry a sterner contest.
Kerry got their fourth goal 10 minutes into the second half to lead 4-14 to 2-3, the accuracy of Nolan (0-5) and O'Connell (0-3) kept Kerry comfortably ahead.
Derry had to wait until 10 minutes from time for their third goal from Jonathan O'Dwyer. Manager Ger Rogan stated bluntly, "It was a bad result. We had a bad day."
Derry: D McDermott; A Rafferty, L Og Hinphey, E McGuckin; R McCloskey, O McCloskey 0-1, D O'Neill; M Warnock, B Rodgers 0-1; A Grant 1-4, 0-3 frees, 0-1 '65', S McCloskey 0-1, T McCloskey; J O' Dwyer 1-1, P McCloskey 1-0, P Cleary, T Hendry for P Cleary (56), C Convery 0-1 for R McCloskey (63), M O'Hagan for D O'Neill (63)
Kerry: T Flynn; D Fitzel, B Murphy, J Leahy; S Weir, A Fealy, K Carmody; J Egan 0-1, D O'Connell 0-7; M Boyle 0-1, D Collins 1-1, C Harty 0-1; S Nolan 1-11, 0-4 '65's, 0-5 frees, A Boyle 2-0, D Butler 0-1, J Casey for J Leahy (39), P Lucid 0-1 for D Collins (50), B O'Leary for K Carmody (50), P O'Connor for D Butler (57), K Orpen for S Weir (57).
Referee: Garrett Duffy (Antrim).