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J.D. Power and Associates Reports: Online Advertisers Are More Likely to Effectively Reach New-Vehicle Buyers at Travel, Special Interest and Finance Web Sites Than Most Automotive Shopping Sites

Posted on: Monday, 31 July 2006, 15:00 CDT

WESTLAKE VILLAGE, Calif., July 31 /PRNewswire/ -- Targeting new-vehicle buyers at travel, special interest and finance Web sites is considerably more effective for upper-funnel brand marketing than placing advertising on most automotive shopping sites, according to the J.D. Power and Associates 2006 Online Media Study(SM) -- Wave 1 released today.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)

The inaugural study is the only online media research in the industry that is based on a random national sample of 10,724 verified new-vehicle buyers with Internet access who purchased a vehicle in September or October 2005. The study takes an in-depth look at the Internet usage and behavior of new-vehicle buyers to identify Web sites that most effectively target desirable advertising audiences in terms of reach, scope and cost.

"In terms of Internet advertising, once consumers visit an automotive shopping site, they've already narrowed their vehicle consideration set, which means that online advertisers are missing an ideal branding opportunity," said Steve Witten, executive director of automotive research at J.D. Power and Associates. "By focusing on new-vehicle buyer behavior on the Internet before they begin actively shopping for their next new vehicle, automotive marketers can identify the Web sites with the highest probability of reaching prospective buyers more effectively than ever before."

While most Internet users are reached by the most popular sites such as Google and Yahoo!, the study finds new-vehicle buyers can be found following their interests and lifestyles at sites such as WebMD and Home Depot five times more often than general Internet users. Given their affluence, these buyers use financial sites such as Yahoo! Finance and MSN Money six times more often than general Internet users. They are also four to five times more likely to use travel sites such as Expedia.com or Travelocity than general Internet users. The Online Media Study uses general Internet user behavior from Compete, Inc. to demonstrate comparisons with new-vehicle buyers.

"While new-vehicle buyers are a niche of only 6 percent of adults in any one year, they are a highly desirable group of consumers for advertisers, and they behave very differently online than general Internet audiences," said Witten. "This is a significant opportunity for marketers, especially when they can analyze down to the vehicle segments from which these buyers cross-shop. Marketing is often the most inefficient part of any business in terms of spending. By understanding where certain consumers spend their time online rather than relying solely on general Internet visitation numbers, marketers are able to reach key audiences, often at fees that provide more bang for the buck."

The study finds that visitation to particular Web sites can vary greatly by the type of vehicle consumers are likely to purchase. For example:

* Large pickup buyers have above-average visitation rates to NASCAR.com and many home improvement sites * Midsize pickup buyers are much more likely than others to visit sports-related sites * Female prospects for mini vans and large SUVs frequent Disney Online and game sites * Those interested in sports cars not only visit auto enthusiast sites, but also are frequent visitors to several travel-related Web sites * Luxury buyers are more than twice as likely as non-luxury buyers to visit Apple's iTunes music store, due in part to high ownership levels of MP3 players in this segment

Percentage of Web Site Visitors among General Internet Users and Verified New-Vehicle Buyers

General Internet Verified New-Vehicle Index (New-Vehicle Users(1) Buyers Buyers vs. General) MASS MARKET/ PORTAL SITES Google 75% 82% 109 Yahoo! 69% 72% 104 SPECIALTY SITES Expedia.com 9% 40% 444 Travelocity 7% 35% 500(2) Web MD 5% 27% 540 The Home Depot 5% 26% 520 Yahoo! Finance 3% 20% 667 MSN Money 3% 19% 633 AUTOMOTIVE SITES Kelley Blue Book 4% 19% 475 Edmunds 3% 12% 400 (1) General Internet user data provided by Compete, Inc. (2) Verified new-vehicle buyers are five times more likely to visit a site like Travelocity than general Internet users. About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 290 offices in 38 countries. Sales in 2005 were $6.0 billion. Additional information is available at http://www.mcgraw-hill.com/ .

Media Relations Contacts: John Tews Syvetril Perryman J.D. Power and Associates J.D. Power and Associates Troy, Mich. Westlake Village, Calif. (248) 312-4119 (805) 418-8103 john.tews@jdpa.com syvetril.perryman@jdpa.com Gibson Patterson JMPR Public Relations Woodland Hills, Calif. (818) 992-4353/cell: (310) 722-6060 gpatterson@jmprpublicrelations.com

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. http://www.jdpower.com/corporate

Photo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-aPRN Photo Desk, photodesk@prnewswire.com

J.D. Power and Associates

CONTACT: John Tews, Troy, Mich., +1-248-312-4119, john.tews@jdpa.com, orSyvetril Perryman, Westlake Village, Calif., +1-805-418-8103,syvetril.perryman@jdpa.com, both of J.D. Power and Associates; or GibsonPatterson of JMPR Public Relations, Woodland Hills, Calif., +1-818-992-4353,or cell, +1-310-722-6060, gpatterson@jmprpublicrelations.com, for J.D. Powerand Associates

Web site: http://www.mcgraw-hill.com/

Web site: http://www.jdpower.com/corporate

Source: PRNewswire

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