The Auto Channel: North America | Europe

J.D. Power and Associates Reports: As Automotive Manufacturers Shift Marketing Dollars Online, New-Vehicle Shoppers Follow

Consumer Ratings and Reviews, Enthusiast Sites and Blogs Are Helpful Information Sources to Shoppers

WESTLAKE VILLAGE, Calif., Oct. 10 -- Automotive manufacturer Web sites are gaining ground on independent Web sites, as the percentage of new-vehicle shoppers who initially visit manufacturer sites achieves parity, according to the J.D. Power and Associates 2007 New Autoshopper.com Study(SM) released today.

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The study finds that 47 percent of new-vehicle buyers using the Internet in their shopping process visit an independent site when initiating research for their new vehicle, and 46 percent first visit a manufacturer site. This marks a substantial shift from 2003, when 62 percent of new-vehicle online shoppers first visited an independent Web site, compared with only 36 percent initially visiting an auto manufacturer Web site. Additionally, the trend is not limited to the beginning of the shopping process. Shoppers are relying on manufacturer sites throughout the entire purchase cycle more than ever before.

"As automotive manufacturers have steadily pulled advertising dollars out of traditional media and redirected them toward digital media and search engine marketing, manufacturer Web site visitation has increased," said Steve Witten, executive director of marketing/media research at J.D. Power and Associates. "Since the automotive industry makes some of the largest advertising expenditures in the United States, a small shift in the percentage of marketing dollars to digital media has quickly leveled the visitation share between manufacturer and independent sites."

However, the study finds that despite a steady decline in visitation rates to independent sites-some of which offer newer vehicle selector tools and improved vehicle pricing estimates-they remain the most useful type of site.

"Third-party sites will always have a key role in the automotive shopping process due to their independent nature," said Witten. "However, independent sites may need to investigate the areas of navigation, speed and-most importantly-content offered in order to retain favorable shopper ratings and increase visitation."

Continued improvements in usability and site content on manufacturer Web sites have also likely contributed to increased consumer reliance during the shopping process. The J.D. Power and Associates 2007 Manufacturer Web Site Evaluation Study(SM) (MWES), which measures shopper satisfaction with the usability of automotive manufacturer Web sites, finds a 6 percent increase in the auto industry's overall Web site usability since 2003.

The New Autoshopper.com Study also finds that nearly 69 percent of new-vehicle buyers who utilize the Internet in their shopping process use one or more types of consumer-generated content. Consumer ratings and reviews are the most popular form of consumer-generated content among shoppers, with 64 percent reporting usage. Enthusiast sites, question and answer sites, online forums, blogs and photo-sharing sites are considered helpful by shoppers, but have much lower usage rates than do consumer reviews and ratings.

"Consumer reviews are almost always available on the most heavily trafficked independent Web sites, which is likely contributing to high usage of consumer reviews among shoppers," said Witten. "Lower usage of other consumer-generated content may be due to lower visibility. However, opportunities exist to invite vehicle shoppers and owners to share content on the Web, especially for independent sites, which might have fewer concerns about negative comments and reviews. Taking advantage of these opportunities will in turn encourage greater engagement among site visitors and provide content that shoppers are clearly finding valuable."

The 2007 New Autoshopper.com Study is based on the self-reported shopping habits of 29,272 new-vehicle buyers. The study was fielded from May to July 2007.

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, performance improvement, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. 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 280 offices in 40 countries. Sales in 2006 were $6.3 billion. Additional information is available at http://www.mcgraw-hill.com/.

  J.D. Power and Associates Media Relations Contacts:
  John Tews                         Syvetril Perryman
  Troy, Mich.                       Westlake Village, Calif.
  (248) 312-4119                    (805) 418-8103
  john.tews@jdpa.com                syvetril.perryman@jdpa.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

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