The DUH! Story of the Day...J.D. Power and Associates Reports: Online Television Content Becoming Increasingly Effective in Targeting New-Vehicle Buyers

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WESTLAKE VILLAGE, CA - July 2, 2008: Online television show content is emerging as an increasingly effective way of reaching new-vehicle buyers, according to the J.D. Power and Associates 2008 Power Auto Online Media Study-Summer, released today.

The semi-annual study, now in its third year, provides an in-depth look at the Internet usage and behavior of new-vehicle buyers and identifies Web sites that most effectively target desirable advertising audiences in terms of reach and scope. It is the only study of its kind that consists exclusively of verified new-vehicle buyers.

The study finds that a substantial majority of new-vehicle buyers -- 68 percent -- report going online to find information on television shows, and that the reach of online television show content among new-vehicle buyers has increased by 22 percent since 2007. In addition, television show content is among the top three types of online information consumed by new-vehicle buyers, along with travel-related information (including maps, driving directions and weather reports) and news (including finance and business-related content).

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"As the automotive market struggles in the current economy, it becomes even more important for manufacturers and advertisers to effectively target the diminishing number of consumers who are seeking to purchase a new vehicle," said Arianne Walker, director of marketing and media research at J.D. Power and Associates. "J.D. Power and Associates forecasts that fewer than 15 million new vehicles will be sold in 2008, compared with the 16.1 million sold in 2007. As new-vehicle sales shrink, understanding which advertising mediums will provide the best balance of audience reach and composition is absolutely critical. As more new-vehicle buyers seek information regarding television shows on the Web, advertisers can benefit from increasing their focus on this medium."

The study also finds that new-vehicle buyers most frequently visit the following Web sites when searching for television content: CNN.com (with 30% reach among new-vehicle buyers); MSNBC (24%); ESPN (23%); and FOXNews.com (21%). Among television network Web sites, ABC is visited most frequently by online users (with 16% reach among new-vehicle buyers), followed closely by CBS and NBC (each with 13%).

"Television networks are expanding the types of content offerings available on their Web sites to increase their online audience," said Walker. "In particular, television network sites are issuing online broadcasts of archived television shows, which exposes viewers to pre- and post-roll advertising placements."

Buyers of premium-brand vehicles tend to seek online television show content with the greatest frequency, and are 8 percent more likely to look up information about television shows online, compared with the average new-vehicle buyer. When looking at specific segments, 79 percent of midsize premium utility vehicle buyers, 76 percent of compact premium crossover utility vehicles (CUV) buyers, and 75 percent of midsize premium CUV buyers typically view this type of online content. The biggest increase in consumption of online TV content is among buyers of midsize premium conventional vehicles, a rise of 41 percent since 2007.

"Premium-brand vehicle buyers tend to be frequent users of digital video recorders (DVR), and of the 49 percent of buyers who have DVRs, the vast majority of them -- 97 percent -- tend to skip commercials when they watch recorded TV programming," said Walker. "Fortunately for advertisers, their propensity to view television content online provides an ideal alternative way to expose advertising messages to this audience."

Historically, online television content was viewed primarily by Generation Y new-vehicle buyers (those born between the years of 1977 and 2002). However, consumption by other generations is now nearly as high.

"While 81 percent of Generation Y buyers visit Web sites regarding television shows, 80 percent of Generation X buyers and 73 percent of Baby Boomer buyers are also seeking this content, demonstrating that this medium is an effective way to reach new-vehicle buyers in various generational demographic groups," said Walker.

The Power Auto Online Media Study, now in its third year, is based on a random national sample of 12,809 verified new-vehicle buyers who purchased a vehicle between August and October 2007. The study was fielded between February and April 2008.