J.D. Power and Associates Reports: For New-Vehicle Buyers, Automotive Manufacturer Web Sites and Third-Party Automotive Web Sites Serve Widely Different Needs

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New Clickstream Tracking Capability Captures Actual Automotive Web Site Usage Patterns Of New-Vehicle Buyers

WESTLAKE VILLAGE, Calif., Oct. 5 -- Although new-vehicle buyers visit automotive manufacturer Web sites and third-party automotive Web sites at the same rate during the shopping process, buyers rely on each type of Web site for different types of information, according to the recently released 2009 Web Site Performance Tools Report--Wave 1(SM), a collaborative effort between J.D. Power and Associates and Compete Inc.

During the six-month period preceding a new-vehicle purchase, more than three in four new-vehicle buyers use the Internet to shop for their vehicle. Sixty-six percent of all new-vehicle buyers visit at least one automotive brand Web site during this time frame. Likewise, 66 percent of new-vehicle buyers visit a third-party automotive Web site during the same time period. However, while overall usage rates are the same for these two different types of sites, the reasons that buyers visit them vary widely.

Third-Party Automotive Web Sites

Among third-party Web sites, such as The Auto Channel.com, AutoTrader.com, Edmunds.com and kbb.com, buyers most frequently access such features and tools as inventory search capability, product reviews and trade-in information. Overall, 31 percent of buyers who visit Edmunds.com access the site's vehicle reviews, while 55 percent of buyers who visit kbb.com use the site's trade-in information pages. Among new-vehicle buyers visiting AutoTrader.com, 61 percent use the site's inventory search tool.

Automotive Brand Web Sites

In contrast, buyers who visit automotive brand Web sites while shopping most often use vehicle configuration features and seek out information about local dealerships and special offers. Among manufacturer Web sites, Ford, Honda and Toyota garner particularly high visitation rates from buyers. The report also finds that among buyers who visit specific brand Web sites, sales close rates vary widely. For example, among vehicle buyers who visit the GMC Web site, 34 percent ultimately purchase a GMC vehicle. However, among buyers who visit the Saturn Web site, the close rate is just 4 percent.

"By understanding the different patterns of usage among actual new-vehicle buyers, both automotive brands and third-party automotive publishers may optimize their sites to provide the information used most often by the visitors they care most about--actual buyers," said Arianne Walker, director, marketing and media research at J.D. Power and Associates. "For manufacturers, improving sites may help maintain in-market shoppers throughout the shopping process. For third-party sites, improvements may help attract in-market new-vehicle buyers, thus increasing advertising opportunities on the sites."

Additional Key Findings

The report finds that, at six months prior to their vehicle purchase, one in four new-vehicle buyers visits a manufacturer Web site and one in four buyers visits a third-party site. However, this Web site visitation rate of buyers increases considerably during the month of purchase, with 34 percent of buyers visiting a manufacturer site and 33 percent visiting a third-party site.

"During the earliest stage of the shopping process, new-vehicle buyers tend to rely equally on third-party sites and manufacturer sites, although tool usage on those sites differs," said Skip Streets, executive director of sales, automotive at Compete Inc. "As buyers get closer to making their final purchase decision, particularly during the month of purchase, there is an increase in tool usage. For example, more users use vehicle configuration tools, particularly on automotive brand Web sites. To support buyers throughout the entire shopping process, both types of sites need to provide the various kinds of information new-vehicle buyers are looking for through easy-to-find, easy-to-use tools."

The semi-annual Web Site Performance Tools Report examines automotive Web site usage patterns among new-vehicle buyers during the six months preceding their vehicle purchase. For the first time, in an alliance with Compete, J.D. Power and Associates has used clickstream(1) technology to track actual Web site visitation patterns of these buyers, apart from those of non-buyers.

"In coordination with Compete, J.D. Power and Associates is now able to definitively report Internet usage patterns through clickstream behavior data of actual new-vehicle buyers," said Walker. "This brings a level of granularity and specificity that has previously been unavailable in the industry."

The Web Site Performance Tools Report--Wave 1, results are based on clickstream behavior of new-vehicle buyers who purchased a vehicle between April 2007 and March 2009. Compete and J.D. Power and Associates also issue two other reports based on clickstream behavior: the In-Market Buyer Behavior Tool and the Prospects Current Behavior Tool. These tools report actual clickstream behavior of new-vehicle buyers and are designed to assist automotive marketers and advertisers with media planning to target new-vehicle buyers.

About Compete

Compete, a unit of TNS Media, helps the world's top brands improve their marketing based on the online behavior of millions of consumers. Leading marketers such as Carlson Hotels Worldwide, Hyundai Motor America, Upromise, Chrysler, and Verizon Wireless rely on Compete's services to create effective online experiences and highly profitable advertising campaigns. Compete's online behavior database--the largest in the industry--makes the Web as ingrained in marketing as it is in people's lives.

Compete was founded in 2000 and is located in Boston, MA, with offices throughout the U.S. For more information about us, please visit http://www.competeinc.com/, or to join the conversation visit http://www.compete.com/.

About TNS Media

Established in more than 30 countries, TNS Media explores all the media - print, radio, TV, Internet, social media, cinema and outdoors worldwide, 24 hours a day, seven days a week, and offers a full range of insights, analyses and audience measurement services.

TNS Media combines the deepest expertise in the industry to provide media and marketing intelligence including advertising expenditure monitoring, advertising creation monitoring, audience measurement, market influence analytics, online consumer behavior tracking, news monitoring, sports sponsorship evaluation and more. The TNS Media companies track more than 3 million brands and provide vital market intelligence to 16,000 customers in the world. http://www.tnsmediagroup.com/

All logos, company and product names may be trademarks or registered trademarks of their respective owners.

About Kantar Group

The Kantar Group is one of the world's largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies - including the recently-acquired TNS - the group aims to become the pre-eminent provider of compelling and actionable insights for the global business community. Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group's services are employed by over half of the Fortune Top 500 companies. For further information, please visit www.Kantar.com.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company'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 2008 were $6.4 billion. Additional information is available at http://www.mcgraw-hill.com/.

(1) Clickstream technology involves tracking specific URLs that Web site users visit while on the Web.