Automotive Marketing and

Media Annual Review 2008:

Critical Issues in a
Restructuring Industry

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Agenda
The Online Shopping Process
Word of Mouth (Buzz)
Auto and Media Patterns by Generation
Auto and Media Patterns by Ethnicity & Heritage
Hybrid Vehicles and the Green Consumer
Shared Platforms, Less is More
New Models, A Look Forward
Q &A

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

The Online
Shopping Process

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

The Internet impacts automotive shopping more

than ever
Automotive Internet Usage Trends Used1 Vs.
New 2 Vehicle Buyers 9-Year Trend

Based to new-vehicle buyers. Source: J.D. Power and Associates 1999-2007 New Autoshopper.com Studies
Based to used-vehicle buyers. Source: J.D. Power and Associates 1999-2007 Used Autoshopper.com Studies

1
2

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

The Internet has a larger impact on model choice

than pricing decisions
Internets Impact on Vehicle Purchase Decisions
Vehicle Buyers 4-Year Trend

Based to new-vehicle buyers. Source: J.D. Power and Associates 2004-2007 New Autoshopper.com Studies

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Independent sites are decreasing in likelihood of

being the first site visited
First Auto Site Visited

Based to new-vehicle AIUs. Source: J.D. Power and Associates 2001-2007 New Autoshopper.com Studies

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Manufacturer sites are slowly becoming more

popular than independent sites
Types of Web Sites Visited by AIUs

Based to new-vehicle AIUs. Source: J.D. Power and Associates 2001-2007 New Autoshopper.com Studies

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Manufacturer sites are catching up to the

independent sites in being most useful
Most Useful Type of Site Visited by AIUs

Based to new-vehicle AIUs. Source: J.D. Power and Associates 2001-2007 New Autoshopper.com Studies

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

AIUs use consumer ratings/reviews more often

than any other type of CGC
% Finding
Helpful*
96%
81%
79%
78%
64%
64%
52%
48%
37%
*Based to those who used each type of CGC
Source: 2007 New Autoshopper.com Study

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Buying Online

10

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Request for quote online is not growing

Based to new-vehicle buyers. Source: J.D. Power and Associates 2004-2007 New Autoshopper.com Studies

11

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Only 22% submit an RFQ, but 39% visit a dealer

based on information found online

Based to all new-vehicle buyers. Source: 2007 New Autoshopper.com Study

12

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Gen Y and Gen X buyers are more likely to submit

an online quote request
Lower Funnel Activities
by Generation (Based to All Buyers)

Source: J.D. Power and Associates 2007 New AutoShopper.com Study

13

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Search Engine Usage

for Auto Shopping

14

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Search engines can be an effective way to reach

consumers looking for auto shopping sites

Based to AIUs using search engines; 2007 J.D. Power and Associates New Autoshopper.com Study

15

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Consumers use search to find vehicle images

Based to AIUs using search engines; 2007 J.D. Power and Associates New Autoshopper.com Study

16

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

39% of OEM site-shoppers use a 3rd-party search

engine to help navigate the site

Source: 2007 J.D. Power and Associates Manufacturer Web Site Evaluation Study

17

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Google continues to dominate and grow in AIU

search usage

Based to AIUs; 2006-2007 J.D. Power and Associates New Autoshopper.com Study

18

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Manufacturer Site Usage

for Auto Shopping

19

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Manufacturers understand the importance of

driving in-market traffic to their brand sites

Source: 2007 J.D. Power and Associates New Autoshopper.com Study

*Caution: Small sample size

20

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Toyota and Honda attract the highest number of

AIUs among manufacturer Web sites
Manufacturer Web Sites Visited Top 15

Source: 2007 J.D. Power and Associates New Autoshopper.com Study

Based to AIUs

21

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

High-volume imports site visitation outperforms

their market share
Share of Visitation vs. Market Share
45%
Toyota

Share of Manufacturer Site Visitation

40%
35%
Honda

30%
25%

Ford
Nissan

20%

Chevrolet

15%
Dodge

10%
5%
0%
0%

2%

4%

6%

8%

10%

Market Share
Visitation Based to AIUs; 2007 J.D. Power and Associates New Autoshopper.com Study
Market Share Based to all new-vehicle buyers (Feb/Mar Sales Period); JDPA Forecasting

22

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

12%

14%

16%

18%

Acura, BMW, Mazda and VW sites outperform their relative

market share
Share of Visitation vs. Market Share

Share of Manufacturer Site Visitation

14%

GMC
BMW

12%

Acura
Mazda

10%
VW
Volvo

Subaru

Infiniti

6%

2%

Jeep

Chrysler

Hyundai

Saturn

8%

4%

Lexus

Audi
Mitsubishi
Land Rover
Scion
Saab
HUMMER Suzuki
MINI
Porsche
Jaguar

M-B

Cadillac
Kia
Lincoln

Pontiac

Buick

Mercury

0%
0%

1%

1%

2%

2%

Market Share
Visitation Based to AIUs; 2007 J.D. Power and Associates New Autoshopper.com Study
Market Share Based to all new-vehicle buyers (Feb/Mar Sales Period); JDPA Forecasting

23

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

3%

3%

4%

How to improve Internet shopping

Increased focus on upper-funnel (branding)
Target consumers at all levels of the shopping funnel

Use upper-funnel metrics

Prices closer to true transaction price
Real-time dealer inventory
Better quote process
Faster response times (real-time)
Sell-price in the response

24

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Shopping Process
of AIUs

25

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

The vehicle shopping process takes about three

months for the average AIU

Decide it was
time to purchase

Shop vehicles
on the Internet

10.4

11.7
14.7

Decide on
model

6.3
7.6

11.0

Start actively
researching vehicles

Source: 2007 J.D. Power and Associates New Autoshopper.com Study

Based to AIUs

26

0
Start visiting
dealers

Decide on type
of vehicle

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Purchase
new vehicle

One-third of new-vehicle buyers purchase within

one month of deciding they need a new vehicle

34% Shopping Process

One Month or less

27% Shopping Process

Over Five Months

Source: 2007 J.D. Power and Associates New Autoshopper.com Study

Based to AIUs

27

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Deciding on which model to purchase takes up

less than half of the shopping-process time
Decide it was
time to purchase

Decide on type
of vehicle

Decide on
model

Purchase

Source: J.D. Power and Associates 2007 NewAutoshopper.com Study; Based to AIUs

28

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

New-vehicle buyers

Upper-Funnel
Marketing Online

29

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Power Auto Online Media Study Waves

The only tool providing online behavior of new vehicle
buyers with robust sample sizes
Wave 1 (Summer release)
Buyers in August October, 2006
6,598,500 vehicles sold

Wave 2 (Winter release)

Buyers in January March, 2007
5,566,300 vehicles sold

30

Decrease of 1,032,000 vehicles over previous wave

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Percent Change in Web Site Visitation for W2 vs. W1 2007

%
Change
+9
+5
+5
+3
+3
-6
-6
-6
-7
-11

Source: 2007 J.D. Power and Associates Power Auto Online Media Study

31

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Video Usage

32

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Over half of new-vehicle buyers watch videos

online

Source: 2007 J.D. Power and Associates Power Auto Online Media Study Wave 2

33

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Compact buyers are the most likely to watch

videos online

Source: 2007 J.D. Power and Associates Power Auto Online Media Study Wave 2

34

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

News and weather footage are the most watched

videos online by new-vehicle buyers

Source: 2007 J.D. Power and Associates Power Auto Online Media Study Wave 2

35

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

YouTube is the most popular video site, it also

experienced the largest increase in visits
%
Change
+5
-1
-1
-1
-2
-3

Source: 2007 J.D. Power and Associates Power Auto Online Media Study

36

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Demographics of new-vehicle buyers who watch

videos online skew younger

Indexed against all new-vehicle buyers

Source: J.D. Power and Associates 2007 Power Auto Online Media Study

37

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Social Sites

38

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Facebook is the fastest growing social site among

new-vehicle buyers

Source: 2007 J.D. Power and Associates Power Auto Online Media Study

39

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Myspace.com and Linkedin have the most change

among Midsize Van buyers
Midsize Van

Source: 2007 J.D. Power and Associates Power Auto Online Media Study

40

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Evite, Linkedin and Facebook have the most

change among Large Premium Utility buyers
Large Premium Utility

Source: 2007 J.D. Power and Associates Power Auto Online Media Study

41

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Demographic profiles of social site visitors

Source: 2007 J.D. Power and Associates Power Auto Online Media Study - Combined

42

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Social networks reach among new-vehicle buyers

Net
Audience

2,138,278

2,127,692

682,002

Source: 2007 Integrated Media Planning Tool, Non-Internet user audience from 2007 Power Combined Light Vehicle Media Report

43

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Magazine Sites

44

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Percent change in Web site visitation for W2 vs. W1 2007

%
Change
from W1

+3
-1
-2
-2
-2

Source: 2007 J.D. Power and Associates Power Auto Online Media Study Note: Only significant changes shown

45

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Integrated Media Planning Tool

Online
Media
Study

Offline Media
Reports
Magazines, Cable Nets

Fusion

New-Vehicle Buyers
Respondent Level
Magazine, Cable,
Online Consumption

46

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Total (online and offline) magazine and newspaper

reach among new-vehicle buyers
Total Audience
3,513,393
2,646,745
2,601,084
2,559,915
2,361,495
1,490,677
1,215,904
1,088,335
1,009,209
1,001,318
988,748
761,612
757,964
728,799
499,330
419,313
334,462

Source: 2007 Integrated Media Planning Tool

47

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Duplication numbers are hidden for publications with lower than 30,000 duplication.

Duplication is increasing among most magazines

and their Web sites

Source: 2007 & 2008 Integrated Media Planning Tool

*Preliminary data

48

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Total (online and offline) cable network reach

among new-vehicle buyers
Total Audience
8,847,702

6,826,412

6,790,927

6,687,715

3,517,298

3,493,026

2,747,695

2,215,717

Source: 2007 Integrated Media Planning Tool

49

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Accurate reach of target buyers in integrated plans

can be estimated using the IMPT
Comparison Between Gross Versus NET Audience
for Compact Premium Conventional Buyers
Expedia
599,994

Source: 2007 Integrated Media Planning Tool

50

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

iTunes

CNBC

New York Times

Word of Mouth
(Buzz)

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

The Buzz Index

100
Current
Buyers

Friends & Family

100 current buyers told 775 people positive things about their vehicle

Buzz Index = 775

Source: 2008 Power Auto Offline Media Report, Spring

52

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

MINI owners create the most buzz about their

vehicles
Buzz Index by Make

Buzz Index
Source: 2008 Power Auto Offline Media Report, Spring

53

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Buzz Index

Hybrid owners create the most buzz about the

vehicles they buy
average

Source: 2008 Power Auto Offline Media Report, Spring

54

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Buzz Index

Auto Enthusiasts create the most buzz about the

vehicles they buy
average

Buzz Index
Source: 2008 Power Auto Offline Media Report, Spring

55

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Bloggers create more buzz about the vehicles they

buy than the average consumer
average

Source: 2008 Power Auto Offline Media Report, Spring

^ Respondents that marked Agree Mostly

56

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Buzz Index

Vehicle buyers who participate in the most

physical sports/activities create the most buzz

Buzz Index
Source: 2008 Power Auto Offline Media Report, Spring

57

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

People who read Black Enterprise Magazine create

the most buzz then any other Magazine Readers

^ Read 4 out of past 4 issues

Source: 2008 Power Auto Offline Media Report, Spring

58

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Buzz Index

Viewers of BET and CMT create the most buzz

about the vehicles they buy

Buzz Index
Source: 2008 Power Auto Offline Media Report, Spring

59

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Auto and Media Patterns

by Generation

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Nearly half of all personal-use vehicles are

purchased by Boomers

Source: 2008 Power Auto Offline Media Report, Spring

61

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Different makes attract buyers at each Life Stage

Top Two Indexing Makes by Generation

Scion

Land Rover

Porsche

Buick

Mazda

Volvo

Pontiac

Jaguar

Gen Y

Gen X

Source: 2008 Power Auto Offline Media Report, Spring

Note: Excludes Maserati

62

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Baby
Boomers

Pre-Boomers

Different models attract buyers at each Life Stage

Top Six Indexing Models by Generation
Scion tC

Nissan Armada

Porsche 911

Subaru Impreza

Land Rover LR3

Mazda 3

Toyota Sequoia

Chrysler
Crossfire

Lincoln Town Car

Volkswagen
Rabbit

Mazda 5

Audi TT

Cadillac DTS

Porsche
Cayenne

Buick Lucerne

Pontiac G5

Honda Odyssey
Nissan Quest

Acura RSX

Gen Y

Gen X

Source: 2008 Power Auto Offline Media Report, Spring

63

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Mercury Grand
Marquis

Ford GT

Ford Crown
Victoria

Pontiac Solstice

Buick La Crosse

Baby Boomers

Pre-Boomers

Cable Stations vary among generations

Top Three Indexing Cable Stations by Generation

Adult Swim

VH1

SciFi

CNBC

MTV

MTV

HGTV

Fox News

VH1

Adult Swim

Lifetime
Television

CNN

Baby Boomers

Pre-Boomers

Gen Y

Gen X

Source: 2008 Power Auto Offline Media Report, Spring

64

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Life Stage is a predictor of magazines read

Top Indexing Magazines Read by Generation

Modern Bride

Parenting

More

American Legion

Brides

American Baby

AARP the Magazine

Maxim

FamilyFun

Fast
Company

Allure

Muscle &
Fitness

Midwest
Living

Trailer Life
Smithsonian

Backpacker
Gen Y

Gen X

Source: 2008 Power Auto Offline Media Report, Spring

65

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Baby Boomers

PreBoomers

Online Topics are generational in nature

Top Three Indexing Topics Looked for Online by Generation

Concerts

Fantasy Sports

Health/Medical

Health/Medical

Fantasy Sports

Ticket Purchase

Home/Living

News/Financial

Fashion/Beauty

Winter Sports

Technology/
Computers

Theater

Gen Y

Gen X

Baby Boomers

Pre-Boomers

Source: 2007 J.D. Power and Associates Online Media Study

66

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

. . . and of Web sites visited

Top Three Indexing Web Sites by Generation

Facebook

Evite

Ask

A&E

ign.com

Disney.com

GardenWeb

Court TV.com

Us
Magazine.
com

Linkedin

Netscape

TNT

Gen Y

Gen X

Baby Boomers

Source: 2007 J.D. Power and Associates Online Media Study

67

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Pre-Boomers

Gen X

68

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Gen X new-vehicle buyers have traditional

American values
Top Indexing Psychographic Statements of Gen X
Become a parent

135

Buy your first house/residence

123

Travel (US Vacation): Theme Park

119

Newspaper Advertising in newspapers is too loud

119

Travel (Abroad): Mexico

116

Source: 2007 MRI Psychographic Supplement to Power Combined Light Vehicle Media Report

69

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Three-quarters of Gen X new-vehicle buyers have

children in the household

Source: 2008 Power Auto Offline Media Report, Spring

70

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Male Gen X buyers favor non-mainstream luxury

brands

Based to Total Males

Source: 2008 Power Auto Offline Media Report, Spring

71

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Based to Total Females

Gen X Females with children buy larger vehicles

Source: 2008 Power Auto Offline Media Report, Spring

72

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Females in Gen X without children are more

attracted to self-interest magazines

Source: 2008 Power Auto Offline Media Report, Spring

73

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

> 5% Reach shown

Females in Gen X without children index high on

watching Nick @ Nite

Source: 2008 Power Auto Offline Media Report, Spring

74

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Disney.com stays true to its name by indexing

high among Females in Gen X with Children

Note: Only sites with at least 10% reach shown

Source: 2007 J.D. Power and Associates Power Auto Online Media Study - Combined

75

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Auto and Media Patterns

by Ethnicity & Heritage

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

We looked at three groups

Hispanic

77

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

African American

Asian

Hispanics and African Americans are less likely than the

general population to purchase a new vehicle

(+2% Non-English Speaking)

* 2006 Census - US Population Age 15+

Source: 2008 Power Auto Offline Media Report

78

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

African Americans make up 13% of the market in

the Atlanta DMA
Top Five DMAs for Each Group in Market Share
African
American
Atlanta

13%

San Francisco 25%

Baltimore

12%

Los Angeles 15%

Washington DC 11%Seattle

79

Asian

12%Houston

Houston

9%

Sacramento

9%

Detroit

8%

Washington DC

9%

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Hispanic
Miami

46%

Los Angeles 22%

14%
Phoenix

13%

Denver 12%

African Americans are the only group with

Domestic models in their top five list
Top Five Indexing Models

Mitsubishi Galant

Lexus IS-Series

Nissan Pathfinder

Suzuki Forenza

Toyota Sienna

Nissan Armada

Cadillac Escalade

Porsche Cayenne

Mitsubishi Outlander

Jaguar X-Type

Toyota Land Cruiser

Mitsubishi Lancer

Chrysler 300

Mercedes-Benz E-Class

BMW 3 Series

African
American

Asian

Hispanic

Source: 2008 Power Auto Offline Media Report

80

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Each group has unique psychographics

Top Five Indexing Psychographics

Internet ads useful

info of new products

Buy digital video

camera

Celebrity endorsements
are influential

Newspaper ads are

funny

Buy laptop computer

Start new business

Start new business

Child go away to
college

Market Ups/Downs are

exciting

Travel to South
America

Become a parent

Switch brands with a

cents-off coupon

Internet ads lead to

new product use

African
American
Source: 2008 Power Auto Offline Media Report

81

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

New drug brand better

than old ones

Asian

Take investment risks

for high return

Hispanic

Hispanic new vehicle buyers index high on

Modern Bride and Brides Magazine
Top Five Indexing Magazines Read

Essence

Los Angeles Magazine

Modern Bride

Black Enterprise

Harvard Business Rev

Muscle & Fitness

Ebony

Tennis Magazine

Los Angeles Magazine

O, The Oprah
Magazine

Elle

Brides

BusinessWeek

Home

Asian

Hispanic

Esquire

African
American
Source: 2008 Power Auto Offline Media Report

82

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

African American new-vehicle buyers are the least

likely to have Internet access

Source: 2008 Power Auto Offline Media Report

83

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Hispanic new vehicle buyers index high on sites

targeting younger audiences
Top Five Indexing Web Sites Visited

BET.COM

Yahoo! Autos

MTV

NBA

Time

Yahoo! Music

Vh1.com

NBA

NBA

WindowsMedia.com

MSN autos

Sci Fi.com

THE CW

US News & World Report

Yahoo! Movies

African American

Asian

Hispanic

Source: 2007 Power Auto Online Media Study Combined

84

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Hybrid Vehicles and the

Green Consumer

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

15 Hybrid vehicles to choose from in 2007

Model

2008 Sales

2006 Sales

2007 Sales

Toyota Prius

106,971

181,221

22,274

Toyota Camry Hybrid

31,341

54,419

7,871

Honda Civic Hybrid

31,251

32,642

3,553

Toyota Highlander Hybrid

31,485

22,469

4,081

Ford Escape Hybrid

19,375

21,259

2,805

Lexus RX400h

20,161

17,164

2,359

8,656

1,002

Saturn VUE*

1,157

5,045

NA

Mercury Mariner Hybrid

3,174

3,730

412

Honda Accord Hybrid**

5,598

3,380

90

Lexus GS450h

1,784

1,651

141

Lexus LS600h

New 2007

915

217

Saturn Aura*

New 2007

857

NA

Mazda Tribute

New 2007

123

55

Honda Insight**

722

Nissan Altima Hybrid*

Source: Power Information Network

86

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All Rights Reserved.

*Estimate OEM does not split out hybrid sales

(Jan and Feb only)

** Discontinued Model

Hybrid buyers index high on 45+ years old

Demographics of Hybrid Buyers
Female

47%

106

Married

77%

18-24 Years

2%

25-34 Years
35-44 Years

64
69

13%

45-64 Years

129

59%
11%

75 Years or Older

106
38

9%

65-74 Years

Index

101

6%
0%

110
20%

40%

60%

80%

100%

% Buyers
Source: 2008 Power Auto Offline Media Report, Spring

87

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= Index > 120

Hybrid buyers index high on advanced degree

Index

37

56

64

107

172

216

Source: 2008 Power Auto Offline Media Report, Spring

88

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= Index > 12

Hybrid buyers index high on several

psychographics
Top Indexing Psychographic Statements of Hybrid Buyers
Collect lump-sum from pension/401k

314

Start or buy a new business

286

Buy your first house/residence

283

Among first to try new technology products

249

Buy a home theater system

247

Source: 2007 MRI Psychographic Supplement to Power Combined Light Vehicle Media Report

89

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Hybrid buyers index high on watching CNN

Index
105
114
102
111
148
111
104
340
108
140

Source: 2008 Power Auto Offline Media Report, Spring

90

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= Index > 120

Hybrid buyers are active

Index
117
116
110
128
116
102
141
116
137
116

Source: 2008 Power Auto Offline Media Report, Spring

91

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= Index > 120

Travelocity and The New York Times index high

among Hybrid buyers
Index
123
140
132
132
193
145
137
136
122
159

Note: Only sites with at least 10% reach shown

Source: 2007 J.D. Power and Associates Power Auto Online Media Study - Combined

92

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= Index > 135

The Green Index

93

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The GREEN Index

Composite of respondents who answered Top Box
on three green attitudinal psychographics:
I am willing to give up convenience in return for a
product that is environmentally safe
I am willing to pay more for a product that is
environmentally safe
Preserving the environment; helping to preserve
nature

94

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The top ten brands purchased by Green consumers

are Imports

Source: 2007 MRI Psychographic Supplement to Power Combined Light Vehicle Media Report

95

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Honda Fit buyers have the highest Green Index

Source: 2007 MRI Psychographic Supplement to Power Combined Light Vehicle Media Report

96

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Prevention and Ladies Home Journal readers

have the highest Green Index score

Source: 2007 MRI Psychographic Supplement to Power Combined Light Vehicle Media Report

97

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Shown: Reach >5%

Visitors to several news content sites have high

scores on the Green Index

Source: 2007 MRI Psychographic Supplement to Power Auto Online Media Study

98

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People who watch marathons have above average

Green attitudes

Source: 2007 MRI Psychographic Supplement to Power Combined Light Vehicle Media Report

99

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Shared Platforms
Less is More

2008 J.D. Power and Associates,

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Chrysler launched two minivans off of the same

platform late last year
Caravan and Town & Country Redesign: November, 2007
Share the same platform and many components
Jim Press
[We need to] eliminate models sold by one Chrysler brand that are
basically clones of cars sold by a sister division (J.D. Power and
Associates IRT, January, 2008).

Dodge Caravan

10

2008 J.D. Power and Associates,

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Chrysler Town & Country

Sales increased after launch, but have since

dropped

Source: JDPA Sales Reports

10

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Both vans have very similar demographics, and

both had to rely on incentives
Chrysler Town &
Country

Dodge Caravan

33%

33%

Age (median)

50

49

Cash Sale (%)

25%

25%

Finance (%)

35%

49%

Lease (%)

41%

26%

Vehicle Price

$30,756

$27,397

Total Incentive
Spending Per Unit**

$2,710

$3,099

Vehicle Price Less

Incentives

$28,046

$24,298

Female

Source: Power Information Network, October 1, 2007 - March 23, 2008

Note: All data filtered for 2008 model year
**Incentive spending is total for six months divided by six

10

2008 J.D. Power and Associates,

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GM pits three CUVs against the Ford Edge

Ad spending first seven months of 2007*
Ford Edge: $179 million*
Acadia: $56M; Enclave: $25M; Outlook: $25M (Total: $106M)

Ford Edge

Buick Enclave

* Source: TNS Media Intelligence

10

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Saturn Outlook

GMC Acadia

The Ford Edge has higher sales than the

competition

Source: JDPA Sales Reports

10

2008 J.D. Power and Associates,

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The Edge has nearly outsold all three GM CUVs

combined

24,625

22,526

Source: JDPA Forecasting

10

2008 J.D. Power and Associates,

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2009 Pontiac Vibe & 2009 Toyota Matrix

Compact Conventional Segment; Launched: February, 2008
Jointly developed by Toyota and General Motors
Share the same platform and many components

2009 Pontiac Vibe

10

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2009 Toyota Matrix

The vehicles are attracting different consumers

Source: Power Information Network (PIN)

10

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Sales are going in different directions

% Change

+2.8%

-14.7%

Source: JDPA Forecasting

10

2008 J.D. Power and Associates,

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New Models,
A Look Forward

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

There are 49 vehicle launches this year

Number of Models

New Entries, All-New and Major Redesigns in 2008

Source: JDPA Forecasting, Automotive Marketing Radar (AMR)

11

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
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Toyota will launch the most models

Number of Models

Brands with the Most New Entries,

All-New and/or Major Redesigns in 2007

Source: JDPA Forecasting, Automotive Marketing Radar (AMR)

11

2008 J.D. Power and Associates,

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All Rights Reserved.

Four Midsize CUVs will launch in the first half of

the year
All New Entries for 2008
2008 Q1

2008 Q2

Model

Segment

Model

Segment

BMW 1 Series

Compact Prem. Conv.

BMW X6

Midsize Prem. CUV

Dodge Journey

Midsize CUV

Dodge Challenger

Midsize Sporty

Pontiac G8

Large Conventional

Kia Borrego

Midsize Utility

Saturn Astra

Compact Conventional

Mercedes-Benz CLC

Compact Prem. Sporty

Smart fortwo

Compact Basic

Lexus VX Series

Midsize Prem. CUV

Lincoln MKS

Midsize Prem. Conv.

Source: JDPA Forecasting, Automotive Marketing Radar (AMR)

11

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Volkswagen launches three models in the second

half of the year
All New Entries for 2008
2008 Q3

2008 Q4

Model

Segment

Model

Segment

Ford Flex

Midsize CUV

Alfa Romeo 8c

Midsize Prem. Sporty

HUMMER H3T

Midsize Pickup

Chevrolet Traverse

Midsize CUV

Hyundai Genesis

Midsize Prem. Conv.

Honda FCX

Compact CUV

Nissan GT-R

Midsize Prem. Sporty

Kia Soul

Compact CUV

Suzuki Splash

Compact Conventional

Suzuki Equator

Midsize Pickup

Volkswagen Tiguan

Compact CUV

Toyota Venza

Midsize CUV

Volkswagen Routan

Midsize Van

Volkswagen Passat CC

Midsize Prem. Conv.

Source: JDPA Forecasting, Automotive Marketing Radar (AMR)

11

2008 J.D. Power and Associates,

The McGraw-Hill Companies, Inc.
All Rights Reserved.

Automotive Marketing Radar

Interactive tool
Provides details on launch vehicles
Projected launch date
Sales volume forecasts
Competitive set data
Demonstration in reception area

11

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For more automotive online marketing information

Visit our blog:
www.OnlineAutomotiveReview.com

Automotive Internet Roundtable

October 7th 9th
Bellagio
Las Vegas, Nevada

11

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Thank
You
2008 J.D. Power and Associates,
The McGraw-Hill Companies, Inc.
All Rights Reserved.