J.D. Power and Associates Reports: Smaller Video-Sharing Web Sites May Be More Effective than Larger Ones In Reaching Buyers of Specific Vehicle Segments

WESTLAKE VILLAGE, Calif., Dec. 13 /PRNewswire/ -- While the number of consumers visiting some larger video-sharing Web sites has grown considerably since July 2007, various smaller video-focused Web sites may prove more effective in reaching new-vehicle buyers within specific vehicle segments, according to the J.D. Power and Associates 2007 Power Auto Online Media Study(SM)-Winter, released today.

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

The study, now in its second year, 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 and scope, and is the only study of its kind that consists exclusively of verified new-vehicle buyers.

"A relatively small number of adults -- roughly 6 percent of the population -- purchase a new vehicle each year, so it is particularly important to carefully target automotive advertising to mediums that will provide the best balance of audience reach and penetration," said Arianne Walker, director of marketing and media research at J.D. Power and Associates. "More new-vehicle buyers are viewing video on the Web, and advertisers could benefit from staying on top of this growing trend."

The study finds that a substantial percentage of new-vehicle buyers -- 54 percent -- report going online to view video. Of video-sharing Web sites, YouTube has the largest reach among new-vehicle buyers at 29 percent, achieving a 4 percentage-point increase since the previous wave of the study. YouTube's reach is nearly three times that of its closest competitor, Google Video BETA.

Although smaller video-sharing sites may have less absolute reach than large video Web sites such as YouTube, the study finds that the smaller sites may be more effective in targeting specific sub-segments of buyers. For example, Web sites such as Spike/ifilm, MSN Video and Yahoo! Video reach a greater proportion of compact crossover utility vehicle (CUV) buyers than does YouTube. The compact CUV market -- which includes models such as the Honda CR-V, Kia Sportage, Saturn VUE and Toyota RAV4 -- is one of the fastest-growing segments in the automotive industry, up by 11 percent from July 2007.

"Finding ways to closely and efficiently target consumers can be extremely beneficial to automakers, particularly when vehicle segments experiencing considerable growth in sales are pinpointed," said Walker. "In this instance, smaller video-sharing sites attract a higher concentration of compact CUV buyers, which can make such sites more effective in targeting these buyers with relevant automotive advertising."

The study also finds that making media buy decisions based solely on general Web site visitor demographics tends to be less effective than placing advertising on Web sites with high concentrations of the target segment.

"As an example, YouTube's and MSN Video's visitor target demographics are nearly identical," said Walker. "However, when segment reach is examined more closely, it becomes apparent that MSN Video has the propensity to deliver a higher proportion of target compact CUV buyers, compared with YouTube."

The study results also include the following key findings: -- Approximately 58 percent of compact premium CUV buyers say they are willing to pay more to obtain an environmentally friendly vehicle. -- Compared with the average new-vehicle buyer, buyers of large premium sporty vehicles are more than two times more likely to visit an automotive blog Web site.

The Power Auto Online Media Study, now in its second year, is based on a random national sample of 10,883 verified new-vehicle buyers who purchased a vehicle between January and March 2007. The study was fielded from September to October 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