J.D.

Power Automotive Online Marketing Review

Arianne Walker
Director, Media and Marketing J.D. Power and Associates

Steve Witten
Executive Director, U.S. Automotive J.D. Power and Associates

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

New Vehicle Drivers are substantially different than the population at large
New Vehicle Population Median Adult Age^ % College Education^ Median HH Income^ % Male^ % Internet Access* Access Internet via Mobile Phone* Avg # Hours Online per Week* 55 46% $86,000 55% 93% 38% 12 General Population 49 30% $50,000 49% 74% 29% 16 Difference +6 + 16% + $36,000 + 6% + 19% + 9% -4

*Source: 2011 Power Auto Offline Media Report, Summer; 2009 Nielsen Report; 2010 Pew Internet Research ^Source: 2009 Power Auto Offline Media Report, Summer; 2009 Census 2
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

New Vehicle Drivers are substantially different than the population at large
New Vehicle Population Median Adult Age^ % College Education^ Median HH Income^ % Male^ % Internet Access* Access Internet via Mobile Phone* Avg # Hours Online per Week* 55 46% $86,000 55% 93% 38% 12 General Population 49 30% $50,000 49% 74% 29% 16 Difference +6 + 16% + $36,000 + 6% + 19% + 9% -4

*Source: 2011 Power Auto Offline Media Report, Summer; 2009 Nielsen Report; 2010 Pew Internet Research ^Source: 2009 Power Auto Offline Media Report, Summer; 2009 Census 3
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Demographic Targeting Misses the Mark

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Demographic targeting can miss the mark

Compact CUV Demographic Target
Adults 25-64 Years Old HHI < $100K
Total US Adult 18+Population (235 Million)
Adults 18+

Paying for: 108 Million

Adults 25-64 Years Old w/HHI < $100K

Adults 25-64 w/ HHI <$100K

Looking for: 952K

Compact CUV Adults 25-64 w/HHI <$100

Actually getting: 420K Using demographics as your point of entry targeting tool is walking away from 58% of your target
Source: 2007-2009 American Community Survey 3-Year Estimates; 2011 Power Auto Offline Media Report Summer
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Vistaprint.com is the only site in the 15 top list of both Compact CUV buyers and the demo target
Highest Indexing Websites Adults Ages 25-64 with Household Income of under $100K
Website Demo Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Website

Compact CUV Buyers

Segment Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

yellowpages.lycos.com mail.yahoo.com login.yahoo.com pogo.com profile.myspace.com vistaprint.com messaging.myspace.com friends.myspace.com nick.com shopathome.com gamevance.com snagajob.com coupons.com games.yahoo.com plentyoffish.com

dishnetwork.com popeater.com tmz.com tvsquad.com vistaprint.com wonderwall.msn.com picasaweb.google.com search.aol.com video.yahoo.com moviefone.com edmunds.com americanexpress.com ancestry.com proflowers.com hubpages.com

Source: Prospects Current Behavior May 2011; Compete Compact CUV buyer ranker is top 15 reaching sites. Minimum 5 million unique visitors, excludes networks, ad supported sites only.
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Three of the top television shows watched are different between the two groups
Most Popular Television Shows: (DIRECTView) C7 Adults Ages 25-64 with Household Income of under $100K
TV Show Redskins @ Cowboys Dancing With the Stars Person of Interest Survivor: South Pacific NCIS: Los Angeles Mike & Molly Hawaii Five-O 2 Broke Girls Greys Anatomy Castle Body Of Proof Blue Bloods Unforgettable Sons of Anarchy How To Be A Gentleman Demo Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 TV Show Redskins @ Cowboys Dancing With the Stars Person of Interest Castle NCIS: Los Angeles Harrys Law Greys Anatomy Unforgettable Blue Bloods Glee The X Factor 2 Broke Girls Body Of Proof Sons of Anarchy Survivor: South Pacific

Compact CUV Buyers

Segment Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Source: Kantar Media/PIN Data Match: 9/26/11-9/30/2011 Prime, 36,072 In-Tab A25-64 HHI <$100K, 421 In-Tab Compact CUV HHs
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

The number of unique shows doubles when filtering out broadcast TV

Most Popular Non-Broadcast Television Shows (DIRECTView) C7 Adults Ages 25-64 with Household Income of under $100K
TV Show Redskins @ Cowboys Sons of Anarchy WWE Monday Night RAW Monday Night Countdown Lizard Lick Towing Haven Hardcore Pawn South Florida @ Pittsburgh The O'Reilly Factor Operation Repo Top Shot Pawn Stars American Pickers WWE Friday Night SmackDown! Utah State @ BYU Demo Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 TV Show Redskins @ Cowboys Sons of Anarchy Monday Night Countdown South Florida @ Pittsburgh Go, Diego, Go! WWE Monday Night RAW Tampa Bay Rays @ Rangers The O'Reilly Factor Haven Lizard Lick Towing Tigers @ Yankees American Pickers Fashion Police Cardinals @ Astros I Married a Mobster

Compact CUV Buyers

Segment Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Source: Kantar Media/PIN Data Match: 9/26/11-9/30/2011 Prime, 36,072 In-Tab A25-64 HHI <$100K, 421 In-Tab Compact CUV HHs, excluding broadcast
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Automotive Internet Usage

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Four out of five new vehicle buyers use the Internet in their vehicle shopping process
Automotive Internet Usage among New Vehicle Buyers
100% 90% 80% 70% 75% 60% 54% 60% 64% 64% 67% 68% 70% 82% 81%
#

79%

Percent AIUs

60% 50% 40% 30% 20% 10% 0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Note: 2000-2008 data from J.D. Power and Associates New Autoshopper.com Studies and 2009-2010 data from Sales Satisfaction Index
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

#Preliminary data

10

Loyal brand buyers are shopping nearly one model less than non-loyal buyers
Number of New Models Shopped Online
# New Models Shopped 5

4 Number

3.7

3.8

2.9

1 All New-Vehicle Buyers

Based to AIUs Source: 2011 Website Performance Tool custom run from Compete, Inc.
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Non-Loyal

Loyal

11

Loyal brand buyers are shopping nearly one model less than non-loyal buyers
Number of New Models Shopped Online
5 # New Models Shopped 3.9 # of Dealers Visited

4 Number

3.7 3.4

3.8

2.9 2.5

1 All New-Vehicle Buyers

Based to AIUs Source: 2011 Website Performance Tool custom run from Compete, Inc. Source: J.D Power and Associates 2010 Sales Satisfaction Study
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Non-Loyal

Loyal

12

53% of shoppers consider both used and new vehicles

Source: 2011 Shopper Frame of Mind Study, AutoTrader.com Site Statistics

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

13

Loyal buyers are slightly more likely to start their shopping on a Third Party Site
First Type of Auto Site Visited During the 6 months prior to purchase
100% Non-Loyal 80% Percent Visiting Loyal

60% 47% 40%

49% 33% 33% 20% 18%

20%

0% Third Party
Based to AIUs Source: 2011 Website Performance Tool
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

OEM

Dealers

14

More than twice as many shoppers end on an OEM site than start on one
Top 10 Auto Sites Visited
First Type of Site Visited
Last Type of Site Visited

OEM Sites

OEM Sites

Third Party Sites

Third Party Sites

Based to AIUs visiting the Top 10 First Auto Sites Visited, and the Top 10 Last Auto Sites Visited. Source: 2011 Website Performance Tool
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

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Third Party Sites are more important at the beginning of the process and remain important throughout
Cumulative Site Reach Leading to Purchase
100%

Dealer Sites OEM Sites Third Party Sites

79% 75%

75%

69% 64%

69%

72%

Percent Visiting

50%
45% 40%

53%

56%

59%

63%

39% 34% 27% 22% 30%

25%
22%

0%
6 mos. prior
Based to AIUs
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

5 to 6 mos. prior 4 to 6 mos. prior 3 to 6 mos. prior 2 to 6 mos. prior

Anytime w/in 6 mos. prior

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The most frequently used tool on an manufacturer site is the build a vehicle tool
Shopping Tools Used on OEM Sites
50% 40% 30% 20% 10% 0%

% Using

31%

25%

25% 13% 12% 12%

Build a Vehicle

Offers

Locate Dealer

Search Inventory

Request a Quote

Compare

Based to AIUs visiting any OEM Site Source: 2011 Website Performance Tool
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

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 and it is used twice as much in the month of purchase, as it is 6 months prior

Shopping Tools Used on OEM Sites
50% 40% 30% 20% 10% 0%

% Using

31%

25%

25% 13% 12% 12%

Build a Vehicle

Offers

Locate Dealer

Search Inventory

Request a Quote

Compare

Shopping Tools Used on OEM Sites - Build a Vehicle

50% Percent AIUs 40% 30% 20% 10% 0% PM-5
Based to AIUs visiting any OEM Site Source: 2011 Website Performance Tool
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

39% 27% 21% 17% PM-4 PM-3 30% 22%

PM-2

PM-1

PM

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The most frequently used tool on a Third Party Site is the search inventory tool

Based to AIUs that visit any Third Party Site Source: 2011 Website Performance Tool
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

19

 but thats not true for Premium shoppers

# Shopping Tools Used on Third Party Sites Market 3.8 Premium Buyers

4.2

Based to AIUs that visit any Third Party Site Source: 2011 Website Performance Tool
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

20

Online video is an important tool to reach New Vehicle Buyers

63% of auto video viewers became more interested in a vehicle after watching a video 50% said watching videos introduced them to a vehicle they hadnt previously considered 61% said video helped narrow their choices

Source: 2010 Google / comScore / Polk Video Advertising Study 21

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

A majority of shoppers are accessing dealership websites on a computer

Dealership Access Point

Mobile 9%

Computer 91%

22

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Auto advertisers who use highly interactive ad formats see a 20% increase in completion rate

Ads Served

Completion Rate
+20%

Standard 94%

Interactive Supported 6%

Standard

Interactive Supported

23

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Online Leads

24

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Online Lead Submission Facts

% of buyers who submit a request: 24% % of online leads are NOT responded to: 3% % of online leads responded to within 24 hours: 95% % of online leads responded to within 1 hour: 33% Average # of times contacted by dealer: 3 % of submitters purchasing from submit-dealer: 60%

Source: J.D Power and Associates 2010 Sales Satisfaction Study

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

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The more an OEM site visitor engages the more likely they are to purchase that brand
Increase in Likelihood to Purchase by OEM Website Activity
200 180 180x

O2O Purchase Affinitiy

160 140 120 100 80 60 40 20 0 Visit Configure Submit Lead 3x 90x

Website Activity

Based on matching actual vehicle purchase data to OEM online marketing activity
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

26

Those under 30 are less likely than those over 50 to submit an online request to a dealer
AIU and Submitting Onine Request Rates by Age
AIUs 100% 90% 80% 70% 60% 60% 50% 40% 30% 20% 10% 0% Under 30 30 - 39 40 - 49 Age
Source: J.D Power and Associates 2010 Sales Satisfaction Study
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Submitted Request

84%

86%

85% 80% 73%

35% 27%

35% 28% 28% 23%

50 - 59

60 - 69

70+

27

More new vehicle buyers are using the online request process today compared to 5 years ago
AIU and Submitting Onine Request Rates
Submitted Request 90% 80% 70% 60% AIU Rate 50% 40% 30% 20% 10% 0% 2005 2010 21% 24% 67% 79% Not Submit

Source: J.D Power and Associates 2010 Sales Satisfaction Study

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

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However, all the growth is due to an increase in the AIU rate, not an increase in submissions among AIUs
AIU and Submitting Onine Request Rates
Submitted Request 90% 80% 70% 60% AIU Rate 50% 40% 30% 20% 10% 0% 2005 2010 21% 67% 79% Not Submit

32% of AIUs

31% of AIUs
24%

Source: J.D Power and Associates 2010 Sales Satisfaction Study

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

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Internet information is not helping shoppers be more decisive about which vehicles to shop
Rejected a Vehicle Shopped at a Dealer Because Decided the Model was Not Right for Them
40% 37% 35% 35% 33%

30%

25%

20% Non-AIU's
Source: J.D Power and Associates 2010 Sales Satisfaction Study
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

AIU's

Submitters

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Those submitting online requests do more cross-shopping than other buyers, not less
Number of Brands and Dealers Shopped
# of Dealers Shopped 5 4.2 4 3.7 # of Brands Considered

3 2.4 2 1.8 2.5

2.7

1 Non-AIU's
Source: J.D Power and Associates 2010 Sales Satisfaction Study
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

AIU's

Submitters

31

Mobile Usage

32

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Automotive internet usage on smartphones has increased 41% in one year

Automotive Internet Usage among New Vehicle Buyers
100% 90% 80% 70% 75% 60% 54% 60% 64% 64% 67% 68% 70% 82% 81%
#

79%

Percent AIUs

60% 50% 40% 30% 20% 10% 0%

24% 17%
Mobile Use^

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Note: 2000-2008 data from J.D. Power and Associates New Autoshopper.com Studies and 2009-2010 data from Sales Satisfaction Index ^ J.D. Power and Associates Automotive Mobile Site Study
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

#Preliminary data

33

Smartphone feature usage has increased

27%

24%

Based to in-market smartphone shoppers Source: J.D. Power and Associates 2010-2011 US Automotive Mobile Site StudySM
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

34

Weather, Search, and Social are high traffic mobile categories for shoppers, while Automotive isnt as popular

17%

29%

41%
Based to in-market smartphone Internet users Source: J.D. Power and Associates 2010-2011 US Automotive Mobile Site StudySM
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

35

Of those shoppers visiting mobile Auto sites, OEM and Third Party Sites are most frequently visited similar to online shoppers

Based to smartphone Internet users that visited an automotive website in the past three months Source: J.D. Power and Associates 2010-2011 US Automotive Mobile Site StudySM
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

36

More mobile auto shopping is taking place while at home or at the dealer than while at work

Source: J.D. Power and Associates 2010-2011 US Automotive Mobile Site StudySM
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

37

Mobile traffic is about 4% higher on Saturday and Sunday than on the average weekday

Source: Omniture site date, 2011

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

38

Each device has its unique usage pattern

Search Volume by Time of Day

Desktop

Midnight

6am

Midday

6pm

Midnight

39

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Each device has its unique usage pattern

Search Volume by Time of Day

Mobile

Desktop

Midnight

6am

Midday

6pm

Midnight

40

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Each device has its unique usage pattern

Search Volume by Time of Day

Mobile Tablet Desktop

Midnight

6am

Midday

6pm

Midnight

41

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Among smartphone Internet users, tablet ownership is 30%

Do you own a tablet?

No 70% Yes 30%

Have you accessed auto information on your tablet?

No 38%

Yes 62%
19%
Based to in-market smartphone internet users Source: J.D. Power and Associates 2010-2011 US Automotive Mobile Site StudySM
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

42

Mobile sites are the preferred method of vehicle shopping even among those that have sampled Automotive Apps
Automotive App Download Penetration
Up from 20% in 2010

No 76%

Mobile Vehicle Shopping Preference

Yes 24%
50% 40% 30% 20% 10% 0%

2011 44% 33% 34% 42%

2010

23% 25%

Prefer apps
Based to in-market smartphone Internet users Source: 2010 Automotive Mobile Study Pilot
2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Prefer mobile No preference websites

43

Key Takeaways
You cant market cars the same way you market toothpaste Buyers are heavily using the Internet to vehicle shop The online lead process is not streamlining shopping Mobile vehicle shopping is growing

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

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2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.

Thank you

46

2011 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.