J.D. Power and Associates Reports: Effectiveness of Media Buys May Hinge on Average Daily Audience Reach

WESTLAKE VILLAGE, Calif., July 30 -- Online advertisers targeting new-vehicle buyers can tailor how quickly their advertising reaches their intended audience by understanding the differences between daily and monthly Web site visitation patterns, according to the J.D. Power and Associates 2007 Online Media Study(SM) -- Wave 1 released today.

The study finds that Web sites vary widely in their average daily audience reach, which can affect online advertisers' success in conveying their messages. For example, retail-oriented messages such as cash-back promotions are more effective when placed on Web sites that have high average daily audience reach and accumulate their maximum reach quickly, while branding campaigns do not require this type of speed.

For instance, when measured during a span of four weeks, the ESPN and Travelocity Web sites had a reach of 32 percent and 33 percent, respectively, among consumers who will buy a midsize premium crossover utility vehicle in the near future. However, the ESPN Web site achieves its reach in a shorter period of time. ESPN delivers nearly one-third of its total monthly audience in just one day, on average, while the Travelocity site has a daily reach averaging 4 percent.

"Online advertisers who consider average daily audience reach when targeting new-vehicle buyers can quickly determine which Web sites are most efficient for reaching their intended audience and how rapidly their advertising message will be served," said Steve Witten, executive director of marketing/media research at J.D. Power and Associates. "Optimizing media buys and advertising spot placements in this manner can help advertisers achieve their specific marketing objectives."

The study, now in its second year, is based on a random national sample of 11,240 verified new-vehicle buyers with Internet access who purchased a vehicle between August and October 2006. The study 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.

Approximately 88 percent of new-vehicle buyers use the Internet. The study finds that these new-vehicle buyers spend an average of 11 hours per week online.

"Since new-vehicle buyers spend substantial amounts of time online, the Internet is a great way to provide branding messages to consumers," said Witten. "The Internet is especially effective in helping advertisers find 'in-market' consumers -- those who are actively shopping for a new car or truck -- so marketers often overlook the fact that that online advertising is also a particularly effective branding tool."

The study also finds that visitation to particular Web sites can vary greatly by the type of vehicle consumers are likely to purchase. For example:

  -- Compact basic car buyers are 44 percent more likely to visit YouTube at
     least once per month than the average new-vehicle buyer.
  -- Fourteen percent of large pickup truck buyers visit NASCAR.com at least
     once per month, compared with 10 percent of buyers overall.
  -- Midsize car buyers are more than 20 percent more likely to visit MSNBC
     at least once per month than the average new-vehicle buyer.

  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/.