The recently released J.D. Power and Associates Power Auto Online Media Study—Winter finds that a substantial percentage of new-vehicle buyers (54%) report going online to view video. Of video-sharing Web sites, YouTube has the largest reach among new-vehicle buyers at 29%, 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.
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.
“More new-vehicle buyers are viewing video on the Web, and advertisers could benefit from staying on top of this growing trend,” according to Arianne Walker, director of marketing and media research at J.D. Power and Associates. “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% 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 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.
