This document summarizes findings from an automotive online marketing review by J.D. Power and Associates. It discusses trends in new vehicle sales, consumer preferences, and online shopping behaviors. Key points include: total US new vehicle sales in 2008 will be the lowest since 1993 due to higher gas prices favoring cars over trucks. Compact vehicles have gained market share while online advertising budgets are being reduced. The number of models shopped and use of search increases in the month of purchase.

1. Automotive Online Marketing
Review
Gene Cameron, VP Marketing/Media Solutions
Scott Kane, Senior Research Manager
October 7th, 2008
© 2008 J.D. Power and Associates,
The McGraw-Hill Companies, Inc.
All Rights Reserved.

2. 2008 U.S. new vehicle sales will total about 14
million, the lowest annual result since 1993
Total U.S. New Light Vehicle Sales
18
Total New Light Vehicle Sales (Millions)
17
16
15
Record Year - 17.4 Million Units
14
13
12
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
Source: J.D. Power and Associates *JDPA Forecast
© 2008 J.D. Power and Associates,
2 The McGraw-Hill Companies, Inc.
All Rights Reserved.

3. With higher gas prices, cars are now out-selling
light trucks by a substantial margin
Car and Light Truck Share
Ca r Sha re Truck Sha re
60%
% of U.S. New LIght Vehicle Sales s
50%
40%
30%
20%
10%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008*
Source: J.D. Power and Associates *August YTD
© 2008 J.D. Power and Associates,
3 The McGraw-Hill Companies, Inc.
All Rights Reserved.

4. Compact vehicles have gained share at the expense
of both Midsize and Large vehicles
Mix Based on Vehicle Size
Com pa ct Sha re Midsize Sha re La rge Sha re
60%
% of Total U.S. New LIght Vehicle Sales
50%
40%
30%
20%
10%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008*
*August YTD
Source: J.D. Power and Associates
© 2008 J.D. Power and Associates,
4 The McGraw-Hill Companies, Inc.
All Rights Reserved.

5. Online budgets are being reigned in this year. Reaching
shoppers efficiently is more important than ever
Automotive Internet Advertising Spending
OEMs Dealers and associations Top third-party sites
400
344
350
Ad Spending (Millions)
300
264
250
200
150
100
80
50
20
0
2005 H1 2005 H2 2006 H1 2006 H2 2007 H1 2007 H2 2008 H1
Source:
© 2008 J.D. Power and Associates,
5 The McGraw-Hill Companies, Inc.
All Rights Reserved.

6. Automotive Internet usage (AIU) rates rise rapidly
as shoppers change their purchase behaviors
Automotive Internet Usage (AIU) Trends
New1 Vs. Used2 – Vehicle Buyers 10-Year Trend
New Used
80% 75%
70%
67% 68%
70% 64% 64%
60% 60%
60% 54%
61%
59%
50% 54% 53%
40% 47% 47%
40% 43%
30% 33%
26%
20%
10%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
1 Based to new-vehicle buyers. Source: J.D. Power and Associates 1999-2008 New Autoshopper.com Studies
2 Based to used-vehicle buyers. Source: J.D. Power and Associates 1999-2007 Used Autoshopper.com Studies
© 2008 J.D. Power and Associates,
6 The McGraw-Hill Companies, Inc.
All Rights Reserved.

7. When do buyers begin shopping for vehicles?
Average/Median days
prior to purchase
First shopped for any model 89/87
days before
First shopped for a model within the
vehicle segment which they purchased
74/56
days before
First shopped for the model they
ultimately purchased 62/29
days before
Based to AIUs. Preliminary Unweighted Data
Source: J.D. Power and Associates 2008 Auto Buyer Clickstream Study
© 2008 J.D. Power and Associates,
7 The McGraw-Hill Companies, Inc.
All Rights Reserved.

8. Number of Models Shopped Increases
in Month of Purchase
Number of Models
Timeframe Shopped per Buyer
5 Months Prior 1.0
4 Months Prior 1.1
3 Months Prior 1.1
2 Months Prior 1.2
1 Month Prior 1.5
Purchase Month 3.1
Based to AIUs. Preliminary Unweighted Data
Source: J.D. Power and Associates 2008 Auto Buyer Clickstream Study
© 2008 J.D. Power and Associates,
8 The McGraw-Hill Companies, Inc.
All Rights Reserved.

9. Use of Search is also growing, fueled by growth in
the use of Google
Used Search for Automotive Information
90%
85% 84%
% Using Search
81%
80%
75%
70%
2007 2008
Based to AIUs. Source: J.D. Power and Associates 2007/2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,
9 The McGraw-Hill Companies, Inc.
All Rights Reserved.

10. Online NVBs Increased their use of
Automotive search terms the month of purchase
Categorized Search Terms throughout the Vehicle Purchase Horizon
Percentage of the top 100 search terms by AIUs
50%
45%
40%
35% 3X Increase
30%
25%
20%
15%
10%
5%
0%
5 Months Prior Months
4 PriorMonths
3 Prior Months
2 Prior Months
1 Prior u r c h a s e
P
Month
Retail Automotive Social Networking Search/Portal Directions
Based to AIUs. Preliminary Unweighted Data
Source: J.D. Power and Associates 2008 Auto Buyer Clickstream Study
© 2008 J.D. Power and Associates,
10 The McGraw-Hill Companies, Inc.
All Rights Reserved.

11. In 2008, use of Mobile access grew by 21%
versus 2007
Mobile / Cell Phone Internet Access
30%
25%
% With Mobile Access
20% 18%
15%
15%
10%
5%
0%
2007 2008
Based to AIUs. Source: J.D. Power and Associates 2007/2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,
11 The McGraw-Hill Companies, Inc.
All Rights Reserved.

12. Mobile should be on some OEMs’ top priorities,
but of less concern to others
Mobile / Cell Phone Access
to the Internet
Top 5
Land Rover* 50%
Porsche 43%
BMW 37%
Jaguar* 36%
Audi 35%
Bottom 5
Suzuki 13%
Mercury 11%
Buick 11%
Hyundai 10%
Kia 8%
Based to AIUs buying each brand. Source: J.D. Power and Associates 2008 New Autoshopper.com Study
*Caution: Small Sample. Land Rover (n=85), Jaguar (n=61)
© 2008 J.D. Power and Associates,
12 The McGraw-Hill Companies, Inc.
All Rights Reserved.

13. Consumer-generated content (CGC) remains an
important part of the online shopping process
Use of Consumer-Generated Content
80%
70%
69% 69%
% Using CGC
60%
50%
2007 2008
Based to AIUs. Source: J.D. Power and Associates 2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,
13 The McGraw-Hill Companies, Inc.
All Rights Reserved.

14. Vehicle Ratings and Reviews are by far the most
used type of CGC
Consumer-Generated Content Usage % Finding
Helpful*
Vehicle
63%
Ratings/Reviews 95%
Dealer
38%
Ratings/Reviews 87%
Enthusiast Sites 22%
81%
Online Forums/Chat
18%
Rooms/Q&A Sites 78%
Blogs 12%
69%
Videos/Podcasts 10%
66%
0% 10% 20% 30% 40% 50% 60% 70%
*Based to AIUs who used each type of CGC
Source: J.D. Power and Associates 2008 New Autoshopper.com
Study © 2008 J.D. Power and Associates,
14 The McGraw-Hill Companies, Inc.
All Rights Reserved.

15. The model purchase decision is impacted by
Expert and Consumer Ratings & Reviews
Shoppers Using Consumer Shoppers Using Expert
Ratings/Reviews (Not Expert) Ratings/Reviews (Not Consumer)
Model Purchased Share Model Purchased Share
Toyota Camry 3.9% Honda Accord Sdn 3.7%
Honda Accord Sdn 3.3% Nissan Altima 3.6%
Nissan Altima 3.2% Toyota Camry 3.2%
Toyota Yaris 2.8% Honda CR-V 2.9%
Toyota Corolla 2.6% Toyota Prius 2.5%
Toyota Prius 2.3% Honda Civic Sdn 2.1%
Honda Pilot 2.2% Chevrolet Silverado LD 2.0%
Ford Focus 2.2% Ford F-150 LD 2.0%
Honda Civic Sdn 2.2% BMW 3 Series 1.9%
Ford F-150 LD 2.1% Toyota Corolla 1.7%
Based to AIUs using either Consumer or Expert Ratings/Reviews, but not the other.
Source: J.D. Power and Associates 2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,
15 The McGraw-Hill Companies, Inc.
All Rights Reserved.

16. Online NVBs are avid users of Social and Video Sites
First 6 months 2008
% Reach Index
NVB IBP NVB Reach/IBP Reach
go.com 74% 20% 371
youtube.com 71% 34% 210
myspace.com 68% 35% 196
facebook.com 49% 19% 261
abc.com 12% 1% 1,541
twitter.com 3% 1% 347
hulu.com 1% 1% 184
Based to Online New Vehicle Buyers. Preliminary Unweighted Data
Source: J.D. Power and Associates Total Online Media Behavior
© 2008 J.D. Power and Associates,
16 The McGraw-Hill Companies, Inc.
All Rights Reserved.

17. As a percentage, online submissions hold relatively
steady year-over-year
AIUs that Submitted Request for Quote
50%
40%
% Requesting Quote
31.6% 32.1% 31.0% 31.7%
29.3%
30%
20%
10%
0%
2004 2005 2006 2007 2008
Based to AIUs. Source: J.D. Power and Associates 2004-2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,
17 The McGraw-Hill Companies, Inc.
All Rights Reserved.

18. Realistically, 1 of 5 AIUs will never submit a
Request for Quote
Submit Request
May be open to Quote Process
Not Likely to Submit a Quote
• Prefer to negotiate price
in person or by phone
• Already have
49%
relationship with dealer
and know where they’ll
next purchase
29% 22% • Use alternate
purchasing/discount
program
• Etc…
Based to AIUs. Source: J.D. Power and Associates 2008 Follow-Up Study to NAS
© 2008 J.D. Power and Associates,
18 The McGraw-Hill Companies, Inc.
All Rights Reserved.

19. Fear of dealer contact and doubts about receiving valuable
or accurate information deters shoppers from submitting requests
Reasons Why Shoppers Did Not Submit a Request for Quote
60%
50%
40%
29%
20% 15%
7% 7%
0%
Did not want to be Wouldn’t get Privacy or Identity Wouldn’t get a Tried it before and
contacted by valuable / accurate Theft concerns timely response didn’t like it
dealer information
Based to AIUs that did not submit a request for quote
Source: J.D. Power and Associates 2008 Follow-Up Study to NAS
© 2008 J.D. Power and Associates,
19 The McGraw-Hill Companies, Inc.
All Rights Reserved.

20. Providing quality responses to requests is at the
heart of the problem
Request for Quote - Dealer Response Ratings
Timeliness of
7.2
Response
Completeness of
6.4
Response
0 2 4 6 8 10
Satisfaction Score
Based to AIUs that submitted a request for quote
Source: J.D. Power and Associates 2008 Follow-Up Study to NAS
© 2008 J.D. Power and Associates,
20 The McGraw-Hill Companies, Inc.
All Rights Reserved.

21. Active Online Shoppers have a relatively limited
use of sites within type
Active Online New Vehicle Buyers in
6 Months Prior to Purchase by Type Average Number of Sites Visited
of Site
Third Party Sites 3.3
OEM Sites 3.1
Dealer Sites 2.6
Based to AIUs. Preliminary Unweighted Data
Source: J.D. Power and Associates 2008 Auto Buyer Clickstream Study
© 2008 J.D. Power and Associates,
21 The McGraw-Hill Companies, Inc.
All Rights Reserved.

22. What do shoppers find most useful about different
types of sites?
Top 10 Most Useful Content by Type of Site
Independent Web Sites Manufacturer Web Sites Dealer Web Sites
Research Info/Options, Features,
Pricing/Incentives/MSRP 40% 43% Inventory Locator 44%
Specs
Reviews/Forums/Ratings 21% Pricing/Incentives/MSRP 20% Pricing/Incentives/MSRP 35%
Research Info/Options, Features,
Compare Vehicles 17% Equip a Vehicle 17% 14%
Specs
Research Info/Options, Features,
12% Navigation/Easy to Use 15% Navigation/Easy to Use 10%
Specs
Navigation/Easy to Use 11% Inventory Locator 7% Request Quote/Contact Dealer 7%
Trade-In Value 8% Vehicle Images/360 Tool/Video 7% Find a Dealer 6%
Vehicle Images/360 Tool/Video 2% Compare Vehicles 4% Vehicle Images/360 Tool/Video 4%
Request Quote/Contact Dealer 1% Find a Dealer 4% Compare Vehicles 2%
Monthly Payment Monthly Payment
Find a Dealer 1% 3% 1%
Calculator/Estimate Calculator/Estimate
Monthly Payment
1% Request Quote/Contact Dealer 2% Equip a Vehicle 1%
Calculator/Estimate
Based to AIUs
Source: J.D. Power and Associates 2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,
22 The McGraw-Hill Companies, Inc.
All Rights Reserved.

23. Online New Vehicle Buyers Visit a “Long Tail” of
Third-Party Sites
Top Third Party Sites Share of Total Third Party Sessions
14%
12%
10%
8%
6%
4%
2%
0%
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Based to AIUs. Preliminary Unweighted Data
Source: J.D. Power and Associates 2008 Auto Buyer Clickstream Study
© 2008 J.D. Power and Associates,
23 The McGraw-Hill Companies, Inc.
All Rights Reserved.

24. Carving out a niche is important to growing and
sustaining a useful site
Top 10 Most Useful Site Content
Independent Kelley Blue
Edmunds.com Cars.com Vehix.com
Site Visitors Book
Pricing/Incentives/MSRP 40.2% 47.9% 53.7% 28.5% 7.8%
Reviews/Forums/Ratings 20.9% 29.6% 8.4% 13.5% 5.3%
Compare Vehicles 17.4% 16.1% 7.0% 24.3% 59.3%
Research Info/Options, Features, Specs 12.1% 12.5% 6.0% 9.8% 13.5%
Navigation/Easy to Use 11.0% 8.4% 7.4% 27.6% 16.3%
Trade-In Value 7.8% 4.4% 27.0% 1.9% 0.0%
Vehicle Images/360 Tool/Video 1.5% 0.6% 0.1% 8.1% 5.3%
Request Quote/Contact Dealer 1.5% 1.6% 0.2% 2.9% 1.3%
Find a Dealer 1.4% 1.0% 0.2% 8.4% 3.4%
Monthly Payment Calculator/Estimate 0.8% 0.7% 0.8% 4.7% 1.2%
Based to AIUs visiting each site who thought that site was most useful
Source: J.D. Power and Associates 2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,
24 The McGraw-Hill Companies, Inc.
All Rights Reserved.

25. Getting more traffic to the brand site is great, as
long as it’s the right traffic
Top 15 Visited OEM Sites—Year-Over-Year Analysis
20%
15% Saturn
% Change in Visitation
Nissan
10%
Volkswagen
5%
0%
-5%
-10%
Hyundai Jeep
-15%
-40% -30% -20% -10% 0% 10% 20% 30%
% Change in Close Rate
Visitation: Based to AIUs. Close Rate: Based to AIUs visiting each site.
Source: J.D. Power and Associates 2008 New Autoshopper.com Study
© 2008 J.D. Power and Associates,
25 The McGraw-Hill Companies, Inc.
All Rights Reserved.

26. Summary Observations
• Difficult market
– Tighter sales
– Major shifts in purchase patterns by Segment
• Increasing Internet use with shifts in patterns, fragmentation
– Consideration counts are not expanded for models or sites used for shopping
– Third Party Sites exhibit long tail, suggesting fragmentation
– CGC, Mobile, Video, ?
– Shoppers/Buyers in new territory, use of internet
• Request for Quote is only effective if it responds to shoppers, is
complete, not just rapid
© 2008 J.D. Power and Associates,
26 The McGraw-Hill Companies, Inc.
All Rights Reserved.

27. Summary Observations
• Challenge to become more efficient and effective
• Targeting more important than ever, customize targeting
– Join the conversation
Common interest
Add value
Build engagement
Relevant traffic that converts
• Understand shoppers, position your site and marketing to give
them a reward
• Leverage information throughout the organization
© 2008 J.D. Power and Associates,
27 The McGraw-Hill Companies, Inc.
All Rights Reserved.

28. Thank you!
© 2008 J.D. Power and Associates,
The McGraw-Hill Companies, Inc.
All Rights Reserved.