Traditional Media Brands' Expansion into Digital Creates New Auto Advertising Opportunities, J.D. Power Study Finds

DETROIT, Aug. 1, 2016 /PRNewswire/ -- New-vehicle drivers in the United States spend an average of 11 hours a day watching TV, streaming video content, listening to radio programming or on the Internet—often engaged in more than one of these activities simultaneously—according to the J.D. Power 2016 U.S. Automotive Media and Marketing ReportSM—Summer, released today.

The report, which provides a comprehensive view of the factors that influence consumers' new-vehicle purchases, as well as attitudinal, lifestyle, recreational and media consumption behaviors, finds that all new-vehicle drivers are spending a great deal of time reading, watching and listening on a daily basis. While Gen Y1 and Gen X spend the most time engaged with various media (13 hours and 12 hours, respectively), Boomers and Pre-Boomers are not far behind at 11 hours and 10 hours, respectively.

The bigger difference is how they are using it. The younger generations spend a greater share of their media consumption on the Internet and streaming video, while Boomers and Pre-Boomers are more inclined to spend this time watching TV. Digitally based, streaming media continues to gain popularity, as many consumers are willing to pay to get the content they want, when they want it, often delivered with few, if any, advertisements. Seven in 10 (70%) new-vehicle drivers indicate having used streaming video/programming services such as Amazon, Hulu or Netflix in the past 30 days, and 64% have used a streaming music service such as Pandora or Spotify in the past 30 days.

"We are exposed to a massive amount of content each day, yet as many consumers are paying subscription fees that limit ads, it creates a challenge to get auto advertisements and messaging in front of consumers," said Dave Sargent, vice president of global automotive at J.D. Power. "Astute advertisers will continually monitor their consumer base and adapt their advertising to the appropriate channels to reach their target audience." 

While paid media streaming offers limited digital advertising opportunities, traditional media players are increasingly opening new avenues for digital placements.

Traditional media channels such as TV networks, magazines and newspapers are still largely being consumed in their "native" form, but have also been successful in attracting a digital audience. For example, among the 60 broadcast and cable networks measured in the report, 97% of viewers watched the networks on television, and 36% also viewed a network's programming via website, app or gaming system/streaming box.

Magazine publishers are making similar inroads with their digital footprint. In addition to the 86% of readers of the 92 magazines included in the report who read the publication via a traditional printed copy, 41% read the magazine digitally, either through a digital edition, website or app.

Publications with content focused on sports, news or business—such as The Atlantic, Bloomberg Markets, ESPN The Magazine and Harvard Business Review—have the largest proportions of digital audiences and are among the measured publications whose total digital readership surpasses their print edition readership.

Compared with magazines and television networks, newspapers attract the highest rates of users to digital content. For newspapers, readers are fairly evenly divided between print and digital, with 60% reading a measured newspaper in its print version and 58% accessing a newspaper via a website, app or digital edition.

"Traditional advertising isn't going away, but automakers will have to continue to look at all channels, from digital advertising to product placement, to engage with their customers," said Sargent. "Changing habits in media consumption creates challenges for advertisers, but it also creates new opportunities."

Since 1987, J.D. Power has been providing expertise to media companies, automakers and their agencies detailing media habits and behaviors of new-vehicle drivers through the Automotive Media and Marketing Report. As consumers increasingly spend more time online, the study was redesigned to address these changes.

The 2016 U.S. Automotive Media and Marketing Report—Summer is based on a nationwide survey of 12,480 principal drivers of recently purchased or leased new vehicles. The report is based on owners reflecting vehicle registrations from May 2015 through October 2015.

For more information about the 2016 U.S. Automotive Media and Marketing ReportSM—Summer visit http://www.jdpower.com/resource/jd-power-automotive-media-and-marketing-report-oem.

See the online press release at http://www.jdpower.com/pr-id/2016131.

Media Relations ContactsJohn Tews; Troy, Mich.; 248-680-6218; [email protected]Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

1 J.D. Power defines the generations as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); and Gen Y (1977-1994)

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SOURCE J.D. Power