On Target

2

OUR GOAL: Provide a snapshot of radio’s capabilities in 2011 and into the future

RADIO

• On Air – A mass medium capable of easily delivering your message to many people

– Targetable (by demo, lifestyle and geography) to assure the right people are

exposed to your message with little waste

• Online – Digital capabilities offering interactive opportunities to complement and

enhance your campaign and reach consumers using multiple touch points

• On Target – An environment that delivers consumers who are engaged and passionate

about the content

– Exposure to your message when and where consumers are ready to buy or shop

3

radio On Air. Online. On Target.

4

TODAY’S RADIO AUDIENCE

Sources: RADAR 110 September 2011, Arbitron (Persons 12+, Monday-Sunday 6a-12Mid Weekly Cume Estimates, % of Population Reached)

241,362,000 The Weekly Broadcast Radio Audience

Increase of almost 9 million over 4 years ago

Increase of nearly 1 million over 2010

5

TODAY’S RADIO AUDIENCE

What percentage of America

listens to radio each week?

6

TODAY’S RADIO AUDIENCE

93%

Sources: RADAR 110 September 2011, Arbitron (Persons 12+, Monday-Sunday 6a-12Mid Weekly Cume Estimates, % of Population Reached)

of Americans 12+ every week

27%35%

64%77%

94%

Magazine Newspapers Internet Broadcast Radio Television

% Daily Reach P18+

41

Minutes Per User

109

77

22

331

Source: ―How U.S. Adults Use Radio and Other Forms of Audio‖, 2009; an Analysis of the Consumer Mapping Study by the Council of Research Excellence

Note: Internet usage excludes e-mail: TV usage excludes time-shifted viewing

8

PEOPLE CONTINUE TO SPEND TIME WITH RADIO

% Daily Reach of Audio P18+

40%

9%10%12%15%

37%

77%

Other AudioStreaming on

Computer

MP3s Stored on

Computer

iPods /

Portable MP3

players

Satellite RadioCDs/TapesBroadc ast

Radio

72

65 81

69

109

67

53

BROADCAST RADIO IS THE DOMINANT SOURCE FOR AUDIO CONTENT

9

Minutes Per User

Source: Council for Research Excellence, Consumer Mapping Study, ―How U.S. Adults Use Radio and Other Forms of Audio‖, 2009;

Note: ―Other Audio‖ includes background music at

restaurants, retail, elevator music, etc.

BROADCAST RADIO CAPTURES MORE THAN 14 HOURS OF TUNE-IN EACH WEEK

Source: RADAR 110 September 2011, Arbitron (Monday-Sunday 24-Hour Weekly Cume Estimates)

10

Hrs. & Min. With Radio

13:16

15:39 14:16

P18-34 P35-64 P65+

Hrs. & Min. With Radio

13:48 15:37

W18+ M18+

ETHNIC RADIO CAPTURES MORE THAN 15 HOURS OF TUNE-IN EACH WEEK

Source: RADAR 110 September 2011, Arbitron (Monday-Sunday 24-Hour Weekly Cumes and Time Spent Listening Estimates)

• Slightly higher listening levels when looking at African-American

and Hispanic listeners

• African-Americans are heaviest users

11

18-34 35-64 65+

13:16

15:39

14:16 13:17

16:21 15:20

General Market African-Americans

18-34 35-64 65+

13:16

15:39

14:16 13:50

16:29 15:22

General Market Hispanics

Hrs. & Min.

With Radio

radio On Air. Online. On Target.

12

RADIO IS SPONSORED AUDIO CONTENT

AUDIO

iPHONE®

iPAD®

iPOD®

iTUNES®

PODCASTS

IN-DASH INTERNET RADIO

DIGITAL MUSIC SERVICES

HD RADIO®

STREAMING INTERNET RADIO

BROADCAST RADIO

LISTENER- DRIVEN RADIO

13

RADIO’S PLACE IN THE DIGITAL LANDSCAPE CONTINUES TO EXPAND

Broadcast Radio is the second most used device/platform in American’s lives

Source: The Infinite Dial 2011 – Arbitron Inc. Edison Media Research

14

% of American 12+ Who Own/Use

Platform or Device

25%

31%

31%

35%

36%

49%

51%

54%

56%

70%

84%

93%

98%

Audio Podcasts

Smartphone

iPod

Video on Demand

Digital Video Recorder

YouTube®

Facebook®

Online Video

Online Radio

Broadband Internet

Cell Phone

Local AM/FM Radio

Television

RADIO’S PLACE IN THE DIGITAL LANDSCAPE CONTINUES TO EXPAND

Radio is available in many of these growing digital formats

Source: The Infinite Dial 2011 – Arbitron Inc. , Edison Media Research

15

% of American 12+ Who Own/Use

Platform or Device

4%

4%

7%

8%

9%

9%

11%

12%

13%

17%

20%

22%

23%

24%

Location-Based Services

iPad

E-Readers

Twitter®

LinkedIn

iPhone

BlackBerry®

Satellite Radio

Android™ Smartphone

MySpace

Hulu™

Video Podcasts

MP3 player (other than iPod)

Pandora

WEEKLY ONLINE RADIO AUDIENCE AT ALL-TIME HIGH

0%

5%

10%

15%

20%

25%

Jan '01 Jan '06 Jan '11

Source: The Infinite Dial 2010 & 2011 – Arbitron Inc. , Edison Media Research

16

89 million monthly listeners 12+ in the U.S.

AUDIO STREAMING MIRRORS THE WORKDAY

0

5000

10000

15000

20000

25000

30000

35000

Mo

-Fr

6A-7

A

Mo

-Fr

7A-8

A

Mo

-Fr

8A-9

A

Mo

-Fr

9A-1

0A

Mo

-Fr

10A

-11A

Mo

-Fr

11A

-12P

Mo

-Fr

12P

-1P

Mo

-Fr

1P-2

P

Mo

-Fr

2P-3

P

Mo

-Fr

3P-4

P

Mo

-Fr

4P-5

P

Mo

-Fr

5P-6

P

Mo

-Fr

6P-7

P

Mo

-Fr

7P-8

P

Mo

-Fr

8P-9

P

Mo

-Fr

9P-1

0P

Mo

-Fr

10P

-11P

Mo

-Fr

11P

-12A

AQ

H P

erso

ns

6+

Local Broadcast StreamingAudience (29 stations)

Source: Jul2011 – Local Streaming Station Audience as Reported in Arbitron Monthly PPM Data for Persons 6+ (29 stations from 21 metros)

17

ONLINE RADIO LISTENING IS A COMPLEMENT TO OVER-THE-AIR RADIO, NOT A SUBSTITUTE

Listening to Broadcast Radio

Listening to only Online Radio89% 11%

Source: The Infinite Dial 2010 & 2011 – Arbitron Inc. Edison Media Research

% of weekly online radio listeners who listened to broadcast radio

versus those who did not

18

DIGITAL GROWTH IN 2011

More than 2,000 stations broadcasting in HD

Projected 6,000 streaming stations by 2012

Source: Inside Radio/M Street Corp., The Radio Book 2010-2011; iBiquity/HD Radio Alliance; Arbitron/Edison Research: Infinite Dial 2011

19

31 million Americans have downloaded a podcast in the past month

THE EVOLVING DASHBOARD EXPANDING RADIO’S VISUAL CAPABILITIES

In-dash technology offers listeners:

• HD Radio

• Multicast stations offering exclusive

sports and music formats

• News, sports and weather on demand

• Navigation system offering real time

traffic

• Song-tagging

• Applink – Pandora, Twitter, Facebook

20

AM/FM RADIO IS STILL THE MOST ESSENTIAL IN-CAR DEVICE

21

Sources: Arbitron-Edison-Scarborough Study 2011; The Road Ahead; BASE: use at least one audio device in car

“Think about the time you spend in your primary car.

What percent of the time would you say you listen to…”

RADIO’S DIGITAL PLATFORMS: HYPERLOCAL SITES

Branded and non-branded

station sites serving as an

entertainment source

delivering local events, news

and sports updates

22

RADIO’S DIGITAL PLATFORMS: ON-DEMAND AUDIO

• Offering sports, music, information and entertainment

downloads whenever the listener wants it

• News, weather, sports, private events, pre- and post-concerts

videos, etc.

23

RADIO’S DIGITAL PLATFORMS: AUDIO ON MOBILE

• 23% of mobile phone owners listen to music or some other form of audio each month

• An average of 4 hours per week is spent listening to audio content on a cell phone/smartphone

– 18- to 34-year-olds listen an average of 5 hours per week

• Radio apps consistently among the Top 10 free app downloads

– 7.5M+ listeners have downloaded apps for AOL Radio, Yahoo! Music™ and Last.fm

– 11.5M+ listeners have downloaded the iheartradio app

Sources: Arbitron-Edison Infinite Dial Study 2011; Simmons 2010 Mobile Consumer Report; Bridge Ratings Device Usage Update – Sample Size 1956; CBS Radio and Clear Channel Online Music & Radio; iheartradio.com

24

RADIO’S DIGITAL PLATFORMS: MOBILE APPS FOR YOUTH

Radio Disney App allows listeners to gain access anytime, anywhere, plus

interact with Radio Disney for FREE with features including:

• Listen to live on-air, multi-task listening, song requests, shout-outs, recent

playlists, listen to on-air activity and learn about local events

25

RADIO’S DIGITAL PLATFORMS: LISTENER INTERACTIVITY

Listener Driven Radio

• Offers listeners real-time control of a radio station's programming

• Move songs in the playlist queue; recommend songs for airplay; receive SMS text messages, IMs or e-mails when their favorite songs play; song dedications via Facebook

26

―Remote Control Radio‖ – WKLS-FM in Atlanta

• Increase of social media usage by radio

• Listeners can ―program‖ the station by tweeting, texting, etc., and voting about the songs on air—all in real time

RADIO’S DIGITAL PLATFORMS: LISTENER INTERACTIVITY

27

Q: Which method do you use to communicate with any AM or FM radio station or one of its DJs?

Arbitron/Edison National Media Survey 2011 (multiple answers accepted)

27

0% 20% 40% 60% 80% 100%

Telephone

Email

Text message

Facebook

Twitter

18-34

Total 12+

Sample size: 536 people who have ever communicated with a radio station (27% of US population 12+)

215

INDEX

170

INDEX

155

INDEX

SOCIAL NETWORK AND RELATIONSHIP MARKETING

• Many stations are integrating Facebook and Twitter with their loyalty clubs

• Loyal listener databases extend the connection that listeners have with their

stations by offering exclusive opportunities and deals

• Databases are virtually untapped by advertisers

28

SOCIAL MEDIA USERS FAVOR RADIO OVER TV AND CABLE

29

RADIO USAGE TV/CABLE

106 HEAVY 63

111 MEDIUM/HEAVY 84

114 MEDIUM 103

98 MEDIUM/LIGHT 120

71 LIGHT 130

Source: Scarborough USA+ Rel 1 of 2011 (12mo) ,Persons 18+ (sample size 77,480)

Social Networking Usage on a mobile device vs Media Quintile

Index of Social Networking Usage (100 is average)

How to read: Light TV/Cable viewers are 30% more likely to be

users of social networking sites like Facebook and Twitter

DATA MINING AND GROUP COUPONING

30

Source: Arbitron-Edison Infinite Dial Study 2010

• Robust database

– Offers insights into programming and

marketing to listeners

– Provides engagement metric with

stations and advertised brands

• 22% of people who visit a broadcast radio

station Web site clip advertiser coupons

RADIO DELIVERS GROUP COUPONING

31

Source: Scarborough USA+ Release 1 of 2011 (12mo) , Persons 18+ (Sample size for internet coupons: 34,985 and e-mail/text coupons: 33,100)

Household obtains ―cents-off‖ coupon from e-mail or text messages

• Radio reaches 94.6% of them each week

• 32.4% NEVER use the Yellow Pages

• 44.0% did NOT read a newspaper in the past 7 days

Household members use the internet for coupons

• Radio reaches 94.4% of them each week

• 33.2% NEVER use the Yellow Pages

• 43.1% did NOT read a newspaper in the past 7 days

radio On Air. Online. On Target.

32

RADIO DOMINATES THE RETAIL DAY

0%

5%

10%

15%

20%

25%

30%

35%

40%

Broadcast Radio Television Internet Magazines Newspapers

Source: Gfk MRI - MediaDay 2009 Single Year (Fieldwork 08-09/Spring Respondents) Weighted to Population (000) Base All; A25-54

33

% of Media Time Spent per Day

A25-54

RADIO REACHES LISTENERS OUTSIDE THE HOME WHEN THEY ARE READY TO BUY

Source: Arbitron Spring 2011, Persons 12+, National Regional Database

42% 28% 28%

51% 63%

58% 72% 72%

49% 37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

M-F 5A-10A M-F 10A-3P M-F 3P-7P M-F 7P-12M M-F 12M-5A

Proportion of Listening at Home Proportion of Listening Away From Home

34

RADIO REACHES CLOSEST TO THE POINT OF PURCHASE

Radio is the most-used medium just prior to shopping • 62% of shoppers listened to radio 13 minutes

prior to purchase

• 90% of consumers are in their vehicles less than 6 minutes before shopping

–Audio captures 89% of in-car media time

Source: ―Video Consumer mapping Study,‖ Center for Research Excellence, June 2010 – Adults 18+

35

RADIO MOTIVATES BEHAVIOR

• Radio drives sales – On air personalities were given KINECT for XBOX 360 prior

to launch. The buzz they generated led Microsoft to increase their forecast by 40%. XBOX 360 sales doubled.

• Radio builds brand trust – Wells Fargo coached radio personalities to evaluate their

investments for retirement on the air. Campaign generated 50,000 inquiries for investment information.

• Radio engages consumers – Guitar Center’s ―Get Schooled‖ program used radio to

create a one-of-a-kind experience which led to 10,000 visitors to each event and outstanding reviews in the press

Source: Local Radio Case Studies

36

LISTENERS HAVE EMOTIONAL CONNECTIONS TO THEIR FAVORITE RADIO PERSONALITIES

8.4

8.1

8.0

7.9

7.7

7.6

Makes me laugh

Cares about his or her listeners and fans

Is genuine

Talks about things that I like toshare/discuss with my friends

Is a credible source of information

Makes me think or reflect on a certaintopic

My Favorite Local Radio Personality...

Source: Katz Marketing Solutions: 2008 Starcom Mediavest GM Study

Based on 1-10 Agreeability Scale

37

PERSONALITIES VALUED WITHIN THE COMMUNITY

Listeners are loyal to their

broadcast radio personalities,

have an emotional connection,

rely on them for entertainment

Listeners see radio personalities as

―heroes‖ within their community who

have helped support organizations

and cause-related events

38

RADIO ADS ARE MORE PERSONALLY RELEVANT THAN OTHER MEDIA

Source: ―Personal Relevance Two: Radio’s Receptive Ad Environment‖ (2006), Harris Interactive/Wirthlin Worldwide; Radio ads compared to average of other media

39

Consumers perceive radio ads are more relevant and local

than newspapers, TV or Internet ads

0%

10%

20%

30%

40%

50%

60%

Local Products Reach People Meant For Connected to Community Reaching You Personally

Radio

Other Media

% Who Agree Strongly or Somewhat Agree

RADIO BOOSTS UNAIDED RECALL

Source: ―The Benefits of Synergy: Moving Money Into Radio‖ with PreTesting Company (2004); Approximately 100 Respondents per Group

40

100

134

100

280

0

100

200

300

TV &

Rad

io

New

spap

ers

New

spap

ers

& R

adio

34% Better

Recall for

Radio Mix

Rec

all S

core

Ind

ices

Unaided Brand Recall

Two TV/Newspaper Ads vs. One TV/Newspaper Ad Plus Two Radio Ads

When radio is included in a TV or newspaper campaign,

brand recall significantly increases

Test Advertiser Categories:

• Fast Food

• OTC Allergy Medicine

• Auto

• Cell Phone Service Provider

• Credit Card

RADIO BOOSTS UNAIDED RECALL

Source: ―Radio and the Internet: Powerful Complements for Advertisers‖ With Harris Interactive (2006); Approximately 100 Respondents per Column

41

Perc

ent

Rec

allin

g B

ran

ds

Unaided Brand Recall

Nearly 4 ½ times greater when radio is added to Internet-only campaign

4 3 3

1

9

4

7

12

30

32

25 27

25

33

20

27

0

5

10

15

20

25

30

35

Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 Brand 6 Brand 7 Brand 8

Two Internet Ads One Internet, One Radio

Test Advertiser Categories:

• Fast Food

• Other Restaurant

• Grocery Meat

• Grocery Canned

• OTC Headache

• OTC Breath

• Travel

• Electronic Device

Generate awareness about

film

Top 20 markets – Summer ’10

29% increase in film

awareness among moviegoers

exposed to radio campaign

RADIO DRIVES TRAFFIC, CONSIDERATION AND BUILDS BRANDS

Increase purchase intent of

brand

Top 40 markets – 4Q ’10

12% increase in purchase

intent among prospects who

were exposed to radio

campaign

Increase consideration and

purchase intent

Top 5 markets – 4Q ’10

20% increase in likelihood of

opening an account among

prospects exposed to radio

campaign

Theatrical (Thriller)

Electronics (Digital Cameras)

Finance (Consumer Banking)

Source: Katz Marketing Solutions, Custom Research Study.

42

Goal

Radio Plan

Results

RADIO’S TACTICAL STRENGTHS

Control by Time of Day and/or Day of Week 96%

Reach People out of Home 89%

Geo-Targeting (Target by DMA or Metro) 82%

Create/Rotate Messages Quickly 79%

Source: Compose 2010; Based on Expert Panel (40 Senior Planners/Researchers From Leading Media Agencies)

43

Brand Equity

Awareness

Promotion

Experiential

Word of Mouth

Social Networking

CONSUMER

Radio across platforms, with

mass reach and local

sensibility fulfills multiple

roles in the marketing plan

RADIO’S ROLE IN THE MARKETING PLAN

44

RADIO

• On Air – A mass medium capable of easily delivering your message to many people

– Targetable (by demo, lifestyle and geography) to assure the right people are exposed to your message with little waste

• Online – Digital capabilities offering interactive opportunities to complement and

enhance your campaign and reach consumers using multiple touch points

• On Target – An environment that delivers consumers who are engaged and passionate

about the content

– Exposure to your message when and where consumers are ready to buy or shop

45

CONSUMING AUDIO HOW, WHERE AND WHEN THEY WANT IT

WAKE UP

#1 Medium from 5AM-5PM

More people listen daily than visit the Web

GETTING READY FOR WORK AT WORK

89 million consumers tune in online every month

AM COMMUTE

Audio captures 89% of in-car media time

TELECOMMUTING

Consumers listen on their mobile device 5 hours/week

PM COMMUTE

90% of PM commuters tune in just before stopping to shop

FOR THE BIG GAME

Listening surges during sporting events

46

FOR ADDITIONAL INFORMATION

• www.arbitron.com/home/radiotoday.htm

• www.raisingthevolume.com ( Katz Marketing Solutions )

• www.rab.com

• www.radioadlab.org

• www.radiomercuryawards.com

• www.researchexcellence.com

• www.thebestofradio.com

47

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provided endorsements of any kind. No permission is given to make use of any of the above, and such use may constitute an infringement of the holder's rights.