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LANDSCAPE 2013

Works For Advertisers 2013

Radio: A 360º Medium

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LANDSCAPE 2013

Delivers Massive Reach in Real Time

Engages and Influences Listeners

Digital Technology Enables Expansion and Interaction

Delivers Outstanding Results

Unique Capabilities

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LANDSCAPE 2013

Radio Delivers Massive Reach In Real Time

• Today Radio continues to reach more than 240 Million listeners every week, which is about 92% of the population

• Virtually all Radio listening is done in real time, giving advertisers control of message delivery timing

• Radio reaches more people between morning and evening than any other medium and is used by 50% of consumers within 30 minutes of when they shopped.*

• Radio’s share of daily time spent with media is nearly equal to TV and Cable TV for Gen X and Baby Boomers and is equal to Internet for Millennials**

• Far more people listen to the radio on a typical day than use Facebook, Google Web Search or YouTube**

Over the past 50 years Radio has consistently reached 9 out of 10 people of virtually every age and ethnicity

Sources: Nielsen (Arbitron) data from current RADAR Reports; *Infinite Dial 2013 by Arbitron and Edison Research **USATouchpoints 2013.2; **current comScore and RADAR

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LANDSCAPE 2013

Radio Engages And Influences Listeners• Only Radio can offer advertisers multiplatform product

endorsements by on-air personalities

• Radio shares its credibility with its advertisers

• Over 75% of radio listeners describe personalities as their friends and have an emotional connection with them*

• 66% of listeners agree that their favorite radio stations reflect who they are as a person*

• 90% of heavy radio listeners said they would be disappointed if their favorite radio station were no longer on-air**

• 70% agreed If you couldn’t listen to radio, you’d feel something important was missing from your life.***

• More people of all ages would rather lose access to Facebook than to their favorite radio station****

Sources: **Latitude Research and OpenMind to survey more than one thousand respondents "The State of Listening in America, May 2013 ; * The Infinite Dial: 2013 by Arbitron and Edison Research; **** Mark Kassof & Co October 2012 survey of 732 adults 18-64 online * **Mark Kassof & Co September 2013 survey of 989 online Adults 18-64 (60% of 18-24 agreed) ;Alan Burns/Triton Digital “The Future of Radio” September 2012 National Consumer Database; 25,000,000 Panelists; August & September 2012***

Listeners have strong emotional relationships with their favorite on-air radio personalities…creating an ad receptive environment beneficial to advertisers

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Radio’s Thriving Digital Technology Enables Interaction and Activation

• Digital has expanded Radio’s reach and creative capabilities

• Through its digital platforms, Radio can expand its over the air interaction with its listeners enhancing audience engagement

• Mobile Apps, Texting, Facebook, Twitter, Pinterest, online streaming, interactive listener programming, opt-in email databases and YouTube videos open digital doors for our listeners and advertisers and provide activation

• 70% of listeners said they follow their favorite personality and/or radio station on social media

• 55% of listeners said they listen to their favorite personalities on computers or mobile devices when away from a radio

• Personalities in just the top 25 markets have more than 18 million Facebook friends and 27 million Twitter followers*

Source: USC, Annenberg School for Communication & Journalism, PSI Study released June 2012, Woodley, P. and Movius, L. People With a Favorite Radio Personality in Los Angeles; *KMS research March 2013

Radio continues to reinvent itself by engaging its audiences across it’s digital platforms

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Radio Delivers Outstanding, Cost Effective Results For Marketers• OTX study results show that Radio advertising positively impacts the 5 key

branding metrics.

• Advertisers Dove, Starbucks, Target, Toyota and many more have seen measured results that multi-platform radio campaigns drive internet traffic and response rates.

• Media mix modeling using granular Arbitron data has shown that Radio’s impact is an average of 27%-78% greater than previously thought.*

• While Radio accounts for 21% of media consumption, it is accorded less than 12% of all media spending. Recent studies show that taking 15% from a TV budget and investing it in Radio provides a 17% lift in reach, a 41% lift in frequency and a 62% lift in message receptivity index.**

• 90% of top 200 national advertisers from 2012 have returned to Radio in 2013 and 70% of returning accounts increased their spending.***

Radio’s distinct audience demographics and lifestyle appeal make it easy to target the right customers and locations…at the right time

Source: * study funded by Nielsen (Arbitron) and conducted by Sequent & Partners 2012 **USA Touchpoints May 2013 Study ***Katz Radio Group research July 2013

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Source: Radio Advertising Effectiveness Program, Ipsos OTX, 2011-13; conducted for Katz Marketing Solutions

Affinity / Likeability

Awareness

Advocacy

Consideration

Purchase Intent

17%

23%

19%

38%

37%

Nine Study Average % Lift: Radio-Targeted Consumers vs. Control Groups

Radio Influences and Builds Brands

Driven by Radio’s Word-of-Mouth Effect

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Radio’s Role is Unique

• The entertainment experience expectation of listeners to Radio is very different from that of other media and music-only platforms (like Pandora, Spotify, iPods, CDs etc.)

• Listeners look for:• Connections to personalities• A place to belong -- a neighborhood, a tribe, something that

they feel helps define them• Content curated by a program director who understands the

needs/likes/values of “the neighborhood”• Local information -- entertainment, news, traffic, weather,

opinions, sports, events, opportunities• Community support and involvement• The ability to talk and communicate with personalities/stations

through multiple platforms and get immediate responses, reactions and engagement

• Only Radio can provide product sampling, personal endorsements, event sponsorships and experiential brand events for advertisers

Radio creates a connection with listeners and advertisers

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LANDSCAPE 2013

Massive Reach Targeted and Personal Interactive and Connected Produces Results Uniquely Beneficial to Advertisers

Radio has a solid position in today’s environment because it connects advertisers with listeners in ways no other medium can match.

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for additional information…..

http://www.nielsen.com/us/en/nielsen-solutions/audience-measurement/nielsen-audio.html

http://www.katz-media.com/default.aspx

www.rab.com

www.radioadlab.org

www.radiomercuryawards.com

www.researchexcellence.com

www.thebestofradio.com

www.raisingthevolume.com

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