radio grows business in portland and seattle 2012

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LANDSCAPE 2012 Presented by Mary Beth Garber, Katz Radio Group November 8, 2012 Grows Business in Portland and Seattle

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Page 1: Radio Grows Business in Portland and Seattle 2012

LANDSCAPE 2012

Presented by Mary Beth Garber, Katz Radio GroupNovember 8, 2012

Grows Business in Portland and Seattle

Page 2: Radio Grows Business in Portland and Seattle 2012

LANDSCAPE 2012

perception

Page 3: Radio Grows Business in Portland and Seattle 2012

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Who Says Radio is Thriving?• Scarborough USA Plus 2012• RADAR September 2012 and 2011• gfkMRI MediaDay 2012• USA Touchpoints 2012.2 – MBI• comScore April – June 2012• Burns Media/Triton Digital “Radio Tomorrow” Study September 2012• USC Annenberg School of Communications and Journalism June 2012• Arbitron, Media Monitors and Coleman Insights “What Happens When the Spots

Come On?” 2011• Jacobs Media Tech 8 Survey April 2012• Edison Media and Arbitron’s “Infinite Dial 2012” Study• Target Spot May 2012• NPD Group November 2011 and February 2012

……to name a few.

No kidding.

Page 4: Radio Grows Business in Portland and Seattle 2012

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“The reason people are still buying radio is because it works.

Radio allows you to target with selectivity. Radio is kind of the original microtargeting and

social media”

Evan TraceyCampaign Media Analysis GroupGeorge Washington University

Source: Politico .com “Radio: The other air war” By: Josh Gerstein, November 1, 2012 04:34 AM EST

4

Page 5: Radio Grows Business in Portland and Seattle 2012

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Delivers Massive Reach in Real Time

Engages and Influences Listeners

Digital Technology Enables Expansion and Interaction

Delivers Outstanding Results

Thriving

5

This is how and why radio grows business for its advertisers.

Page 6: Radio Grows Business in Portland and Seattle 2012

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massreach

Page 7: Radio Grows Business in Portland and Seattle 2012

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“What any content company aspires to is impact, and the best way to create impact is simultaneous mass.

And the only way to reach simultaneous mass is by getting something on the radio."

Mark Shimmel Chief Operating Officer

Epic Records

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4 emotional triggers that listeners value….

1A radio on while they

work

2Gets them

get in a better mood

3A feeling

of companionship

4An escape from

pressures of everyday life

Radio’s Assets Drive Its Mass Reach

8

Source: Jacobs Media TechSurvey 8; Based on 170 stations | 12 radio formats | 57,358 radio listeners

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Source: RADAR 114 September 2012, Arbitron (Persons 12+, Monday-Sunday 24-Hour Weekly Cume Estimates); Arbitron PPM estimates for Portland OR Metro and Seattle-Tacoma Metro August/September/October 2012 Monday-Sunday 24-hour Weekly Cume Estimates Persons 12+

242 Milliontoday’s radio audience

9

Portland: 2.0 million

Seattle: 3.3 million

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What Radio Delivers is Mass Reach

Source: TV HH, Nielsen May 2012; wkly Radio Arbitron RADAR 112, 113, 114 March/June/September 2012 M-Su M-M; Internet Pew Internet & American Life Project Setptember2012 Study; Mobile Web comScore February 2011 via mobiThinking; DVR,, Video Game Consoles Nielsen May 2012 National People Meter Panel; Cable & ADS July 2011 Nielsen Report; iPods/MP3s and Social Net Usage Edison Media Infinite Dial: 2011; Twitter comScore September 2012; Wireless Cell Phone, Hi speed Internet Access from Pew Internet & American Life Project May, June 2011; Tablets Pew Internet & American Life Project October 3, 2012; satellite radio, Scarborough USA Plus - Release 1 2012 12 Month

% Population/Household Penetration

Broad

cast

TV HH

B'cast

Radio W

kly 12+

Cell Phones

Intern

et Month

ly

Home Broad

band - P

12+

Wire

d Cable TV

HH

Have So

cial N

et Pro

file...

Ipods/MP3s P

12+

Mobile

Web

Video Gam

e Consoles

Smart

phones P12+

DVR P12+

ADS (Sa

t TV) H

H

Online Radio W

eekly ...

Tablets

P12+

Twitt

er P12+

Registe

r Dail

y Deal

P12+

Sate

llite Rad

io 18+0

10

20

30

40

50

60

70

80

90

100 9793

8881

70

6156

49 47 46 45 45

31 2925

15 1510

Are You Really TYPICAL?

Page 11: Radio Grows Business in Portland and Seattle 2012

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Radio Has Greatest Weekly Reach of Young Adults vs. Other Media

Source: Scarborough USA+, Release 1 2012 USA Adults 18-34 (Sample Size: 29,250)

Listened to Radio Past 7 Days

Read Any Newspaper Past Week

Watched Any TV Past Week (M-Su, 5a-2a)

Watched Any Non-Premium Cable Past

Week

Spent Any Time on In-ternet Past Week

93%

51%

82% 81%

89%

Weekly Media Exposure

Adults 18-34

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Radio’s Weekly Reach of Adults Is Greatest of Major Media

Source: Scarborough USA+, Release 1 2012 USA Adults 25-54 (Sample Size: 88,248)

Listened to Radio Past 7 Days

Read Any Newspaper Past Week

Watched Any TV Past Week

Watched Any Non-Premium Cable Past

Week

Spent Any Time on In-ternet Past Week

93%

58%

88%82% 83%

Weekly Media Exposure

12

Adults 25-54

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Radio Has Greatest Weekly Reach of Young Adults vs. Other Media

Listened to Radio Past 7 Days

Read Any Newspaper Past Week

Watched Any TV Past Week (M-Su, 5a-2a)

Watched Any Non-Premium Cable Past Week

Spent Any Time on Internet Past Week

92%

35%

75%

64%

90%

Weekly Media Exposure

PORTLANDAdults 18-

34

Source: Scarborough USA+, Release 1 2012 Portland Adults 18-34, sample size 232

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Radio’s Weekly Reach of Adults Is Greatest of Major Media

Listened to Radio Past 7 Days

Read Any Newspaper Past Week

Watched Any TV Past Week

Watched Any Non-Pre-mium Cable Past Week

Spent Any Time on In-ternet Past Week

95%

47%

84%

70%

88%

Weekly Media Exposure

14

PORTLAND Adults 25-54

Source: Scarborough USA+, Release 1 2012 Portland Adults 25-54, sample size 776

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Radio Has Greatest Weekly Reach of Young Adults vs. Other Media

Listened to Radio Past 7 Days

Read Any Newspaper Past Week

Watched Any TV Past Week (M-Su, 5a-2a)

Watched Any Non-Premium Cable Past

Week

Spent Any Time on In-ternet Past Week

95%

40%

73% 74%

92%

Weekly Media Exposure

SEATTLEAdults 18-34

Source: Scarborough USA+, Release 1 2012 Seattle Adults 18-34, sample size 617

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Radio’s Weekly Reach of Adults Is Greatest of Major Media

Listened to Radio Past 7 Days

Read Any Newspaper Past Week

Watched Any TV Past Week

Watched Any Non-Pre-mium Cable Past Week

Spent Any Time on In-ternet Past Week

93%

58%

88%82% 83%

Weekly Media Exposure

16

SeattleAdults 25-54

Source: Scarborough USA+, Release 1 2012 Seattle Adults 25-54, sample size 1,929

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% Share of Audio Usage by SourceAverage Weekday - Adults 18-64

Adults 18-64

Radio’s Share of Audio Usage Dominates Throughout the Day

Source: 2012.2 MBI USA TouchPoints; Note: Internet streaming includes PC, mobile & tablet

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% Share of Audio Usage by SourceAverage Weekday - Adults 18-34

Among young adults, AM/FM Radio’s share of audio usage remains dominant from morning until early evening

Adults 18-34

Source: 2012.2 MBI USA TouchPoints; Note: Internet streaming includes PC, mobile & tablet

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On a 7-day average, how long do people listen to the radio each day?

QUESTION:

ANSWER:

2hrs40min

Source RADAR 114 September 2012 Monday-Sunday 6AM-Midnight for Persons 12+

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QUESTION:

On a 7-day average, how long do people in Portland listen to the radio each day?

ANSWER: 2hrs15min

Source Arbitron PPM Portland Metro August/September/October 2012 Monday-Sunday 6AM-Midnight for Persons 12+

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QUESTION:

On a 7-day average, how long do people in Seattle listen to the radio each day?

ANSWER: 2hrs15min

Source Arbitron PPM Seattle-Tacoma Metro August/September/October 2012 Monday-Sunday 6AM-Midnight for Persons 12+

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Radio Accounts for Second Largest Share of Adult Consumers’ Media Usage

Television AM/FM Radio Internet Newspapers Magazines

96%

86% 84%

29%23%

% Weekly Reach of Media Adults 18-64

18:24/wk2:38/day

14:28/wk2:04/day

6:53/wk:59/day

Source: 2012.2 MBI USA TouchPoints Note: TV includes time-shifted viewing; Internet includes PC, mobile & tablet; Newspaper and Magazine includes digital readership.

29:52/wk4:16/day

7:14/wk1:02/day

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During the week, young Americans spend significant time with Radio

Note: TV includes time-shifted viewing; Internet includes via PC, mobile & tablet; Newspaper and Magazine includes digital readership.

Source: 2012.2 USA TouchPoints

Television Internet AM/FM Radio Magazines Newspapers

96%90% 85%

19% 16%

% Weekly Reach of Media Adults 18-34

17:23/wk2:29/day

14:56/wk2:08/day

9:41/wk1:23/day

8:31/wk1:13 day

24:02/wk3:26/day

Young People Spend More Time With Radio Each Day Than With The Internet

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5 am-9 am 9 am - 5 pm

38%

53%

Radio TV Internet Magazine Newspaper

Source: GfK MediaDay 2012 (Fieldwork 11-12/Doublebase Respondents) weighted to population (000) Base A18-34, Mon-Sun.

Radio Reaches More Young People Than Any Other Medium From 5 a.m. – 5 p.m.

Adults 18-34

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5 am-9 am 9 am - 5 pm

40%

51%

Radio TV Internet Magazine Newspaper

Source: GfK MediaDay 2012 (Fieldwork 11-12/Doublebase Respondents) weighted to population (000) Base A25-54, Mon-Sun.

Radio Reaches More Young People Than Any Other Medium From 5 a.m. – 5 p.m.

Adults 25-54

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consistent performance

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27

Radio Listening Has Remained Consistent

27

2008 2009 2010 2011 2012

2:11 2:05 2:05 2:06 2:07

Source: Arbitron and Edison Research Infinite Dial Studies

Persons 12+

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More Young People Listen to Radio Each Year

Adults 18-34 (000)

66,30967,113

Sept '11 Sept '12

Source: RADAR 110 September 2011 and RADAR 114, September 2012, Volume 1, (Monday-Sunday 6A-midnight Cume and Daily TSL Estimates Adults 18-34

And spend 2 hours a day with AM/FM radio

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More Young People in Portland Listen to Radio Each Year

Adults 18-34

538,800 554,300

Q3 '11 Q3 '12

Source: Arbitron PPM Portland OR Metro, Q3 2011 and Q3 2012 (Monday-Sunday 6A-midnight Cume Estimates Adults 18-34

And spend 2-1/2 hours a day with AM/FM radio

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More Young People in Seattle Listen to Radio Each Year

Adults 18-34

837,800919,900

Q3 '11 Q3 '12

Source: Arbitron PPM Seattle-Tacoma Metro, (Monday-Sunday 6A-midnight Cume and Daily TSL Estimates Adults 18-34

And spend 2 hours a day with AM/FM radio

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strategictiming

Page 32: Radio Grows Business in Portland and Seattle 2012

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listening to radio is live, not later

• Messages are delivered when and where they will perform best for an advertiser

Page 33: Radio Grows Business in Portland and Seattle 2012

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Radio Tops All Other Media inOutside of Home Usage

Car/Transit Work Other Total OOH

TV AM/FM Radio Internet Newspaper Magazines

% of overall usage done outside of home, by location

Source: 2012 MBI USA TouchPoints Adults 25-54Note: TV includes time-shifted viewing; Internet includes PC, mobile & tablet; Newspaper and Magazine includes digital readership.

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AM/FM Radio Live TV Internet Mobile web/App Social Networking Print

40%

29%

15%

6% 6%5%

37%

23%

12%

4%5%

4%

31%

17%

8%

3% 3%1%

22%

9%

5%

2%1% 1%

2 hours before 90 minutes before 1 hour before Half-hour before

Radio Is the Strongest Pre-Shopping Medium

Source: 2012 MBI USA TouchPoints Adults 25-54

Page 35: Radio Grows Business in Portland and Seattle 2012

LANDSCAPE 2012“Lunchtime is Primetime” for QSRs

Over half of daily traffic occurs from 11am to 3pm

56% of daily traffic occurs from 11am to 3pm….and Radio dominates during this time period

Source: 2012 USA TouchPoints

Page 36: Radio Grows Business in Portland and Seattle 2012

LANDSCAPE 2012Proximity to the Purchase!

Source: 2012 USA TouchPoints To be read: 60% of adults who purchased fast food from 12 to 12:30 had listened to AM/FM Radio at some point beforehand vs. 41% who had watched TV.

60% of Lunchtime QSR Patrons have been engaging with AM/FM Radio prior to their visit!

Page 37: Radio Grows Business in Portland and Seattle 2012

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engagement

37

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38

Radio. An alternative way to rock.

FM radio keeps you up on what’s going on out there – the game, the top news stories, your favorite talk shows – or whatever you love listening to.

Source: From Apple’s online iPod Nano material 2012

Page 39: Radio Grows Business in Portland and Seattle 2012

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Radio delivers: engagement

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Radio delivers: credibility

Page 41: Radio Grows Business in Portland and Seattle 2012

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Radio delivers: receptivity

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Radio delivers: emotional

connection

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43

82%

A personal, para-social interaction with their favorite Radio

personality

79%

Listen longer to the Radio

stations because

their favorite personality

is on the air

70%

Follow their favorite

personality/Radio

station on social media

Radio Connects Personally

72%

Talk to their friends

about their favorite

personality or program

content

Sources: 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; *Alan Burns “Here She Comes” 2012 online survey of 2,010 women 15-54 in May 2012

70%

Consider radio

personalities to be a good

or best friend or

companion*

This relationship carries over to advertisers who become a part of these “Virtual Neighborhoods”.

Page 44: Radio Grows Business in Portland and Seattle 2012

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Broadcast Radio Listeners Feel the Most Alert

44

Print

Internet

Mobile Web/App

Live TV

Broadcast Radio

14%

18%

18%

23%

28%

Suggesting a Higher Attentiveness Level

% of Audience that Feels Alert

A25-54

Source: MBI USA TouchpointsTM

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There Is an Emotional Attachment to Radio

45

9 out of 10 people who use radio heavily would be somewhat or very disappointed if their favorite station were no longer on-air

% who would be “very” or “somewhat” disappointed if the AM or FM Radio station they listen to most were no longer on-air

Source: The Infinite Dial 2011

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More People Prefer Using Radio to Using Facebook

46

Total <18 18-34 35-54 55+

62% 60% 62% 63%60%

45%

53% 54%

45%

34%

My favorite radio station went away Facebook went away

Source: Alan Burns/Triton Digital “The Future of Radio” September 2012 National Consumer Database; 25,000,000 Panelists; August & September 2012;All Ages, Genders and Format Fans; Total Polled = 41,252; Roughly in Line with 2010 Census; Heavily Caucasian

Read: I would be very disappointed if…

Page 47: Radio Grows Business in Portland and Seattle 2012

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Radio – The Original Social NetworkConnects with Young Adults

Source: comScore Inc Ratings for July - September 2012 Average Unique Visitors, RADAR 114 September 2012, P18-34, 6A-12M sample size 106,023

47

On a typical day in the USA,

of people 18-34:

• 95% more will use Radio than will go to Facebook

• 125% more will use Radio than will go to Google Search

• 225% more will use Radio than will go to YouTube

• 1430% more will use Radio than will go to Twitter

49

2522

15

3

Every day, about 70% of people 18-34 invite Radio to be a major part of their lives

Adults 18-34

In Millions

RADIO

Page 48: Radio Grows Business in Portland and Seattle 2012

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Radio – The Original Social NetworkConnects with Adults

Source: comScore Inc Ratings for July - September 2012 Average Daily Visitors, RADAR 114 September 2012, P25-54, 6A-12M sample size 190,433

48

On a typical day in the USA,

of people 25-54:

• 150% more will use Radio than will go to Facebook

• 150% more will use Radio than will go to Google Search

• 440% more will use Radio than will go to YouTube

• 2965% more will use Radio than will go to Twitter

92

37 36

17

3

Every day, about 73% of people 25-54 invite Radio to be a major part of their lives

Adults 25-54

In Millions

RADIO

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targeted

49

Page 50: Radio Grows Business in Portland and Seattle 2012

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91%of every age segment weekly

OVER

radio reach

Source: RADAR 114 September 2012, Arbitron (Persons 12+, Monday-Sunday 24-Hour Weekly Cume Estimates)

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Nearly Everyone Uses Radio. In Real Time. Every Week.

P 12+ P12-24 P 18-34 P 25-54 P 35-64 Hisp 18-49

AA/Blk 18-49

W 25-54 A 18-49 Col Ed,

HH $75K+

P 18-49 Col Ed

M 25-54 Emp

92% 91% 93% 95% 95% 95% 93% 95% 95% 95% 95%

Weekly Radio Usage

Source: RADAR 114 September 2012, Mon-Sun 6A-Mid

Radio reaches over 90% of virtually every segment of the population. That has been true year after year and remains true today.

51

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Nearly Everyone in Portland Uses Radio. In Real Time. Every Week.

P 12+ P12-24 P 18-34 P 25-54 P 35-64 AA/Blk 18-49

W 25-54 A 18-49 Col Ed, HH

$75K+

P 18-49 Col Ed

M 25-54 Emp

91% 88% 91%94% 94% 92% 93% 93% 93% 96%

Weekly Radio Usage

Radio reaches over 90% of virtually every segment of the population. That has been true year after year and remains true today.

52

Source: Arbitron, PPM, October 2012, Portland OR Metro, Monday-Sunday 6am-mid.

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Nearly Everyone in Seattle Uses Radio. In Real Time. Every Week.

P 12+ P12-24 P 18-34 P 25-54 P 35-64 Hisp 18-49

W 25-54 A 18-49 Col Ed, HH

$75K+

P 18-49 Col Ed

M 25-54 Emp

93% 92% 91%94% 95% 93% 92% 93% 94% 95%

Weekly Radio Usage

Radio reaches over 90% of virtually every segment of the population. That has been true year after year and remains true today.

53

Source: Arbitron, PPM, October 2012, Seattle-Tacoma Metro, Monday-Sunday 6am-mid.

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Radio Delivers Prime Consumer Targets

Purchased Women's Busi-ness Clothing

(in past year)

HH Planning to Buy/Lease a New Compact Car

HH Financed Home Mortgage

Frequent Fast Food Restaurants

(10x past month)

94% 92% 93% 93%

Source: Scarborough USA+ 2012 Release 1 (12 months only)

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Portland Radio Delivers Prime Consumer Targets

Purchased Women's Busi-ness Clothing

(in past year)

HH Planning to Buy/Lease a New Compact Car

HH Financed Home Mortgage

Frequent Fast Food Restaurants

(10x past month)

95% 93% 94% 94%

Source: PORTLAND OR - Release 1 2012 Mar11-Feb12 Scarborough

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Seattle Radio Delivers Prime Consumer Targets

Purchased Women's Busi-ness Clothing

(in past year)

HH Planning to Buy/Lease a New Compact Car

HH Financed Home Mortgage

Frequent Fast Food Restaurants

(10x past month)

96%93%

96% 96%

Source: SEATTLE-TACOMA - Release 1 2012 Mar11-Feb12 Scarborough (12 months only)

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influence

57

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These personal connections are like “word of mouth”. It’s better than a “like”.

Radio Has the Power of Persuasion

52%

58

51% 47%

Sources: 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

Have considered or purchased a product or

service recommended

by their favorite

personality

Have considered or purchased a

product/service advertised during their

favorite Radio personality’s

show

Their favorite Radio

personality influences

their opinion

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Radio Holds Its Audience Levels During Commercial Breaks

59

1-min breaks

2-min breaks

3-min breaks

4-min breaks

5-min breaks

6+-min breaks

75%

80%

85%

90%

95%

100%100%

99%

96%

92%

87%

85%

Source: Arbitron, Media Monitors and Coleman Insights “What Happens When the Spots Come On?” 2011

Weighted Average: 93%

Percent of Lead-In Audience During Commercial Breaks

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Across Ages and GenderTune-in Is High During Commercial Breaks

60

6+ 12-17 18-34 25-54 35-64 65+ Male Female0%

20%

40%

60%

80%

100%

93% 90% 89% 92% 93%98%

93% 92%

Source: Arbitron, Media Monitors and Coleman Insights “What Happens When the Spots Come On?” 2011

Radio’s Audience Delivery During an Average Minute of Commercial Breaks by Age/Gender

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Radio Drives Product Awareness

61

Deal on a new car that sounded appealing to you

New sandwich or meal you wanted to try

A new movie you wanted to see

Concert or event you wanted to attend

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

Total Men 18-34 Men 35-49 Women 18-34 Women 35-49

Sources: NuVoodoo - 1,000 Adults 18-49, all music format preferences in 45 PPM markets 2011

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Source: Radio Advertising Effectiveness Program, Ipsos OTX, 2010-12; conducted for Katz Marketing Solutions; one advertiser requested anonymity

Affinity / Likeability

Awareness

Advocacy

Consideration

Purchase Intent

13%

20%

14%

38%

37%

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

Radio Influences and Builds Brands

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The Future of Radio – The Next Five Years

63

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64

“Radio isn’t going away.  Radio’s going everywhere.” 

Kinsey Wilson, Head of Content, NPR

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65

expansion

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Radio Continues to Expand Its Universe

• In addition to on air and promotional events, radio engages its users through

• Websites• Opt-in loyalty club databases• Streaming• Mobile advertising • Social network integration with stations and on air

personalities• Listener generated content on air • Shazam-like technology that allows transactions

and performance accountability

66

Opportunities for advertisers to capitalize on the station/listener relationship

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Weekly Online Listening on the Rise

67

2008 2009 2010 2011 2012

13%

17% 17%

22%

29%

Estimated 76 Million In 2012

% Who Have Listened to Online Radio in Last WeekBase: Total Population 12+

Source: The Infinite Dial 2012 – Arbitron Inc./Edison Research

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At Work Listening Occurs Across Devices – New Habits That Will Continue To Grow

13%

Radio Stations on Your Computer Over Internet

18% Radio Stations on a Regular Radio

68%

Don't Know2%

On a Mobile Device Such as a Smartphone

13%

“Think about how you listen to the Radio while at work.

Do you most often listen to…?”

Base: Persons 18+ Employed Full-Time or Part-Time and Listen to the Radio While Working (27% of Total 18+ Population)

68

Source: The Infinite Dial 2012 – Arbitron Inc./Edison Research

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Radio and Social Networking Platforms• 70% of people with favorite Radio

personalities follow them

• Personalities in just the top 25 markets have more than 15 million Facebook friends and 22 million Twitter followers

• Stations’ use of social network platforms extend the over-the-air connection

• Databases remain a source for targeted marketing by advertisers

• Visits to Radio station websites are increasing:

• Up to 34% of adults in 2012 vs. 27% in 2010 visited in the past week

69

Source: USC, Annenberg School of Communications & Journalism, PSI Study Released June 2012, Woodley, P. and Movius, L.; 2012 Alan Burns & Associates; KMS research October 2012

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Radio Websites Reach Consumers In Their Communities

70

• Radio stations have created hyper local sites

• All assets combined to deliver relevant and local information to listeners

• Connects to neighborhoods where they live and work

• Provide advertisers with geo-targeted opportunities

• A digital presence increases response and conversion rates by nearly fourfold on average

Source: TargetSpot white paper April 2011

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Audio on Mobile

• On-demand content delivering sports, music, information and entertainment downloads whenever the listener wants it

• 36% of Smartphone users have listened to music/audio in past 30 days

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

• Tablet and Smartphone users over-index for weekly AM/FM Radio listening

Sources: 2011 Mobile Consumer Report, Experian/Simmons; Source: USC, Annenberg School for Communication & Journalism, PSI Study Released June 2012, Woodley, P. and Movius, L. People With a Favorite Radio Personality in LAScarborough USA+ Release 2 of 2011

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Radio’s Use of Mobile and Social Media to Interact with Listeners Is on the Rise

72

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

72

72%

18%

25%

32%

5%

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

Telephone

Email

Text message

Facebook

Twitter

2011 2012

Source: Arbitron Inc./Edison Research National Media Survey 2012 (multiple answers accepted)Sample size: 484 people who have ever communicated with a radio station (24% of US population 12+)

Adults 18-34

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70%

16%

28%

41%

9%

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

Telephone

Email

Text message

Facebook

Twitter

2011 2012

Young Adults Are Using Mobile and Social Media to Interact with Radio More Often

73

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

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Source: Arbitron Inc./Edison Research National Media Survey 2012 (multiple answers accepted)Sample size: 484 people who have ever communicated with a radio station (24% of US population 12+)

Adults 18-24

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Radio’s Role is Unique

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

• Listeners look for • Connections to personalities• A place to which to belong (a neighborhood, a tribe…)• Content curated by a program director who understands the

needs/likes/values of “the neighborhood”• Local information (gossip, news, traffic, weather, opinions, events,

opportunities…)• The ability to talk with, communicate with personalities and/or stations and

get direct answers or actions

Radio connects listeners and advertisers

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Down 29%in 6

months

Pandora, Spotify and Myriad Other Music Services Are Vying for Listeners’ Attention

But listeners are spending less time listening with each session.

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Satellite Radio Doesn’t Deliver Consumer Targets in USA or Top Markets

USA LA NY Chicago SF Phila Wash DC Atlanta Boston Seattle Portland OR

93% 95% 93% 94% 93% 93% 93% 94% 93% 93% 92%

10% 8%11% 9% 9%

12% 14%11% 9%

6% 6%

Radio Listen to Satellite Radio

Source: Scarborough USA Plus Release 1 2012 (Feb 2011 – Feb 2012) Adults 18+, M-Su 6a-Mid Metro Areas and Scarborough Metros, most current release

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As New Technology Develops…

20052000

2001

201020092007

2001

2001

…Radio Listening Remains Consistent

2004

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Research Studies Concur – Digital Audio Listening Is In Addition To, Not Replacing AM/FM Radio Listening

• Burns/Triton Study October 2012• U.S.A. Touchpoints September, 2012

• Alan Burns Women Study July 2012

• Target Spot White Paper May 2012

• Jacobs Tech Survey 8 April 2012

• The Infinite Dial: 2012*

• iHeart poll Clear Channel iHeartRadio Study released April 3, 2012

• NPD’s Ben Arnold quoted in Audio4cast February 27, 2012

“Terrestrial radio is just one of many music alternatives for Pandora listeners, and Pandora listening is not coming at terrestrial radio's expense.”

• Mark Kassof & Co February 2012 Survey of 349 people 18-64 who listened to Pandora in past 2 days Burns/Triton

Digital Users Are More Likely to Be Heavier Users of Radio*

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When Radio Stations Invite Their Listeners…

They show up by the thousands

The best demonstration of engagement between listeners and radio stations…

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transmedia

80

Transmedia storytelling(also known as multi-platform storytelling) is the technique of telling a single story or story experience across multiple platforms and formats using current digital technologies, not to be confused with traditional cross-platform media franchises, sequels or adaptations.

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Radio Combined With Digital PlatformsIncreases Advertiser Revenue

• Reached 15 million Facebook and Twitter followers of Radio stations and personalities

• Nearly 195,000 tweets sent in support of Small Business Saturday

• American Express saw a 23% increase in cardmember transactions at small business merchants

• An estimated 103 million Americans shopped at independently-owned small business on November 26

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Source: American Express Case Study

Back again this year!

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Summit Entertainment’s “SINISTER”

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Grows Business For AdvertisersDelivers Massive Reach in Real Time

Engages and Influences Listeners

Digital Technology Enables Expansion and Interaction

Delivers Outstanding Results

A Thriving Future

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for additional information…..

www.arbitron.com

www.katz-media.com/ourcompanies/RA/Pages/main.aspx

www.rab.com

www.radioadlab.org

www.radiomercuryawards.com

www.researchexcellence.com

www.thebestofradio.com

www.katzradioprimer.com

www.mediabehavior.com/what-we-do (USA TouchPoints)

Any brand names, product names, or titles used in this presentation are trademarks, trade names and/or copyrights of their respective holders. All images are used for purposes of demonstration only, and the entities associated with the products shown in those images are not affiliated with Arbitron in any way, nor have they 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.