PowerPoint Presentation

Why Radio

1A mass medium delivering audio content to passionate and loyal listeners across multiple platformsRADIORADIO TODAYRadio is live, local. It is the original mobile and social medium. It creates interaction between listener and station and offers the opportunity to experience and sample products and services.3RADIO. ITS ON.4243 Million+ P12+ tune in to radio every weekSource: Nielsen Audio, RADAR 123, December 2014 (Persons 12+, Monday-Sunday 24-Hour Cume Estimates)

91% of Americans 12+every weekSource: Nielsen Audio, RADAR 123, December 2014 (Persons 12+, Monday-Sunday 24-Hour Weekly Cume Estimates)RADIOS REACHHIGH REACH VS. OTHER MEDIA OPTIONSSource: Scarborough USA+, Release 1 2014 USA Adults 18-34

Adults 18-34HIGHER REACH VS. OTHER MEDIA OPTIONSAdults 25-54Source: Scarborough USA+, Release 1 2014 USA Adults 25-54HIGHER REACH VS. OTHER MEDIA OPTIONSAdults 18+Source: Scarborough USA+, Release 1 2014 USA Adults 25-54

CONSISTENT REACH LEVELSA MEDIUM FOR ALL SEASONSSource: RADAR 119, 120, 121, 122, 123 - December 2013, March 2014, June 2014, September 2014, December 2014 (C) Copyright Nielsen Audio (Monday-Sunday 24-Hour Weekly Cume Estimates, All Radio) LISTENERS CHOOSE RADIO OVER FACEBOOK

THE SOURCE FOR MUSIC DISCOVERYBase: Those saying it is Very Important or Somewhat Important to Learn About and Keep Up-To-Date With New Music (47% of total P12+ population)% Who Ever Use Each Source to Learn About and Keep Up-To-Date With New MusicSource: The Infinite Dial 2014 Edison Research / Triton DigitalBROADCAST RADIO PLAYS MORE LIKED SONGS

MOST LISTENED TO AUDIO SOURCE

Question: Which of the following radio channels and sources did you listen to on (target day/typical day)? (n=1010)According to ClearVoice Research, 84% of 1, 010 respondents stated that they listen to radio yesterday and 67% currently listen to radio14RADIO IS THE TOP IN-CAR DEVICE86% of drivers cite radio as their primary in-car entertainment deviceSource: The Infinite Dial 2014 Edison Research / Triton DigitalAND THE MOST USED IN-CAR DEVICE% Using Almost All of the Times or Most of the Times in the CarBase: Driven / Ridden in Car in Last Month, Age 18+Source: The Infinite Dial 2014 Edison Research / Triton DigitalAccording to the Infinite Dial 2014, of those respondent that have been in a car in the past month, 58% stated that they use AM/FM Radio.16

M 18+W 18+Over15 Hours Per WeekOver 13 Hours Per Week

CONSISTENT AUDIENCE TUNE-INSource: Nielsen Audio, RADAR 123, December 2014, (Monday-Sunday 24-Hour Weekly TSL Estimates) 1714.6Hours14.5Hours

14.1Hours

TUNE-IN TIME HIGHER AMONG HISPANIC AND AFRICAN AMERICAN LISTENERSAfrican American listeners and Hispanic listeners(versus General Market, P 25-54)Source: Nielsen Audio, RADAR 123, December 2014, (Monday-Sunday 24-Hour Weekly TSL Estimates) African-Americans ages 25-54 listen 14 hours and 27 minutes every week and Hispanics tune in for 14hours and 38 minutes. This is substantially higher the general market tuning in for 14 hours and 6 minutes.18TECHNOLOGY DELIVERS RADIO BEYOND THE DIALExpanding Radios delivery platforms to create an interactive, engaging and highly communicative environment via devices and apps

30 millionOver the next 3 yearsphones will have anFM ChipFM-ENABLED SMARTPHONESTo date, over:1,333,000 app downloads10,910 FM radio stations tuned to from the app 2,024,000 hours of listening through NextRadioSource: NextRadio + TagStation Insights For additional updates : http://tagstation.com/news/insights/

Content cards provide information and highly relevant interactive tools:Click to buy (song or other related content)Upcoming concerts and album releases for artist currently playingRecent station playlistDELIVERS RELEVANT INTERACTIVITYSource: NextRadio + TagStation Insights For additional updates : http://tagstation.com/news/insights/ 2122 TRENDS

Source: NextRadio + TagStation Insights22

MORE TECHNOLOGY THAT CONVERTS LISTENING TO ENGAGEMENTTechnology converts radio listening into an engaging user experience, empowering listeners to see what they hear and take action.There are other options available to consumers like Clip Interactive. Clip Radio is an app that allows listeners to clip something theyve heard on their favorite radio station and instantly places it on their smartphone. You can clip songs, enter to win, coupons, and even buy it now. The app listens when you listen to detect the station youre listening to and delivers free music and exclusive offers from the radio station and their advertising partners. 23

PULLING DIGITAL CONTENT ONTO DEVICESClick here to view Clip Interactive case studiesThis illustration shows the different ways that a listener can get content. They can listen to music, have the opportunity to win a contest, answers surveys, watch a video and receive offers. The listener is pulling the information that they hear and placing onto their device. There are some specific case studies on rab.com24RADIOS DIGITAL OFFERINGS ARE STEADILY INCREASINGSource: Inside Radio / M Street Corp., 2014; No Canadian or Mexican stations are included (HD Radio stat from iBiquity/HD Radio Alliance, 2014); The Infinite Dial 2014 Edison Research / Triton DigitalMOST IMPORTANT NEW CAR FEATURESource: Jacobs Media TechSurvey 10, 2014 Among the 12% of respondents planning on buying/leasing a news vehicle in 2014.THE BATTLE FOR THE DASHAll major auto brands will offer factory-installed HD Radio Technology during calendar year 20142010 2011 2012 2013 2014

185+35761663367154286110921368616Source: iBiquity

COMBINING BROADCAST TECHNOLOGYAnd Enhancing In-Car User ExperienceIn the fall of 2014, HD Radio announced a partnership with NextRadio. This is a combination of technologies that continues to secure radios position on the dash.28Source: The Infinite Dial 2014 Edison Research / Triton Digital124 Million P12+ have listened to online radio in the past month

(am/fm streams or internet only streams)82%18%% of weekly Online Radio listeners who listen to Broadcast Radio (versus those who do not)ONLINE RADIO LISTENING COMPLEMENTS BROADCAST RADIOSource: The Infinite Dial 2013 Nielsen Audio, Edison ResearchBROADCAST RADIO LISTENED TO MORE BY PURE-PLAY LISTENERSSources What Pandora Means for Radio, Vision Critical, November 2012; Base: American online adults, aged 18+ ; Sample: 1,017 American adults; of these, 323 identified themselves as Pandora users (used an Internet-only audio service in the past month; and at least sometimes use Pandora) 3131HEAVY PANDORA USERS ARE HEAVY BROADCAST RADIO LISTENERS

Source: The Infinite Dial 2014 Edison Research / Triton Digital; USC, Annenberg School for Communication & Journalism, PSI Study Released June 2012, Woodley, P. and Movius, L. People With a Favorite Radio Personality in LA; Scarborough USA+ Release 2 of 2012

LISTENERS TAKE THEIR AUDIO ON THE GOOn-demand content delivering sports, music, information and entertainment downloads whenever and wherever the listener wants it

66% of Smartphone users listen to online radio every week

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

GREATEST SHARE OF AUDIO

Radio has the greatest share of time. When looking at the audio consumption of adults, radio garners the great share of time every week.34RADIO DOMINATES THE WORKDAYHow to read: Each day from 3-7p, radio reaches 41% of Adults 18+.Source: Nielsen Audio, RADAR 123, December 2014 (Persons 12+, Monday-Sunday 24-Hour Daily Cume Estimates, All Radio)RADIO SPARKS BRAND CONVERSATIONHeavy Radio listeners (2+ hrs. daily) generate329 WOM impressions annuallyMore than Heavy TV Viewers (5+ hrs. daily) at 218BHeavy Print readers (1+ hrs. daily) at 209BHeavy Internet users (5+ hrs. daily) at 208BRadio is a social mediumSource: Keller Fay Group 2013RADIO BOOSTS CAMPAIGN EFFECTIVNESSConsumer packaged goods advertisers achieved over $6 of incremental sales for every $1 spent on radio.Radio drives loyalty: Radio increased shopper retention for a big box retailer by as much as 11%.Source: Nielsen Catalina Solutions Copyright 201437DRIVING INFLUENCE AND BEHAVIORRadio Advertising topped Television, Social Media, and Direct Mail and was 2x as effective as Newspapers in influencing Healthcare choices.A media advertiser saw a 16% conversion ratefor promos when using radioas a reminder medium,building increased frequency.Source: Nielsen Catalina Solutions Copyright 2014

38REACHING MAIN STREET CONSUMERSSource: Scarborough USA+ 2013 Release 2 (August 2012-September 2013)AN EMOTIVE MEDIUM

A POSITIVE ENVIRONMENT TO DELIVER AD MESSAGESSource: Mark Kassof & Co. ListenerThink; based on an online survey of 989 listeners 18-64

DRIVEN BY AN EMOTIONAL CONNECTION TO RADIO PERSONALITIESHave called into a station, met a DJ in their community, or interacted in some other manner80%

Agree that their favorite radio stations reflect who they are as a person*66%Consider radio personalities to be regular people like themselves70%

This radio hosts are like a friend whose opinions they trust and value. 70%Source: Woodley, P.. Parasocial Interaction between On-Air Radio Personalities and Listeners. USA, Annenberg Scholl for Communication & Journalism, released April 2014; * Latitude Research and OpenMind Strategy, State of Listening in America, May 2013. PERSONALITY TESTIMONIALS DRIVE RADIO LISTENER TRUSTDoes hearing one of your favorite radio station personalities provide testimonials for health care or medical products or services make you trust that product or service

2011 highlights 93% retention2006 highlights 92% retention No time shiftingNo below the foldNo load timesSources: 2011 Nielsen Audio, Media Monitors, and Coleman InsightsNO COMMERCIAL SKIPPINGRADIO WORKS FOR THE CONSUMERAND THE ADVERTISER

RADIO. ITS ON.46