A Positive Perspective of Radio and Its Future Radio in the USA: Thriving

Presented by: Mary Beth Garber/Katz Radio Group Carol Hanley/ Arbitron Inc

You Hear It All The Time

Radio is Dead or Dying New Technologies are Diminishing Time Spent with Radio Young People Dont Listen to Radio Anymore Radio isnt Keeping Up With the New Ways People Communicate

Fact: Radio is Alive and Thriving

As New Technology Develops

Radio Reach Remains Big and 2001 Listening Levels Remain Consistent
2004 2001 2001 2000 2005 2007 2010 2009

Changing Technology Has Affected How and Which Media People Own or Have Access To But Radio and TV (Free Access) Remain Primary

% Population/Household Penetration

Source: TV HH, Nielsen May 2011; wkly Radio Arbitron RADAR 108; Mobile Web comScore Feb 2011 via mobiThinking; DVR, Nov, 2010 NielsenWire; Cable & ADS July 2011 Nielsen Report; iPods/MP3s and Social Net Usage Edison Media Infinite Dial: 2011; Video Game Consoles from Lichtman Rseearch June 2010; Video Game Console, Internet usage, Wireless Cell Phone, Hi speed Internet Access from Pew Internet & American Life Project Dec 2010, May, June 2011

Time spent with all media is at an all time high. People are not using new devices at the expense of radio.

New Technologies definitely have not killed the radio star Several industry studies support that fact

Three 2011 Research Studies Concur Digital Audio Listening Is In Addition To, Not Replacing AM/FM Radio Listening

Time spent listening remains consistent among rock Radio listeners over four years
TechSurvey 7, June 2011 survey of 20,000+ rock format radio listeners

Among Women 18-54, those who listened to online streaming spent the same or more time listening to over the air radio stations Here She Comes 2011 survey of 2,020 women
18-54 in June 2011

Digital users spend as much time with Radio as the average (not less)
The Infinite Dial: 2011

So -- what about the numbers?

Radios Reach Remains Level Despite New Audio Devices In Use

Radio Usage Six Year Trends -- People 12+

On-air Program Highlights

Source:RADAR 88-108, P12+, M-SUN 12M-12M

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

Radio reaches over 93% of virtually every segment of the population. That that has been true year after year and remains true today.

Source: RADAR 109, June 2011

But isnt Radio Losing Listening Time?

NO.
More people of all ages listen to radio now than ever before. And on more platforms than ever before. Both electronically measured (PPM) and Diary measured perceived usage reporting show little or no change in reach or time spent listening in the past three years. Radio is NOT dying. Far from it.

Radio Usage Remains Consistently Big Among All Key Demographic Segments
Look at PPM (17 markets) Diary Markets (235 markets) 3 Year Trend

KATZ RADIO GROUP

Radio Remains Relevant To People

PPM Measured Markets: Radios Reach of 12+ is Consistent

And 60% of that time is spent with just ONE station.

2011 Arbitron Inc.

Persons 12+ Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years
2011 Arbitron Inc.; NY, LA, Chi, Phil, SF, Hou, RSB, Atl, DFW, Det, DC, Bos, MFL, Phx, SD, Min, Sea

Radio Usage By People Continues To Be Big And Consistent

Diary Measured Markets: Radios Reach of P12+

2011 Arbitron Inc.

Persons 12+ Weekly Cume and Weekly Time Spent Listening Among 235 Diary Measured Markets, M-Su 6A-Mid based on Arbitron National Regional Database (NRD)

Radio Usage Remains Consistently Big Among All Key Demographic Segments

KATZ RADIO GROUP

Why Big and Consistent?

Because of the stations.
We found great radio stations from the 17 PPM We asked a selection of them for their secret Similar elements, different execution Focused on lifestyles, listeners and culture

It Is Branding 101 That Sets These Stations Apart

Innovation and the creation of new categories of information and entertainment. Think Apple. When you provide relevant content, your listeners become engaged on all levels When your listeners are engaged, you deliver value for your advertisers You have become relevant to the lives of the listener

Use Your Assets

The Keys To Making Neighborhoods Revolve Around Relevance

Characteristics of Relevant Neighborhoods
Differentiation - create a unique, amazing customer experience Customer Relations - Give them what they want Create Community -- Personalities are the heart of your local neighborhood Matter be a force for good in the Community Authentic Newness Pioneer new ways of doing things Passion Be a true friend

Welcome to the Neighborhood

Fact: Radio remains consistently big among Young People

Radio Continues to be the Dominant Form of Audio Entertainment Among Young People
PPM Measured Markets: Radios Reach of 12-24s is Big and Consistent

P12-24 Weekly Cume Time Spent 2011 Arbitron Inc.; NY, LA, Chi, Phil, SF, Hou, RSB, Atl, DFW, Det, DC, Bos, MFL, Phx, SD, Min, Sea
Persons 12-24 Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years

2011 Arbitron Inc.

Connect With Your Friends

WWWQ-FM ATLANTA

Young People Rely On Radio

PPM Measured Markets: Radios Reach of 18-34s is Consistent

P18-34 Weekly Cume and Time Spent Listening 2011 Arbitron Inc.; NY, LA, Chi, Phil, SF, Hou, RSB, Atl, DFW, Det, DC, Bos, MFL, Phx, SD, Min, Sea
Persons 18-34 Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years

2011 Arbitron Inc.

Live the Lifestyle. Let Them In.

WHYI-FM MIAMI

Young People are more likely to have a radio in their bedroom than ANY other media device including TV, CD players and the Internet.

Kaiser Family Foundation Report Center on Media & Human Development June 2011, as reported in Inside Radio

Be Different. Passionately.

KISW-FM
SEATTLE

Be Current. Be a Relevant Current in Listeners Lives. Create Connections.

KSSE-FM
LOS ANGELES

Super Estrella Events

Alejandro Fernandez Paulina Rubio Alejandra Guzman Juanes Enanitos Verdes La Quinta Estacion Calle 13

El Banda Recodo Julieta Venegas Los Hombres G

Aleks Syntek

MANA

Beto Cuevas
Reyli Jaguares

Thalia Ricky Martin

Camila

Pepe Aguilar

Belanova
Wisin y Yandel

Passionate People Who Connect With the Community

WMMR-FM PHILADELPHIA

Radio Offers Personalized Connections to Listeners

Psychologists call it Para-Social Interaction -- a very real, emotional connection to a celebrity or fictional character. Industry studies find the same results: Personalities matter to radio listeners Listeners care about them, relate to them, feel an emotional connection, as if the personalities are actually part of their social network Even though such one-way friendships are based on illusion of interaction via television or radio rather than actual social interaction, a bond of intimacy is created and viewers [or listeners] feel they really know the media character. 90% of radio listeners said they would be disappointed if their favorite radio station were no longer on-air Only Radio can offer advertisers product endorsements by on-air personalities Those endorsements lifted brand awareness by 50% in a study conducted by a major small appliance advertiser in 2010 Radio can share this relationship with its advertisers
Sources: Freda D., Lewis (2000). Getting by: Race and Parasocial Interaction in a Television Situation Comedy. Dissertation.com. ISBN 1-58112-105-9. , cited from Wikipedia.com; The Infinite Dial: 2011 by Arbitron and Edison Research and Alan Burns & Assoc Study 2011 of w18-54; Critical Mass Media April June 2010

Friends Who Are A Force For Good In Your Community

WDAS-FM PHILADELPHIA

Understand the Listener. Let Them Have the Reins.

KKBQ-FM HOUSTON

Authentic Newness Give The Listeners Control

WTMX-FM CHICAGO

Authentic Newness Give The Listeners Control

Radio Usage By Young People Continues To Be Big And Consistent

Be Who Your Listeners Want You To Be. Be Where They Want You To Be.

KPLX-FM
DALLAS

Be Fearless. Create An Amazing Listener Experience.

KFI-AM
LOS ANGELES

Great Radio Stations Revolve Around Relevance

They define and differentiate themselves They understand the listeners, give them what they want and give them access in the ways they want it Their Personalities are the heart of their local neighborhood They become part of the fabric of the Community, working to do good They embrace an authentic newness grasp and get in front of change bring it to their listeners, trust and allow listeners to help run the show Great Radio Stations do all of this with a passion that feeds the familiarity that makes listeners believe this is a true friend They enable their advertisers to become part of the neighborhood, too

And Everyone Thrives

What is True About Radio

Radio reaches 9 out of 10 people in every demographic segment in real, not delayed time every week Radio reach and listening levels have remained big and consistent for virtually every demo including young people More people listen to the radio than use the internet--and they use radio more everyday than they use the internet each day Digital devices and online listening are in addition to, not instead of regular radio heavy users of digital audio are also heavy radio listeners Radio provides personal, emotional connections that can benefit advertisers Radio offers psychographically and demographically targeted environments that remain consistent and available 24/7 People hear and respond to Radio commercials A Radio commercial has the same as or more impact as a TV commercial Radio is by far the device most used and most valued in the car by every age Radio gets your message to the most consumers just before they shop
Sources: RADAR 109 June 2011; Arbitron Q2 2009, 2010, 2011 PPM ratings M-Su 6a-mid 17 markets with 3 year trends available; 2008, 2009, 2010 Arbitron Diary ratings from NRD, M-Su 6A-Mid; comScore June 2011; The Infinite Dial: 2011 by Arbitron and Edison Research, Jacobs Media Tech Survey 7 2011, Target Spot 2011 study and Alan Burns & Assoc Study 2011 of w18-54; Critical Mass Media April June 2010; OTX Studies 2011 for 3 advertisers; RadioAdLab.com 2007 Study; Arbitron/Coleman/Media Monitors Study Dec 2005; The Road Ahead Arbitron/Edison Oct 2011; Nielsen, /Council of Research Excellence 2010

Radio Usage is Big and Consistent

Now Go Tell The Story. Dont Let Others Tell It For You.