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 Don’t Listen to Radio Anymore

� Radio isn’t Keeping Up With the New Ways People Communicate

Fact: Radio is Alive and Thriving

As New Technology Develops…

20052000

2001

201020092007

2001

2001…Radio Reach Remains Big and

Listening Levels Remain Consistent2004

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 havenot “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?

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

On-air Program Highlights

Radio Usage – Six Year Trends -- People 12+

Radio’s Reach Remains Level Despite New Audio Devices In Use

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

Source: RADAR 109, June 2011

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

But isn’t Radio Losing Listening Time?

� 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.

NO.

KATZ RADIO GROUPKATZ RADIO GROUP

Radio Usage Remains

Consistently BigAmong All Key Demographic

Segments

• Look at PPM (17 markets)

• Diary Markets (235 markets)

• 3 Year Trend

Radio Remains Relevant To People

© 2011 Arbitron Inc.

Persons 12+ Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years

PPM Measured Markets: Radio’s Reach of 12+ is Consistent

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

© 2011 Arbitron Inc.; NY, LA, Chi, Phil, SF, Hou, RSB, Atl, DFW, Det, DC, Bos, MFL, Phx, SD, Min, Sea

© 2011 Arbitron Inc.

Diary Measured Markets: Radio’s Reach of P12+

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 By People Continues To Be Big And Consistent

KATZ RADIO GROUPKATZ RADIO GROUP

Radio Usage Remains

Consistently BigAmong All Key Demographic

Segments

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

Why Big and Consistent?

It Is Branding 101That 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

© 2011 Arbitron Inc.

PPM Measured Markets: Radio’s Reach of 12-24s is Big and Consistent

Persons 12-24 Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years

P12-24 Weekly Cume Time Spent

Radio Continues to be the Dominant Form of Audio Entertainment Among Young People

© 2011 Arbitron Inc.; NY, LA, Chi, Phil, SF, Hou, RSB, Atl, DFW, Det, DC, Bos, MFL, Phx, SD, Min, Sea

WWWQ-FMATLANTA

Connect With Your Friends

© 2011 Arbitron Inc.

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

Persons 18-34 Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years

P18-34 Weekly Cume and Time Spent Listening

Young People Rely On Radio

© 2011 Arbitron Inc.; NY, LA, Chi, Phil, SF, Hou, RSB, Atl, DFW, Det, DC, Bos, MFL, Phx, SD, Min, Sea

WHYI-FMMIAMI

Live the Lifestyle. Let Them In.

“Young People are more likelyto 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

KISW-FMSEATTLE

Be Different. Passionately.

KSSE-FMLOS ANGELES

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

El Banda Recodo

La Quinta EstacionEnanitos VerdesAlejandro Fernandez

Pepe Aguilar

Paulina Rubio

Aleks Syntek

Jaguares

Juanes

Beto Cuevas Thalia

Ricky MartinReyli

Los Hombres G

Camila

Wisin y Yandel

Calle 13

MANA

Belanova

Alejandra

Guzman

Julieta Venegas

Super Estrella Events

WMMR-FMPHILADELPHIA

Passionate People Who Connect With the Community

� 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

Radio Offers Personalized Connections to Listeners

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

WDAS-FMPHILADELPHIA

Friends Who Are A Force For Good In Your Community

KKBQ-FMHOUSTON

Understand the Listener. Let Them Have the Reins.

WTMX-FMCHICAGO

Authentic Newness – Give The Listeners Control

Radio Usage By Young People Continues To Be Big And Consistent

Authentic Newness – Give The Listeners Control

KPLX-FMDALLAS

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

KFI-AM

LOS ANGELES

Be Fearless. Create An Amazing Listener Experience.

Great Radio StationsRevolve 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. Don’t Let Others Tell It For You.