RADHA SUBRAMANYAMExecutive Vice President: Insights & Analytics, Clear Channel Media + Entertainment

THE STATE OF LISTENING TODAYBACKGROUND

In our progressively digital world, the media landscape is rapidly evolving: •Choice and complexity are significantly increasing•Content consumption across platforms is the norm•Listeners’ needs, expectations, attitudes and behaviors are continually evolving, even as our understanding of them grows 

Clear Channel partnered with top 3rd party research providers to explore the roles and unique benefits of the various audio content platforms so we can define…

The State of Listening Today

OVERVIEW

Methodology

Audio At Large

7 Listening Insights

The Digital Explosion

Radio And Other Media

Top 5 Implications For Marketers

1

4

23

765

METHODOLOGY

Research was conducted from September 2012 — March 2013. A hybrid quantitative/qualitative approach allowed for a national-scale survey along with in-depth personal discussions.

Qualitative Quantitative

Focus Groups- N=50+ - 3 cities- Males and Females ages

18-45

Ethnographies

Discovery Workbooks

Deprivation Journals

Online Survey:

• Over 1000 respondents

• Males and Females ages 13-54

• Representative mix of ethnicities

Caucasians African Americans Hispanics Other

AUDIO AT LARGE

AUDIO: THE CONSTANT COMPANION

Turned to more times during the day relative to other media, audio content plays a central role as a trustworthy companion.

Listeners Accessing Audio Content (% by Daypart)

Morning(6am-10am)

Midday(10am-2pm)

Afternoon(2pm-6pm)

Evening(6pm-

Midnight)

Overnight(Midnight-

6am)

87% 88%80% 88% 52%

LISTENERS OPTIMIZE THEIR EXPERIENCES BY ENGAGING MULTIPLE PLATFORMSConsumers are increasingly expanding their sources of audio content, and associate specific benefits with each.

PersonalCollections

“My music”“Control”“Nostalgic collections”“To show off my music tastes”“When all else fails”

MP3s & CDs

Audio On Demand & TV

“Get a specific video now”“To see lyrics”

YouTube

“Specific genres”“Often the loudest device so it’s good for parties”

TV Music Choice

“To see breaking new music”“Videos”“Background noise”

TV Music Channels

Online MusicServices

“Dependable, easy and convenient source”“Playlists that are somewhat customizable”“Mobility”

Pandora

“A service with a hip, urban image”

Spotify

Live & OnlineRadio

“Companionship”“Favorite types of music”“Personalities, gossip, conversations, pop culture and humor”“Sense of community”

Radio

“A large song collection”“Live streaming of my favorite radio stations”“Connections to the best festivals”

iHeartRadio

LISTENING INSIGHTS77

1RADIORULES

EVERYBODY IS LISTENING

Most Americans listen at least once a week or more.

92%Listen To AM/FM Radio Once a Week or More

THEY LISTEN OFTEN… AND THEY THINK YOU ARE, TOO

Most people experience radio as an integral element of their daily lives, and expect others do, too.

81%92%

Listen to AM/FM radio regularly

Listen to radio at least once a

day

Assume everyone

listens to radio

92% 66% 77%

RADIO IS PART OF AMERICA’S ROUTINE

American listeners ensure they have some form of radio access to accompany them during their day-to-day lives.

71%

70%

Say “radio is a key part of my daily routine”

Say they are “rarely without some form of radio/way to

access the radio”

WHERE AND HOW DO YOU LISTEN?

Respondents were asked: where and how are you listening?

“I sit at a desk all day and crunch numbers, so I have the radio on almost all day.

We just assume that everybody listens to the radio… They have to listen to the radio, right?”

”“

2RADIO=CULTURALCURRENCY

RADIO ENGAGES LISTENERS IN THE “NOW”

Live radio serves a critical cultural role in keeping people up-to-date and in sync on music, events, local information and news.

% Agree Strongly/Somewhat That Radio…

Is a great way to

discover new songs or artists

Is a great way to hear the songs and artists I

already love

Helps me learn about things I might follow-up

on later

77%Helps me keep up with

what’s new and interesting in general

Like listening to something live, as

it happens

80%79%77%73%73%

THE #1 CHOICE FOR BEING IN THE KNOW

Consumers make a purposeful choice to listen to radio across a variety of situations. Relative to other sources*, radio is the #1 listening choice…

*Personal music collections, Pandora, TV music channels, etc.

3xMore Often

“When I want to know what’s going on in my community”“When I want to know what’s happening in the world”

“When I want to know what’s current”

“When I want to feel connected”“When I want company”“When I want to listen to people like me”

4xMore Often

5xMore Often

3AMERICAN DRIVING CULTURE AND RADIO ARE INEXTRICABLY LINKED

DRIVE WITHOUT RADIO? NO WAY

The easiest and most convenient option, radio is the go-to choice when driving—and for most, is not only desired, but a necessity.

82%

74%

Say “the first thing I do when I get in my

car is turn on the radio”

Say “it feels awkward if I don’t have the radio on when

I’m driving/commuting”

4RADIO HAS A POWERFULPERSONAL IMPACT

RADIO ENHANCES MOOD THROUGHOUT THE DAY

Listeners take advantage of the ability to find content on the radio with which they have a personal connection and that is suited to their changing moods and needs during the day.

Waking UpRevving Up

Keeping Me Going

Winding Down

“You need that little wake-me-up, that interaction, kind of easing you in [to the day], hearing the phone calls from the stations, the people, the personalities…”

“Z100, sometimes it plays a lot of pop, so during the day (I put that on), just to keep myself going.”

“I’m a big fan of Delilah. Something about her voice. She just kind of puts you in the mood… I’d pour myself a glass of wine and read my People magazine. And I would listen to her.”

NO RADIO = NO GOOD

Going without radio had a dramatic effect on listeners’ mood.

I miss the… gossip! The variety, the celeb news, the world news, the traffic… I miss laughing.”

“Do I look happy… I am just not myself. Informed… no! Sense of community… no! Feeling almost handcuffed, like a piece of my body has been removed b/c radio is such a deep part of me, who I am!

““Angry when I can’t listen

when I want or need the most.”“

5RADIO ISCOMMUNITYPROPERTY

TOP RADIO BENEFITS: COMMUNITY AND CONNECTION

Other associated attributes, such as social, relatable, trustworthy and human, enhance the sense of radio feeling like community.

Listener Associations with AM/FM Radio

Word size reflects the relative frequency of each association for this media source.

RADIO IS A MEANS FOR LISTENERS TO CONNECT WITH SOMETHING BIGGER

Listeners depend on radio for the connection it offers to their local community, and to the world.

74%

64%

Like to “stay in touch with what’s going on in my

city/neighborhood/community”

Count on radio to “connect me to what’s going on in the

world right now”

RADIO HAS THE POWER TO DRIVE REAL CHANGE

Compared to other media, radio is a more integral part of the local community, enabling it to have greater impact on issues that are most important to listeners.

78%

72%

Agree strongly/somewhat that radio has the power to make a difference in the community

Agree strongly/somewhat that radio is more

community-oriented than TV

6RADIOPERSONALITIESIGNITEPASSION

DJs CONNECT PERSONALLY WITH LISTENERS

Listeners have deep affinities with DJs and value the time spent with them.

DJs keep me up-to-date on current events.

Radio offers more personal connection with DJs than TV with its personalities.

I spend mornings with DJs or talk radio hosts.

I have favorite DJs who I look forward to hearing.

I listen to radio to spend time with the DJs.

78%

66%

61%

59%

47%

% Agree Strongly/Somewhat

DJs ARE CONSIDERED CELEBRITIES WHO “KEEP IT REAL”

Even though DJs are aspirational figures, they are relatable and accessible.

71%

70%

Listeners who feel the DJs are local people like them

Listeners who agree radio personalities “keep it real more often than TV characters and personalities do”

“Hanging out with (my favorite DJ) would be unbelievable. To me, that would be like a dream really. ”

66%Of listeners agree

“My favorite radio stations reflect who I am as a person.”

AND RADIO IS A DEEPLY PERSONAL MEDIUM

People are invested with their favorite stations and DJs, and many see radio as a reflection of themselves.

7RADIO IS FOR MILLENNIALS & GEN Z

81%85%

Percent listening

to the radio at least once

a week

94%89%

YOUNG PEOPLE ARE LISTENING TO RADIO A LOT AND SEE RADIO AS INTEGRAL TO THEIR LIVESYoung consumers listen as much as the rest of us, and majority expect it to always be part of their lives.

Age 13-17Age 18-

24

Agree that radio will always be

a part of people’s lives

“So everybody’s always tweeting, ‘Hey did you hear that new song on Z100?’ And they want to go look and see so they can tweet about it, too – and look cool. ”

RADIO “FILLS THE VOID”

More uncomfortable with silence than others, young listeners strive for an “always on” status.

% Agree Strongly/Somewhat “I Can’t Stand the Silence” by Age Group

63%

Total

13-17 18-24 25-30 31-44 45-54

58%63%

67%

59%51%

43%

THE DIGITAL EXPLOSION

DIGITAL PLATFORMS MAKE RADIO EVEN BIGGER

Consumers supplement AM/FM radio listening on other platforms.

% Use Each Format At Least 1X Per Week

92%

44%33%

55%

Regular AM/FM

Streaming AM/FM on laptop, PC or mobile

Satellite radio

Custom streaming

playlist sites

DIGITAL FUELS GROWTH OF OVERALL RADIO CATEGORY

Although digital platforms serve a relatively small portion of total listening hours (TLH), overall TLH for broadcast and digital combined are increasing.

Total Listening Hours for Broadcast and Digital Radio (Billion Hours/Month)

Source: ACT1, Arbitron. M-Su 6a-12m, P12+, DMA. Triton Internet Audio Report

Fall 2011 Spring 2012

15.6 15.9

14.7

0.9

14.8

1.1

Broadcast

Digital

DIGITAL EXPANDS RADIO’S ACCESSIBILITY AND RELEVANCY

Access to radio via multiple platforms is enhancing its currency with listeners.

Agree “radio is more accessible than ever

before”

Agree “I can access radio anywhere”

Agree “mobile devices make radio even more

relevant because I always have these

devices with me”

Agree “the internet makes radio more

relevant”

85%

78%

68%

63%

RADIO’S VALUE INCREASES WITH GREATER OPPORTUNITIES FOR USE AND INTERACTIONListeners can more easily and frequently engage with radio since it now also exists within the places where they are increasingly spending time.

What is your favorite way to listen to the radio?

“Through apps and online

streaming.”

“It’s easier (than ever) to follow radio personalities on Twitter or Facebook… they engage their followers on Twitter. They have different topics that you can respond to… it’s gone from calling in to texting to Twitter. It keeps getting easier.

Why?

“My apps are at my fingertips and when I want to give my phone a rest at work, I head for online streaming.”

”

AQ

AQ

RADIO AND OTHER MEDIA

RADIO REMAINS THE PLATFORM WITH WHICH LISTENERS FEEL THE STRONGEST PERSONAL CONNECTIONListeners continue to feel that radio provides a more personal and more targeted experience relative to other platforms.

% Agree Strongly/Somewhat About Radio

65%55%

50%

Feels more human than the internet

More personal than television

More targeted to people like me than

television

More targeted to people like me than

the internet

72%

The Chicago radio stations – they know what we think, what we want to hear and what … we don’t want to hear.”“

RADIO OUTPERFORMS TV AS A RELEVANT PART OF DAILY LIFE

Radio maintains its edge over other traditional media, reinforcing its strong, integral presence in people’s lives.

% Agree Strongly/Somewhat Platform Is…

Not Accessible Accessible

Not Relatable Relatable

Occasional Activity Part of my Routine

91%

84%

80%

73%

80%

75%

9%

16%

20%

27%

20%

25%

Radio

TV

The passion consumers feel about radio likely translates to their perceptions of the ads heard there, making advertising more effective.

Which Best Describes Advertising On…? % Agree Strongly/Somewhat

AM/FM Radio

RADIO ADVERTISING IS VIEWED MORE POSITIVIELY THAN OTHER MEDIA

Often informative

Credible

Attention-grabbing

Tends to be relevant to me

Persuasive

TV

Internet

Mobile Apps

RADIO IS HERE TO STAY

Radio remains an important part of daily life — and listeners from all generations recognize that even as technologies evolve, radio content will always be relevant and valued.

84%

74%

Say “radio isn’t going anywhere – it will

always be a part of people’s lives”

Say “radio is important to my generation”

69%

Of listeners agree “streaming services do not replace radio”

TOP 5 IMPLICATIONS FOR MARKETERS

• Consumers favor radio advertising that is more like radio. Radio does not have low production values; radio advertising shouldn’t either.

o Employ humor.o Use music as a creative element.o Leverage on-air talent to make products and services more personal

and relevant.o Leverage the multiplatform nature of radio – broadcast, digital,

events – with multiplatform marketing programs.

1MAKE RADIO ADVERTISING REFLECT THE UPBEAT NATURE OF RADIO

Key Takeaway

Radio advertising that reflects the upbeat, relevant, fun nature of radio is advertising that works best.

2RADIO TARGETS VARIED KEY SEGMENTS

Key Takeaway

Use radio to tap into the passions of key audience segments.

This research revealed that though virtually all Americans turn to radio regularly, several key consumer segments are particularly attuned to radio.

To reach youth, hit their passion points:

• Music• Humor• Gossip/ Celebrity/

What’s Hot• Radio Personalities• Cars• Connectivity• Constant Stimulation

To hit home with moms, keep their priorities in mind:

• Family• Community• Local Issues• Value• Music• Popular Culture• Relatable Personalities• Time Saving

African American and Hispanic consumers have specific values:

• Music• Humor• Family• Community• Value• Radio Personalities

• Radio’s conversational nature (calling in, talking back) sets it apart from other forms of media.

• Amp up radio’s social aspect by making it easy for listeners to engage with ads and create chatter amongst themselves.

3SPEAK WITH THEM, NOT AT THEM

Key Takeaway

Use radio’s two-way nature to start a conversation with consumers that goes beyond broadcasting messages.

• The content and tone listeners seek out vary by daypart.

• Consider the consumers’ mood and mindset when creating ads.

4KEEP THE MOOD IN MIND

Key Takeaway

Radio is a “mood medium” – use it to create more positive feelings about your brand.

5PAVE THE PATH FOR THE GREATER GOOD

Key Takeaway

Use radio’s community roots and reach to make a difference.

• Given the cultural and economic conditions today, people are seeking greater meaning and deeper connections to their communities.

• Radio has always had the power to impact communities. Local radio is the natural place to extend campaigns in a way that makes a real difference.

Thank You!

RADHA SUBRAMANYAMExecutive Vice President: Insights & Analytics, Clear Channel Media + Entertainment