Engagement and Radio

1

May 2014

80% Have called into a station, met a

DJ in their community, or interacted in some other

manner

70%Consider radio personalities to

be regular people like themselves,

who are “relatable” and “authentic” and would truly miss them if they were

gone

60%Talk about

things on-air personalities

have said, often through social media

networks

60%Think radio

hosts are “like a friend,”

whose opinions they trust and

value

Source: Woodley, P.,Parasocial Interaction between On‐air Radio Personalities and Listeners. USC, Annenberg School for Communication & Journalism,, released April 14, 2014

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

Radio has the power of personal connection

People Expect Personal Connection From Radio

82%

A personal, para-social interaction

with their favorite Radio

personality

79%

Listen longer to a radio

station because their

favorite personality is

on the air

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; *Mark Kassof & Co October 2012 survey of 732 adults 18-64 online **Mark Kassof & Co September 2013 survey of 989 online Adults 18-64 (60% of 18-24 agreed)

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

75%

Describe their favorite

station as comfortable,

friendly, informed*

70%

Agreed If you couldn’t listen to radio, you’d feel something important was missing from your life.**

70%

Follow their favorite

personality/Radio station

on social media

Radio’s Local Connection is Key

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; *Latitude Research, Open Mind Strategy May 2013 study of 1000+ participants;

55%

Listen to their favorite

personalities on computers

or mobile devices when away from a

Radio

66%

Agree that their favorite radio stations

reflect who they are as a

person*

A key difference between Music Players Streams and Broadcast Radio is the need for just music vs. the need for connection.

Radio Connects Personally

82%

A personal, para-social interaction with their favorite Radio

personality

5

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

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”.

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

Radio Has the Power of Persuasion

52%

6

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

There Is an Emotional Attachment to Radio

7

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

More People Prefer Using Radio to Using Facebook

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…

Radio Websites Reach Consumers In Their Communities

• 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

9

Source: TargetSpot white paper April 2011

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

personalities follow them

• Personalities in just the top 25 markets have more than 38 million Facebook friends and 60 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

10

Source: USC, Annenberg School of Communications & Journalism, PSI Study Released June 2012, Woodley, P. and Movius, L.; 2012 Alan Burns & Associates; KMS research March 2014

AM/FM Radio Listeners Feel The Most Alert Which Suggests a Higher Level of Attentiveness

AM/FM Radio

Live TV

Mobile Web/App

Internet

Print

27.6%

23.2%

18.1%

17.8%

13.7%

© 2012 Arbitron Inc.

% of Audience that Feels AlertPersons 25-54

Source: 2012.2 MBI TouchpointsTM

Engagement

Source: Radio Advertising Effectiveness Program, Ipsos OTX, 2010-11; conducted for Katz Marketing Solutions (one brand asked not to be named).

Radio advertising does positively impact the 5 key branding metrics

6 Study Average % Lift

Affinity / Likeability

Awareness

Advocacy

Consideration

Purchase Intent

13%

20%

14%

38%

37%

Radio-targetedconsumers vs.Control groups

Credibility and Emotional Connection

And the best test of all for engagement…

13

When Radio StationsInvite Their Listeners…

They show up by the thousands.

Radio Provides the Power for Advertisers to Engage Listeners

Move into our Virtual Neighborhoods and Let Us Prove It

15