radio a sound investment. if radio didn’t exist today we would have to invent it. here’s why:

RADIO

A SOUND INVESTMENT

If Radio Didn’t Exist Today

We would have to invent it.

Here’s why:

Radio’s Unique Qualities

Radio has unique attributes that make it valuable to consumers, and therefore to marketers.

Radio & Media Accessibility

These characteristics complement the lifestyles, needs and potential media accessibility of typical American consumers.

Radio Characteristics or Assets?)

Radio is:Ubiquitous

Targeted (Personal)MobileThe ‘Multi-Tasker’ Medium

Radio & The Consumer

(

Radio is Ubiquitous

Radio is the only mass medium that is consumed - literally –everywhere… even in the shower and in the car.

Unlike TV, Print & the ‘Net, Radio Is Everywhere

Persons 12+ Total Weekly Time Spent

Radio is Targeted/Personal

•Formats•Format derivatives•Personalities•Local and Regional Nuances•Ability to connect consumers


Highly defined formats allow the listener to select a few stations that resonate with their lifestyle, then develop a ‘personal’ relationship to the personalities, music and features.


Sample Formats – US Radio

Adult Contemporary and Urban ACNews/Talk and CountryContemporary Hits and Classic RockOldies and Religious Adult Standards and Hip HopSmooth Jazz and Alternative


As marketing and advertising becomes more targeted, radio’s asset value increases.“Quote here from McDonald’s CEO on the death of mass marketing”


Veronis Suhler Communications Industry Forecast/ WSJ 1/26/04

Time Spent with Radio (and cable/ satellite TV) is Increasing Each Year.

Radio is targeted/personal

• Cable’s growth is at the expense of broadcast TV• Newspaper readership –and circulation numbers validity- continue to decline.•Radio least affected by increases in internet usage

Radio Stimulates Emotions

(Verbatim here from the Wirthlin Study interviews that indicate strong personal and emotional ties to radio.)

Radio’s Mobility is Unique

Extended commute times, an increase of women in the workplace, a dramatic rise in the use of personally owned vehicles all translate to more time spent in car- listening to Radio!


In 1960:

38% of all women work; few women with young children work

61% of families are “nuclear”

Majority of families have only one worker

Majority of families have only one vehicle

In 2000:

61% of women work, two- thirds with children under 6 work full or part-time. 25% of all family ‘heads of household’ are a female,alone 67% of families are NOT nuclearDual-earner families, higher incomes = one vehicle per worker

Source: U.S. Census from June 2003, Report by Nancy McGuckin, Travel Behavior AnalystNanda Srinivasan, Cambridge Systematics Inc.; Horowitz Associates, Inc ; Hal Kapp in American Way 1-15-2004


In- Car, Radio is forefront and intrusive.

And, we drive 3,175 more miles, or 36% more each year than in 1980.


41.4

59.7

81.3

99.6

112.7

0

20

40

60

80

100

120

1960 1970 1980 1990 2000

Millions of Workers commuting by POV’s(Personally Operated Vehicles)- U.S. Census

US Census and NHTA Travel Study -2003


In-car TSL only averages 1:30Daily just between 5a-8p. Los Angeles 1:33New York 1:24Chicago 1:24Miami/Ft. Lauderdale 1:36Dallas - 1:30

Source: Arbitron Fall 2003, DMA Ratings, Working Adults 18+.

Radio TSL is 2nd only to TV

These facets - combined with the American lifestyle realities – result in impressive Time Spent Listening (TSL) to Radio even in the face of increasing competition.

When the Commercials Air ?

Of television viewers:36% of viewers watched the breaks While14% channel surf20% talk to others in the room16% left the room11% doing something else

2004 TV Dimensions,

When the Commercials Air ?

36% of Radio listeners said they changed the station.

While only 36% of TV viewers continued watching through the breaks.

2004 TV Dimensions

Radio as the “Multi-Tasker”

Recent studies indicate that consumers positively identify with Radio as the companion medium to other activities, considering it a value, not the negative some marketers see as a ‘background medium.

Wirthlin study- hopefully

(Verbatim from Wirthlin Study if they hold from the qualitative to the larger

study…)

Radio as the “Multi-Tasker”

Chart of radio and other activities???.

Radio offers “Proximity to Purchase/Intent

Radio is most frequently the last medium a consumer is exposed to prior to making a purchase.


On Recency:

“Because products are bought everyday, brands need to remind consumers of their name and value everyday. This requires continuous advertising with effective presence, not effective frequency.

Dr. John Jones –”When Ads Work”


On Recency:

“On a tactical level, radio helps to drive awareness, delivers recency and provokes a response; it can generate commercial returns in the form of new users…. On the more strategic level, radio has a proven track record of building brands, bringing them to life, and differentiating them in the minds of its listeners.”

- Capitol Radio Group, London


63%

22%

13% 12%

33%

Radio

TV

Newspapers

Magazines

Outdoor

Adults 25-54Persons Reached by Medium

Within 1 Hour of Latest Purchase

Source: Media Targeting 2000

Radio offers Proximity to Purchase/Intent

22% 42%

23% 44%

6% 20%

4% 12%

After You Get Homefrom Work

On Your Way Homefrom Work

During Your LunchBreak

Before You Get toWork

Frequently Sometimes

Base: Work Full/Part Time

“In the course of a typical work week, how often do you shop…?”

Women 25-54

Source: Arbitron Edison NAB In-Car Study October 2003.

Radio is Cost Effective

2003-2004 CPM’s

Men Women M/HHI $75K+$ $ $

TV Avg :30

EM 17.90 11.25 100.50Daytime NA 5.60 NAEN 13.35 10.50 94.00Prime 28.25 21.90 145.00Prime Cable 10.15 9.75 69.60LF 28.10 24.00 139.65

Radio Avg :30

Network 10.15 8.50 54.05Spot 11.15 10.70 80.05

Magazines P4C

Business 25.00 NA 65.70Newsweeklies 10.80 NA 38.90Sports 9.05 NA 51.45Women's Fashion NA 10.15 NAWomen's Service NA 5.10 NA

Newspapers Top-100 Mkts 1/3 P B&W

Dailies 23.75 22.65 107.05

Outdoor 4.90 5.15 24.90

Radio is Cost Effective

2003-2004 CPM’s

Two charts here - men and women cpm’s

Radio and the Marketers

Radio & The Marketers

Agencies and Marketers disillusioned with TV – are grappling with reaching highly mobile and targeted consumersegments all point to new opportunities for Radio.

Radio is ‘Listening’

The Radio Industry and the Radio Advertising Bureau have undertaken an aggressive initiative to provide advertisers and agencies with the more consumer intelligence, and improved business systems.

Radio is ‘Listening’

Under the umbrella of ‘Accountability’, a multi-tiered, multi-year effort is underway to provide learning about ad effectiveness, demonstrate ROI, and deliver more value against ad dollars invested.

Radio:Evolving & Improving

Why now?Consolidation has made Radio stronger, an ‘old’ industry with a new business structure.Critical mass of our financial resources allows the industry to marshal itself into action

“Radio is Listening”

-Robert Liodice, President Association of National Advertisers

“The Advertiser “ Magazine -June 2004

“Radio is Pursuing Accountability With a Vengeance”

Radio is “Listening”

Accountability

RAEL

EDI

The Buy/Sell Process

RAB Redeployment

Back Room Process

Audience Measurement


Accountability/Perceptual Report

Slide

Scheduling/Measurement


•Support of AAAA Media Policy Committee

•RAB EDI Task Force; improved backroom

•Arbitron PPM and ‘due diligence’ process


•??Pricing mechanisms / improvements??

•(Gary- I know this is an issue but not sure where to take it or whether to leave it out…)


The Radio Ad Effectiveness Lab

“Consumer Research designed and approved by agencies and advertisers,

funded by the radio Industry”


RAEL

Effective Creative

Media and Emotions

ROI –The Holy Grail


Media and Emotions

“quote from ARF on need for this type of research”

Wirthlin descriptor


Wirthlin description

Release date

Radio is Evolving &Improving

Meaningful Consumer Research

Consistent Dialogue w/Trading Partners to improve Buy/Sell Process

Radio is Evolving &Improving

HD Radio

Back Room Processes

Arbitron

New Format development?

“Radio has the ability to change consumer thinking and behavior”

-Keith Reinhard, President

Business for Diplomatic Action

&

Chairman of DDB Worldwide

“Creatives and Radio

Over 70 creative directors invlovled in the judging and staging of the 2004

radio Mercury creative awards

Radio Revenue is consistent in the long term

Long term Revenue stats here

radio a sound investment. if radio didn’t exist today we would have to invent it. here’s why:

Documents