RADIO IN 2013How Radio Advertising Fits in the Media Mix

0--Consumer

Radio

Internet

Newspaper

MagazinesOutdoor

Directory

TV

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TODAY’S MEDIA LANDSCAPE

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A GROWING AUDIENCE2012 RADIO AUDIENCE IS AT AN ALL-TIME HIGH!

Sources: Arbitron RADAR 115, December 2012 (Persons 12+, Monday-Sunday 24-Hour Weekly Cume Estimates)

242.0 MILLION

3

P 12+

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97 9288

7870

6156

49 47 45 45 43

31 29

18 15 13 10

% Population/Household Penetration

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MEDIA REACHRADIO’S REACH IS STRONG

Sources:: TV HH, Nielsen May 2011; wkly Radio Arbitron RADAR December 2012 M-Su M-M; Mobile Web comScore Feb 2011 via mobiThinking; DVR, Nov, 2010 NielsenWire; Cable & ADS July 2011 Nielsen Report; iPods/MP3s and Social Net Usage Arbitron/Edison Infinite Dial: 2012; Video Game Consoles from Lichtman Research June 2010; Twitter comScore Dec 2011; Video Game Console, Internet usage, Wireless Cell Phone, High speed Internet Access from Pew Internet & American Life Project Dec 2010, May, June 2011; Tablets Audio4cast March 20, 2012; Scarborough USA + Release 2 2011 12 months

% Population/Household Penetration

CONSISTENT TIME SPENTEVEN AMONG HEAVY USERS OF OTHER MEDIA

Source: The Infinite Dial 2012 – Arbitron Inc. & Edison Research

Hours:Min

5

6

GOING STRONGRADIO IS THE 2ND MOST USED PLATFORM IN AMERICAN LIVES

98%BROADCAST RADIO 93%

54%

43%

37%

29%16%

14%

13%

12%

12%

10%

3%

Source: The Infinite Dial 2012 – Arbitron Inc. & Edison Research ;Note: Pandora is a subset of Online Radio and shown separately as a pure-play operator

% of Americans 12+ Who Use Platform

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AND STRONGERRADIO OUTRANKS TODAY’S DIGITAL DEVICES

Source: The Infinite Dial 2012 – Arbitron Inc. & Edison Research

% of Americans 12+ Who Own Device

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TELEVISIONSIGHT, SOUND AND MOTION

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TV Radio

UNAIDED BRAND RECALL

INCREASED 34% WHEN TWO RADIO

ADS REPLACED

ONE TV AD*

• Total TV households are down from 114.6MM in 2011 to 114.2MM in 20121

• Monthly time P2+ have spent with TV dropped 1 hour and 26 minutes from Q2 2011 to Q2 20122

• Weekly time dropped from 32 hours and 47 min in Q2 2011 to 31 hours and 45 minutes in Q2 2012

• Time shifted viewing by A18-49 increased from 12 hours and 14 minutes in Q2 2011 to 13 hours and 4 minutes in Q2 20122

• 77% of connected device users are watching TV while using another device3

• Radio delivers more than 93% of its lead-in audience during commercial breaks, on average4Sources: 1) Nielsen Company 2012; 2) Nielsen Cross-Platform Report Q2 2012; 3)

eMarketer, November 2012; 4) What Happens When the Spots Come On 2011, Arbitron, Inc., Media Monitors & Coleman Insights; *The Benefits of Synergy, Radio Ad Lab, 2004

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INTERNETTRACKING AND INTERACTIVITY

Sources: 1)Pew Research Center’s Internet & American Life 2011; 2) comScore “Validated Campaign Essentials” January 2012; 3) The State of Online Advertising 2012; 4) comScore “Validated Campaign Essentials Charter Study, March 2012; *Radio and the Internet: Powerful Complements for Advertisers, Radio Ad Lab, 2007

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Internet Radio

RADIO DRIVES ONLINE

SEARCH AND WEBSITE TRAFFIC*

• According to an April 2012 survey, only 82% of adults 18+ use the internet1

• Most adults go online just to pass the time1

• 63% of American consumers ignore or disregard internet ads2

• 72% of campaigns run next to objectionable content

• 60% of consumers state online advertising is annoying3

• 31% of ads are not in view or never have the opportunity to be seen4

• In many cases a large portion of ad impressions are not delivered according to plan

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NEWSPAPERDETAILS AND INFORMATION

Sources: 1) State of the News Media in 2012; 2) Pew Research Center 2012 News Consumption Survey 3) eMarketer, October 2012

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Newspaper

Radio

RADIO IS AN ENGAGING

MEDIUM THAT CREATES EMOTION

• Newspaper revenue dropped 7% in 2011 versus 20101

• Weekly circulation dropped 4% April-September 2011 versus same time period 20101

• Adults 65+ are most likely to be newspaper readers but their readership declined 3 percentage points in 20111

• Only 6% of A18-24 stated they read the news in a print newspaper the previous day2

• The average time U.S. adults spent with newspapers dropped to 22 minutes in 2012 from 30 minutes in 20103

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OUTDOORSTRATEGIC AND ATTENTION GRABBING

Sources:1) Outdoor Advertising Association 2011; 2) Premier Media

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Outdoor Radio

RADIO EXTENDS OOH

MESSAGING, PARTICULARLY

FOR WINDSHIELD

BRANDS

• Made up of 100 different formats (billboards, street furniture, transit, etc.) with more than 2,100 operators1

• Recommended limit of 7 words or less for each billboard puts tremendous constraints on the advertiser’s message

• Low recall of messages due to brief consumer exposure

• It is not assured to be seen by your target audience2

• Outdoor advertising can run the risk of vandalism and can be damaged due to weather conditions

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DIRECTORYREFERENCE AND FAMILIARITY

Sources: 1) Market Authority, Inc., November 2012; 2) Bloomberg Businessweek, April 2012;

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Directory

Radio

RADIO INCREASES TOP-

OF-MIND AWARENESS TO

HELP REACH, MOTIVATE AND

INFORM CONSUMERS

• BIA/Kelsey expects revenues from print and online directories to decline globally from $23.4 billion in 2011 to $22.0 billion in 2015

• 67% of consumers in 19 U.S. urban area households report using the printed directory at least occasionally1

• Among older consumers, such as Baby Boomers and Seniors (48+), print usage is much stronger

• Print revenue has decreased by $7.3 billion since 2007 as websites like Yelp, Google, and Groupon have taken over the market for small business ads2

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MAGAZINESPORTABLE AND TARGETABLE

Sources: 1) Association of Magazine Media; 2) eMarketer ; 3) Media Daily News, July 2012

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Magazines

Radio

RADIO’S FORMATS AND PROGRAMMING

TARGET CONSUMERS BY

INTERESTS AND LIFESTYLE

• Attracts mass and niche audiences with more than 20,000 titles1

• U.S. adults spent 16 minutes per day with print magazines in 2012 versus 20 minutes in 20102

• Circulation declined over 4% in 2011(includes paid subscriptions a single-copy sales)1

• 74 titles closed first-half 2011 and 48 first-half 20123

• Total consumer magazine ad pages declined 8.5% in Q2 2012 versus Q2 20113

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• Delivers a uniform user experience across all platforms (in car, mobile device, etc.)

• Reaches 92% of P12+ every week1

• Formats deliver all audiences – regardless of age, gender or language

• Reaches 91% of P12-24 every week1

• Reaches 94% of P18-49 every week1

• Drives traffic – online and on site

• 52% have heard about a new product, service or store on the radio2

• Personalities that speak to the interests of loyal listeners within their communities

• A flexible and nimble medium with low production costs

Sources: 1) Arbitron, RADAR 115, December 2012 (M-Sun 24-hour weekly cume estimates); 2) Radio Tomorrow, Alan Burns & Associates, 2012

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Other Media

Radio

INCREASES BRAND

AWARENESS, AD RECALL

AND CAMPAIGN

EFFECTIVESS

RADIOON-AIR. ONLINE. ON TARGET.

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Other Media

Radio

RADIO IS LIVE LOCAL AND

SOCIAL

• There are nearly 11,000 commercial local radio stations today1

• 70% of radio listeners follow their favorite personality/radio station on social media2

• 62% of radio listeners would be disappointed if their favorite radio station went away3

• 45% would be disappointed if Facebook went away

• 70% of radio listeners consider radio personalities to be a good or best friend or companion2

• Visits to radio station websites are on the rise3

• Up to 34% of adults in 2012 vs. 27% in 2010 visited in the past week

Sources:1) Inside Radio MStreet 2012; 2) USC, Annenberg School for Communication & Journalism, PSI Study Released June 2012, Woodley, P. and Movius, L. People With a Favorite Radio Personality in LA; 3) Radio Tomorrow, Alan Burns & Associates 2012; 3) The Infinite Dial 2012 – Arbitron Inc./Edison Research

RADIOON-AIR. ONLINE. ON TARGET.

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Other Media

Radio

RADIO IS THE ULTIMATE MOBILE MEDIUM

• 73% of vehicle owners with FM radio said they listen to the radio during car trips1

• Mobile device in-car audio use has grown from 6% in 2010 to 17% in 20122

• 80% of adults with internet access in the car listen to AM/FM on the radio and a local or distant AM/FM stream3

• 55% of listeners said they listen to their favorite personalities on computers or mobile devices when away from a radio4

• Radio is the dominant medium in the commuting schedule with 68% reach5

Sources: 1) The NPD Group; February 2012, based on a U.S. representative sample of over 1600 vehicle owners; 2) The Infinite Dial 2012 – Arbitron Inc./Edison Research; Base: Use a Cell Phone: 3) Radio Tomorrow, Alan Burns & Associates 2012; 4) USC, Annenberg School for Communication & Journalism, PSI Study Released June 2012, Woodley, P. and Movius, L. People With a Favorite Radio Personality in LA; 5) USA Touchpoints 2012.1

RADIOON-AIR. ONLINE. ON TARGET.

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Other Media

Radio

RADIO IS A SOURCE FOR

NEWS, INFORMATION & ENTERTAINMEN

T

• Reaches 86% of registered voters in district of residence1

• 87% of American-Americans and 89% Hispanics

• 33% of adults listened to radio the previous day to get news2

• Radio listening spikes during times of crisis

• As Sandy hit the NY metro, the average number of people using radio in any quarter hour from 7PM to 12M on the storm night (10/29) increased 70% (vs. the prior week)3

• 40% of online heavy radio millennial listeners use to the internet to listen to the radio in the past month4

• People who listen to Pandora spend more time with AM/FM radio than non-Pandora listeners5

• 19.1 hours per week with AM/FM radio

Sources: 1) Scarborough USA+ 2011 Release 2 (12 months only); 2) Pew Research Center 2012 News Consumption Survey; 3) Arbitron Inc., November 2012; 4) Inside the Minds of Heavy Radio Listeners, Scarborough USA+ Study, Release 1, 2012; 5) What Pandora Means for Radio, Vision Critical November 2012

RADIOON-AIR. ONLINE. ON TARGET.

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• Insert information specific to your station(s) here

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Other Media

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RADIOON-AIR. ONLINE. ON TARGET.

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RADIO CONSUMPTIONMIRRORS THE RETAIL DAY

Source: GfK MediaDay 2012 (Fieldwork 11-12/Doublebase Respondents) weighted to population (000) Base All

Radio is the #1 daytime medium

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Other Media

Radio

RADIO INFLUENCES PURCHASE DECISIONS

• Radio use is greater than use of other media outside of the home1

• AM/FM radio is the second most used medium reaching 59% of Adults 25-54 throughout their day and while during the daily activities1

• Broadcast radio is the most used medium closest to the point of purchase1

• Broadcast AM/FM radio delivers the largest reach at key pre-shopping periods

• Radio reaches 40% of Adults 25-54 two hours before they go shopping1

• Radio has the highest reach of Adults 25-54 on their way to grocery shopping (peak of 5-6PM)2

• Radio reaches 29% of A18-64 quick service restaurant patrons before the lunchtime peak of 11AM-12N2

• 52% of radio listeners have heard about a new product, service or store on the radio3

Sources: 1) USA Touchpoints 2012.1; 2) USA Touchpoints 2012.2; 3) Radio Tomorrow, Alan Burns & Associates 2012

RADIOON-AIR. ONLINE. ON TARGET.

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• Insert a summary on how your station(s) can help drive business

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Other Media

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how your station(s) can

aid other media

RADIOON-AIR. ONLINE. ON TARGET.

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• Mass reach comparable to TV and the Internet

• Americans are exposed to 14.6 billion hours of radio every month1

• A mobile and engaging medium

• Delivers content to consumers where and when they want it

• Via computers, laptops, smartphones and over-the-air

• Increases brand awareness, influences purchase behavior

• An efficient and effective medium

• Delivering ad messages on-air, online, on target and on demand

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Other Media

Radio

RADIO ACROSS ALL PLATFROMS

HAS AN IMPORTANT

ROLE WITHIN THE MEDIA MIX

RADIOON-AIR. ONLINE. ON TARGET.

Sources: 1) Arbitron Inc. listening hours calculations based on RADAR’s combined PPM and diary survey estimates (Persons 12+, Mon-Sun 6AM-Mid)