What We’ll Cover

• The indisputable facts• Radio is everywhere– On-air– Online– On-site– On-demand

• Accountability

Reach • Relevance • Receptivity

The indisputable facts:

the largest number of potential customers

Consumers across all demographic

segments

Weekly A/C listenership PPM vs.

Diary

REACH:

233MM People reached by Radio every week• Radio and broadcast television are the only media that

independently reach nearly everyone• PPM in Philadelphia shows individual station reach

increasing as much as 145%, with average growth of approximately 70%

• Radio consistently delivers high cume reach (90%+) among teens, adults and seniors

• Radio garners 22% share of weekly consumers’ media time, more than broadcast TV, newspaper and Internet pure-play

• More people listen to Radio than log on to the internet every day

122%

95 %

RELEVANCE: target and engage consumers in the market to buy with the right message

planning to buy a new car within 12 months

with household incomes of $50,000+

spending $150 per week on groceries

90 % 95 % 90 %Radio offers … • 87% TSL retention since 1998 • Diverse content with the ability to mass reach while narrowcasting• Behavioral targeting with local and national qualitative research• The most personal of media, connecting with consumers one-on-one• Ads that are perceived to be more honest and more relevant • More than 12,000 unique station brands with the most loyal audience

in media• Personal, relevant and emotional connections with listeners

One-Minute Pod Two-Minute

Pod Three-Minute Pod Four-Minute

Pod Five-Minute Pod Six-Minute

Pod Average

99.6% 94.7%88.5% 87.7% 89.4% 87.9% 91.8%

Chart Title

RECEPTIVITY:

• 92% of consumers listen through commercial breaks• Radio has eliminated clutter by reducing commercial content

by 13% over the past year (vs. broadcast and cable increasing by 2-5%)

It’s Everywhere. It’s Free.

RADIO On-Air

• 12,000+ established brands with the most loyal consumers in the media industry

• Relevant content for all lifestyles and demographics• Available everywhere: home, car, cabs, computer, retail,

restaurants, iPods…..• Creatively deployed using:

– The most powerful, award winning creative that has successfully built brands (Budweiser, On Star, Snapple, Motel 6)

– Industry talent, creative services and radio creative training– Roadblock techniques– Daypart mass targeting– Swarm marketing platforms – Commercial length flexibility – Station full-day, prime time takeovers

• Quickly and more deeply engaging consumers through HD technology

RADIO On-Air

• Significantly improved audio• Expanded content via

multicasting• Interactive/data/visual/time

shifting• $200M ad campaign to drive

consumer awareness and adoption

• Available to 80% of the U.S. population– Projected 2 million

receivers in play by the end of 2008

– 1,500 HD Radio stations, a 50% increase over 1 year ago

– Nearly 750 HD-2 channels, a 50% increase over 1 year ago

– Display-screen text-messaging

FM for the next generation

RADIO On-Air

Rolling out in 2008– Surround-sound– On-demand features

• Store & replay• Instant access to news, weather,

sports scores and more• iTunes tagging

– Real-time traffic reports on automotive navigation systems

Commitments from10 auto manufacturers across 53 models, including:– BMW and MINI full-line launch– Ford dealer-installed program in all

lines– Hyundai and Volvo

• Delivering over 36MM monthly unique users• 75% of U.S. stations have Websites• Brand extension ad integrated advertiser platform• Allows listener/station/marketer dialogue platform

• Of the estimated 30 million users of wireless access technology in the U.S.:• 75% or 23 million have wirelessly accessed Internet radio • 48% of those accessing the Internet via wireless technology seek out Internet radio.

• Streaming• Nearly 4000 stations stream• 30MM streaming listeners per week• Online AM/FM listening is up nearly 30% in ’06

RADIO Online

• Podcasting•Time shifting of local and national radio shows•Reached 18.5MM listeners in 2007; 65MM+ projected by 2012*

• Content and interactive applications that enhance increased consumer engagement• Text messaging• Mobile applications• Robust loyal listener CRM initiatives

• iTunes and MP3 tagging/FM tuners• Creatively deployed for listeners and advertisers:

• Microsite and promotional splash page creation/production• Rich and interactive advertising units• Visual online promotion

RADIO Online

RADIO Online

An unprecedented number of technology partnerships

• iTunes and Emmis Radio• Google radio investment• CBS, Vibes Media and iRadio• CBS and mSPOT• Clear Channel and iRadio• Katz and Net Radio Sales• Total Traffic and Microsoft

RADIO On-Site

On-Site Marketing• Invented here • Evolving with

consumer needs and advertiser demands

• Enhances the stations’ loyal listener communities while creating experiential opportunities for marketers

RADIO On-Demand

On-Demand before On-Demand Existed

RADIO On-Demand• MP3 players and mobile phones that are Radio-ready

• FM adapters for the iPod are a result of consumer demand for Radio access

• Technological advancements that have given Radio a visual element

• Station web-sites and display-screen text-messages expanding the definition of Radio • Mobile phones have opened the door for more two way-communications

• HD Radio technology that allows consumers to store and tag content

RADIO On-Demand• Expanded Radio distribution through new and emerging media channels• With industry and consumer adoption of digital and wireless technologies, Radio will continue to lead in …

• Audio mobility• Portability• Content

Accountability

RADIO Measurement

Improved Audience Measurement• Portable People Meters

(Arbitron)• 99% of the radio

industry signed on, major agencies supporting PPM

• Houston and Philadelphia are “live,” with 12 additional markets slated for implementation in 2008

• Smart Cell Phone (Media Audit/IPSOS)• Houston test pending

RADIO MeasurementElectronic Transaction Platforms

• Invoicing• Ordering• Avails

Posting• Guidelines/criteria to be developed by media trading partners

RADIO Measurement• Funded by the Radio industry and directed by leaders from the advertising community• Research and published materials:

– Radio Ad Lab Research Compendium– Radio Ad Lab Guide to Commercial Testing– Primary Research Studies: Relevance One and Two, Synergy, ROI, Engagement

RADIO Measurement

Applied Knowledge, Insights Gained• Critical findings confirm:

• Radio is both personal and emotive

• Radio ads are more personally relevant than ads in all other media

• Ads are better accepted (annoyance factor) on Radio vs. all other media

• Inclusion of Radio in a media plan significantly boosts unaided recall and facilitates increased brand preference

• Radio campaigns deliver a 49% ROI advantage over TV

• The emotional impact of Radio ads is equal to TV

• Radio ads generated significantly higher emotional impact than TV

RADIO 2020

RADIO 2020• Unprecedented marketing

campaign via cooperative effort between the NAB, RAB and the HD Digital Radio Alliance

• Radio 2020 focuses on 4 key initiatives:– Accessible technology– Playlist variety and format

diversity– Building for the future– Reigniting consumers

RADIO2020

The Future of RADIOIs Now Available

• RADIO provides reach, relevance and receptivity• RADIO is everywhere, it’s easy to use and free to the

consumer• RADIO will continue to impact consumers’ lives

through:– Accessible technology and portability– Playlist variety and format diversity– Multi-platform distribution

• RADIO will launch a campaign this year to reignite consumers about the benefits of the medium

• RADIO is a strong partner for marketers looking to reach consumers on-air, online, on-site and on-demand with innovative and robust marketing solutions