why radio 2017

RADIO. IT’S ON.

TODAY’S MEDIA LANDSCAPE

A mass medium delivering audio content to passionate and loyal listeners across multiple platformsRADIO

Presentation courtesy of the Radio Advertising Bureau, 2017 – All Rights Reserved

RADIO TODAY

RADIOLive

Local

Mobile

Personal

Social Interactive

Experiential

Engaging

Emotional

Immediate

Presentation courtesy of the Radio Advertising Bureau, 2017– All Rights Reserved

On Air

A mass medium capable of easily delivering your

message to many people

Targetable assuring the right people are

exposed to your message

A trusted medium and always available

especially during times of crisis

Online

Digital capabilities offering interactive

opportunities

Complements and enhances on air

campaign by reaching consumers using multiple touch

points

Delivers content wherever and

whenever listeners want it

On Target

An environment that delivers consumers

who are engaged and passionate about the

content

Offering companionship and

information

Exposure to the message when and

where consumers are ready to buy or shop

RADIO. IT’S ON.


RADIO’S INCREDIBLE REACH

RADIO BOASTS HIGHEST MASS REACH AMONG POPULAR MEDIA

Adults 18+ P18-34 P35-49

93% 92% 95%87%

77%

89%

50%44%

57%

43%

52% 51%

80%

89%93%

37%40%

55%

Radio TV PC TV-Connected Devices Smartphone Tablet

Source: Nielsen Comparable Metrics Report Q2 2016

Weekly Reach (% of Population)


Listened to Radio Past 7

Days

Watched Broadcast TV

Past Week

Watched Any Non-Premium

Cable Past Week

Used Cell-phone to Access In-

ternet

Visited Face-book Past

Month

Visited YouTube Past Month

Read Any Newspaper

Past Week

Used Netflix Past Month

Visited Pandora

Past Month

Listened to Satellite Radio

Past Week

Visited Spotify Past Month

93%

81%75%

80%

71%

51% 51%

39%35%

13%10%

HIGHEST REACH AMONG ALL MEDIA OPTIONSAdults 18+

Source: Scarborough USA+, 2016 Release 1 Adults 18+ (February 2015 – April 2016)


Listened to Ra-dio Past 7 Days


ternet


Month


Cable Past Week


Past Week


Used Net -flix Past

Month

Read Any Newspaper Past Week

Visited Pandora Past Month



Past Week

91%87%

80%

72% 72%

64%

52%46% 44%

17%

10%

HIGHEST REACH AMONG ALL MEDIA OPTIONSAdults 18-34

Source: Scarborough USA+, 2016 Release 1 Adults 18-34 (February 2015 – April 2016)


Listened to Radio Past 7

Days


Past Week


ternet


Cable Past Week


Month


Read Any Newspaper Past Week

Used Netflix Past Month

Visited Pan-dora

Past Month


Past Week


93%

81% 80%75%

71%

51% 51%

39%35%

13%10%

HIGHEST REACH AMONG ALL MEDIA OPTIONSAdults 25-54

Source: Scarborough USA+, 2016 Release 1 Adults 18+ (February 2015 – April 2016)


CONSISTENT REACH LEVELS

Source: Nielsen Audio, RADAR® 127-131, December 2015, March 2016 – December 2016 (Monday-Sunday 24-Hour Cume Estimates, All Radio)

P18+ P18-34 P18-49 P25-54

91% 91% 92% 93%91% 91% 92% 93%91% 91% 92% 93%91% 91% 92% 93%

Dec '15 Mar '16 June '16 Sep '16 Dec '16

A MEDIUM FOR ALL SEASONS


P18+ P18-34 P25-54 P35-64

72%68%

76% 77%81%

78%82% 84%

80% 79%83% 84%

55%

61% 60% 58%

RADIO PEAKS DURING THE WORKDAY

How to read: Each week in the 3-7p daypart, radio reaches 83% of Adults 25-54.

Source: Nielsen Audio, RADAR 131, December 2016 (Persons 18+, 18-34, 25-54 and 35-64, Monday-Sunday 24-Hour Weekly Cume Estimates, All Radio)


6-10

A

10A-

3P

3-7P

7P-1

2M

6-10

A

10A-

3P3-

7P

7P-1

2M

6-10

A

10A-

3P

3-7P

7P-1

2M

6-10

A

10A-

3P

3-7P

7P-1

2M

PEOPLE LISTEN AND LISTEN

RADIO’S TSL IS CONSISTENT ACROSS ALL GROUPS

Adults 18+ African-Americans 18+ Hispanics 18+

32:32 47:58

25:26

13:04

13:34

13:52

3:58

4:09

4:00

6:41

7:43

5:01

12:01

12:47

14:31

3:47

3:53

1:49

TV Radio TV-Connected Devices PC Smartphone Tablet

WEEKLY TIME SPENT – ELECTRONIC DEVICES

Source: Nielsen Comparable Metrics Report Q2 2016


HRS:MINWeekly

RADIO IS AN IMPORTANT PART OF TWEENS’ AND TEENS’ DAILY MEDIA

Avg Time Among All

% Who Use

Avg Time Among Who Use

Tween Teen Tween Teen Tween Teen

Total Time Spent Listening to Music :51 1:54 57% 81% 1:29 2:20

Computer :02 :16 3% 12% --- 2:11

Smartphone :10 :41 12% 40% 1:25 1:41

Tablet :06 :07 10% 8% :57 1:36

Radio :20 :27 34% 34% :58 1:20

CDs :04 :05 5% 6% 1:13 1:16

iPod/MP3 Player :09 :18 12% 17% 1:17 1:46


Source: The Common Sense Consensus: Media Use by Tweens and Teens , 2015

Tween: 8-12 yrsTeen: 13-18 yrs

• 2011 highlights 93% retention• 2006 highlights 92% retention

• No time shifting• No below the fold• No load times

Sources: 2011 Nielsen Audio, Media Monitors, and Coleman Insights

NO COMMERCIAL SKIPPING


RADIO LISTENERS ARE RECEPTIVE TO ADS

RADIO IS IMPORTANT TO LISTENERS

No Broadcast Radio Broadcast Radio < 1 Hour

Broadcast Radio

1-2 Hours

Broadcast Radio >

2 Hours

53%

65% 66% 69%

Facebook: Daily Usage

How to read: Among those who listen to Broadcast Radio more than two hours a day, 69% use Facebook daily.


Source: NuVoodoo, Based on 1,100 respondents 14-54 in PPM markets, 2015

RADIO LISTENERS USE SOCIAL MEDIAHEAVY RADIO LISTENERS ARE FACEBOOK FANS, TOO

LISTENERS FAVOR RADIO OVER FACEBOOK


BROADCAST RADIO PLAYS MORE “LIKED” SONGS THAN PANDORA

Total CHR P1 AC/Variety Hits P1

Country P1 Rock/Alt P1 Classic Rock/Hits P1

Urban/Urban AC P1

5.7 5.8 5.56

5.66.1 5.9

5.2 5.5 5.6 5.54.8 4.9

5.3

Imagine you tune into the station you listen to most for music and listen to the next 10 songs. How many will be songs you like a lot?Imagine you start a session on Pandora and listen to ten songs without skipping any of them. How many will be songs you like a lot?

Source: NuVoodoo, Based on 1,100 respondents 14-54 in PPM markets, 2014


RADIO: MOST USED SOURCE FOR MUSIC DISCOVERY

AM/FM Radio 29%

Friends/ Family 22%

YouTube 10%

Pandora8%

Sirius XM 4%Facebook4%Spotify

3%

Others; 17%

2016

Source: The Infinite Dial 2016 – Edison Research / Triton Digital

Base: Those saying it is “Very Important” or “Somewhat Important” to Keep Up-To-Date With New Music


TV Laptop/ Computer

Radio Newspaper/ Magazines

(paper)

Cell Phone Tablet Smart TV/ Game Console

E-reader

87%

69% 65% 61%56%

29%

11% 10%

% Using each medium last week to get news

AMERICANS TURN TO RADIO FOR NEWS

Source: The Media Insights Project, 2014; based on a nationally representative telephone survey of 1,492 adults , Jan 9 -Feb 16, 2014


Prizes 13%

Sports 18%

Charitable Events 20%

Traffic 24%

Weather 26%

Music Surprises 28%

Talk Shows 32%

Emergency Info 33%

Escape Life’s Pressures 33%

RADIO’S EQUATION

Main Reason for Listening to Radio

MUSIC + INFO + EMOTION

Source: Jacobs TechSurvey 12, 2016, n-39503


Discover New Music 33%

What’s Going On Locally 36%

Get in a Better Mood 40%

News 41%

Keeps Me Company 47%

In the Habit 51%

Like to Work with Radio 55%

DJs/ Hosts/ Shows 58%

Hear Favorite Songs 64%

RADIO IN-CAR

MOST CHOSEN IN-CAR FEATURE

HD Radio

Satellite Radio

Streaming Internet Radio/ Streaming Music

Service

Satellite Radio

MP3 Smartphone

Player Access

CD Player

AM/FM Radio

25%

25%

34%

45%

48%

68%

80%

Source: Ipsos In-Car Audio Study, February 2015

Q: Disregarding any associated costs, if you could select only up to 3 of the following options to be available on your next car entertainment systems, which 3 would you select?

Preference for Entertainment Options in Next Car


TIME SPENT LISTENING IN-CAR

Source: Edison Research: Sharing the Road: The Changing In-Car Audio Space, 2016


RADIO IN-CAR HAS GREATEST SHARE


Source: Edison Research: Sharing the Road: The Changing In-Car Audio Space, 2016

AM/FM Radio

CD Device that connects to car stereo so

all can hear

Device that plays through its speakers so all can hear

Device you play through

headphones and only you hear

SiriusXM Radio

In-Dash App

67%

28%

39%

15%11% 13%

4%

RADIO OUTRANKS PERSONAL DEVICES FOR MUSIC IN-CAR AMONG MILLENNIALS

Source: Nielsen Music 360 2015 ReportPresentation courtesy of the Radio Advertising Bureau, 2017 – All Rights Reserved

Thinking about the past 12 months, how do you typically listen to music while in car?

Base: Listens to music while in car, Millennials

MOST USED IN-CAR AUDIO SOURCE WEEKDAYS

Among those who spend at least some time in a car

93% AM/FM Radio42% Personal Music

25% Talking on phone

23% Satellite Radio

14% Pandora

9% Other streaming services

7% Podcasts

5% Audio Books

Source: Jacobs TechSurvey 12, 2016


average weekday – multiple answers allowed

THE BATTLE FOR THE DASHAll major auto brands offered factory-installed HD Radio Technology as of 2014

Brands with HD Radio Technology

Vehicle Lines with HD Radio Technology

HD Radio as Standard Equipment

90+

2010 2011 2012 2013 2014

185+

35

76

166

33

67

154

2861

109

2136

86

16

Source: iBiquity


RADIO ACROSS PLATFORMS AND DEVICES

Source: 1) Pew Research Center, January 2016

LISTENERS TAKE THEIR AUDIO ON THE GO

• On-demand content delivering sports, music, information and entertainment downloads whenever and wherever the listener wants it

• 87% of smartphone owners ages 18-29 have listened to an online radio or music service on their phone.1


http://www.pewresearch.org/fact-tank/2016/01/29/us-smartphone-use/

TECHNOLOGY DELIVERS RADIO BEYOND THE DIAL

Expanding Radio’s delivery platforms to

create an interactive, engaging and

highly communicative environment

via devices and apps

Image Source: Tune-In and iHeartRadio


FM RADIO EXPERIENCE ON SMARTPHONES


Delivers real-time view of what’s playing on-air Live interaction with favorite local radio stations Use 3x less battery and 20x less data compared to streaming radio apps

Source: NextRadio + TagStation Insights – For additional updates : http://tagstation.com/news/insights/

http://tagstation.com/news/insights/

Source: NextRadio + TagStation Insights – For additional updates : http://tagstation.com/news/insights/


As of January 2017:• Over 10.5 million app downloads• Nearly 16,000 FM radio stations tuned to from the app • Over 26 million hours of listening through NextRadio• And 4/5 in Google Play Store user rating


“Content cards” provide information and highly relevant interactive tools:• Click to buy (song or other related content)• Upcoming concerts and album releases for artist currently playing• Recent station playlist

DELIVERS RELEVANT INTERACTIVITY

Source: NextRadio + TagStation Insights – For additional updates : http://tagstation.com/news/insights/ Presentation courtesy of the Radio Advertising Bureau, 2017 – All Rights Reserved


MORE TECHNOLOGY THAT CONVERTS LISTENING TO ENGAGEMENT

Technology converts radio listening into an engaging user experience, empowering listeners to see what they hear and take action.

Image Source: Clip Interactive


PULLING DIGITAL CONTENT ONTO DEVICES

Click here to view Clip Interactive case studiesImage Source: Clip InteractivePresentation courtesy of the Radio Advertising Bureau, 2017 – All Rights Reserved

http://www.rab.com/public/ncs/caseStudies.cfm?section=radio

HD Radio

25.1MM Vehicles

equipped with HD Radio

Podcasts

98MM Americans have ever listened to a

podcast

Streaming

Nearly 7900 streaming

stations in 2015

RADIO’S DIGITAL PLATFORMS ARE STEADILY GROWING

Source: HD Radio stat from iBiquity/HD Radio, 2016; The Infinite Dial 2016 – Edison Research / Triton Digital; Inside Radio / M Street Corp., December 2016; No Canadian or Mexican stations are included Presentation courtesy of the Radio Advertising Bureau, 2017 – All Rights Reserved

RADIO VS. OTHER AUDIO OPTIONS

AM/FM RADIO REACHES SIGNIFICANTLY MORE PEOPLE THAN DIGITAL AUDIO

AM/FM Radio Pandora Spotify

72%

14%6%

AM/FM Radio has 5X the

daily reach of Pandora

AM/FM Radio has 12X the

daily reach of Spotify

% of Adults 18+ who listen daily

Source: Source: Edison Research, “Share of Ear,” Q4 2015-Q1 2016, Q2-Q3 2016. Persons 18+Presentation courtesy of the Radio Advertising Bureau, 2017 – All Rights Reserved

HEAVY PANDORA USERS ARE HEAVY BROADCAST RADIO LISTENERS

Source: NuVoodoo study based on 1,110 respondents 14-54 in PPM markets - released 2014


CHANGING VIEWS OF PANDORA LISTENERS

Computer/mobile device negative

Miss hearing people

Too many political spots

Not enough music discovery

Too many songs I don't like

Gets boring

Too predictable

No local information

Using other services

Commercials are annoying

Can't skip enough songs

0% 10% 20% 30% 40% 50% 60%

20152014

Source: Jacobs TechSurvey 11, 2015

NA

Among those listening less


RADIO DELIVERS RESULTS

RADIO DRIVING INFLUENCE AND BEHAVIOR

Radio Advertising topped Television, Social Media, and Direct Mail and

was 2x as effective as Newspapers in influencing Healthcare choices.

As a consumer gets closer to buying a vehicle, advertising influence

goes up with Radio edging out all others in last 30 days.


Source: Automotive and Healthcare F.C.T. Reports 2013 & 2014, Radio Advertising Bureau and Presslaff Interactive

Source: Nielsen Studies 2014-2016

$23$21

$17$15 $14

$9

$6$4

$3 $3 $2 $2

Dept Stores

TelcoMass Merch

HomeImprvt

Snacks Beer SoftDrinks

Candy QSR BfastBar

Grocery AutoAftermkt

$10:$1 average

Radio payback per $1 investment


RADIO HAS POSITIVE IMPACT ON PRODUCT SALES

% Who Shopped At Retailer % Retailer's Market Share

RADIO ADS BROUGHT IN MORE CUSTOMERS AND LIFTED MARKET SHARE

Source: Nielsen Buyer Insights (NBI), Sales Effectiveness Analysis, Auto Aftermarket Retailer, Persons 18+. Unexposed: 12,329; Exposed: 14,147. Pre-period = 3/1/15-6/30/15. Test period = 3/1/16-6/28/16.

+48%

Not only did AM/FM Radio grow the client’s sales, Radio

increased the number of new vs existing customers by

64% when the ads were running.

Not Exposedto Radio Ads

Not Exposedto Radio Ads

Exposedto Radio Ads

Exposedto Radio Ads

+71%


RADIO REACHES YOUR TARGET

REACHING MAIN STREET CONSUMERS

94%A18+ who drank

any iced specialty coffee – past week

A18+ whose household plans lease a vehicle in

the next 12 months

93%A18+ whose

household plans to buy/lease new luxury vehicle in

the next 12 months

A18+ whose household plans

to buy a Smart TV in the next 12

months

92%A21+ whose

household has a home mortgage

A18+ who household used a personal attorney

in the past year

Source: Scarborough USA+ 2015 Release 1 (February 2015 – April 2016)


RADIO AND ITS PERSONALITIESA Friend Within the Community

On Air

A mass medium capable of easily delivering your

message to many people

Targetable assuring the right people are

exposed to your message

A trusted medium and always available

especially during times of crisis

Online

Digital capabilities offering interactive

opportunities

Complements and enhances on air

campaign by reaching consumers using multiple touch

points

Delivers content wherever and

whenever listeners want it

On Target

An environment that delivers consumers

who are engaged and passionate about the

content

Offering companionship and

information

Exposure to the message when and

where consumers are ready to buy or shop

RADIO. IT’S ON.


why radio 2017

Marketing