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3 What Cuts Through in Arbitron What Cuts Through in Arbitron? 2008 edition Observations from a former radio consultant September 25, 2008 1 ©2008 Arbitron Inc. Disclaimers § There is a reason I am a FORMER consultant § Some of these ideas come from others »The good stuff is mine »The bad stuff is someone else’s fault § I have often been totally wrong § I reserve the right to change my mind when it suits me § I am biased…I work for Arbitron now! Forward looking statements: Statements made in this presentation that are not historical in nature, particularly regarding expected performance in 2008 and future years, are forward-looking statements. These forward-looking statements are based on our current expectations and assumptions, and involve various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Important factors known by the company that could cause such material differences include those referenced or discussed from time to time in our filings with the SEC, including those referenced under the heading “ITEM 1A –Risk Factors”in our Annual Report on Form 10-K for the year ended December 31, 2007 and elsewhere, and any subsequent periodic or current reports filed by us with the SEC. In addition, any forward-looking statements contained in this presentation represent our estimates only as of the date hereof and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. 2 ©2008 Arbitron Inc. WhWhaatt CCuuttss ThThrroougughh iinn AArrbbiittrroon?n? WWWhhhaaattt CCCuuutttsss TTThhhrrrooouuuggghhh iiinnn ArArArbbbitritritrooon?n?n? nn PPPrrrooogragragrammmmmmeeerrrsss hhhaaaveveve aaa veveverrryyy hhhardardard jjjob!ob!ob! nn YYYooouuu nnneeeeeeddd tttooo cccuuuttt ttthhhrrrooouuuggghhh pppeeerrrccceeeppptttuuuaaallllllyyy aaannnddd hhhaaaveveve ttthhhaaattt tttrararannnssslllaaattteee iiinnntttooo rrraaatttininingggsss rrreeesssululultststs WWhhaatt yyouou dodo PPeerrcceeppttiionon AArrbbiittronron rresesuulltsts nn AAA lllooottt cccaaannn gggeeettt lllooosssttt iiinnn tttrararannnssslllaaatttiiiooon!n!n! What’s Different Now? § With PPM some say, “Passive measurement means it’s no longer a perception game” »Technically PPM doesn’t require people to remember to write down their listening § Think about the bigger picture…your listener’s perception of your station is largely what motivates them to tune in to begin with § This still works… What you do Perception Arbitron results 5 ©2008 Arbitron Inc. WWWhhhaaattt CCCuuutttsss TTThhhrrrooouuuggghhh iiinnn ArArArbbbitritritrooon?n?n? nn IIInnn rrreeeaaalll eeessstttaaattteee,,, ttthhheee aaannnssswwweeerrr iiisss lllooocccaaatttiiiooonnn,,, lllooocccaaatttiiiooonnn,,, lllooocccaaatttiiiononon nn IIInnn radradradiiiooo,,, ttthhheee aaannnssswwweeerrr iiisss uuusssuuuaaallllllyyy pppooosssiiitttiiiooonnn,,, pppooosssiiitttiiiooonnn,,, pppooosssiiitttiiiononon nn AAA clclcleeearararlllyyy dddeeefffiiinnneeeddd aaannnddd uniuniuniqqquuueee pppooosssiiitttiiiooonnn cccaaannn cccuuurrreee mmmooosssttt rararatttininingggsss wwwoooeseses WWWhhhaaattt CCCuuutttsss TTThhhrrrooouuuggghhh iiinnn ArArArbbbitritritrooon?n?n? nn PPPooosssiiitttiiiooonnn mmmeeeaaannnsss aaannnssswwweeerrrinininggg ttthhheeessseee qqquuueeessstttiiiooonnns:s:s: ØØ CCCananan lililistststeeennneeerrrsss iiidddeeennntttiiifffyyy wwwhahahattt ttthhheee ssstttaaatttiiiooonnn iiisss """kkknnnowowownnn fffooor?r?r?””” ØØ DoDoDoeeesss ttthhheee stststaaatttiiiooonnn hahahavvveee aaa llleeeaaadddeeerrrssshhhiiippp pppooosssiiitttiiiooonnn iiinnn ttthhheee mmmiiinnnddd ooofff ttthhheee lililistststeeennneeer?r?r? ØØ DoDoDo llliiistststeeennneeerrrsss kkknnnooowww wwwhhhooo ttthhheee stststaaatttiiiooonnn iiisss fffooor?r?r? ØØ DoDoDo yoyoyoururur lililistststeeennneeerrrsss kkknnnowowow hhhowowow tttooo uuussseee ttthhheee stststaaatttiiiooon?n?n? WWWhhhaaattt CCCuuutttsss TTThhhrrrooouuuggghhh iiinnn ArArArbbbitritritrooon?n?n? nn RRRaaatttininingggsss sssuuucccccceeessssss iiisss uuusssuuuaaallllllyyy dddeeefffininineeeddd bybyby ØØ GGeettttiinngg aanndd ddeeffiinniinngg yyoouurr ppososiittiionon ØØ EExxeeccuuttiioonn == tthhee ssuumm ooff tthhee lilittttllee tthhiinnggss ddoonnee rriigghtht WWWhhhaaattt CCCuuutttsss TTThhhrrrooouuuggghhh iiinnn ArArArbbbitritritrooon?n?n? nn RRRaaatttininingggsss sssuuucccccceeessssss iiisss uuusssuuuaaallllllyyy dddeeefffininineeeddd bybyby ØØ GGeettttiinngg aanndd ddeeffiinniinngg yyoouurr ppososiittiionon ØØ EExxeeccuuttiioonn == tthhee ssuumm ooff tthhee lilittttllee tthhiinnggss ddoonnee rriigghtht 2 ExExeeccuuttionion 6%6% sshhaarere 4 PoPossiittionion What’s Different Now? § PPM means share compression »Less distance between the top ranked station and the fifth ranked station § In general PPM ratings are lower than Diary so… 1 Execution 4% Share Position 3 10 ©2008 Arbitron Inc. WWWhhhaaattt CCCuuutttsss TTThhhrrrooouuuggghhh iiinnn ArArArbbbitritritrooon?n?n? nn CCCoooncncnceeennntttrararatttiiiooonnn ooofff fffooorrrccceee aaannnddd nnnarrarrarrooowww fffooocccuuusss ØØ BBee 6600%%++ ooff ssoommeetthhiingng ØØ YYoouu ccanan’’tt keekeepp bbootthh ffeeeett oonn ooppppoosisittee sisiddeess ooff tthhee rriivveerr babannkk wwiitthhoouutt ggeettttiinngg wwetet nn """WarWarWarninninninggg""" ØØ BBeewwaarree ooff bbeeccoommiinngg ttoooo nnaarrrrowow ffoorr yyoouurr mmaarrketket……YYoouu nneeeedd eennoouugghh ccuummee ttoo wwinin WWWhhhaaattt CCCuuutttsss TTThhhrrrooouuuggghhh iiinnn ArArArbbbitritritrooon?n?n? nn MMMooosssttt ssstttaaatttiiiooonnnsss nnneeeeeeddd aaa cccrrriiittticicicaaalll mmmaaassssss ooofff cucucummmeee tttooo bebebe vvviiiaaabbblelele –– TThhisis nnuummbbeerr vvaarriieess bbyy mmaarrketket –– EExcxceeptptiioonnss:: SSmmooootthh JJaazzz,z, EEtthhnniic,c, SSppoorrttss,, eettc.c. ccaann hhaavvee llowoweerr ccuummee dduuee ttoo hhiigghheerr TTSLSL ffrroomm aa nnaarrrrowoweerr ttaarrggetet nn PPPinininpppoooiiinnnttt ttthhheee cucucummmeee ooofff ttthhheee vvviiiaaabbbllleee ssstttaaatttiiiooonnnsss ininin yyyooouuurrr mmmarararkkketetet TSL CumeGrid Cume pent S Share e m i T PPM Philadelphia TSL CumeGrid June 2008 PPM Daily Cume 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 0:45 1.8% 2.3% 2.7% 3.2% 3.6% 4.1% 4.5% 5.0% 5.4% 0:50 2.0% 2.5% 3.0% 3.5% 4.1% 4.6% 5.1% 5.6% 6.1% WYSP-FM 2.7 WUSL-FM 3.1 WRDW-FM 4.1 0:55 2.2% 2.8% 3.4% 3.9% 4.5% 5.0% 5.6% 6.2% 6.7% 1:00 2.4% 3.0% 3.6% 4.2% 4.8% 5.4% 6.0% 6.6% 7.2% WRFF-FM 3.6 KYW-AM 6.3 1:05 2.6% 3.3% 4.0% 4.6% 5.3% 5.9% 6.6% 7.3% 7.9% WMGK-FM 4.9 WBEB-FM 7.9 1:10 2.8% 3.6% 4.3% 5.0% 5.7% 6.4% 7.1% 7.8% 8.5% nt WXTU-FM 3.7 WPHT-AM 4.1 WMMR-FM 5.3 WOGL-FM 6.6 1:15 3.0% 3.8% 4.5% 5.3% 6.0% 6.8% 7.5% 8.3% 9.0% ime Spe T ly i WRNB-FM 3.0 a D 1:20 3.2% 4.0% 4.8% 5.7% 6.5% 7.3% 8.1% 8.9% 9.7% 1:25 3.4% 4.3% 5.1% 6.0% 6.8% 7.7% 8.6% 9.4% 10.3% 1:30 3.6% 4.5% 5.4% 6.3% 7.2% 8.1% 9.0% 9.9% 10.9% 1:35 3.8% 4.8% 5.8% 6.7% 7.7% 8.6% 9.6% 10.5% 11.5% WDAS-FM 6.2 1:40 4.0% 5.0% 6.0% 7.0% 8.1% 9.1% 10.1% 11.1% 12.1% 1:45 4.2% 5.3% 6.3% 7.4% 8.4% 9.5% 10.6% 11.6% 12.7% PPM Philadelphia TSL CumeGrid June 2008 PPM Daily Cume 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 0:45 1.8% 2.3% 2.7% 3.2% 3.6% 4.1% 4.5% 5.0% 5.4% TSL/Cumetoo 0:50 2.0% 2.5% 3.0% 3.5% 4.1% 4.6% 5.1% 5.6% 6.1% WYSP-FM 2.7 WUSL-FM 3.1 WRDW-FM 4.1 0:55 sm2.2%all to 2dri.8% ve big3.4% 3.9% 4.5% 5.0% 5.6% 6.2% 6.7% 1:00 2.4% ratings3.0% 3.6% 4.2% 4.8% 5.4% 6.0% 6.6% 7.2% WRFF-FM 3.6 KYW-AM 6.3 1:05 2.6% 3.3% 4.0% 4.6% 5.3% 5.9% 6.6% 7.3% 7.9% WMGK-FM 4.9 WBEB-FM 7.9 1:10 2.8% 3.6% 4.3% 5.0% 5.7% 6.4% 7.1% 7.8% 8.5% nt WXTU-FM 3.7 WPHT-AM 4.1 WMMR-FM 5.3 WOGL-FM 6.6 1:15 3.0% 3.8% 4.5% 5.3% 6.0% 6.8% 7.5% 8.3% 9.0% ime Spe T ly i WRNB-FM 3.0 a D 1:20 3.2% 4.0% 4.8% 5.7% 6.5% 7.3% 8.1% 8.9% 9.7% 1:25 3.4%Targe4.3%ted (lo5.1%wer 6.0% 6.8% 7.7% 8.6% 9.4% 10.3% Happy Land 1:30 cu3.6%me) 4w.5% ith grea5.4% ter6.3% 7.2% 8.1% 9.0% 9.9% 10.9% 1:35 3.8%pass4.io8% n (T5SL).8% 6.7% 7.7% 8.6% 9.6% 10.5% 11.5% WDAS-FM 6.2 1:40 4.0% 5.0% 6.0% 7.0% 8.1% 9.1% 10.1% 11.1% 12.1% 1:45 4.2% 5.3% 6.3% 7.4% 8.4% 9.5% 10.6% 11.6% 12.7% What is Critical Mass for Cume? June 2008 PPM Daily Cume 200,000 250,000 300,000 350,000 400,000 450,000 500,000 550,000 600,000 0:45 1.8% 2.3% 2.7% 3.2% 3.6% 4.1% 4.5% 5.0% 5.4% 0:50 2.0% 2.5% 3.0% 3.5% 4.1% 4.6% 5.1% 5.6% 6.1% WYSP-FM 2.7 WUSL-FM 3.1 WRDW-FM 4.1 0:55 2.2% 2.8% 3.4% 3.9% 4.5% 5.0% 5.6% 6.2% 6.7% 1:00 2.4% 3.0% 3.6% 4.2% 4.8% 5.4% 6.0% 6.6% 7.2% WRFF-FM 3.6 KYW-AM 6.3 1:05 2.6% 3.3% 4.0% 4.6% 5.3% 5.9% 6.6% 7.3% 7.9% WMGK-FM 4.9 WBEB-FM 7.9 1:10 2.8% 3.6% 4.3% 5.0% 5.7% 6.4% 7.1% 7.8% 8.5% nt WXTU-FM 3.7 WPHT-AM 4.1 WMMR-FM 5.3 WOGL-FM 6.6 1:15 3.0% 3.8% 4.5% 5.3% 6.0% 6.8% 7.5% 8.3% 9.0% ime Spe T ly i WRNB-FM 3.0 a D 1:20 3.2% 4.0% 4.8% 5.7% 6.5%All s7.t3%ations8.1% with 8.9% 9.7% 1:25 3.4% 4.3% 5.1% 6.0% 6.8% 5%+7.7% sha8.6%re 9.4% 10.3% 1:30 3.6% 4.5% 5.4% 6.3% 7.2% ha8v.1%e app9.0%rox 9.9% 10.9% 1:35 3.8% 4.8% 5.8% 6.7% 3507.7% ,0008.6% daily9.6% cume10.5% 11.5% WDAS-FM 6.2 1:40 4.0% 5.0% 6.0% 7.0% 8.1% 9.1% 10.1% 11.1% 12.1% 1:45 4.2% 5.3% 6.3% 7.4% 8.4% 9.5% 10.6% 11.6% 12.7% WWWhhhaaattt CCCuuutttsss TTThhhrrrooouuuggghhh iiinnn ArArArbbbitritritrooon?n?n? nn CCCuuummmeee aaannnddd TTTSSSLLL pppooottteeennntttiiiaaalll iiimmmpppaaacccttteeeddd bbby:y:y: ØØTTThhheee sssiiizzzeee ooofff ttthhheee hhhooollleee fffooorrr yyyooouuurrr fffooorrrmmmatatat ØØTTThhheee
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