A Positive Perspective of Radio and Its Future Radio in The

A Positive Perspective of Radio and Its Future

Radio in the USA: Thriving

Presented by: Mary Beth Garber /Katz Radio Group Carol Hanley/ Arbitron Inc You Hear It All The Time

Radio is Dead or Dying New Technologies are Diminishing Time Spent with Radio Young People Don’t Listen to Radio Anymore Radio isn’t Keeping Up With the New Ways People Communicate Fact: Radio is Alive and Thriving As New Technology Develops…

…Radio Reach Remains Big and Listening Levels2001 Remain Consistent 2004

2001 2001 20052000 20072010 2009 Changing Technology Has Affected How and Which Media People Own or Have Access To – But Radio and TV (Free Access) Remain Primary

% Population/Household Penetration

Source: TV HH, Nielsen May 2011; wkly Radio Arbitron RADAR 108; Mobile Web comScore Feb 2011 via mobiThinking; DVR, Nov, 2010 NielsenWire; Cable & ADS July 2011 Nielsen Report; iPods/MP3s and Social Net Usage Edison Media Infinite Dial: 2011; Video Game Consoles from Lichtman Rseearch June 2010; Video Game Console, Internet usage, Wireless Cell Phone, Hi speed Internet Access from Pew Internet & American Life Project Dec 2010, May, June 2011 Time spent with all media is at an all time high. People are not using new devices at the expense of radio.

New Technologies definitely have not “killed the radio star” – Several industry studies support that fact Three 2011 Research Studies Concur – Digital Audio Listening Is In Addition To, Not Replacing AM/FM Radio Listening

Time spent listening remains consistent among rock Radio listeners over four years

TechSurvey 7, June 2011 survey of 20,000+ rock format radio listeners

Among Women 18-54, those who listened to online streaming spent the same or more time listening to over

the air radio stations “Here She Comes 2011” survey of 2,020 women 18-54 in June 2011

Digital users spend as much time with Radio as the average (not less) “The Infinite Dial: 2011” So -- what about the numbers ? Radio’s Reach Remains Level Despite New Audio Devices In Use

Radio Usage – Six Year Trends -- People 12+

On-air Program Highlights

Source:RADAR 88-108, P12+, M-SUN 12M-12M Nearly Everyone Uses Radio. In Real Time. Every Week.

Radio reaches over 93% of virtually every segment of the population. That that has been true year after year and remains true today.

Source: RADAR 109, June 2011 But isn’t Radio Losing Listening Time? NO.

More people – of all ages – listen to radio now than ever before. And on more platforms than ever before. Both electronically measured (PPM) and Diary measured perceived usage reporting show little or no change in reach or time spent listening in the past three years. Radio is NOT dying. Far from it. Radio Usage Remains Consistently Big Among All Key Demographic Segments

• Look at PPM (17 markets) • Diary Markets (235 markets) • 3 Year Trend

KATZ RADIO GROUP Radio Remains Relevant To People

PPM Measured Markets: Radio’s Reach of 12+ is Consistent And 60% of that time is spent with just ONE station.

© 2011 Arbitron Inc. Persons 12+ Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years © 2011 Arbitron Inc.; NY, LA, Chi, Phil, SF, Hou, RSB, Atl, DFW, Det, DC, Bos, MFL, Phx, SD, Min, Sea Radio Usage By People Continues To Be Big And Consistent

Diary Measured Markets: Radio’s Reach of P12+

Persons 12+ Weekly Cume and Weekly Time Spent Listening Among 235 Diary Measured Markets, M-Su 6A-Mid based on Arbitron National Regional Database (NRD) Radio Usage Remains Consistently Big Among All Key Demographic Segments

KATZ RADIO GROUP Why Big and Consistent? Because of the stations.

We found great radio stations from the 17 PPM

We asked a selection of them for their secret

Similar elements, different execution

Focused on lifestyles, listeners and culture It Is Branding 101 That Sets These Stations Apart

Innovation and the creation of new categories of information and entertainment. Think Apple. When you provide relevant content, your listeners become engaged on all levels When your listeners are engaged, you deliver value for your advertisers You have become relevant to the lives of the listener

Use Your Assets The Keys To Making Neighborhoods Revolve Around Relevance

Characteristics of Relevant Neighborhoods

Differentiation - create a unique, amazing customer experience Customer Relations - Give them what they want Create Community -- Personalities are the heart of your local neighborhood Matter –be a force for good in the Community Authentic Newness – Pioneer new ways of doing things Passion – Be a true friend Welcome to the Neighborhood Fact: Radio remains consistently big among Young People Radio Continues to be the Dominant Form of Audio Entertainment Among Young People PPM Measured Markets: Radio’s Reach of 12-24s is Big and Consistent

Persons 12-24 Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years Connect With Your Friends

WWWQ-FM ATLANTA Young People Rely On Radio

PPM Measured Markets: Radio’s Reach of 18-34s is Consistent

Persons 18-34 Weekly Cume and Time Spent Listening Among 17 PPM Markets that have been Currency 3+ Years Live the Lifestyle. Let Them In.

WHYI-FM MIAMI “Young People are more likely to have a radio in their bedroom than ANY other media device including TV, CD players and the Internet.”

Kaiser Family Foundation Report Center on Media & Human Development June 2011, as reported in Inside Radio Be Different. Passionately.

KISW-FM SEATTLE Be Current. Be a Relevant Current in Listeners’ Lives. Create Connections.

KSSE-FM LOS ANGELES

Super Estrella Events

Alejandra Alejandro Fernandez Guzman Enanitos Verdes La Quinta Estacion

Paulina Rubio Juanes Calle 13

El Banda Recodo Julieta Venegas Los Hombres G

Aleks Syntek

MANA Beto Cuevas Thalia Camila Pepe Aguilar

Reyli Ricky Martin Jaguares

Belanova Wisin y Yandel Passionate People Who Connect With the Community

WMMR-FM PHILADELPHIA Radio Offers Personalized Connections to Listeners

Psychologists call it Para-Social Interaction -- a very real, emotional connection to a celebrity or fictional character. Industry studies find the same results: – Personalities matter to radio listeners – Listeners care about them, relate to them, feel an emotional connection, as if the personalities are actually part of their social network – “Even though such one-way friendships are based on illusion of interaction via television or radio rather than actual social interaction, a bond of intimacy is created and viewers [or listeners] feel they really know the media character.” 90% of radio listeners said they would be disappointed if their favorite radio station were no longer on-air Only Radio can offer advertisers product endorsements by on-air personalities Those endorsements lifted brand awareness by 50% in a study conducted by a major small appliance advertiser in 2010 Radio can share this relationship with its advertisers Sources: Freda D., Lewis (2000). Getting by: Race and Parasocial Interaction in a Television Situation Comedy . Dissertation.com. ISBN 1-58112-105-9. , cited from Wikipedia.com; The Infinite Dial: 2011 by Arbitron and Edison Research and Alan Burns & Assoc Study 2011 of w18-54; Critical Mass Media April – June 2010 Friends Who Are A Force For Good In Your Community

WDAS-FM PHILADELPHIA

Understand the Listener. Let Them Have the Reins.

KKBQ-FM HOUSTON Authentic Newness – Give The Listeners Control

WTMX-FM CHICAGO Authentic Newness – Give The Listeners Control

Radio Usage By Young People Continues To Be Big And Consistent Be Who Your Listeners Want You To Be. Be Where They Want You To Be.

KPLX-FM DALLAS

Be Fearless. Create An Amazing Listener Experience.

KFI-AM LOS ANGELES Great Radio Stations Revolve Around Relevance

They define and differentiate themselves They understand the listeners, give them what they want and give them access in the ways they want it Their Personalities are the heart of their local neighborhood They become part of the fabric of the Community, working to do good They embrace an authentic newness – grasp and get in front of change – bring it to their listeners, trust and allow listeners to help run the show Great Radio Stations do all of this with a passion that feeds the familiarity that makes listeners believe this is a true friend They enable their advertisers to become part of the neighborhood, too And Everyone Thrives What is True About Radio

Radio reaches 9 out of 10 people in every demographic segment – in real, not delayed time – every week Radio reach and listening levels have remained big and consistent for virtually every demo including young people More people listen to the radio than use the internet--and they use radio more everyday than they use the internet each day Digital devices and online listening are in addition to, not instead of regular radio – heavy users of digital audio are also heavy radio listeners Radio provides personal, emotional connections that can benefit advertisers Radio offers psychographically and demographically targeted environments that remain consistent and available 24/7 People hear and respond to Radio commercials A Radio commercial has the same as or more impact as a TV commercial Radio is by far the device most used and most valued in the car by every age Radio gets your message to the most consumers just before they shop

Sources: RADAR 109 June 2011; Arbitron Q2 2009, 2010, 2011 PPM ratings M-Su 6a-mid 17 markets with 3 year trends available; 2008, 2009, 2010 Arbitron Diary ratings from NRD, M-Su 6A-Mid; comScore June 2011; The Infinite Dial: 2011 by Arbitron and Edison Research, Jacobs Media Tech Survey 7 2011, Target Spot 2011 study and Alan Burns & Assoc Study 2011 of w18-54; Critical Mass Media April – June 2010; OTX Studies 2011 for 3 advertisers; RadioAdLab.com 2007 Study; Arbitron/Coleman/Media Monitors Study Dec 2005; “The Road Ahead ” Arbitron/Edison Oct 2011; Nielsen, /Council of Research Excelle nce 2010 Radio Usage is Big and Consistent Now – Go Tell The Story. Don’t Let Others Tell It For You.