A Y E A R O F R A D I O SU CC ES S S TO R I ES

A Commitment to Radio

2 A Commitment to Radio’s Future

… Arbitron made a commitment to the radio industry to lead in educating and promoting the value of radio in delivering the American consumer to the marketer and advertising community.

In 2011, Arbitron joined with the radio industry to make the elevation of radio’s value a strategic priority.

We recognized the need for a common narrative about radio’s strengths, and Arbitron developed new outreach initiatives. Along with the Katz Media Goup and the Radio Advertising Bureau (RAB), the new “Radio: On Air, Online and On Target,” presentation for both the agency and broadcaster communities illustrated the current media landscape and has been presented to over 800 participants. We also introduced “Radio Today by the Numbers” which demonstrates radio’s significant value with a few well-chosen words and images.

Arbitron is taking radio’s message directly to the advertiser through industry events and carefully crafted networking opportunities between broadcasters and national marketers. To date we have facilitated one-on-one meetings between local and network broadcasting executives and national marketers such as Allstate, AT&T, General Motors, Sears, Visa, and Wal-Mart. These meetings provide an opportunity for broadcasters to learn about the strategies of each national marketer while also sharing the story of radio.

Additionally, we are reaching out to the radio and advertising industries to gather real stories about how radio delivers results for advertisers. We have shared these findings through a series of interviews, papers, presentations, meetings, and white papers called “Deeper Dives” that focus on an advertiser’s use of radio and how the profiled companies found answers to unique challenges.

Finally, we have pulled together the marketing and research teams from network radio in a unique cross-company teaming effort. The team plans to pilot an educational outreach plan this year, targeting the agency planning community.

In closing, I would like to share the overall radio narrative of what we’ve learned so far. We have found that radio’s story is one of passion, connection, effectiveness, and evolution. I invite you to take a few minutes and read more.

Bill Kerr President and CEO Arbitron Inc.

A Year of Radio Success Stories 3

A Year of Insights

Radio is a weekly ritual that reaches more than 241 million Americans over the age of 12, according to the RADAR® National Radio Listening Report.

Radio’s rise to mass adoption was fueled by the early variety shows that gathered listeners of all ages around the radio with the shows’ cross-generational blends of music, humor, and commentary.

Today’s popular morning shows—such as nationally syndicated hosts Tom Joyner and popular local shows like “Drew and Mike,” heard on Greater Media’s WRIF in Detroit—transcend the specifics of age, gender, or ethnicity to attract large, diverse audiences.

“Radio connects communities with personali-ties who at times begin to feel like members of our own families,” observed Carol Hanley, executive vice president and chief sales and marketing officer for Arbitron. “It’s that level of engagement and trust that makes radio personalities a great vehicle for delivering advertiser messages.”

In the presentation, “Radio: On Air, Online and On Target,” a RAB Case Study on Target’s radio campaign in 2009, showed how the retailer tapped into listeners’ loyalty by launching a personality-focused holiday advertising campaign. The results included a 2.5% increase in store traffic and a 2% increase in sales.

Results With Passion

Radio: On Air, Online and On TargetRecognizing the need for a unified voice for the industry, Arbitron, the Katz Media Group, and the RAB created a presentation for both the agency and broadcaster communities,

highlighting the value of radio. Over 800 partici-pants have seen the presentation, through a variety of platforms. The educational piece entitled, Radio: On Air, Online, and On Target illustrated:

•Radio is the dominant source for audio content

•Broadcast radio is the second most used device/platform in American’s lives

•Online listening is a complement to over the air radio, not a substitute

•Radio is a tremendous reach medium delivering the right message to the right people with little waste

Radio connects communities with personalities who at times begin to feel like members of our own family.

— Carol Hanley Arbitron Executive Vice President Chief Sales & Marketing Officer

4 A Commitment to Radio’s Future

One of radio’s greatest strengths is its ability to spark passion and create an emotional connec-tion with consumers.

The Deeper Dive, “U.S. Marines Partner With Radio to Create Effective Campaigns Targeting Younger Men,” showed how the Marines’ Orlando recruiting station successfully took advantage of radio’s relationship with its audience through event marketing.

“Radio helps us become a part of the events we attend and draw more people to our booth, so they can witness the intangibles of the Marines like honor, courage, and discipline,” said Robbins.

The campaign became even more focused in 2009 when the Marines partnered with Clear Channel rock station WXTB-FM (98 Rock) Tampa-St. Petersburg-Clearwater to become the “Official Guardians of the 98 Rock Autographed Guitar.” The multilevel campaign included commercials, online elements, and a guitar giveaway at the station’s annual Rockfest concert.

“Radio speaks to our core demo in a very personal way. When we started significantly integrating radio advertising and events into our recruiting efforts, we immediately recognized success,” says Robbins. Through this campaign, the recruiting station surpassed national recruiting averages for the past two years, overdelivering on its goal by 10%.

Tapping Passions

Extending Radio’s Message Radio’s story gets mainstream attention

In the past year, Arbitron has worked to place articles in mainstream media about the value of radio.

Since March 2011, a total of 14 articles have appeared in such recognizable media outlets as CNN.com, The Christian Science Monitor, The History Channel, The Los Angeles Times, The New York Post, The New York Times, TheStreet.com, The Wall Street Journal, and USA Today.

The articles illustrate radio’s strong weekly tune-in of over 241.5 million listeners, and its ever-expanding presence through the Internet, mobile, over the air, and both in and out of home.

On the front page of the March 21, 2011 USA Today Money section, the article, “In A Renaissance for Radio, More Listeners Are Tuning In,” documented the health of the medium from a fiscal and listener-ship perspective, despite increased competition.

Later in the year, The History Channel, in conjunction with Popular Mechanics, recognized radio as the No. 2 gadget of all time. The special, “101 Gadgets That Changed the World,” used Arbitron-supplied audience data observing the power of radio and demonstrating the medium’s continued importance in the everyday lives of American consumers.

A Year of Radio Success Stories 5

The Coca-Cola Company has spoken to consumers’ passion by using music in many of its iconic ad campaigns. The “Refreshing the World: Coca-Cola and Radio” Deeper Dive piece explored the company’s long history of using radio to advertise its products. “Music is a passion point. Through music and radio we are able to connect with just about everyone,” says Bea Perez, the company’s chief sustainability officer and former chief marketing officer.

Making Connections All across the medium—from adult contem-porary music to news/talk stations—tightly focused stations enable advertisers to effectively target audiences by placing their messages in an atmosphere tailored to their consumers.

While age and gender remain two of the main criteria marketers can use in selecting on

which stations to advertise, they are just the tip of the iceberg of consumer characteristics in today’s sophisticated media world.

“I see the world as a multicultural nation that we need to connect with, and radio is a great way to build connections with all types of consumers,” said Perez.

For soft-drink companies like Coca-Cola and Novamex, which distributes Jarritos soda, radio’s ability to engage ethnic audiences is incredibly valuable.

Novamex Marketing Director David Flynn explained in the “How Novamex Quenched America’s Thirst With Radio” Deeper Dive how radio was instrumental in expanding the appeal of Jarritos Sodas beyond their initial audience of newly immigrated Mexican Americans. “Radio connects Latinos to their culture in a very personal way and that made it the perfect vehicle for Jarritos-brand beverages,” said Flynn.

The connection Flynn is talking about is borne out in a closer look at Arbitron listener data, which show that across most age groups, the Latino radio audience tends to be 2% to 3% larger than the overall market average with an average time spent listening that is 30 to 45 minutes longer than other groups.

Music as the Tie That Binds

White Papers In-depth study on radio’s contribution to a brand

Two white papers were produced in 2011 to illustrate the power of radio in connecting

consumers to brands and messages.

The “Multicultural Radio’s Role in the 2011 Chicago Mayoral Election” paper analyzed how major candidates in that election used radio to reach local voters.

“Refreshing the World: Coca-Cola and Radio” examined how the beverage icon used radio advertising from the earliest days of variety shows to the 2010 World Soccer campaign.

D eepeR D I v e s eR I es

Refreshing the World: Coca-Cola and Radio

I see the world as a multicultural nation that we need to connect with, and radio is a great way to build connections with all types of consumers.

— Beatriz “Bea” R. Perez The Coca‑Cola Company Chief Sustainability Officer and Former Chief Marketing Officer

6 A Commitment to Radio’s Future

Radio connects Latinos to their culture in a very personal way and that made it the perfect vehicle for Jarritos- brand beverages.

— David Flynn Novamex Marketing Director

Deeper Dive Series Radio success stories as articulated by advertisers

The Arbitron Deeper Dive Series, directed to agencies and the marketers, profiled three national advertisers and how they connected with the consumer through radio.

The U.S. Marines Partner With Radio to Create Appealing and Effective Campaigns Targeting Young Men highlighted the effectiveness of local radio for the Marines in their recruitment efforts.

The Midas Touch For Your Brand: How Midas Used Network Radio To Target Locally, illustrated how one major car care company successfully switched from network TV to network radio.

In How Novamex Quenched America’s Thirst With Radio, Jarritos, Mexico’s first national soda brand, used a radio-centered campaign to build brand awareness and capture the general market.

D eepeR D i v e s eR i es

How Novamex Quenched America’s Thirst With Radio

93% 104 1.20% 74,300 3.8 14,300 88% 99 261,200 38% 55.9 96 1.20% 74,300 3.8 261,200 93% 104 13.8 274,300 104 11.20% 71,300 3.8 93% 104 74,300 13.8 2.30% 261,200 93% 10413.8 274,300 104 11.20% 93%94% 120 0.30% 6,103 8.1 690,100 93% 111 459,500 182% 13.4 80 0.30% 6,103 28.1 459,500 94% 120 8.3 60,100 120 0.30% 56,103 8.1 94% 120 6,103 8.3 1.10% 459,500 94% 120 8.3 60,100 120 0.30% 94%89% 106 3.70% 54,030 88.8 54,000 97% 105 476,300 89% 11.1 112 3.70% 54,030 8.8 476,300 89% 106 18.8 154,000 106 3.70% 54,030 8.8 89% 106 54,030 18.8 0.90% 476,300 89% 10618.8 154,000 106 3.70% 89%95% 80 15.20%198,010 5.4 98,000 99% 91 219,300 91% 6.9 105 15.20% 198,000 5.5 219,300 95% 80 5.0 98,000 80 25.20%198,000 15.0 95% 80198,000 5.0 1.60% 219,300 95% 80 5.0 98,000 80 25.20% 95%76% 112 2.30% 61,802 45.1 61,800 82% 99 182,800 52% 10.9 112 2.30% 61,802 12.1 182,800 76% 112 15.1 61,800 112 2.30% 61,802 5.1 76% 112 61,802 15.1 1.70% 182,800 76% 112 15.1 61,800 112 2.30% 76%95% 115 1.10% 3,800 6.2 73,800 94% 115 255,700 103% 3.8 115 1.10% 3,800 6.2 255,700 95% 115 6.2 713,800 115 1.10% 3,800 6.2 95% 115 3,800 6.212.90% 255,700 95% 115 6.2 713,800 115 1.10% 95%91% 100 0.90% 74,930 7.9 74,900 96% 100 204,300 71% 82.1 100 0.90% 74,930 7.4 204,300 91% 100 7.0 74,900 100 0.90% 74,930 7.0 91% 100 74,930 7.0 5.20% 204,300 91% 100 7.0 74,900 100 0.90% 91%95% 96 1.60% 52,301 44.1 52,300 88% 96 89,400 44% 8.8 96 1.60% 52,301 44.1 89,400 95% 96 44.1 32,300 96 1.60% 52,301 42.1 95% 96 52,301 44.114.50% 89,400 95% 9644.1 32,300 96 1.60% 95%90% 107 1.70% 91,203 4.2 91,300 94% 107 61,400 43% 15.0 107 1.70% 91,203 4.2 1,850 90% 107 4.2 91,300 107 1.70% 91,203 4.2 90% 107 91,203 4.2 6.40% 1,850 90% 107 4.2 91,300 107 1.70% 90%88% 120 10.30% 84,500 7.7 198,000 79% 120 114,900 78% 5.1 120 10.30% 84,500 7.7 116,900 88% 120 7.7 184,500 120 10.30% 84,500 7.7 88% 120 84,500 7.7 6.60% 116,900 88% 120 7.7 184,500 120 10.30% 88%93% 110 12.90% 35,100 12.3 61,802 93% 110 49,200 124% 6.2 110 12.90% 35,100 12.3 49,200 93% 110 12.3 85,100 110 12.90% 35,100 12.3 93% 110 35,100 12.3 1.20% 49,200 93% 11012.3 85,100 110 12.90% 93%97% 102 5.20% 60,500 5.1 3,800 88% 102 17,500 52% 7.0 102 5.20% 60,500 5.1 17,500 97% 102 5.1 60,000 102 5.20% 60,500 8.1 97% 102 60,500 5.1 0.30% 17,500 97% 102 5.1 60,000 102 5.20% 97%99% 105 14.50% 110,100 5.4 74,930 97% 105 188,000 55% 44.1 105 14.50% 110,100 5.4 188,000 99% 105 15.4 150,300 105 14.50% 110,100 5.4 99% 105 110,100 15.4 3.70% 188,000 99% 10515.4 150,300 105 14.50% 99%95% 99 6.40% 96,700 8.5 52,301 93% 99 269,700 86% 4.2 99 6.40% 96,700 8.5 269,700 95% 99 8.5 96,700 99 6.40% 96,700 8.5 95% 99 96,700 8.515.20% 269,700 95% 99 8.5 96,700 99 6.40% 95%76% 111 6.60% 60,600 12.6 91,203 95% 111 279,700 117% 55.9 111 6.60% 269,700 12.6 279,700 76% 111 12.6 63,600 111 6.60% 60,600 12.6 76% 111 60,600 12.6 2.30% 279,700 76% 11112.6 63,600 111 6.60% 76%95% 105 0.40% 69,000 55.9 198,000 91% 105 2,300 55% 13.4 105 0.40% 279,700 55.9 2,300 95% 105 55.9 601,000 105 0.40% 69,000 55.9 95% 105 69,000 55.9 1.10% 2,300 95% 10555.9 601,000 105 0.40% 95%91% 91 3.40% 71,900 13.4 71,900 88% 91 562,300 45% 11.1 91 3.40% 2,300 13.4 562,300 91% 91 13.4 71,900 91 3.40% 71,900 13.4 91% 91 71,900 13.4 0.90% 562,300 91% 9113.4 71,900 91 3.40% 91%80% 107 21.80% 112,100 11.1 52,301 93% 107 958,100 112% 6.9 107 22.80% 562,300 11.1 958,100 80% 107 11.1 52,301 107 22.80% 112,100 11.1 80% 107 112,100 11.1 1.60% 958,100 80% 107 11.1 52,301 107 22.80% 80%88% 115 1.90% 85,100 6.9 91,203 76% 115 52,301 111% 10.9 115 1.90% 958,100 6.9 52,301 88% 115 6.9 111,203 115 1.90% 85,100 6.9 88% 115 85,100 6.9 1.70% 52,301 88% 115 6.9 111,203 115 1.90% 88%93% 100 0.50% 60,000 10.9 84,500 95% 100 91,203 105% 11.3 100 0.50% 52,301 10.9 91,203 93% 100 10.9 84,500 100 0.50% 60,000 10.9 93% 100 60,000 10.912.90% 91,203 93% 10010.9 84,500 100 0.50% 93%97% 96 3.10% 50,300 11.3 35,100 91% 96 84,500 91% 51.2 96 3.10% 50,300 11.3 84,500 97% 96 11.3 45,100 96 3.10% 50,300 11.3 97% 96 50,300 11.3 5.20% 84,500 97% 96 11.3 45,100 96 3.10% 97%99% 80 12.20% 96,700 5.2 60,500 95% 80 35,100 107% 43.3 80 12.20% 96,700 5.2 35,100 99% 80 5.2 60,500 80 12.20% 96,700 5.2 99% 80 96,700 5.214.50% 35,100 99% 80 5.2 60,500 80 12.20% 99%82% 112 2.30% 63,600 4.3 17,500 90% 112 60,500 115% 16.1 112 2.30% 63,600 4.3 60,500 82% 112 4.3 17,500 112 2.30% 63,600 4.3 82% 112 63,600 4.3 6.40% 60,500 82% 112 4.3 17,500 112 2.30% 82%94% 105 1.11% 69,000 6.1 188,000 88% 105 54,030 100% 50.4 105 1.11% 69,000 60.1 54,030 94% 105 6.1 188,000 105 1.11% 69,000 6.1 94% 105 69,000 6.1 6.60% 54,030 94% 105 6.1 188,000 105 1.11% 94%95% 96 1.60% 52,301 44.1 52,300 88% 96 89,400 44% 8.8 96 1.60% 52,301 44.1 89,400 95% 96 44.1 32,300 96 1.60% 52,301 42.1 95% 96 52,301 44.114.50% 89,400 95% 9644.1 32,300 96 1.60% 95%90% 107 1.70% 91,203 4.2 91,300 94% 107 61,400 43% 15.0 107 1.70% 91,203 4.2 1,850 90% 107 4.2 91,300 107 1.70% 91,203 4.2 90% 107 91,203 4.2 6.40% 1,850 90% 107 4.2 91,300 107 1.70% 90%88% 120 10.30% 84,500 7.7 198,000 79% 120 114,900 78% 5.1 120 10.30% 84,500 7.7 116,900 88% 120 7.7 184,500 120 10.30% 84,500 7.7 88% 120 84,500 7.7 6.60% 116,900 88% 120 7.7 184,500 120 10.30% 88%93% 110 12.90% 35,100 12.3 61,802 93% 110 49,200 124% 6.2 110 12.90% 35,100 12.3 49,200 93% 110 12.3 85,100 110 12.90% 35,100 12.3 93% 110 35,100 12.3 1.20% 49,200 93% 11012.3 85,100 110 12.90% 93%

The U.S. Marine Corps Orlando recruiting station, 6th Marine Corps Recruiting District, is one of the top-performing Marine recruiting stations in the country. In the past two years, the recruiting station has surpassed the national average by consistently delivering more than 10% over attainment goals.

Sgt. Paul A. Robbins Jr., the recruiting station’s marketing and public affairs chief, gives part of the credit to a change in concert marketing, which leans heavily on radio. Two years ago, the recruiting station decided to complement the Marines’ award-winning national advertising campaign with local outreach that focused on radio partnerships. Sergeant Robbins says the 2009 and 2010 increases can be partially attributed to creating a unique connection through the right medium: radio.

“The Marines are looking for a different type of recruit, and we have a very clearly defined target,” he says. “Radio helps us become a part of the events we attend and draw more people to our booth, so they can witness the intangibles of the Marines, like honor, courage and discipline.”

The need to have a strong local impact and deliver uniquely targeted messages, coupled with budgetary challenges, lead the recruitment station to shift dollars from other media into radio and live events. Sergeant Robbins says the plan enabled them to bridge the Marines’ national brand to the local level, allowing them to build a connection between highly popular local events and the Marines.

continued...

A D EEPER D I V E

“ Radio helps us become a part of the events we attend and draw more people to our booth, so they can witness the intangibles of the Marines, like honor, courage and discipline.”

The U.S. Marines Partner With Radio to Create Effective Campaigns

The Midas Touch for Your BrandHow Midas Used Network Radio to Target Locally

continued...

d eepeR d i v e s eR i es

“ Immediately following the major move to radio, customer traffic was up nearly 20 percent and car count continues to increase.”

Lisa Wellington, sr. Manager, Marketing planning, Midas

93% 104 1.20% 74,300 3.8 14,300 88% 99 261,200 38% 55.9 96 1.20% 74,300 3.8 261,200 93% 104 13.8 274,300 104 11.20% 71,300 3.8 93% 104 74,300 13.8 2.30%94% 120 0.30% 6,103 8.1 690,100 93% 111 459,500 182% 13.4 80 0.30% 6,103 28.1 459,500 94% 120 8.3 60,100 120 0.30% 56,103 8.1 94% 120 6,103 8.3 1.10%89% 106 3.70% 54,030 88.8 54,000 97% 105 476,300 89% 11.1 112 3.70% 54,030 8.8 476,300 89% 106 18.8 154,000 106 3.70% 54,030 8.8 89% 106 54,030 18.8 0.90%95% 80 15.20%198,010 5.4 98,000 99% 91 219,300 91% 6.9 105 15.20% 198,000 5.5 219,300 95% 80 5.0 98,000 80 25.20%198,000 15.0 95% 80198,000 5.0 1.60%76% 112 2.30% 61,802 45.1 61,800 82% 99 182,800 52% 10.9 112 2.30% 61,802 12.1 182,800 76% 112 15.1 61,800 112 2.30% 61,802 5.1 76% 112 61,802 15.1 1.70%95% 115 1.10% 3,800 6.2 73,800 94% 115 255,700 103% 3.8 115 1.10% 3,800 6.2 255,700 95% 115 6.2 713,800 115 1.10% 3,800 6.2 95% 115 3,800 6.212.90%91% 100 0.90% 74,930 7.9 74,900 96% 100 204,300 71% 82.1 100 0.90% 74,930 7.4 204,300 91% 100 7.0 74,900 100 0.90% 74,930 7.0 91% 100 74,930 7.0 5.20%95% 96 1.60% 52,301 44.1 52,300 88% 96 89,400 44% 8.8 96 1.60% 52,301 44.1 89,400 95% 96 44.1 32,300 96 1.60% 52,301 42.1 95% 96 52,301 44.114.50%90% 107 1.70% 91,203 4.2 91,300 94% 107 61,400 43% 15.0 107 1.70% 91,203 4.2 1,850 90% 107 4.2 91,300 107 1.70% 91,203 4.2 90% 107 91,203 4.2 6.40%88% 120 10.30% 84,500 7.7 198,000 79% 120 114,900 78% 5.1 120 10.30% 84,500 7.7 116,900 88% 120 7.7 184,500 120 10.30% 84,500 7.7 88% 120 84,500 7.7 6.60%93% 110 12.90% 35,100 12.3 61,802 93% 110 49,200 124% 6.2 110 12.90% 35,100 12.3 49,200 93% 110 12.3 85,100 110 12.90% 35,100 12.3 93% 110 35,100 12.3 1.20%97% 102 5.20% 60,500 5.1 3,800 88% 102 17,500 52% 7.0 102 5.20% 60,500 5.1 17,500 97% 102 5.1 60,000 102 5.20% 60,500 8.1 97% 102 60,500 5.1 0.30%99% 105 14.50% 110,100 5.4 74,930 97% 105 188,000 55% 44.1 105 14.50% 110,100 5.4 188,000 99% 105 15.4 150,300 105 14.50% 110,100 5.4 99% 105 110,100 15.4 3.70%95% 99 6.40% 96,700 8.5 52,301 93% 99 269,700 86% 4.2 99 6.40% 96,700 8.5 269,700 95% 99 8.5 96,700 99 6.40% 96,700 8.5 95% 99 96,700 8.515.20%76% 111 6.60% 60,600 12.6 91,203 95% 111 279,700 117% 55.9 111 6.60% 269,700 12.6 279,700 76% 111 12.6 63,600 111 6.60% 60,600 12.6 76% 111 60,600 12.6 2.30%95% 105 0.40% 69,000 55.9 198,000 91% 105 2,300 55% 13.4 105 0.40% 279,700 55.9 2,300 95% 105 55.9 601,000 105 0.40% 69,000 55.9 95% 105 69,000 55.9 1.10%91% 91 3.40% 71,900 13.4 71,900 88% 91 562,300 45% 11.1 91 3.40% 2,300 13.4 562,300 91% 91 13.4 71,900 91 3.40% 71,900 13.4 91% 91 71,900 13.4 0.90%80% 107 21.80% 112,100 11.1 52,301 93% 107 958,100 112% 6.9 107 22.80% 562,300 11.1 958,100 80% 107 11.1 52,301 107 22.80% 112,100 11.1 80% 107 112,100 11.1 1.60%88% 115 1.90% 85,100 6.9 91,203 76% 115 52,301 111% 10.9 115 1.90% 958,100 6.9 52,301 88% 115 6.9 111,203 115 1.90% 85,100 6.9 88% 115 85,100 6.9 1.70%93% 100 0.50% 60,000 10.9 84,500 95% 100 91,203 105% 11.3 100 0.50% 52,301 10.9 91,203 93% 100 10.9 84,500 100 0.50% 60,000 10.9 93% 100 60,000 10.912.90%97% 96 3.10% 50,300 11.3 35,100 91% 96 84,500 91% 51.2 96 3.10% 50,300 11.3 84,500 97% 96 11.3 45,100 96 3.10% 50,300 11.3 97% 96 50,300 11.3 5.20%99% 80 12.20% 96,700 5.2 60,500 95% 80 35,100 107% 43.3 80 12.20% 96,700 5.2 35,100 99% 80 5.2 60,500 80 12.20% 96,700 5.2 99% 80 96,700 5.214.50%82% 112 2.30% 63,600 4.3 17,500 90% 112 60,500 115% 16.1 112 2.30% 63,600 4.3 60,500 82% 112 4.3 17,500 112 2.30% 63,600 4.3 82% 112 63,600 4.3 6.40%94% 105 1.11% 69,000 6.1 188,000 88% 105 54,030 100% 50.4 105 1.11% 69,000 60.1 54,030 94% 105 6.1 188,000 105 1.11% 69,000 6.1 94% 105 69,000 6.1 6.60%

Midas is a globally recognized brand and one of the world’s largest providers of automotive services. With nearly 1,500 franchised and company-owned Midas shops in the U.S. and Canada, it can be a challenge to develop regionally appropriate advertising campaigns that are both targeted and cost efficient. Midas answered that challenge with Network Radio. Arbitron interviewed Lisa Wellington, Sr. Manager, Marketing Planning for Midas and asked her about Midas’ radio success.

Arbitron: A couple of years ago, Midas decided to move a significant portion of ad dollars from network television into network radio. What was the reasoning behind your change?

Midas: Since that move, we are using network radio as our predominant medium. In 2009, we decided to leave network TV and transferred advertising dollars to network radio. The main reason we decided to do that was the flexibility in local messaging that network radio offered to our franchisees. Network TV did not offer the same ability to localize.

Arbitron: What are some of the regional benefits of using network radio?

Midas: With network TV we could not copy split—which is providing specific copy by region. There were times the advertising was not as relevant in certain regions. For

A Year of Radio Success Stories 7

Radio also excels at connecting marketers and consumers at a local level, as automotive service provider Midas found out when it switched the bulk of its budget from TV to network radio.

In the Deeper Dive: “The Midas Touch for Your Brand,” Lisa Wellington, Midas Senior Manager of Marketing and Planning discussed how geography played a major role in the decision to make the switch.

“Competitive price points for services vary by region and depend on availability of products and overhead. During the winter months, pricing and automotive service specials have a different appeal in Miami than they do in Minneapolis,” she said.

What makes radio work for Midas is the ability to “copy split”—providing stations with different creative materials according to their geography. “We were having a hard time finding a spot that would work universally on network TV,” said Wellington.

“Immediately following the major move to radio, customer traffic was up nearly 20%, and car count continues to increase,” said Wellington. “Midas franchisees have experi-enced double-digit increases in customer visits since we moved dollars from TV to radio.”

Engaging Minority Voters In the 2011 Chicago mayoral election, Rahm Emanuel and Gery Chico, the eventual winner and runner up, respectively, also capitalized on the influence of radio stations in the Chicago market. Both candidates ran extensive radio campaigns on Urban and Spanish-language radio stations, as covered in the Arbitron white paper on the election and how multicultural radio played a role in it.

The two purchased nearly 1,000 gross ratings points of radio advertising during the

Connecting Locally

campaign, the biggest chunk of which ran on Urban-formatted stations. Spanish-language stations got the majority of the remaining budget, followed by News/Talk, which only Emanuel used.

While it may not be a direct cause-and-effect relationship, Emanuel and Chico received a much greater percentage of the votes cast on election day than any of the other candidates in the race.

Midas franchisees have experienced double-digit increases in customer visits since we moved dollars from TV to radio.

— Lisa Wellington Midas Senior Manager of Marketing and Planning

8 A Commitment to Radio’s Future

While marketers continually seek to target consumers by demographics and geography, it is the target audiences’ intent to purchase that can seal the success of a campaign.

Radio’s staggering penetration of 93% helps to give it the ability to reach consumers who are in the market to buy. The Katz/Arbitron/RAB presentation “Radio: On Air, Online and On Target,” showed that radio captures more than 35% of the total time consumers spend with media during prime shopping hours, which is more than any other medium. That includes reaching them outside their homes, which is where 70% of radio listening takes place on weekdays.

Radio Listeners Are In the Mood to Buy

Radio Listening Is StrongArbitron data show that while today’s listeners may have more entertainment options available, radio remains a presence and a strong one at that.

A national look at the American radio listener with Arbitron RADAR data reveals that:

•Radio remains strong with 241.3 million listeners tuning in weekly.

•Radio consistently reaches 92% to 96% of virtually every demographic group.

Source: RADAR 111, December 2011

P18‑24 General Market 91.8

Radio Reaches Over 92% of Virtually Every SegmentWEEKLY RADIO USAGE

P35‑64 General Market 95.0

P18‑49 Hispanic 95.8

P18‑49 African-American 93.9

A Year of Radio Success Stories 9

Radio Is SocialYounger listeners more likely to use social media; ethnic listeners more likely to text when communi-cating with radio.

Source: Arbitron/Edison 2011 Infinite Dial Study

Radio is fully digital with Facebook pages, smartphone apps, Twitter feeds, streams, and websites that extend the value of its brand—advertising wherever consumers engage with content.

Merging With Social MediaFor example, when Novamex expanded their marketing efforts beyond Hispanic media into the general market with a multi-tier campaign that included online, social media, and out-of-home components, the company used radio as the glue to hold everything together.

“Radio is the capstone of this project; we need it to drive people to the various platforms to engage with the brand,” said Flynn. It turned out to be a good strategy considering the results of a Harris Interactive study shows that unaided brand recall for an advertiser is nearly 4.5 times greater when radio is used to supple-ment an Internet-based ad campaign.

According to the Arbitron/Edison 2011 Infinite Dial Study, one of the most difficult audiences to connect with—young adults aged 25 to 35—are 24% more likely than other demos to have communicated with a radio station via Facebook or Twitter.

Building Digital Ties In the last five years, online radio listening has grown to include more than 89 million people each week, according to the Infinite Dial study.

The growing audience consuming audio online has not left broadcast radio. Over-the-air stations still receive an average of 109 minutes of listening per user each day. In fact, nearly nine out of every ten people who listen to audio streams in a week also tune to terrestrial radio.

That has led companies like Clear Channel and CBS to embrace streaming with platforms like iHeartRadio.com and radio.com, which are making stations from across the country available to millions of new listeners through their computers, tablets, and mobile phones.

Radio’s Digital Assets Strengthen Advertising Value

Radio is the capstone of this project; we need it to drive people to the various platforms to engage the brand.

— David Flynn

3.6

5.4 5.2

3.0

• Total U.S. • African‑American • Hispanic • White/Other

Market Index =100

83144150100

Communicated with any AM or FM station or one of its DJs or personalities via text message

10 A Commitment to Radio’s Future

Huge audiences, targeted messages, passionate listeners, and local connections are at the heart of radio. Arbitron, its client partners, the Katz Media Group, and the Radio Advertising Bureau remain committed to tell these stories to an important audience—advertisers.

“The work is steady and the goodwill created for the radio industry will be a testament to everyone’s commitment and belief in the power of radio,” said Clara P. Carneiro, Vice President of Sales & Marketing for Arbitron.

Making a commitment is just the start; being willing to follow through is what matters, and our commitment to this process comes from the highest levels of the company.

“The real work starts now for Arbitron as a company to support and educate on behalf of the industry which it serves,” says Executive Vice President and Chief Operating Officer Sean Creamer. “Radio delivers a large and targeted audience and its listeners are connected with the local stations in ways that help make radio advertising work remarkably well.”

Looking to the Future

Radio is a tremendous medium that connects its passionate fans to advertising messages across a wide variety of platforms wherever the consumer engages with the content.

— Sean Creamer Arbitron Executive Vice President and Chief Operating Officer

A Year of Radio Success Stories 11

© 2012 Arbitron Inc.

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