A Conversation AboutRadio in the Digital World

Consumers across all demographic segments

The Indisputable, Proven Facts …Reach

Sources: RADAR 97, June 2008 Daypart Usage Report / All Radio Stations / Average Weekly Cume, Mon.-Sun., 24-hours / Persons 12+

95% 235,000,000

People reached by Radio every week

With household incomes of $50,000 +

Planning to buy a new car within 12 months

95 %

The Indisputable, Proven Facts …Relevance

Source: Scarborough USA+ 2006 Release 2 (12 months only)

90%

Spending $150 per week

on groceries

90 %

The Indisputable, Proven Facts …Receptivity

Source: “What Happens When the Spots Come On,” by Arbitron, Media Monitors, & Coleman Research, 2006

• 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 TV increasing by 2-5%)

The Indisputable, Proven Facts …

Sources: Sonoro Audio Survey, May, 2008Jupiter Research, 2008RADAR 97, June 2008 - Persons 12+ Total Week Cume Audience; comScore Top 50 Properties (U.S.), June 2008 - Unique Visitors

Despite the growing number of other options …

- Radio is the #1 choice for audio entertainment

- Radio is the #1 source for music discovery

- Radio reaches 44 million more people each week in the U.S. than the Internet reaches in a month 

Traditional Media is Here to Stay - Reach

Weekly Media ReachPersons 18+

Source: MRI, Spring 2008; RADAR 97, June 2008; NAA/Scarborough 2007; MPA/MRI, Fall 2007; MRI, Spring 2008

Traditional Media is Here to Stay - Usage

Average Time Spent with Consumer MediaPer Person Per Year

Source: Veronis Suhler Stevenson Communications Industry Forecast 2008-2012

National Advertisers Continue to Invest in Radio

Radio spending from the top 10 national and network advertisers

has more than doubled over the past 10 years.

1997

$199 million

2007

$449 million

Source: TNS

Print and video are different experiences when they move to digital

The Rolling Stones sound like the Rolling Stones across audio channels

Total Marketing Spend

1970’s2007

40%

Source: Branded Entertainment Marketing Forecast, PQ Media, 2008

23% Advertising

Traditional advertising’s share of total media spend is shifting.

Branded Entertainment Marketing

Doubled over the last 5 years, growing to

Source: Branded Entertainment Marketing Forecast, PQ Media, 2008

14.7%increase

$22 billionin 2007

• Event Sponsorship - $19 B• Product Placement - $3 B• Advergaming and Webisodes - $200 M

Large Advertisers are Shifting to Non-Media Marketing

Source: MAGNA Global, Company Reports

Liz Claiborne Marketing and Advertising 6-Year CAGR

Source: MAGNA Global, Company Reports

Hershey Promotion and Advertising Expense 6-Year CAGR

Large Advertisers are Shifting to Non-Media Marketing

The digital age has brought us far more

than the Internet• Direct to consumer• Data transparency• Scan data• RFID

• Reach, Relevancy, Receptivity

• On-Air, Online, On-site, On Demand

• Buy from FM• RADIO HEARD HERE

Radio has a story to tell

Projected Off-Air Revenue Growth

Exceeding $2 Billion

in 2009

Experiential Marketing

• Local – even national advertisers want that local footprint

• Connecting with consumers on Main street

• Radio stations have “fans”

• Radio-ready MP3 players like the Zune• Radio is the #6 downloaded free application on the new iPhone• FM Adaptor for the iPod• Cell phones and Radio are the top two platform/devices with the most impact on consumers

Extending Brand Value to New Platforms

Expanded Distribution Options

Sources: Arbitron/Edison, 2008Multimedia Intelligence, Online Media Daily, 7/1/08

• Local Radio station website traffic increased 27% in the past year while Internet pure-play sites declined 6%

• Radio station website revenue increased from $18M to $255M in 5 years

Radio Websites are Local

Sources: JP Morgan, Internet Radio Scorecard, February 2008; Borell’s “What Local Media Websites Earn” 2008 survey

New Technologies• E-mail and text-message marketing• Mobile phones for two-way communication• Sponsored Podcasts - 23 million people per month listen to an audio podcast

Radio On-Demand Marketing

Source: The Infinite Dial 2008, Arbitron, Edison Media

E-Mail Podcast Text

Radio On-Demand Marketing

In-Car Dash

Radio Buy Button

In Home/Office iTunes Tagging

Buy From FM

“It’s addictive, awesome, and completely natural. What better way to discover new performers and songs than listening to the Radio?”

-- David Pogue, New York Times, 9/18/08

The Opportunity for RadioBuy from FM – Song Marketplace

10 songs per hour x 24/7/365

40 millionSongs across

450 stations

1 billion

Songs across 10,000 stations

Radio Directional GPS Marketing

In-Car Dash

Radio Brands Drive Loyalty

• Every Radio station is a distinctive brand• Loyal listeners will follow the brand • Multiple listener touch points • 360 – degree experience

Be an advocate for Radio• Energize your staff• Engage your advertisers• Enlighten your family and friends