KATZ 2015

INDUSTRY RESEARCH

INITIATIVES

Katz Radio Group and its partner stations

have contracted with Nielsen, Ipsos and

Vox Populi to produce and publicize

several studies in the past year that clearly

demonstrate the power and effectiveness

of radio.

The findings underscore the scope of the

unique capabilities and outstanding value

of radio as an advertising vehicle.

Advertiser or

Category

Research

Partner

Date delivered

to KRG Objective Key Findings

Toyota

Teen Drive Campaign February 25, 2014

Analyze effect of radio with

exposed vs non-exposed

campaign radio listeners

62% lift in aided Brand recall exposed vs

not exposed

Telco Company #1 March 30, 2014 Measure effect of personality

driven “take over” spots to regular

campaign spots

Aided brand awareness jumped 41%; Brand

consideration jumped 111% for exposed vs

not exposed

Cable TV Network

Program Premiere Nielsen June 30, 2014

Compare ratings among exposed

to radio vs not exposed and this

to last year, which had no radio

Conversion rate among exposed to radio

was 200% higher than not exposed

Swing Vote Poll September 7, 2014 Discover where and how much

swing voters listen to radio and

compare to other audio

75% of swing voters listen to radio in their

cars; 900% more voters listen to AM/FM

radio than to satellite or online radio

Telco Company #2 Nielsen November 4, 2014 Measure Return on Ad Spend

(ROAS) for radio campaign

$1 on radio delivered a $14 ROAS; among

Millennials, those exposed to radio spent 2x

as much with Brand as those not exposed

Fortune 500

Insurance Co Ipsos February 6, 2015

Measure impact of :60 vs :30,

impact of different radio creative

tactics

:60 outperform :30 for effectiveness of multi-

message creative; :30 perform well for

single message creative; local reference in

spots outperform national creative in spots

AFI Insurance Nielsen March 11, 2015 Measure impact of radio on total

campaign response

Those exposed to radio had: 35% better

response to TV ads, 300% better response

to online ads, and 200% better response to

mobile ads

Studies Demonstrating Radio’s Unique Capabilities

What is radio ROI?

A breakthrough collaboration between Nielsen and various partners

creating the first single-source ROI tool for radio.

NIELSEN

AUDIO

DATA

CONSUMER DATA

+ =

Incre

menta

l S

ale

s f

or

Every

$1.0

0 d

olla

r spent

Candy

Source: 2014 Nielsen Catalina Purchase Behavior Study

Spending on Radio makes you money Every $1.00 in advertising receives an average $6.21 incremental sales for CPG and Retail Stores

Soft Drink Beer Snacks Retail A Retail B

$3.11

$3.81

$4.17

$7.33

$11.15

$23.21

$6 : $1 …an ROI double that of even

the best results from many recent digital or TV media.

“

“

5.8

7.1

Total Mkt Avg Hispanic Avg

22%

Hispanic consumers show higher

response to campaign exposure Hispanic radio dollar share point gains by advertiser

Source: Nielsen Catalina Solutions Studies of 3 radio ad campaigns, March 26, 2014 indexed to general market share point gains from study

5.8

6.9

Total Mkt Avg Black Mkt Avg

19%

Black radio average dollar share point gain by advertiser

Source: Nielsen Catalina Solutions Studies of 3 radio ad campaigns, March 26, 2014 indexed to general market share point gains from study

Black consumers show higher

response to campaign exposure

Radio generated a $14 return for every ad dollar

spent by a major Telco

MONTHLY SPEND PER EXPOSED

“Telco” CUSTOMER

People who heard ads on radio spent more and Millennials spent twice that of those exposed

Source: Nielsen Buyer Insights, P18+

$14 : $1 + $8

+ $16

Total Exposed(1+ Ads)

Millennial Exposed(1+ Ads)

Campaign ROAS

In only one week,

radio delivered nearly a

QUARTER of the reach

that TV did in 14 weeks

Cable Drama Premier: Promo Campaign

Personality Endorsement Radio excels at

driving tune in for TV programs

Source: Nielsen Audio Data – Tune-in Study; Live +7.

% of campaign reach by platform

P12+ W18+ W18-49 W25-54

People exposed to radio tune-in at a higher rate than those not exposed

% Who Tuned In & Were Exposed to Radio Spot(s) % Who Tuned In & Were NOT Exposed to Radio Spot(s)

Source: Nielsen Audio Data – Tune-in Study; Live +7

+50% +60%

+75%

+100%

Radio drives TV program tune-in for key

audience segments

2.6

3.0

+15%

TV Show Rating (AA W12+)

Not Exposed to

Radio Campaign

Exposed to

Radio Campaign

Radio advertising drives Television Tune-In for key

target audience segment

In a 2014 Nielsen study for a major

cable network, African-American

women tuned into a season

premiere at a higher rate after

being exposed to that network’s

radio campaign.

Source: Nielsen Audio Data – Tune-in Study; Live +7.

Radio in the media mix elevates awareness levels

of all other advertising

40%

2% 1%

54%

8%

2%

TV Onlineon a PC

Online on amobile phone

or tablet

Not Exposed to Radio Exposed to Radio

Awareness Lift Among Total Decision Makers

Copyright ©2015 The Nielsen Company. Confidential and proprietary, study conducted in early 2015

Q: Where else have you seen or heard advertising

recently for AFI Insurance Brand?

35%

+100%

+300%

Brandfavorability

Likely torecommend

Likely toget a quote

Not Exposed to Radio Exposed to Radio

Radio influences key purchasing decisions

Copyright ©2015 The Nielsen Company. Confidential and proprietary, study conducted in early 2015

Key Performance Indicators – American Family Insurance Among Those Most Likely to Switch Insurance

+129% +97% +49%

% B

ran

d A

ware

ne

ss

Toyota TeenDrive365 Campaign – Aided Recall

Not Exposed to

Radio

Exposed to

Radio

Radio advertising drives brand awareness

“We know based on the positive results that we have

seen since launch that Radio will continue to be an

important piece of the TeenDrive365 campaign.”

Marjorie Schussel

Corporate Marketing Director,

Toyota North America

62%

Source: Ipsos MediaCT / OTX Custom Research 2014

Unaided Brand Awareness 29%

Unaided “Affordable” Awareness 19%

Aided Campaign Awareness 26%

Aided Brand Awareness 41%

Brand Consideration 111%

Station Takeover Radio advertising

works harder for a Telco brand (Comparison lift from base campaign vs. disruptive take-over campaign)

Source: Ipsos MediaCT / OTX Custom Research 2014

10%

19%

Base StationsOnly

TakeoverStations

Note: Hispanic respondents only.

Source: Feb-Mar 2014 study conducted by Ipsos/OTX for KRG and a mobile carrier; study conducted in both English and Spanish among 236 Hispanics in 22 markets

Hispanic Radio advertising

drives brand consideration

Objective: Compare post campaign results for a mobile carrier

company’s base campaign vs “take over” station

campaign

Results: The “take over” campaign accomplished a 90% lift in

brand consideration over the base buy

Take Away: Optimizing the power of listeners’ emotional

connection to personalities and favorite radio stations

significantly enhanced the likelihood of developing

brand consideration

90%

“How likely are you to consider Carrier the next time

you purchase a mobile phone? Very Likely”

Localized ads generate better brand actions

than national ads

I will considerbuying the brand

I will visit thebrand's website

I will look upmore informationabout the brand

I am more interestedin the brand

National Localized

+21% +31%

+23%

+25%

Source: Ipsos MediaCT / OTX Study for Fortune500 Insurance Carrier. Jan-Feb 2015

29% 41%

Non-ExposedGroup

Radio ExposedGroup

Brand Consideration If you needed to switch your auto insurance today, how likely would you consider signing

up for a policy with any of the below companies? Ins Brand / Extremely or Somewhat Likely

Consumers exposed to radio are 40% more likely to consider switching brand

+40%

Radio advertising drives brand consideration

Source: Ipsos MediaCT / OTX Study for Fortune500 Insurance Carrier. Jan-Feb 2015

33%

49%

+48%

Consideration to Switch to Wireless Provider

(AA Adults 18-54)

Not Exposed to

Radio Campaign

Exposed to

Radio Campaign Source: Ipsos, 2014.

Black consumers exposed to radio are 40% more

likely to consider switching brand

Radio advertising drives Brand Consideration

CommunicatingMultiple Copy Points

Intent to VisitWebsite

Intent to PurchaseBrand

:30s :60s

Source: 2015 Radio Impact Study from the Katz Radio Group conducted by Ipsos MediaCT/OTX for a Fortune 500 insurance carrier

Radio Creative Effectiveness by Spot Length

:60s are more than twice as effective as :30s in their ability to communicate multiple

messages and are more likely to drive purchase intent and website visitation

+124% +28% +20%

Spot Length affects likely results

1,000,000 more people 35+ listen to radio now than a year ago

75% of swing voters listen to radio

most or all of the time when in their cars

Source: Vox Populi Polling study of 1,056 active voters in September 2013

81%

9% 11%

AM/FMRadio

SatelliteRadio

OtherRadio

AM/FM radio dominates

Swing Voter listening

preference

52%

38%

Ads you hearon the radio

Ads you seeonline

Swing Voters are 40% more likely to believe

political ads on radio than online ads

When it comes to ads for political candidates,

which ads do you find more believable?

Source: Vox Populi Polling study of 1,056 active voters. September 2013

For more information

Stacey Schulman EVP/Analytics/Research/Marketing

212-424-6512

Stacey.Schulman@KatzMediaGroup.com