Radio In The New Media Landscape

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Radio In The New Media Landscape
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New Media Choices Are Very Topical Right Now But
Their Reach Is Dwarfed By Radios Reach
Terrestrial radio accounts for about 41 of
unique visitors
Television Nielsen Annual universe estimates
2007/08 Total viewers Radio Arbitron National
Regional Database, Spring 2007 Total U.S. M-Su
24 Hour Persons 12 Cume Persons Satellite
Radio Sirius AND XM Q3 2007, Total Subscribers
Online Media Audit September 2007 total U.S.
persons online Internet Radio, MP3 Players
Arbitron and Edison Media Research, The Infinite
Dial 2007 Radios Digital Platforms
P12Podcasts Bridge Ratings August 2007, P
13Video On Demand Arbitron and Edison Media
Research, Internet and Multimedia 2006,
P12Newspapers Veronis Suhler Stevenson
Communications Industry Forecast 2007. Average
daily circulationTV, Radio, Newspaper, Podcasts
and Internet Radio are weekly reach
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In Spite of Increased Media Choices, Radio
Reaches Over 90 of The Population Each Week

• Only a 2 decrease in reach over the past three
  years
• Only a 5 decrease in reach over the past seven
  years

2003-2007 Arbitron National Regional Databasae,
Total U.S. M-SU 24 hour Persons 12 cume
rating2000-2002 RAB Marketing Guide Fact
Book citing Arbitron Radar ratings
4
Consumers Continue To Spend A Lot of Time With
Radio

• Radio ranks 2nd for time spent with media

U.S. Census Bureau, Statistical Abstract of the
United States 2007 Adults 18 for television,
daily newspapers, books, magazines, home video,
and interactive TVPersons 12 for radio,
recorded music, cinema, video games, and Internet
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Recent Studies Show That Radio Remains A Very
Relevant Medium

• An Arbitron/Edison Media Research study conducted
  in January 2007 reported that
• 79 of Americans expect to listen to AM/FM radio
  as much in the future as they do now despite
  advances in technology
• 77 of online radio listeners, 79 of audio
  podcast listeners, and 70 of satellite radio
  subscribers expect to maintain their current
  AM/FM radio listening in the future
• People who listen to digital radio platforms
  (online, satellite, or audio podcast) do not
  spend less time listening to AM/FM radio.
  Digital listeners have an AM/FM TSL of 245 per
  day compared to all listeners AM/FM TSL of 237.
  
• An American Media Services survey conducted in
  September 2007 reported that
• 74 of respondents are listening to radio the
  same or more than they were five years ago
• 74 usually turn on the radio when they get in
  the car
• 63 listen to the radio at least once a day
• An American Media Services survey conducted in
  April 2006 reported that
• 91 of respondents believe that radio is an
  important part of American life
• 78 said that radio is important in their
  everyday lives
• 74 reported that they listen to radio at least
  once a day
• 78 said that they usually turn on a local radio
  station when they get in their car
• 37 of those who have a favorite media
  personality in their market said that personality
  worked on the radio compared to 32 for TV

SOURCE www.americanmediaservices.com
www.arbitron.com http//www.paragon-research.com
/
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Rock Radio Listeners, Typically Quick To Adopt
New Technology, Havent Given Up Traditional
Mediums

• The most important new feature that rock
  listeners want in their next personal mp3 player
  is an FM tuner
• Two of the top four options for the one thing
  rock listeners couldnt live without were
  traditional mediums TV and FM radio
• Satellite radio growth has stalled among rock
  listeners with subscribership unchanged from 2006
  to 2007. Potential interest among
  non-subscribers has also declined since last year

Jacobs Media Tech Survey III February/March 2007
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Traditional Radio Remains Relevant Among Kids
Most of the people I know who own iPods are
under 25, and they still listen to the radio.
Why? Because thats still a place where people
go to hear their favorite music, and its still a
place to go to hear about fun shows and contests
and promotion. The iPod is a nice gadget, but
where are you going to go when you want to win
tickets to see Usher? Youre going to go to
Channel 93.3, because your best friend said they
were giving away Usher tickets on A.J.s
Playhouse. Adam Jacobson, radio
editor for Radio Records Dont forget,
teenagers are really looking for a sense of
community, and thats one thing that local Radio
stations can really provide. Radio is, believe
it or not, one of the top ways to reach teens
that weve found in our research. We asked
teens How would you recommend that companies
advertise to reach people your age? Radio was
the number two answer on our list, just behind
television. Michael Wood, VP of Teenage
Research Unlimited Children and teens are
spending an increasing amount of time using new
media like computers, the Internet and video
games, without cutting back on the time they
spend with old media like TV, print and music
Instead, because of the amount of time they spend
using more than one medium at a time, theyre
managing to pack increasing amounts of media
content into the same amount of time each day.
Generation M Media in the Lives of
8-18 Year-olds , Kaiser Family Foundation, March
2005


Karla Peterson and Mark Sauer, Radio Singing A
New Tune, The San diego Union-Tribune, April 13,
2005RAB White Paper Teen Market 2002
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Old Media Still Have The Highest Usage Among
Kids
Young peoples use of new media such as
computers and video games does not seem to
displace their use of old media such as
television and music. Indeed, it seems
instead that media use begets media use those
young people who spend the most time using
computers or playing video games also spend more
time watching TV and listening to
music. Todays youth are masters of
multitasking. About a quarter of the time young
people are using one medium, theyre doing
something else media-related at the same time.
Generation M Media in the Lives of 8-18
Year-olds , Kaiser Family Foundation, March 2005
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Why Is Radio A Good Choice In This New Media
Landscape?

• Targetability Radio is a highly targeted
  medium with a variety of special formats that
  uniquely target an advertisers potential
  customers. Programming and personalities attract
  large audiences within specific demographic
  groups that stay tuned in for long periods of
  time.
• Immediacy Radio is the shoppers companion,
  reaching consumers near the point of purchase.
  Consumers typically spend more time with Radio
  than with any other medium during prime shopping
  hours. In any 24 hour period, 63 of adults ages
  25 to 54 are exposed to Radio within one hour of
  making their largest purchase of the day. (RAB
  Marketing Guide Fact Book, 2004-2005).
• Emotional Appeal Radio is an imagination
  medium, using the mind of the listener to create
  unique, evocative and effective images on a very
  personal level. Everyone has a favorite radio
  station which provides advertisers a unique
  opportunity to connect with consumers in a
  personal and generally private activity which
  results in a high degree of listener receptivity.
  Advertisers can create a one-to-one relationship
  with listeners which is so critical for breaking
  through the media clutter.

Radio advertising can spring forth a world of
visions in the mind and connect your product to
the consumer with that personal touch. The
Power of Radio, Kim Vasey, Senior VP/Director of
Radio at Mediaedgecia Mediaweek, August 23, 2004
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The Radio Ad Effectiveness Lab (RAEL) Study,
Personal Relevance, Personal Connections, How
Radio Ads Affect Consumers, Highlights Radios
Unique Emotional Appeal
The research firm WirthlinWorldwide conducted a
study on behalf of RAEL in 2004 to better
understand how consumer perceptions of radio
advertising might differ from those of TV and
newspaper ads. The study had two phases, a
qualitative phase to understand the values and
benefits lexicon used by consumers in discussing
media advertising, and a quantitative survey to
better quantify the architecture of consumer
relationships to advertising. Phase One was
conducted using focus group interviews with
adults aged 18-54 while Phase Two utilized a
random sample survey methodology resulting in a
completed sample of 662 adults. The studys
results, as summarized by RAEL, are below.

• Radio listening is a one-on-one and
  emotions-driven experience, and listeners believe
  that both the medium and its advertising are more
  relevant to them (compared to television and
  newspapers)
• Consumers see television and newspapers as being
  designed to satisfy the masses, but radio is
  where they turn to get gratification of their
  personal wants and needs.
• Consumers believe that their radio programs
  carry ads which are appropriate for them as
  individuals, and listeners are therefore more
  ready to react at an emotional level if the
  advertisement is well suited for that programs
  context.
• The ability of radio advertising to make
  personal, emotions-driven connections with
  listeners helps explain why radio can be so
  effective when the advertising is done well and
  placed appropriately.

The Radio Advertising Effectiveness Laboratory
(RAEL) was created in 2001 by advertisers,
agencies and radio companies as an independent
organization to research the effectiveness of
Radio advertising in the U.S.
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In The RAEL Personal Relevance Study, The
Following Statements Were Shown To Be More
Closely Associated With Radio Than With Television
Ads
Consequence/Benefit of Ads
Advertisers
The Radio Ad Effectiveness Lab (RAEL) 2004 Study,
2Personal Relevance, Personal Connections, How
Radio Ads Affect Consumers
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In The RAEL Personal Relevance Study, The
Following Statements Were Shown To Be More
Closely Associated With Radio Than With Newspapers
Ads
Consequence/Benefit of Ads
Advertisers
The Radio Ad Effectiveness Lab (RAEL) 2004 Study,
2Personal Relevance, Personal Connections, How
Radio Ads Affect Consumers
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Adding Radio To The Media Mix Benefits
Advertisers Due To The Synergy Effect
The recent RAEL study, The Benefits of Synergy
Moving Money Into Radio revealed the following

• Substituting two Radio ads for one of two TV ads
  increased unaided brand recall by 34
• Substituting two Radio ads for one of two
  newspaper ads almost tripled unaided brand recall
• Substituting one of two television or newspaper
  ads with two Radio ads resulted in more people
  choosing the advertised brand as their first
  choice product, and consumer playaback of main
  message was as good if not better than stand
  alone television or newspaper

RAEL STUDY, THE BENEFITS OF SYNERGY MOVING
MONEY INTO RADIO, 2005
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RAELs Key Implications For Advertisers Include

• Integrating Radio increases consumer impact
  without increasing costs against effectiveness
  measures including brand recall, message
  playback, and persuasion
• Redeploying a portion of the budget into Radio
  appears to make marketing sense
• A synergy mix with Radio was shown to work across
  five product categories providing validation for
  increased usage within current/pending campaigns.
• Radio effectively communicates a message that can
  be received, remembered and played back by
  consumers.
• Radio is known to be powerful in isolation but is
  also significantly potent in media mix settings.
• Research demonstrates Radios ability to extend
  reach, and is an important way to communicate
  with consumers already reached by television and
  newspapers. Radio is more than a supplement.
• Its not about spending more. Its about more
  wisely investing what you have.

Click here to read the full study
http//radioadlab.com/library/rael_benefits_of_syn
ergy.pdf
RAEL STUDY, THE BENEFITS OF SYNERGY MOVING
MONEY INTO RADIO, 2005
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Radio Can Boost An Advertisers ROI
In June 2005, The Radio Ad Effectiveness lab
(RAEL) released its third and largest real
world study, Radios Return On Investment
Compared To Television. The study, conducted
by Millward Brown and Information Resources, Inc.
(IRI), examined four pairs of radio and
television campaigns in a range of product
categories over a six month period. Scanner
sales data from product categories included
Grocery Food, Grocery Non-Food, and two
Over-The-Counter Drug products.
The studys key finding Incremental radio
campaigns showed significantlybetter ROI for the
advertisers than did their national television
campaigns.
RAEL STUDY, RADIOS RETURN ON INVESTMENT COMPARED
TO TELEVISION, JUNE 2005
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Specifically, Incremental Radio Delivered 49
Better Return On Investment Than The
Corresponding National Television Campaigns
All radio ads were 30s Radio ads were not
pre-tested as were thetelevision ads. We would
expect that better radiocreative with
pre-testedads would result in an evenhigher
radio ROI.
Radio Overall Radio in the presence of TV and
in the absence of TV TV Overall Television in
the presence of Radio and in the absence of
Radio TV Historical Average Historical
estimates of TV ROI from the participating
advertisers
RAEL STUDY, RADIOS RETURN ON INVESTMENT COMPARED
TO TELEVISION, JUNE 2005
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RAELs Implications For Advertisers Follow

• Radio moves product. Across four different
  advertisers, incremental radio advertising
  consistently and significantly increased product
  sales and delivered meaningful profit for each
  dollar of advertising. Radio demonstrated in
  this study that it can function as a primary
  medium for advertising.
• Radio ads increase sales even when national
  television is present. Radio was just as potent
  in the presence of 50-100 Target Rating Points
  (TRPs) of national TV as it was by itself. In
  fact, the test results actually suggested
  slightly more impact for radio when combined with
  television than when used alone.
• Radios effects can be measured when radio is
  used at sufficient weight. Radio is prepared to
  be held accountable for its advertising
  effectiveness. But effectiveness measurement
  requires that advertising be present at
  sufficient weight for statistics to accurately
  capture that result.
• Most importantly Radios ability to deliver
  strong Return on Investment for advertisers has
  been proven in a real-world test at last. In
  this study, radios ROI was 49 better than
  televisions, and radio advertisings value is no
  longer just speculation.

Click here to read the full study
http//www.radioadlab.org/library/rael_radios_roi_
advantage.pdf
RAEL STUDY, RADIOS RETURN ON INVESTMENT COMPARED
TO TELEVISION, JUNE 2005
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Radio Continues To Reinvent Itself Proving Once
Again That Theres Nothing Old About Radio

• Having existed for more than 80 years, radio has
  met the challenge of new forms of audio delivery
  on numerous occasions and managed to remain a
  very competitive and profitable form of
  media.Harris Nesbitt analyst Lee Westerfield,
  October 8, 2004

• High Definition (HD) radio allows broadcasters
  compete on the digital playing field of the 21st
  century.
• Podcasting provides an on-demand product for
  radio.
• Internet streaming of terrestrial broadcasts
  keeps radio top-of-mind when listeners are
  on-line.
• Innovative online programs such as Clear
  Channels Stripped online concert series by
  major artists such as Rob Thomas and Jesse
  McCartney provide unique and original content on
  its radio station websites.
• Clear Channels Less Is More initiative is
  improving the radio environment for both
  listeners and advertisers by reducing the clutter
  on all CC radio stations, and by improving the
  quality of commercials through Clear Channels
  newly created Creative Services Group.
• Electronic audience measurement promises to
  provide more accurate audience measurement,
  showing radio as the reach vehicle that it is.
  It is designed to measure the emerging digital
  broadcasts, whether carried over the air, by
  cable, by satellite or on the internet.

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What Exactly Is HD Radio?

• HD Radio provides digital broadcasts with AM
  stations sounding as full-bodied as FM stations,
  and FM stations sounding like compact discs
  without static, hiss or signal fades.
• HD Radio has been called one of the most
  significant advances in over-the-air AM and FM
  broadcasts since the introduction of FM stereo.
• The majority of people select a radio station
  for its music selection, and research suggests
  that lower radio usage is due to listeners
  desire to hear more musical diversity.
• Once radio stations cease to broadcast in
  analog, it will be possible to have two to three
  additional radio stations per frequency, enabling
  the broadcaster to create niche formats for its
  stations. For example, a news/talk station could
  have a signal broadcasting business news while a
  third signal broadcasts technology news. A
  Classic rock station could have a second signal
  broadcasting entire albums from 70s rock artists
  while a third signal broadcasts cutting edge
  adult alternative artists. This will allow
  terrestrial radio to increase its program
  offerings and eliminate the advantage that
  satellite radio has with its niche formats.

BRIDGE RATINGS INDUSTRY ESSAY iPOD RESEARCH
FIRST LOOK JANUARY 2005RADIO TELEVISION NEWS
DIRECTORS ASSOCIATION FOUNDATION, THE AMERICAN
RADIO NEWS AUDIENCE SURVEY, RADIO IN TODAYS NEWS
MEDIA MIX, www.rtnda.orgiBIQUITY website,
www.ibiquity.com
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• Data delivery services including scrolling text
  with song titles and artist names, plus on-demand
  traffic updates, weather, sports scores, stock
  updates, breaking news, etc. Future
  developments include an interactive component
  with a push to buy button.
• In the Summer of 2004, Clear Channel
  Communications began an aggressive rollout of
  digital broadcasting equipment to 1000 stations
  which over a two to four year period is part of
  an overall effort to upgrade its radio
  technology, It is projected that by 2008 over 90
  of the U.S. population will be reached by an HD
  station.
• The HD Alliance, a joint initiative among the
  major broadcast companies, was announced in
  December 2005 to accelerate and coordinate the HD
  rollout, to promote the technology, and to ensure
  compatible format selections in each market.
• The initial HD rollout began in January 2006 in
  28 markets. By May 2007, the HD and HD2
  multicast rollout was completed in the top 100
  markets. There are currently over 1000 radio
  stations broadcasting in HD with approximately
  700 multicasting. They program a variety of music
  or talk formats with member broadcasters
  responsible for programming each of their
  multicast channels. The HD2 multicasts will
  either complement existing on-air programming or
  introduce brand new music or talk formats

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• The Alliance committed 200 million to promote
  HD radio in 2006 , 250 million in 2007 and 230
  million in 2008, positioning HD radio to be the
  nations largest radio advertiser. Ads for the
  technology will be tied to promotions for digital
  radio receivers and radio retailers
• Clear Channel Radios Creative Service Group has
  created format-specific on-air spots for any
  broadcaster to use entitled Are you Def yet?
  www.AreYouDefyet.com
• The Alliance is working with retailers, consumer
  electronic manufacturers and automakers to
  develop and distribute economical HD radio
  receivers
• Established www.HDRadio.com, a website that
  provides information about the technology, where
  HD2 channels are currently operating, and links
  to HD radio receiver retail outlets
• Clear Channel was the first of several radio
  broadcasters to sign a licensing deal with Apple
  which will allow listeners to tag music on
  their stations and later purchase those songs on
  iTunes. Broadcasters will encode their stations
  and HD side channels.

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• MSN Direct HD
• Clear Channel and Microsoft are collaborating on
  a nationwide data delivery service using HD Radio
  technology, providing personalized and localized
  content to a variety of HD Radio receivers and
  in-car navigation units.
• An extension of Microsofts existing MSN Direct
  service which transmits information including
• traffic
• weather
• news alerts
• music new
• movie times
• sports and stocks
• Expected launch is 2008

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Keeping up with the MP3 Generation

• Podcasting has grown rapidly over the past few
  years
• An estimated ten million people downloading and
  listening to podcasts weekly
• An additional twenty-two million listen to
  podcasts in a typical month
• Twenty million weekly podcast listeners are
  projected by 2010
• Over 400 Clear Channel stations are podcasting in
  more than 130 markets with nearly five million
  pieces of content delivered in the first half of
  2007.
• Top Clear Channel podcasts are on the following
  stations KLAC-AM, KZZP-FM, WHTZ-FM, WEND-FM,
  KFI-AM, and KNEW-AM
• The ad-supported podcasts will be free to
  listeners, enabling them to download portions or
  popular programming.

Bridge Ratings June 2007 Arbitron/Edison Media
Research, The Infinite Dial 2007 Radios
Digital Platforms Akami/WebSideStory, 5/27/07
6/2/07
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Clear Channel Online

• Approximately 10 million people visit our
  websites per month
• 12.1 million member database of active radio
  listeners
• Over 600 streaming stations reaching a cumulative
  audience of 1.4 million people per week
• Clear Channel streaming network ranks 3rd for
  online radio listening, behind Yahoo
  Music/LAUNCHcast and AOL
• More than 4 million on-demand plays a week
• Google Search exclusive deal with Google
  provides listeners with the ability to search
  using Google without leaving the stations
  website. Nearly 1 million searches a week on our
  websites
• Clear Channel has hired full-time online managers
  in three markets New York, Chicago and
  Rochester.

Nielsen-NetRatings April 2007 Comscore
Arbitron Online Radio Ratings August 2007
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CCOMR On Demand Offerings

• Stripped Unique content in an on-demand
  environment
• A weekly in-studio performance series created for
  artists who thrive on performing without the
  typical studio and video embellishments. Shot
  with four cameras in an intimate studio.
• Stripped features todays true musical superstars
  including John Legend, Rob Thomas, Jewel, James
  Blunt, Hoobastank, and Brad Paisley. More than 40
  artists have participated.
• Each Stripped session features an interview
  with the artist as well as audio and video of the
  artists performance. Weekly audience of
  500,000 http//www.strippedmusic.com/

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Videos On Demand

• Largest video on demand offering in the radio
  industry
• 5K videos from Eminem to Johnny Cash, including
• Music videos
• Exclusive live performances
• Interviews
• Artist home videos
• Behind the scenes footage
• Available across all music websites
• Preceded by a 15 Video pre-roll
• Over 750,000 videos played each week

• http//www.jamn.com/cc-common/videos_on_demand/

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• Sneak Peek Exclusive music on-demand
  before its available anywhere else.
• Participating artists include Bruce Springsteen,
  Rihanna, Godsmack, Toby Keith, Bon Jovi, Eric
  Clapton, Backstreet Boys, and Paul McCartney.
• Most recent artist is Jay-Z whose newest album,
  Kingdom Come, is available now on over 220
  Clear Channel station web sites before its
  official release
• Average of 100,000 listening occasions for each
  Sneak Peek
• http//www.clearchannelmusic.com/cc-common/mfeatur
  es/tobykeithOD/

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• New! Uses the strength of our local radio
  brands to introduce audiences to new and
  developing artists early, before songs are on
  radio. Listeners choose from hundreds of songs
  and videos on-demand.
• 150 artists featured, 50 unsigned
• Exclusive home videos from featured artists
• NEW! Success stories include
• James Blunt (1.9 million albums sold)
• Ne-Yo (debuted at 1 on Billboard album chart)
• Teddy Geiger (Top 40 hit, nearing Gold)
• Rihanna (Top 40 hits, Gold)
• Fort Minor (Top 40 hit)
• Josh Turner (debuted at 1 on Billboard Top
  Country Albums Chart)
• Accessed at www.clearchannelmusic.com/new or
  through a Clear Channel station website.
  Launched January 31, 2006
• In-Concert Live On Demand Features live
  performances from todays and yesterdays hottest
  artists. Every genre, every generation, from
  BCGBs to the EnormoDome. In-Concerts have
  included Motley Crue, Iggy Pop, Norah Jones, Ozzy
  Osborne and Jack Johnson. http//www.z100.com
  /cc-common/inconcert/

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eChannelMusic.com

• Launched January 2, 2007
• 8,000 unique visitors per month
• Clear Channels first exclusive online station
  not supported by an on air dial position
• Interactive Adult Alternative online radio
  station with artists from the 80s and 90s
• Allows audiences to engage in interactive
  features and get directly involved in programming
  the station. Using state-of-the-art mobile
  Digital Studios, listeners can
• choose the songs they want to hear
• record their voice and play DJ
• upload audience profiles
• participate in weekly online music testing
• record elements for station imaging
• Sponsorships available
• Be a DJ for an hour client specific name
  recognition and client exclusive commercial hour
• Audio/video components
• Mobile studio rights broadcasting live from
  the eChannelMusic, Coca-Cola Studio

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Social Networking

• Social networking site fostering interactivity
  and community for radio station listeners
• Listeners can
• create a blog
• create a profile
• share user generated content
• share exclusive Clear Channel on-demand content
• post messages
• live chat
• Link to networking site from station website.
  Initial stations include
• KHKS, Dallas CHR
• KTBZ, Houston Alternative Rock
• KIIS, LA CHR
• WKSC, Chicago CHR
• KYLD, San Francisco Rhythmic CHR
• KDWB, Minneapolis CHR
• WHTZ, WWPR, New York CHR, Urban Contemporary
• WFLZ, Tampa CHR

As our new Tech Poll III clearly shows,
social networking sites like MySpace are highly
used destinations. Roughly half of Rockers are
active or occasional Participants. Even nearly
four of ten Classic Rockers spend
significant Time on social networking Sites,
thus validating the need to stay current,
visible, and make lots of friends. Jacobs
Media 2007
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Clear Channel Moves To Wireless
Move over satellite radio. A new breed of
subscription radio services is about to take
flight on cell phones. (Mediaweek, January 3,
2006, Motorola Rivals Satellite Radio With iRadio
by Katy Bachman ,)

• mSpot Radio
• CC streaming eight sports stations since May 2006
  to subscribers of Sprint and U.S. cellular who
  carry mSpot compatible phones
• Music programming from ten Clear Channel stations
  is now available on mSpots radio services
  through Sprint and U.S. Cellular (March 2007)
• WHTZ New York
• WWPR New York
• WGCI Chicago
• KHHT Los Angeles
• WMIB Miami
• Five commercial streams including four Hispanic
  and one Urban format from the Format Lab
• Plans to distribute one hundred Clear Channel
  stations on mSpot

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Z100 Mobile

• Relaunch of Z100 Mobile Initially had been
  subscription based, available on Cingular phones.
  Now its free and available on all phones and
  works on nearly every carrier
• Interactive
• Listeners can
• have access to podcasts of popular station
  features
• request songs, be notified 15 minutes prior to
  song airing
• get on demand traffic reports,
• view the title and artist of the last ten songs
  played
• text the jocks
• dedicate a song
• Enter to win contests
• Plan to launch similar programs in the next
  twelve months

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Other CC Technology Initiatives

• April 2007 deal extends radio advertising to
  Googles online advertisers, most of whom have
  not previously bought radio
• Own a Radio Station Advertiser owns
  specific hours of programming
• No commercial stop sets
• All Spots live and seamlessly integrated into
  fabric of the station
• Involved in all station promotions
• Clear Channel Total Traffic Network
• Real-time traffic information to all 2007 BMW
  models
• No subscription fee unlike most in-car navigation
  systems
• Content for Navigons navigation devices
  (MobileNavigator brand) in 125 metros. Service
  will be incorporated as a standard feature with
  no extra charge for users.
• Content will be available on Nextel or Sprint
  phones
• Clear Channel will be providing news, traffic and
  sports for a Blackberry application in the 25
  largest markets
• Satellite Radio
• CC owns 10 of XM
• Programming 10 channels on XM

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Less Is More Is Creating Better Radio
Clutter is a major issue in our industry and our
decision to limit the amount of commercial time
and length of breaks, while reducing promotional
interruptions, will benefit listeners,
advertisers and the industry as a whole.
John Hogan, CEO Clear Channel Radio

• Clear Channel Radio has placed a new and
  significantly lower ceiling on the number of
  commercial minutes that are aired per hour as
  well as the length of each spot break and the
  number of units in each break. These unit and
  spot loads apply to every Clear Channel Radio
  station across the country effective January 1st,
  2005. There are no exceptions.
• Each spot break has no more than four minutes of
  commercials or no more than six units. This
  includes local, national, network and barter
  anything that has revenue attached to it.
• Clear Channel Radio Station promotional clocks
  were adjusted to a maximum of 2 minutes per hour
  effective October, 1st, 2004.
• All Clear Channel stations are running three
  shorter breaks per hour instead of the
  traditional two long breaks.
• Advertisers have the option of buying 60s,
  30s, or 15s in a first in pod, last in pod or
  island position.

35
Clear Channel Leads The Industry In Running Fewer
Minutes and Units
57 of radio listeners report that they would
increase their radio listening time if they felt
that the number of commercials was noticeably
reduced. Clear Channel is currently running 17
percent fewer commercial minutes and 8 fewer
units than the industry average
PARAGON MEDIA STRATEGIES, COMMERCIAL LOADS
IF A COMMERCIAL FALLS IN THE FOREST, WILL ANYBODY
(NOT) HEAR IT? Media Monitors November 26,
2007 6A-7P Top 10 markets
36
What Do Listeners Think of Less Is More?

• A research study among commercial radio listeners
  conducted by Burke, Inc. and released in January
  2005 showed the following
• Listeners exposed in the test to a Less Is
  More radio clock noticed
• Fewer commercials and shorter commercial breaks
• More music being played
• Shorter commercial breaks, shorter commercials,
  and fewer commercials relative to their favorite
  station
• The Less Is More clock with three breaks
  tested the best among the three clocks tested
  (traditional spot load w 3 breaks lightened spot
  load w 3 breaks lightened spot load w 2 breaks)

According to the 2005 Spot Load Study by Arbitron
and Edison Media Research, listeners prefer more
frequent, shorter commercial breaks as opposed to
long blocks of programming with long blocks of
commercials. 57 reported preferring stopping
three times an hour for a commercial break
compared to 34 who preferred stopping two times
an hour.
LESS IS MORE RESEARCH, BURKE, INC. JANUARY
2005 ARBITRON/EDISON MEDIA RESEARCH SPOT LOAD
STUDY 2005 MANAGING RADIO COMMERCIAL
INVENTORIES FOR ADVERTISERS AND LISTENERS
37

The Burke Study Also Showed That 30s and 15s
Can Be Just As Effective, And As 60s

• Ad recall, a measure of effectiveness, appears
  to be related to other factors than commercial
  length.
• a 15 traffic sponsorship and two other shorter
  length spots were all in the top third of
  recalled spots
• Many nationally advertised and familiar brands
  using 60s did not out-perform commercials of
  shorter length.
• Of all the ads tested, on average, a 30 ad had
  74 of the recall of a 60 ad
• On average, a 15 ad had 94 of the recall of a
  60 ad
• On average, 15 and 30 ads had 82 of the
  recall of a 60 ad

LESS IS MORE RESEARCH, BURKE, INC. JANUARY 2005
38
What Are The Advantages For An Advertiser?
TM

• A less cluttered environment means
• Better radio listeners are never more than
  four minutes away from content
• Stronger TSL - More listeners who listen longer
• A cleaner environment for our advertisers
  messages to be showcased
• More opportunities for spot placement within a
  spot break. Taking the first or last spot in a
  pod makes sure the advertisers message is always
  close to programming content. An advertiser also
  has the option of Island placement with a 60,
  30 or 15 depending on the market and station
  clock..
• More opportunities in length of commercials,
  15s, 30s, or 60s, Blinks or Adlets for
  specific campaigns (e.g. branding, educational,
  calls to action)
• Ability to increase reach and frequency with the
  same dollar investment by using shorter spots.
• Entry to radio for advertisers who couldnt
  afford 60s but who will be able to afford 30s
  and 15s

39
Not Only Are Clear Channel Stations Airing Fewer
Commercials, Theyre Airing Better Ones

• Clear Channel Radio Creative Resource Group (CSG)
  - a new resource for advertising agencies and
  local stations, assisting them in creating
  engaging and memorable radio ads, offering
  creative coaching, online toolkits and ongoing
  direction in the creation, writing and production
  of compelling ad spots.
• Industry veterans are leading the group including
  former Clear Channel Radio VP of Creative
  Services, Jim Cook, Clear Channel Radio
  programmer Bob Case, and award winning writer Liz
  Smith.
• CSG has received numerous awards which honor
  excellence and recognize the creativity of
  marketing and communication professionals
  including nine Marcom Creative Awards and three
  Communicator Awards

CSGs new web site, http//www.betterradio.net/,
is a resource for advertisers including client
success stories, commercial examples, Less Is
More Q A, and research.
40
The Format Lab

• Formed a Content Research Development Group to
  create compelling formats for Clear Channel and
  other broadcast companies HD2 channels
• Project 75 An initiative to develop 75 new
  formats, Additional formats are already being
  created.
• Blues Channel (Blues fresh today and legends
  of yesterday)
• Classica (Classical music for everyone)
• Full Metal Racket (Hard rock and heavy metal)
• Relaxation Channel (Soothing sounds of nature,
  peaceful prose, and meditation exercises)
• Workout Channel (30 minute cardio workout mix)
• Sirens (All female artists who are on the
  cutting edge of todays music)
• Debuting a Clear Channel online portal to the
  Format Labs channels in summer 2007. 15
  second pre-roll commercial
• Will include
• All CC streaming terrestrial stations
• HD side channels
• Format Lab channels

41
Electronic Measurement Means Better
Accountability

• In June 2005, Clear Channel Radio issued a
  Request for Proposals to create a
  state-of-the-art radio ratings system to
  accurately represent radios true performance and
  value to advertisers. An electronic measurement
  system would provide a multi-media measurement
  system including broadcasts carried over the air,
  by cable, satellite or on the internet. It can
  also measure audio from time shifted devices
  such as DVRs and ad insertion technologies.
• Two markets are currently using electronic
  measurement (Arbitrons Personal People Meter
  PPM) for radio ratings Houston and
  Philadelphia. Arbitron plans to convert the top
  ten markets to PPM currency by the end of 2008.

42
Electronic Measurement Implications for Radio

• The PPM results in higher daily and multi-week
  cume for radio, showing radio to be much more of
  a reach medium than traditionally thought.
• Erwin Ephron, father of recency planning and
  partner at media consultancy Ephron, Papazian
  Ephron, Inc., notes that when radio is planned
  differently, especially with the help of the new
  Arbitron PPM data, it is an ideal reach medium.
• Using data from Arbitrons Philadelphia test of
  the PPM, Ephron showed that using more stations
  and days with lower weekly weight per station
  turns radio into a highly competitive reach
  medium.

The Ephron Letter, June 2005, Reach Trumps
Frequency How Radio Can build Business in A PPM
World
43
In Summary, Radio Remains One Of The Top Media
Choices Among Americans Dont Fall For The
Radio Myths Remember

• Radio still reaches over 90 of the population
  each week
• Radio still consumes a lot of peoples time each
  week
• Radios reach dwarfs that of new media such as
  satellite radio and digital music players
• Consumers of digital radio are still listening to
  broadcast radio
• Kids use of old media is not displaced by new
  media due to their multi-tasking capabilities
• Radio remains the 2nd most used medium among
  children 8-18 on a typical day
• Radio is the medium which has a unique emotional
  connection to consumers
• Advertisers enjoy a synergy effect when radio is
  added to television or newspapers in an ad
  campaign
• Radio can boost an advertisers ROI, and has been
  shown to deliver nearly 50 better return on
  investment than television
• Radio is on the cutting edge of technology with
  HD, podcasting, internet streaming, custom online
  programming, social networking, mobile radio, and
  a move toward electronic measurement
• Clear Channel Radio is taking the lead in
  creating a better listening environment for both
  listeners and advertisers through its Less Is
  More initiative, Creative Services Group, Format
  Lab, and Online initiatives.

The NABs new new ad campaign says it best
Radio. You hear it here first.