2004

1
2004
2
Where Does the Time Go?
And how lack of control over it changed us?

• Take a look at a typical day. Have consumer
  behavior patterns changed markedly in the past
  few years and why?
• What have we had to change in order to cope?
• When and how do people make purchasing decisions?
• Has that affected attitudes toward advertising?
• How has that affected peoples media
  accessibility whats possible, where are we?
• What is time poverty and how can it affect
  communications strategies?

Theyre right. Timing is everything.
3
Changing Workforce
In the Total U.S.--

• In 1960
• 38 of all women work, but few women with young
  children go to work
• 61 of families are nuclear
• Majority of families have only one worker
• Majority of families have only one vehicle
• America was neighborhood centric
• We had Mass Media and small, segmented
  neighborhoods

• In 2000
• 61 of women work, including two-thirds of women
  with children under 6.
• Between 63 and 74 of Women 18-54 in any of the
  top 60 markets work part or full time.
• Between 55 and 62 of Hispanic women 18-54 work
  full or part time.
• 25 of all family households in America are
  headed by a woman alone
• 67 of families are NOT nuclear
• Shift to dual-earner families, higher income
  households, and one vehicle per worker
• We have small, segmented mediaand few
  geographical neighborhoods.

Source U.S. Census from June 2003, Report by
Nancy McGuckin, Travel Behavior Analyst Nanda
Srinivasan, Cambridge Systematics Inc. Horowitz
Associates, Inc Hal Kapp in American Way
1-15-2004 Scarborough data on 60 markets from
2003 Summary
4
The number of commuters has increasedthe number
of roads really has not.
Millions of Workers commuting by POVU.S. Census
(Personally operated vehicles)
We drive 3,175 more miles, or 36 more each year
than in 1980.(Energy Information Administration
Monthly Energy Review, Oct 2002)
Source U.S. Census and the National Household
Travel Survey, June 2003.
5
Crowded Roads Extend Drive Time
The average distance to work is longer, and its
taking longer to get there.
Source NHTS, Alan Piarski, reported in USA
Today May 19, 2004.
6
A Real Shift to Longer Commutes in the U.S. means
more time out of home
A 20 increase in commutes over 30 minutes one
way and a30 increase in commutes over 45
minutes one way
The average annual delay per peak road traveler
climbed from 24 hours in 1982 to 62 hours in
2002 in top 11 markets.
Source U.S. Census. Texas Traffic Institute 2004
report
7
Time Spent in Slow Lane Increases
Congestion Growth Trend Increased Sharply from
2001 to 2002
Source Texas Traffic Institute 2004
8
You Get the Picture

• There are now three sure things
• Death
• Taxes
• Traffic

And youd better believe thataffects where and
how we spend our time.
9
On Average, People Spend More Than 15 Hours Per
Week In-Car
Total Time Spent In-Car (as Driver or Passenger)
During (HoursMinutes)
Nearly 14 of Waking Hours
Base Currently Drive/Ride In Cars
Source Arbitron Edison NAB In Car Study October
2003.
10
To cope, we change lifestyle patterns we leave
home earlier than ever before.
A new AP report released 7/1/2004 reported the
same findingspeople are Leaving home earlier to
cope with increased traffic.
What time do you usually leave home to go to
your primary job?
Nearly 65 of workers leave home before 8AM
Base Work Outside the Home
Source Arbitron Edison NAB In Car Study October
2003.
11
We begin to see the consequences

• of women working and traffic growing and
  increased travel, on all people.
• We leave home earlier and stay away longer.
• We sleep one hour less each night than we did in
  1970.
• We work 8 hours more each week than in 1973.
• Two-parent families are working 700 more hours
  annually than 20 years ago.
• Were spending more time, and more of our time in
  vehicles. Is that just because of increased
  traffic congestion? Or is something else
  different?

Source Labor Dept 2003.
12
Last Minute Living
Well, the daily tasks didnt go away. They
actually increased. We just do them at a
different time. Welcome to the result of time
poverty the daily phenomenon called Plan
B Where we live our lives with last minute
planning.
13
Nationwide, since 1990 the average American added
more recreation, errands and shopping than work
trips.
When do we make those additional trips?
In Los Angeles the average person makes 3.5 trips
per day, but only 1.1 of those happens in the
morning.
Source Arbitron/SCBA Los Angeles DMA Lifestyle
Study Released February 2002 and NHTS Data
Series, June 2003.
14
All Vehicles in Motion The Changing Peak Period
American are spending more time in travel.
Source NHTS 2001
15
Look at the In Car Listening Patterns in
Different CitiesAQH Comparison
Market after market, the same factors affect how
we are able to live our lives.
Source Arbitron, Fall 2003, DMA Ratings
Estimates, Persons 12.
16
Shopping tasks have shiftedbeen shoved-- into
the Commute Home
In the course of a typical workweek, how often
do you shop? Adults 18
16
22
62
64
Base Work Full/Part Time
Source Arbitron Edison NAB In Car Study October
2003.
17
It is more and more critical for retailers to
reach people in their vehicles
Retailers were the first to recognize and adapt
to the changes in our lifestyles and purchasing
patterns.
18
What has changed since the 80s?

• Big Box stores
• Cross over goods in drug stores, grocery stores
• Take Out Delis in grocery stores
• Curb delivery of food to go
• Fax Machines
• Voicemail
• Personal Computers (remember typewriters?)
• The internet
• Email
• eBay or Amazon.com
• Cell phones
• 30 fewer POV commuting to work
• We had neither the need nor the opportunity
• to live a Plan B existence.

19
More purchasing decisions are being made last
minuteoften under stress
In general, when do you usually make the
decision to stop at a store on your way home from
work?
Notice that they all add up to about 90 or more.
Base Work Full/Part Time
Source Arbitron Edison NAB In Car Study October
2003.
20
The consequences become clearer

• of women working, travel and traffic growing.
• Weve added more trips to each day.
• Whats for dinner? is one of the most
  stress-inducing phrases there is. And it comes
  up everyday. Usually on the way home, when we
  dont have a clue as to the answer or how to come
  by it.
• The Culinary Institute reported that by 1998, at
  4PM on any day 78 of people didnt know what
  they were going to have for dinner.
• Were shopping, buying, deciding, especially
  about food, every day.
• Andwere making more through the windshield
  purchasing decisions.
• According to the ANA, 64 of the vacations booked
  last year were booked within two weeks of when
  they were taken.
• In fact, we are teaching consumers to move into
  the purchase patterns that are consistent with
  Plan B, or Last Minute Living.

21
Where do we make these stops?
In the last month, have you stopped on your way
home from work to?
Base Work Full/Part Time
Source Arbitron Edison NAB In Car Study October
2003.
22
Workers Make Many Stopson the Commute Home
(Continued)
In the last month, have you stopped on your way
home from work to?
Base Work Full/Part Time
Source Arbitron Edison NAB In Car Study October
2003.
23
Average Number of Stops During WorkweekLos
Angeles Market
People make food-buying choices everyday.
Base Work Full/Part Time
Source Arbitron/SCBA Los Angeles DMA Lifestyle
Study Released February 2002
24
Media accessibility and selections?
25
Source Veronis Suhler Stevenson Communications
Industry Forecast as reported in the Wall Street
Journal, January 26, 2004.
Heres where V/S says well spend our media time.
Note Ages varied by survey subjectExcludes
MP3s and Internet downloading, which is included
in InternetPlayback of prerecorded VHS
cassettes and DVDs.
26
The New VSS Forecast Says Media Usage Will
Continue to Increase

• By 2008, the average consumer will spend 78 hours
  a week with mediaand Advertiser-supported media
  will decline to a 54.1 share of that time.
• Media usage will continue to be influenced by
  longer commutes and more time spent with niche
  sectors of media (niche formats, niche magazines,
  internet sites, cable programming, etc).
• Time spent with Radio will continue to increase
  32.5 of the average consumers weekly commercial
  media usage is now spent with radio.

People will continue to create virtual
neighborhoods to replace the geographical ones
they cant participate in anymore.
Source Veronis Suhler Stevenson 2004
Communications Industry Forecast, released August
2, 2004
27
What Happened to Neighborhoods

• while we were on our way to work, stuck
  in worsening traffic, focusing on last minute
  decisions that let us get through a day but keep
  us out of our homes?
• We werent around to participate in
  neighborhoods.
• So we had to find a way to replace them. A way
  to engage with other people.

28
Maslows Hierarchy of Human Needs
Abraham Maslow, 1954 (worldwide recognized
authority on human motivation)
29
What is the Level of Engagement?
One key measurement of consumer engagement is
the amount of time spent with a medium during a
typical day.
In the last 24 hours, approximately how much
time did you spend? (Mean)
Base All Respondents
Source Arbitron Edison NAB In Car Study October
2003.
30
What about Los Angeles? Adults 25-54 Time Spent
Listening

• Adults 25-54 spend over 3 hours a day listening
  to the radio.

Source The Media Audit, Los Angeles,
August-September 2003, Adults 25-54. Note
outdoor is based on miles driven per day.
31
What about San Francisco? Adults 25-54 Media
Time

• Adults 25-54 spend almost 3 hours a day listening
  to the radio.

Source The Media Audit, San Francisco, April-May
2003, Adults 25-54. Note Outdoor is measured by
miles driven per day.
32
What about Dallas? Adults 25-54 Media Time

• Adults 25-54 spend almost 3 1/2 hours a day
  listening to the radio.

Source The Media Audit, Dallas/Ft. Worth, TX,
July-August 2003, Adults 25-54. Note outdoor is
based on miles driven per day.
33
What about Detroit? Adults 25-54 Time Spent
Listening

• Adults 25-54 spend over 3 hours a day listening
  to the radio.

Source The Media Audit, Detroit, MI, December
2003/January 2004, Adults 25-54. Note outdoor
is based on miles driven per day.
34
What about Sacramento? Adults 25-54 Time Spent
Listening

• Adults 25-54 spend over 3 hours a day listening
  to the radio.

Source The Media Audit, Sacramento, June-July
2004, Adults 25-54. Note outdoor is based on
miles driven per day.
35
What about Sacramento? Adults 18-34 Time Spent
Listening

• Adults 18-34 spend almost 3 ½ hours a day
  listening to the radio.

Source The Media Audit, Sacramento, June-July
2004, Adults 18-34. Note outdoor is based on
miles driven per day.
36
What about Sacramento? Hispanic Adults 18 Time
Spent Listening

• Hispanic Adults 18 spend 2 ½ hours a day
  listening to the radio.

Source The Media Audit, Sacramento, June-July
2004, Hispanic Adults 18. Note outdoor is
based on miles driven per day.
37
What about Sacramento? Working Women Time Spent
Listening

• Working Women spend almost 3 ½ hours a day
  listening to the radio.

Source The Media Audit, Sacramento, June-July
2004, Working Women 18. Note outdoor is based
on miles driven per day.
38
What about Sacramento? Working Mothers Time
Spent Listening

• Working Mothers spend over 3 hours a day
  listening to the radio.

Source The Media Audit, Sacramento, June-July
2004, Working Mothers 18. Note outdoor is
based on miles driven per day.
39
What about Sacramento? Business
Owners/Partners/Corporate Offices Media Time

• Business Owners/Partners/Corporate Officers spend
  almost 4 ½ hours a day listening to the radio.

Source The Media Audit, Sacramento, June-July
2004, Adults 18. Note outdoor is based on
miles driven per day.
40
What about Sacramento? Adults 18 Who Plan To Buy
Furniture Next Year Time Spent Listening

• Adults 18 who plan to buy furniture next year
  spend almost 3 hours a day listening to the radio.

Source The Media Audit, Sacramento, June-July
2004, Adults 18. Note outdoor is based on
miles driven per day.
41
What about Sacramento? Adults 18 Who Visited A
Fast Food Restaurant 3 Times In the Past Week
Time Spent Listening

• Adults 18 who visited a fast food restaurant 3
  times in the past week spend almost 3 ½ hours a
  day listening to the radio.

Source The Media Audit, Sacramento, June-July
2004, Adults 18. Note outdoor is based on
miles driven per day.
42
What about Sacramento? Adults 18 Who Plan To Buy
A Car Time Spent Listening

• Adults 18 who plan to buy a car spend almost 4
  hours a day listening to the radio.

Source The Media Audit, Sacramento, June-July
2004, Adults 18. Note outdoor is based on
miles driven per day.
43
Which medium do you spend the most time with?
Radio vs. Television - Weekday
What are the odds of reaching people?
We go with the POSSIBLE. For the most part, most
people spend more time with radio each weekday
than with any other medium.
Los Angeles Market
Source Arbitron/SCBA Los Angeles DMA Lifestyle
Study Released February 2002
44
Radio vs. Television - Weekend
Compare weekend media usage see the impact of
weekday factors. Media usage is a product of what
we are able to do more than what we want or
intend to do.
Los Angeles Market
A18 make only 3.2 trips over the weekend (1.6
per day)
Source Arbitron/SCBA Los Angeles DMA Lifestyle
Study Released February 2002, Adults 18.
45
Where Can You Find Us?

• As study after study has shown, broadcast TV
  viewership is falling, cable viewership is highly
  fragmented, people are spending less time reading
  newspapers and magazines, but listening to more
  radio and turning in ever-increasing numbers to
  the Internet.
• e-Marketing.com newsletter
• July 1, 2004

46
So where and why are we using radio?

• What roles does it play in our lives?

47
Working People spend nearly 2 hours a day in
vehicles, and over 3-1/2 hours in total listening
to radio just between 5A and 8P.Working Adults
18
Market TSL Market TSL
In car listening now accounts for 34 of time
spent listening by Adults 18.
Source Arbitron Fall 2003, DMA Ratings, Working
Adults 18. Used with permission from The
Arbitron Company. Metro Ratings 2003
Arbitron/Edison National In Car Survey
48
So, if people are spending more time in cars,
what are they doing while in them?
Using Device In-Car
Base Driven/Ridden In a Car in Last Month
Source Arbitron Edison NAB In Car Study October
2003.
49
Radio Is Overwhelmingly theDevice Most Used
In-Car
Using Device In-Car Almost All or Most of the
Times In-Car
Base Adults 18 Driven/Ridden In a Car in Last
Month
Source Arbitron Edison NAB In Car Study October
2003.
50
among all age groups
Spending Most Time with Radio In-Car
Base Driven/Ridden In a Car in Last Month
Source Arbitron Edison NAB In Car Study October
2003.
51
Radio Is Most Essential In-Car Device for a Large
Majority
If you could ONLY EVER use ONE device in your
primary car, which one device would you choose?
Adults 25
But what makes it an effective advertising tool?
Base Driven/Ridden In a Car in Last Month
Source Arbitron Edison NAB In Car Study October
2003.
52
Radio Stations are Cult Brands.

• "The one thing all cult brands have in common
  is that they understand they're not just selling
  a product or service, they're selling other
  customers to each other. When you buy a Harley,
  you're buying a ticket to a new communal
  experience.
• Its about appealing to people's emotional
  needs.

Theyre creating virtual communities.
Bolivar J. Bueno, with Matt Ragas "The Power of
Cult Branding How 9 Magnetic Brands Turned
Customers Into Loyal Followers (and Yours Can,
Too)."
53
Let us define buzz ... It is foremost a
transfer of information from someone who is in
the know to one who isnt, or if you prefer, from
the hip to the less hip. The most important
factor is whether talk crosses community lines.
Communities can be any group whose members share
some commonality, from a physical community, a
town, say, to a college fraternity, to the
patrons of a particular saloon. David
Godes Professor Harvard Business School Dina
Mayzlin Yales School of Management August 2003
Here are you new neighborhoods
Or, a Radio Stations Core Listeners
People use their radio stations to create virtual
communities.
54
Its about Connection

• People relate to media in much the same way they
  relate to other people. To feel involved, they
  must benefit from the relationship. Its about
  connecting, and its more difficult than ever,
  because people are rejecting media that fail to
  meet their specific interests and lifestyles.
• Mike Drexler
• CEO
• Optimedia USA
• Adweek, February 9, 2004

Radio stations, appointment TV programs
(American Idol), TV Talk Show Hosts (especially
Oprah) and TV news programs all connect
emotionally to consumers and provide the
opportunity for organic integration.
55
The average person spends about 75-80 of their
listening time with just 2 to 3 stations the
virtual communities where they live and
participate.
People have 18 FM preset buttons on their car
radios.
And we DO connect. 80 of the people program
only 6 or fewer.
Average of FM Stations 5.01 Average of AM
Stations 1.68
Number of Preset Stations Reported Base
Driven/Ridden In a Car in Last Month
Source Arbitron Edison NAB In Car Study October
2003.
56
What happens when you put 70 DJs at Disneyland
attractions for one day?

• Record shattering attendance.

We didnt offer anythingbut the chance to come
by and say hi.
Dec 13, 2003 at Disneyland Park
57
Source 2004 Wirthlin Worldwide Study Findings
Study conducted for Radio Advertising Effective
Lab (RAEL) a two-phase survey among adults 18-54
August 18, 2004
Personal Relevance Personal Connections How
Radio Ads Affect Consumers

• Radio listening is a one-on-one and
  emotion-driven experience, and listeners believe
  that both the medium and its advertising are more
  relevant to them (compared to television and
  newspapers).
• Wirthlin Worldwide
• Study conducted for Radio Advertising Effective
  Lab (RAEL)
• a two-phase survey among adults 18-54
• August 18, 2004
• The individual consumer perceives the Radio
  program (inclusive of the ads) to be speaking to
  him personally, rather than to the mass audience.
  The study verifies the attributes of Radio and
  its strength in delivering a strong personal
  connection with consumers

Natalie Swed Stone U.S. Director, National Radio
Investment OMD and RAEL Research Committee member
58
Commercials are a Useful Source of Info About
Products and Services in My Area Los Angeles
How do we get information about where to shop,
what to do?
Radio is Viral
Item asked on 1-7 scale where 5-7 Agreement
Source Arbitron/SCBA Los Angeles DMA Lifestyle
Study Released February 2002, Adults 18.
59
Heres the antidote to Last Minute Living
While listening to the radio while in a car,
have you ever heard of a sale or special that
motivated you to visit a certain store?
Saying Yes
Source Arbitron Edison NAB In Car Study October
2003.
60
Things People Hear When Listening to the Radio
People respond to what they hear on the radio.
Source Arbitron Edison NAB In Car Study October
2003.
61
This is Community Word of Mouth at Work.
Source Arbitron Edison NAB In Car Study October
2003.
62
About cell phones..
These are the virtual communities that people
choose to be part of.
Base Use Cell/Car Phone
Source Arbitron Edison NAB In Car Study October
2003.
63
The past 5 years have brought exponential changes
to how we live our lives.

• Peoples lives changed because of
• Things we cant control
• dealing with traffic and additional travel take
  time away from home and often force us to change
  plans
• the need to go to work taking us out of the home
• Being forced to make more unplanned choices
  everyday
• how and what to feed the family that day
• where to shop or stop after work
• sources of entertainment and escape
• Life has become more impromptu The Last Minute
  Living that is Plan B prevails and has become
  Plan A.
• Socialization opportunities have had to be
  restructured we create more virtual
  neighborhoods as we spend less time in physical
  ones.

64
Bottom line how do advertisers make this work
for them?
Organic Integration in our Virtual Communities

• The most successful advertiser models are good
  members of the community.
• They provide solutions (like Saturn of Miami
  Dade, Expedia, Office Depot, State Farm
  Insurance, McDonalds, Tri-State Mercedes (We
  understand. We live here too.), Jiffy Lube, GM
  Onstar, Union Bank and Bank of the West
• They share information and enthusiasm (like Nick
  Alexander, AIS Auto Insurance, Universal Nissan,
  Home Depot, Trader Joes, Pavillions, Albertsons
  or OSH or No on Prop 66)
• They do their part to entertain (like Robbins
  Bros, IKEA or Bud Light)

They talk to us where we are spending 33 or more
of our media time, where we have time and place
to think and dream or are looking for community.
And we reward good neighbors with good business.
65
The fact is RADIO is the most possible of media
in our daily lives. This is how people are
spending at least 33 their media time every day.
Are you using it to your best advantage?
66
How the National In-Car StudyWas Conducted

• 1,505 telephone interviews were conducted in July
  2003
• National U.S. random sample
• Spring 2003 Arbitron diary keepers age 12
• 98.4 of the sample had driven or ridden as a
  passenger in non-public transportation vehicles
  (car/truck/van, etc.) in the last month

Source Arbitron Edison NAB In Car Study October
2003.
67
Los Angeles Lifestyle Study Background

• 1000 telephone interviews (August 2001) with
  Winter/Spring 2001 diarykeepers (43.6 response
  rate).
• Random sample of diarykeepers 18 in Los Angeles,
  Orange, Riverside, San Bernardino, and Ventura
  counties.
• Data replicates market by age, sex, ethnicity
• Comparison data from 1999 study.
• Data pattern comparisons with other markets
  throughout the country to see if patterns appeal
  and lifestyle study answers would apply

Source Arbitron/SCBA Los Angeles DMA Lifestyle
Study Released February 2002, Adults 18.
68
Emotional Connection in Advertising

• The ARF and AAAA are undertaking research with
  the support of the ANA in the area of brain
  science.
• The "heart of the matter" could be that we
  continue to follow a flawed model of how
  advertising works.
• Advertising effectiveness today may, in fact, be
  subject to non-rational decision making rules and
  even higher order learning, both of which we
  refer to as "emotional response".
• The accepted model of how advertising works does
  not account for higher order learning or
  emotional response.
• The goal of this project is to develop an
  understanding of and ways to measure the
  emotional response to advertising

Source Reported by the ARF July 2004.