Radio. It’s On.

Presentation courtesy of the Radio Advertising Bureau, 2015 – All Rights Reserved

A mass medium delivering audio content to passionate and loyal listeners across multiple platformsRADIO

RADIO TODAY

RADIOLive

Local

Mobile

Personal

Social

Interactive

Experiential

On Air

A mass medium capable of easily delivering your

message to many people

Targetable assuring the right people are

exposed to your message

A trusted medium and always available

especially during times of crisis

Online

Digital capabilities offering interactive

opportunities

Complements and enhances on air

campaign by reaching consumers using multiple touch

points

Delivers content wherever and

whenever listeners want it

On Target

An environment that delivers consumers

who are engaged and passionate about the

content

Offering companionship and

information

Exposure to the message when and

where consumers are ready to buy or shop

RADIO. IT’S ON.

CONSISTENT REACH LEVELS

Source: Nielsen Audio, RADAR® 121-124, March 2014-December 2014, March 2015 (Monday-Sunday 24-Hour Cume Estimates, All Radio)

P12+ P18-49 P25-54

92% 93% 94%92% 93% 94%91% 93% 94%91% 93% 94%91% 92% 94%

Mar '14 Jun '14 Sep '14 Dec '14 Mar '15

A MEDIUM FOR ALL SEASONS

REACH AND TIME SPENT ACROSS DEMOSWeekly Reach: 91.2%

Weekly TSL: 11hrs:56min

Best Daypart: 3-7p

Reach: 79.8%

Adults 18-34

Weekly Reach: 93.9%

Weekly TSL: 14hrs:32min

Best Daypart: 3-7p

Reach: 84.3%

Adults 35-49

Weekly Reach: 93.6%

Weekly TSL: 15hrs:52min

Best Daypart: 10a-3p

Reach: 84.2%

Adults 50-64

Weekly Reach: 93.2%

Weekly TSL: 13hrs:15min

Best Daypart: 10a-3p

Reach: 81.9%

Hispanic 12+ Weekly

Reach: 91%

Weekly TSL: 13hrs:55 min

Best Daypart: 10a-3p

Reach: 78.7%

African-American

12+

Source: Nielsen Audio RADAR 124, March 2015 (Monday-Sunday 24-Hour TSL and Cume Estimates; Monday-Sunday Daypart Cume Estimates)

Listened to Radio Past 7 Days

Read Any News-paper Past Week

Used Cell Phone to Access Internet

Watched Any TV Past Week (M-Su,

5a-2a)

Watched Any Non-Premium Cable Past

Week

Spent Any Time on Internet Past Week

92%

42%

76% 77% 78%

92%

HIGH REACH VS. OTHER MEDIA OPTIONS

Source: Scarborough USA+, Release 1 2014 USA Adults 18-34

Adults 18-34

Listened to Radio Past 7 Days

Read Any News-paper Past Week

Used Cell Phone to Access Internet

Watched Any TV Past Week

Watched Any Non-Premium Cable

Past Week

Spent Any Time on Internet Past

Week

93%

50%

67%

85%81% 86%

HIGHER REACH VS. OTHER MEDIA OPTIONS

Adults 25-54

Source: Scarborough USA+, Release 1 2014 USA Adults 25-54

Listened to Radio Past 7 Days

Read Any News-paper Past Week

Used Cell Phone to Access Internet

Watched Any TV Past Week

Watched Any Non-Premium

Cable Past Week

Spent Any Time on Internet Past

Week

90%

55% 55%

86%83%

79%

HIGHER REACH VS. OTHER MEDIA OPTIONS

Adults 18+

Source: Scarborough USA+, Release 1 2014 USA Adults 25-54

LISTENERS CHOOSE RADIO OVER FACEBOOK

MOST USED SOURCE FOR MUSIC DISCOVERY

AM/FM Radio 35%

Friends/Family 21%

YouTube 10%

Pandora 9%

Sirius XM 4%

Facebook4%Spotify 1%

Others 16%

2014

AM/FM Radio 29%

Friends/ Family 22%

YouTube 10%

Pandora8%

Sirius XM, 4%

Facebook4%Spotify 3%

Others; 20%

2015

Source: The Infinite Dial 2015 – Edison Research / Triton Digital

Base: Those saying it is “Very Important” or “Somewhat Important” to Keep Up-To-Date With

New Music

BROADCAST RADIO PLAYS MORE “LIKED” SONGS

Total CHR P1 AC/Variety Hits P1

Country P1 Rock/Alt P1 Classic Rock/Hits P1

Urban/Urban AC P1

5.7 5.8 5.56

5.66.1 5.9

5.2 5.5 5.6 5.54.8 4.9

5.3

Imagine you tune into the station you listen to most for music and listen to the next 10 songs. How many will be songs you like a lot?Imagine you start a session on Pandora and listen to ten songs without skipping any of them. How many will be songs you like a lot?

Based on 1,100 respondents 14-54 in PPM markets, 2014

MOST LISTENED TO AUDIO SOURCE

Satellite

Digital Music

Streaming

CDs/LPs/Tapes

YouTube/Vevo & TV Music Ch.

Traditional AM/FM Radio

11%

17%

31%

19%

36%

67%

19%

41%

54%

60%

69%

84%

Used Yesterday Currently Used

Question: Which of the following radio channels and sources did you listen to on (target day/typical day)?

(n=1010)

TECHNOLOGY DELIVERS RADIO BEYOND THE DIAL

Expanding Radio’s delivery platforms to

create an interactive, engaging and

highly communicative environment

via devices and apps

Image Source: Tune-In and iHeartRadio

30 millionOver the next 3 years

phones will have anFM Chip

FM-ENABLED SMARTPHONES

Source: NextRadio + TagStation Insights – For additional updates : http://tagstation.com/news/insights/

To date, over:• 2,335,000 app downloads• 11,665 FM radio stations tuned to from the app • 4,385,000 hours of listening through NextRadioAnd ranked 9th in Google Play top free music apps

“Content cards” provide information and highly relevant interactive tools:• Click to buy (song or other related content)• Upcoming concerts and album releases for artist currently playing• Recent station playlist

DELIVERS RELEVANT INTERACTIVITY

Source: NextRadio + TagStation Insights – For additional updates : http://tagstation.com/news/insights/

MORE TECHNOLOGY THAT CONVERTS LISTENING TO ENGAGEMENT

Technology converts radio listening into an engaging user experience, empowering listeners to see what they hear and take action.

Image Source: Clip Interactive

PULLING DIGITAL CONTENT ONTO DEVICES

Click here to view Clip Interactive case studiesImage Source: Clip Interactive

Streaming

Over 7200 streaming

stations in 2014

Podcasts

46MM Americans have downloaded a podcast in the

past month

HD Radio

Over 23 Million HD radio receivers are in the marketplace

RADIO’S DIGITAL PLATFORMS ARE STEADILY GROWING

Source: Inside Radio / M Street Corp., 2014; No Canadian or Mexican stations are included; The Infinite Dial 2015 – Edison Research / Triton Digital; HD Radio stat from iBiquity/HD Radio Alliance, 2014

MOST CHOSEN IN-CAR FEATURE

HD Radio

Satellite Radio

Streaming Internet Radio/ Streaming Music

Service

Satellite Radio

MP3 Smartphone

Player Access

CD Player

AM/FM Radio

25%

25%

34%

45%

48%

68%

80%

Source: Ipsos In-Car Audio Study, February 2015

Q: Disregarding any associated costs, if you could select only up to 3 of the following options to be available on your next car entertainment systems, which 3 would you select?

Preference for Entertainment Options in Next Car

THE BATTLE FOR THE DASHAll major auto brands offered factory-installed HD Radio Technology as of 2014

Brands with HD Radio Technology

Vehicle Lines with HD Radio Technology

HD Radio as Standard Equipment

90+

2010 2011 2012 2013 2014

185+

35

76

166

33

67

154

2861

109

2136

86

16

Source: iBiquity

33

BROADCAST RADIO LISTENED TO MORE BY PURE-PLAY LISTENERS

Sources What Pandora Means for Radio, Vision Critical, November 2012; Base: American online adults, aged 18+ ; Sample: 1,017 American adults; of these, 323 identified themselves as Pandora users (used an Internet-only audio service in the past month; and at least sometimes use Pandora)

Pandora Listeners Non-Pandora Listeners

19.1

12.7

Hours Per Week

HEAVY PANDORA USERS ARE HEAVY BROADCAST RADIO LISTENERS

Source: NuVoodoo study based on 1,110 respondents 14-54 in PPM markets - released 2014

CHANGING VIEWS OF PANDORA LISTENERS

Computer/mobile device negative

Miss hearing people

Too many political spots

Not enough music discovery

Too many songs I don't like

Gets boring

Too predictable

No local information

Using other services

Commercials are annoying

Can't skip enough songs

0% 10% 20% 30% 40% 50% 60%

20152014

Source: Jacobs TechSurvey 11, 2015

NA

Among those listening less

Source: The Infinite Dial 2014 – Edison Research / Triton Digital; USC, Annenberg School for Communication & Journalism, PSI Study Released June 2012, Woodley, P. and Movius, L. People With a Favorite Radio Personality in LA; Scarborough USA+ Release 2 of 2012

LISTENERS TAKE THEIR AUDIO ON THE GO

• On-demand content delivering sports, music, information and entertainment downloads whenever and wherever the listener wants it

• 66% of Smartphone users listen to online radio every week

• 55% of listeners said they listen to their favorite personalities on computers or mobile devices when away from a radio

GREATEST SHARE OF AUDIO

6a 7a 8a 9a10a

11a12p 1p 2p 3p 4p 5p 6p 7p

0%

100%

AM/FM Radio

Satellite Radio

Music Streaming Services

Digital/iPods/MP3s

CDs

Source: 2014.1 USA TouchPoints. Percent Share of Audio Usage by Source. Adults 18-54. Average Mon-Fri. Note: Radio includes HD Radio and radio station streaming, Music Streaming Services include iHeartRadio, Pandora, Rdio, Slacker, Spotify, etc.

6-10A 10A-3P 3-7P 7P-12M

39%42% 41%

21%

42% 42%45%

23%

43% 44% 46%

22%

P18+ P25-54 P35-64

RADIO PEAKS DURING THE WORKDAY

How to read: Each day from 3-7p, radio reaches 41% of Adults 18+.

Source: Nielsen Audio, RADAR 124, March 2015 (Persons 18+, 25-54 and 35-64, Monday-Sunday 24-Hour Daily Cume Estimates, All Radio)

RADIO SPARKS BRAND CONVERSATION

Heavy Radio listeners (2+ hrs. daily) generate

329 WOM impressions annually

…More than Heavy TV Viewers (5+ hrs. daily) at 218B…Heavy Print readers (1+ hrs. daily) at 209B…Heavy Internet users (5+ hrs. daily) at 208B

Radio is a social medium

Source: Keller Fay Group 2013

RADIO BOOSTS CAMPAIGN EFFECTIVNESS

Consumer packaged goods advertisers achieved over $6 of

incremental sales for every $1 spent on radio.

Radio drives loyalty: Radio increased

shopper retention for a big box retailer by as much as 11%.

Source: Nielsen Catalina Solutions Copyright 2014

DRIVING INFLUENCE AND BEHAVIOR

Radio Advertising topped Television, Social Media, and Direct Mail and

was 2x as effective as Newspapers in influencing Healthcare choices.

A media advertiser saw a

16% conversion ratefor promos when using radioas a reminder medium,building increased frequency.

Source: Nielsen Catalina Solutions Copyright 2014

REACHING MAIN STREET CONSUMERS

94%Households who

plan to buy a smartphone next

year

Household plans to buy/lease a

new SUV or luxury vehicle

next year

92%Ate at

fast-food/sit down restaurant 5 or more times in past month

A18+ whose household used an accountant this past year

90%A18+ shopped

any major department store in past 3 months

A18+ who are registered to

vote in district of residence

Source: Scarborough USA+ 2013 Release 2 (August 2012-September 2013)

AN EMOTIVE MEDIUM

A POSITIVE ENVIRONMENT TO DELIVER AD MESSAGES

49%To get into a better mood

33% Hear things that make you laugh

46%Relax &

unwind when tense

31% Keep you company

when alone

36%Take your mind off problems

29%Add to the fun

when with other people

35%Get an

energy boost

Source: Mark Kassof & Co. ListenerThink; based on an online survey of 989 listeners 18-64

DRIVEN BY AN EMOTIONAL CONNECTION TO RADIO PERSONALITIES

Have called into a station, met a DJ in their

community, or interacted in some other manner

80%

Agree that their favorite radio stations reflect who

they are as a person*

66%

Consider radio personalities to be regular

people like themselves

70%

This radio hosts are “like a friend” whose opinions they trust and value.

70%

Source: Woodley, P.. Parasocial Interaction between On-Air Radio Personalities and Listeners. USA, Annenberg Scholl for Communication & Journalism, released April 2014; * Latitude Research and OpenMind Strategy, State of Listening in America, May 2013.

Increase Decrease Stay the same I don't know

55%

2%

36%

8%

PERSONALITY TESTIMONIALS DRIVE RADIO LISTENER TRUST

Does hearing one of your favorite radio station personalities provide testimonials for health care or medical products or services make you trust that product or service…

Prizes 12%

Sports 16%

Charitable Events 20%

Talk Shows 28%

Music Surprises 28%

Escape Life’s Pressures 31%

Discover New Music 34%

Emergency Info 34%

RADIO’S EQUATION

What’s Going On Locally 39%

Get in a Better Mood 40%

Keeps Me Company 45%

In the Habit 48%

News/ Weather/Traffic 49%

Like to Work with Radio 55%

DJs/ Hosts/ Shows 55%

Hear Favorite Songs 67%

Main Reason for Listening to Radio

MUSIC + INFO + EMOTION

Source: Jacobs TechSurvey 11, 2015

• 2011 highlights 93% retention• 2006 highlights 92% retention

• No time shifting• No below the fold• No load times

Sources: 2011 Nielsen Audio, Media Monitors, and Coleman Insights

NO COMMERCIAL SKIPPING

RADIO WORKS FOR THE CONSUMERAND THE ADVERTISER

On Air

A mass medium capable of easily delivering your

message to many people

Targetable assuring the right people are

exposed to your message

A trusted medium and always available

especially during times of crisis

Online

Digital capabilities offering interactive

opportunities

Complements and enhances on air

campaign by reaching consumers using multiple touch

points

Delivers content wherever and

whenever listeners want it

On Target

An environment that delivers consumers

who are engaged and passionate about the

content

Offering companionship and

information

Exposure to the message when and

where consumers are ready to buy or shop

RADIO. IT’S ON.