Presented by: Mary Beth Garber Date: March 25, 2013

1. Landscape 2013 Presented by: Mary Beth Garber Date:March 25, 2013 Radio: A Primary Medium Among Millennials

2. RadioContinues to Be A Primary Medium for, Has Massive Reach and Usage Among Millennials. Really

3. Perception of Radio and Millennials Young People Turned to New Technology and Abandoned Radio Radio and Users are Old Radio is Dead to People 18-34

4. Reality of Radio and 18-34 More 18-34s Use Radio Today Than Ever Before and Radio Reaches More 18-34s Than Any Other Medium 18-34s Spend More Time Each Day With Radio Than Any Other Form of Audio Entertainment Radio is THRIVING Among 18-34s

5. Sources That Agree… No kidding. Scarborough USA Plus 2012 RADAR 116 March 2013 and RADAR 112 March 2012 gfkMRIMediaDay 2012 USA Touchpoints 2013.1 – MBI comScore October-December 2012 Burns Media/Triton Digital “Radio Tomorrow” Study September 2012 USC Annenberg School of Communications and Journalism June 2012 Arbitron, Media Monitors and Coleman Insights “What Happens When the Spots Come On?” September 2011 Jacobs Media Tech 8 Survey April 2012 Edison Media and Arbitron’s “Infinite Dial 2012” Study Target Spot May 2012 NPD Group November 2011 and February 2012 ……to name a few.

6. 6 Radio’s Weekly Reach of Adults Is Greatest of Major Media Adults 18-34 Weekly Media Exposure Source: Scarborough USA Plus - Release 2 2012 12 Month Adults 18-34 (Sample Size: 28,781)

7. More Young People Listen to Radio Each Year Adults 18-34 And spend about 2-1/2 hours a day with AM/FM radio Source: RADAR 112 March 2012 and RADAR 116 March 2013, (Monday-Sunday 6A-midnight Cume and Daily TSL Estimates Adults 18-34 sample sizes 104,996 and 106,015 respectively

8. Radio Reaches More Young People Than Any Other Medium From 5 a.m. – 5 p.m. Adults 18-34 Source: GfKMediaDay2012 (Fieldwork 11-12/DoublebaseRespondents) weighted to population (000) Base A18-34, Mon-Sun.

9. Radio Reaches Younger Shoppers During Retail Hours Adults 18-34 Source: RADAR 116 March 2013 (Monday-Friday Weekly Cume Estimates by Daypart); sample size for A18-34 106, 015

10. Radio And The Internet Have Heaviest Weekly Usage Among Adults 18-34 in The USA Adults 18-34 are 52%more likely to be heavy users of radio than heavy users of television in the USA 60% of listening is to only one radio station Note: Radio and TV usage are based on time spent. Newspaper usage is based on number of different issues read and includes WSJ and USA Today. Internet includes Radio, TV and Newspaper website usage and Radio streaming. Source: Scarborough USA Plus - Release 2 2012 12 Month Scarborough , Adults 18-34. Heaviest two quintiles of exposure.(sample size 28,781)

11. Young People Spend More Time With Radio Each Day Than With The Internet 3:26/day Adults 18-34 1:13 day Note: TV includes time-shifted viewing; Internet includes via PC, mobile & tablet; Newspaper and Magazine includes digital readership. Source: 2012.2 USA TouchPoints

12. 12 Radio – The Original Social NetworkConnects with Young Adults On a typical day in the USA, of people 18-34: • 65%more will use Radio than will go to Google Search • 70%more will use Radio than will go to Facebook • 155%more will use Radio than will go to YouTube • 860%more will use Radio than will go to Twitter Adults 18-34 In Millions RADIO Every day, more than 2/3of people 18-34 invite Radio to be a major part of their lives Source: comScore Inc Ratings for February 2013 Average Daily Unique Visitors 18-34, factored to include mobile and pc; RADAR 116 March 2013, P18-34, 6A-12M

13. Among Millennials, AM/FM Radio comprises more than half of the time they spend with total audio Share of Daily Audio Minutes Adults 18-34 Note: AM/FM Radio includes radio station streams; Music Streaming Service includes iHeartRadio, Pandora, Rdio, Slacker, Spotify, etc. Source: 2013.1 USA TouchPoints

14. Among Millennials, AM/FM Radio comprises nearly 80% of the time they spend with total Radio Share of Daily Radio Minutes Adults 18-34 Note: AM/FM Radio includes radio station streams; Music Streaming Service includes iHeartRadio, Pandora, Rdio, Slacker, Spotify, etc. Source: 2013.1 USA TouchPoints

15. Radio Connects Personally—Especially Among People 18-34 82% 70% 75% 72% Radio on because their favorite personality is on-air Follow their favorite personality/radio station on social media A personal, para-social interaction with their favorite radio personality Talk to their friends about their favorite personality or program content This relationship carries over to advertisers who become a part of these “Virtual Neighborhoods”. Sources: USC, Annenberg School for Communication & Journalism, PSI Study released June 2012, Woodley, P. and Movius, L. People With a Favorite Radio Personality in Los Angeles, unweighted sample - 66% of sample was People 18-34

16. Radio Has the Power of Persuasion 52% 51% 47% Their favorite Radio personality influences their opinion Have considered or purchased a product/service advertised during their favorite Radio personality’s show Have considered or purchased a product or service recommended by their favorite personality These personal connections are like “word of mouth”. It’s better than a “like”. Sources: USC, Annenberg School for Communication & Journalism, PSI Study released June 2012, Woodley, P. and Movius, L. People With a Favorite Radio Personality in Los Angeles, unweighted sample - 66% of sample was People 18-34

17. Millennials Are More Connected to Their Favorite Radio Station Than to Facebook Read: I would be very disappointed if… Left Column: My favorite radio station went away Right column: Facebook went away… Source: Alan Burns/Triton Digital “The Future of Radio” September 2012 National Consumer Database; 25,000,000 Panelists; August & September 2012;All Ages, Genders and Format Fans; Total Polled = 41,252; Roughly in Line with 2010 Census; Heavily Caucasian

18. Across Ages and GenderTune-in Is High During Commercial Breaks And Yes, People 18-34 Will Hear Your Commercials On Radio Radio’s Audience Delivery During an Average Minute of Commercial Breaks by Age/Gender Compared to Level of Audience Prior to Break Source: Arbitron, Media Monitors and Coleman Insights “What Happens When the Spots Come On?” 2011 (based on 17,896,325 unique commercial breaks),

19. Digital Listening Augments Broadcast Radio With the digital revolution’s impact on media, new forms of audio enter the marketplace regularly. Many think that these new digital audio platforms have hurt Broadcast Radio’s impact. 10 Independent Research Studies throughout 2012 confirm it isn’t true. 19 million new listeners (+8%) in the last decade Decade of growth of Broadcast Radio vs. Internet Radio # of users in millions Broadcast Radio Internet Radio 56 million new listeners (+380%) in the last decade Sources: Arbitron RADAR Winter/March reports M-Su 6A-Mid – note, methodology for RADAR changed in 2007 to include PPM market transitions so trends may not be consider completely comparable until 2011; Arbitron/Edison “Infinite Dial” Research for Internet/Online data; Weekly listeners for Broadcast Radio; Weekly listeners for Internet Radio

20. Research Studies Concur – Digital Audio Listening Is In Addition To, Not Replacing AM/FM Radio Listening • Digital Users Are More Likely to Be Heavier Users of Radio* “Music consumers more likely to be heavy radio users” – The Media Audit December 2012 National Survey “Pandora listeners report spending 50% more time listening to AM/FM radio than non-Pandora listeners.” Vision Critical Study November 2012 Burns/Triton Study October 2012 U.S.A. Touchpoints September, 2012 Alan Burns Women Study July 2012 Target Spot White Paper May 2012 Jacobs Tech Survey 8 April 2012 The Infinite Dial: 2012* iHeart poll Clear Channel iHeartRadio Study released April 3, 2012 NPD’s Ben Arnold quoted in Audio4cast February 27, 2012 “Terrestrial radio is just one of many music alternatives for Pandora listeners, and Pandora listening is not coming at terrestrial radio's expense.” Mark Kassof & Co February 2012 Survey of 349 people 18-64 who listened to Pandora in past 2 days

21. Radio Digital Offerings Continue to Grow Technology has allowed Radio to touch listeners across devices and platforms • Over 5,700 streaming Radio stations • 55%of listeners said they listen to their favorite personalities on computers or mobile devices when away from a Radio • Tablet and Smartphone users over-index for weekly AM/FM Radio listening • Databases and outbound texting ability remain a source for targeted marketing by advertisers • Personalities in just the top 25 markets have more than 18 million Facebook friends and 29 million Twitter followers Sources: Inside Radio / M Street Corp., 2012; 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 1 of 2012; KMS study on Twitter and Facebook March 2013

22. “What any content company aspires to is impact, and the best way to create impact is simultaneous mass. And the only way to reach simultaneous mass is by getting something on the radio." Source: Advertising Week August 2012 Conference Mark Shimmel Chief Operating Officer Epic Records

23. Radio Leads All Other Media As Biggest Source For Music Discovery Source: Nielsen, Music 360º 2012; based on 3,000 online consumer surveys using Nielsen’s proprietary, high-quality ePanel in the United States; Note: Online Music/Radio Streaming Services – other than Pandora

24. The best demonstration of engagement between listeners and radio stations… When Radio Stations Invite Their Young Listeners…They show up by the thousands.

25. Listeners Even Follow Personalities to Other Media • Dish Nation -- a TV show with a cast of morning radio teams -- became the youngest-skewing first-run program in all of first-run syndication this year. • The program features radio personalities riffing on what’s hot and happening that day in pop culture. Some bits are repurposed from what airs on the morning teams’ radio shows while others are filmed specifically for the TV program. • The show also two shows (one is hosted by another radio personality) at #1 among adults 18-49 and has grown by 18% to 1.3 million total viewers in January since its September 2012 premiere week. Source: Inside Radio January 28, 2013

26. Radio’s Role is Unique • Radio connects Millenniallisteners and advertisers • The entertainment experience expectation of listeners to Radio is very different from that of music-only platforms (like Pandora, Spotify, iPods, cds etc.) • Listeners look for • Connections to personalities • A place to which to belong (a neighborhood, a tribe…) • Content curated by a program director who understands the needs/likes/values of “the neighborhood” • Local information (gossip, news, traffic, weather, opinions, events, opportunities…) • The ability to talk with, communicate with personalities and/or stations and get direct answers or actions

27. Radio. An alternative way to rock.FM radio keeps you up on what’s going on out there – the game, the top news stories, your favorite talk shows – or whatever you love listening to. Source: From Apple’s online iPod Nano material 2012 (Nano has had an FM receiver since 2008)

28. RadioContinues to Be A Primary Medium for, Has Massive Reach and Usage Among People 18-34. Really!!!