2008

1. A Short Explanation of PPM Radio Measurement 2008

2. The Portable People Meter (PPM) • PPM is electronic measurement that reflects what you actually do, not what you remember you must have done • Cell-phone sized device that goes with you every day, is programmed to record everything you hear that is encoded • Nearly all stations have encoded their over-the-air and online content • Downloads every night, sends data to Arbitron to process • Instead of new people every week, there’s a panel of people balanced to represent the market that stays in place for up to 2 years • Currently in 8 markets. Will be in top 10 by early 2009. Will be in top 25 by 2010. • Like Nielsen’s Local People Meter, the measurement system changes – the ways people actually have always used radio doesn’t

3. The Big Changes • More timely information -- PPM data is refreshed each month so you can get a faster read on changes in the market • Since sample doesn’t change every week, ratings remain steady and better reflect people’s actual habits and usage patterns • Data is available throughout the year, 52 weeks, 13 reports • PPM picks up occasional, unintended as well as regular, habitual listening, resulting in higher cumes, but lower AQH ratings than by Diary methodology • But -- the PPM AQH audience composition is nearly identical to the Diary reports. So every spot you air is mostly reaching the station’s core audience. • We are able to see that people who are employed full time listen to more radio than those who don’t work • AQH listening is about 30% higher for men overall than women • Hispanics and Blacks have higher listening levels than others in PPM • Sports Ratings become real • Special events or specific program ratings become real • Now includes measurement of 6-11 year olds

4. Why Do the Ratings Go Down? • Total listening time was overstated (mis-remembered) in Diary • Total number of stations heard is understated in Diary • About 15% of Diaries reported listening of 25+ hours to a single station, while PPM reports only 4% of panelists listen that long. So a lot of listening time reported by the Diary will not show up in PPM. • Overall, PPM reports people spent less actual time with radio than the Diary shows. Divide that time by double the number of exposures to different stations, and each station’s ratings will likely be lower in PPM than in Diary reports. • Diary understated listening by Employed people. So more PPM ratings are generated by Employed people than unemployed people. This affects daypart listening distribution and place of listening. At home listening is usually to one station. Out of home listening is to multiple stations. This means more of the listening reported is shared among more different stations, thus likely lowering the AQH for the average station. • In reality, no radio station LOST listeners, no one really listened more or less than before the switch to PPM. Just the measurement system is different. So, in PPM, Reach goes up • Diary reflected only about half of the number of people who actually tuned into a radio station in a given week. • PPM reflects all the people who were exposed to the station, not just those who remembered to report their listening. • Buying even a few Radio stations generates reach that actually surpasses newspapers, cable stations and even most TV stations.

5. The Longer They Listen, the More Likely They Represent the Station’s Target Listener WMGK-FMClassic Rock % Composition Source: Arbitron, January 2007 PPM, Philadelphia Metro, Persons 6+.

6. Reaching More: Comparison of Diary to PPM Schedule Diary Winter 2007 Diary; Persons 25-54 PPM PPM November 2007 – January 2008 Avg; Persons 25-54

7. Cost Per Point Adjustment Original buy with Diary Original buy with PPM

8. Planning Guides – Arbitron has created Conversion Charts for each market AQH Rating Index PPM vs. Diary Note That Markets Differ Index PPM v. Diary (AQH Ratings) The conversion factors will change as markets mature as PPM markets. Be prepared for change. Rule of thumb: if a schedule works for you under Diary currency, keep it in place under PPM. Just think of the lower TRPs as conversion to a new currency. 1 PPM, New York, October 2007 vs. Fall 2006 Diary (PPM reported stations) 2 PPM, Philadelphia, March 2007 vs. Winter 2007 Diary 3 PPM, Houston-Galveston, March 2007 vs. Winter 2006 Diary

9. Different people every week 4 reports covering 48 week Metro, TSA, DMA Persons 12+, 4 places of listening Data based on recall and hand-logging Sports and events seldom show up Avg. diary listening to 3.2 stations/wk AQH & Cume composition similar Diary shows longer TSL/station 15% of diaries 100+ QH to 1 station Core listeners = 85% of AQH listening More AQH attributed to Unemployed Hispanics and Blacks Males slightly more than females AM drive disproportionately high listening reported RLD* only on Maximizer/MediaPro Standard R&F Model Same people every week (avg. term 9 months, max 2 yrs) 13 reports covering 52 weeks Metro only Persons 6+, in or out of home listening Data recorded electronically, actual exposure Sports and events individually measurable Avg. PPM exposure is to 6 stations/week AQH & Cume composition dissimilar PPM shows shorter TSL on more occasions 4% of diaries 100+ QH to 1 station Core listeners = 85% of AQH listening More AQH reported by Employed Hispanics and Blacks Males listen 30% more than females Listening is more equally distributed across dayparts, hours, days All software providers get RLD* Re-tooled R&F Model Summary Diary vs. PPM PPM Diary Cannot develop ratings conversion charts until PPM is live currency in the market *RLD = Respondent Level Data