Radio In The New Media Landscape
New Media Choices Are Very Topical Right Now
But Their Reach Is Dwarfed By Radio’s Reach
ESTIMATED REACH
286,300,000
228,839,100
Terrestrial radio
accounts for about
41% of unique
visitors
210,000,000
76,000,000
52,700,000
29,000,000
Television
Broadcast
Radio
Online
MP3 Players
Newspaper
Internet
Radio
20,000,000
Video On
Demand
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: Radio’s Digital Platforms P12+
Podcasts: Bridge Ratings August 2007, P 13+
Video On Demand: Arbitron and Edison Media Research, Internet and Multimedia 2006, P12+
Newspapers: Veronis Suhler Stevenson Communications Industry Forecast 2007. Average daily circulation
TV, Radio, Newspaper, Podcasts and Internet Radio are weekly reach
16,300,000
Satellite
Radio
10,000,000
Podcast
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
BROADCAST RADIO'S WEEKLY REACH
Persons 12+
2000
2001
2002
2003
2004
2005
2006
2007
96.1%
95.8%
94.1%
93.0%
92.9%
92.2%
91.7%
91.0%
2003-2007: Arbitron National Regional Databasae, Total U.S. M-SU 24 hour Persons 12+ cume rating
2000-2002: RAB Marketing Guide & Fact Book citing Arbitron Radar ratings
Consumers Continue To Spend
A Lot of Time With Radio
 Radio ranks 2nd for time spent with media
2007 Projected Hours Per Person Per Week With Media in 2007
29.9
18.8
3.7
Television
Radio
Internet
3.4
Daily
New spapers
3.4
Recorded
Music
2.4
2.0
1.6
1.6
Magazines
Books
Video/DVDs
Video
Gam es
U.S. Census Bureau, Statistical Abstract of the United States: 2007
Adults 18+ for television, daily newspapers, books, magazines, home video, and interactive TV
Persons 12+ for radio, recorded music, cinema, video games, and Internet
0.4
0.2
Interactive
TV &
Wireless
Content
Cinem a
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 2:45 per
day compared to all listeners’ AM/FM TSL of 2:37.
 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/
Rock Radio Listeners, Typically Quick To Adopt New
Technology, Haven’t 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
couldn’t 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
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 that’s still a place where people go to hear their favorite music, and it’s 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? You’re 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
“Don’t forget, teenagers are really looking for a sense of community, and that’s one thing that
local Radio stations can really provide.”
“Radio is, believe it or not, one of the top ways to reach teens that we’ve 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, they’re 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, 2005
RAB White Paper: Teen Market 2002
“Old” Media Still Have The Highest Usage Among Kids
“Young people’s 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.”
“Today’s youth are masters of multitasking. About a quarter of the time young people are using one
medium, they’re doing something else media-related at the same time.”
MEDIA USAGE ON A TYPICAL DAY AMONG CHILDREN 8-18
81%
72.8%
68%
54%
47% 47% 46%
41% 39%
35% 34%
21%
13%
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“Generation M: Media in the Lives of 8-18 Year-olds” , Kaiser Family Foundation, March 2005
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 advertiser’s 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 shopper’s 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 Mediaedge:cia Mediaweek, August 23, 2004
The Radio Ad Effectiveness Lab (RAEL) Study,
Personal Relevance, Personal Connections, How Radio Ads Affect Consumers,
Highlights Radio’s 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 study’s 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 program’s 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.
In The RAEL Personal Relevance Study, The Following Statements Were
Shown To Be More Closely Associated With Radio Than With Television
Radio is associated more with…
Ads
Consequence/
Benefit of Ads
Advertisers
Mean (rated on
scale of 1 to 7)
Ads make me feel more connected to my community
5.2
Advertisements in this medium are more honest
4.8
The advertisements are concise
4.6
I feel like the ads are directed more toward me personally
4.4
Advertisements in this medium are reliable
4.3
I am more likely to trust the advertising in this medium
4.2
I get more exposure to advertisements for local products and services
5.3
I can do other things while absorbing the advertising in this medium
5.1
I am more likely to trust the advertising
4.3
Provides me with last minute info about products/services before I shop
4.2
More likely to get a good deal on the products/services that I purchase
4.1
I’m less likely to waste money buying products/services that I don’t want
4.1
Advertisers who use this medium care more about reaching me personally
4.7
The Radio Ad Effectiveness Lab (RAEL) 2004 Study,
2Personal Relevance, Personal Connections, How Radio Ads Affect Consumers
In The RAEL Personal Relevance Study, The Following Statements Were
Shown To Be More Closely Associated With Radio Than With Newspapers
Radio is associated more with…
Ads
Consequence/
Benefit of Ads
Advertisers
Mean (rated on
scale of 1 to 7)
Advertisements are fun
5.6
Advertisements are creative
5.3
The advertising in this medium is more interesting and engaging
5.1
Advertisements in this medium are intrusive
5.1
I feel like the ads are directed more toward me personally
4.9
Ads do a better job of reaching the people they are meant for
4.9
I can do other things while absorbing the advertising in this medium
5.7
The advertisements are more likely to hold my attention
4.6
Remember ad longer because ads in this medium have more impact on me
4.6
These advertisements are more likely to open my mind to new ideas
4.2
Advertisers who use this medium are trying harder to reach me
5.0
Advertisers who use this medium care more about reaching me personally
4.4
The Radio Ad Effectiveness Lab (RAEL) 2004 Study,
2Personal Relevance, Personal Connections, How Radio Ads Affect Consumers
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
RAEL’s 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 Radio’s 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”.
•
It’s not about spending more. It’s about more wisely investing what you have.
Click here to read the full study: http://radioadlab.com/library/rael_benefits_of_synergy.pdf
RAEL STUDY, THE BENEFITS OF SYNERGY: MOVING MONEY INTO RADIO, 2005
Radio Can Boost An Advertiser’s ROI
In June 2005, The Radio Ad Effectiveness lab (RAEL) released its third
and largest “real world” study, “Radio’s 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 study’s key finding: Incremental radio campaigns showed significantly
better ROI for the advertisers than did their national television campaigns.
RAEL STUDY, RADIO’S RETURN ON INVESTMENT COMPARED TO TELEVISION, JUNE 2005
Specifically, Incremental Radio Delivered 49% Better Return On
Investment Than The Corresponding National Television Campaigns
ROI: Profit Per Ad Dollar
(Overall Estimates)
149
128
150
100
Profit Per Ad 100
Dollar Index
50
0
Radio Overall
TV Overall
TV Historical
Average
All radio ads were :30s
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, RADIO’S RETURN ON INVESTMENT COMPARED TO TELEVISION, JUNE 2005
Radio ads were not
pre-tested as were the
television ads. We would
expect that better radio
creative with pre-tested
ads would result in an even
higher radio ROI.
RAEL’s 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.
 Radio’s 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: Radio’s ability to deliver strong Return on Investment for
advertisers has been proven in a real-world test at last. In this study, radio’s ROI
was 49% better than television’s, and radio advertising’s 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, RADIO’S RETURN ON INVESTMENT COMPARED TO TELEVISION, JUNE 2005
Radio Continues To Reinvent Itself Proving Once
Again That There’s 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 online.
 Innovative online programs such as Clear Channel’s “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 Channel’s “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 Channel’s 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.
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 2005
RADIO & TELEVISION NEWS DIRECTORS ASSOCIATION & FOUNDATION, “THE AMERICAN RADIO NEWS
AUDIENCE SURVEY, RADIO IN TODAY’S NEWS MEDIA MIX”, www.rtnda.org
iBIQUITY website, www.ibiquity.com
 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
 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
nation’s largest radio advertiser. Ads for the technology will be tied to
promotions for digital radio receivers and radio retailers
 Clear Channel Radio’s Creative Service Group has created formatspecific 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.
 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 Microsoft’s existing MSN Direct service which
transmits information including
 traffic
 weather
 news alerts
 music new
 movie times
 sports and stocks
 Expected launch is 2008
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: Radio’s Digital Platforms
Akami/WebSideStory, 5/27/07 – 6/2/07
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 station’s 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
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 today’s 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 artist’s performance. Weekly audience of
500,000
http://www.strippedmusic.com/
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/
“Sneak Peek” Exclusive music on-demand before
it’s 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/mfeatures/tobykeithOD/

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 today’s
and yesterday’s hottest artists. Every genre, every generation, from
BCGB’s 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/
eChannelMusic.com
 Launched January 2, 2007
 8,000 unique visitors per month
 Clear Channel’s 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”
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
WIHT, Washington CHR
WLDI, West Palm Beach CHR
KTRH, Houston News/Talk
“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”.
 May 2007 launch
Jacobs Media 2007
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
mSpot’s 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
Z100 Mobile
 Relaunch of Z100 Mobile: Initially had been subscription
based, available on Cingular phones. Now it’s 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
Other CC Technology Initiatives
 April 2007 deal extends radio advertising to Google’s 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 Navigon’s 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
“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.
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**
AVERAGE MINUTES PER HOUR
AVERAGE UNITS PER HOUR
12.7
11.7
8.4
CLEAR CHANNEL
RADIO
10.1
INDUSTRY
AVERAGE
CLEAR CHANNEL
RADIO
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
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
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 outperform 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
What Are The Advantages
For An Advertiser?
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 advertiser’s 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 couldn’t afford :60s but who will be able to
afford :30s and :15s
‘TM’
Not Only Are Clear Channel Stations Airing Fewer
Commercials, They’re 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
CSG’s 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.
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 today’s music)
 Debuting a Clear Channel online portal to the Format Lab’s channels in summer 2007.
15 second pre-roll commercial
Will include:
 All CC streaming terrestrial stations
 HD side channels
 Format Lab channels
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 radio’s
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 (Arbitron’s
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.
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 Arbitron’s 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
In Summary, Radio Remains One Of The Top Media
Choices Among Americans
Don’t Fall For The “Radio Myths” Remember:
 Radio still reaches over 90% of the population each week
 Radio still consumes a lot of people’s time each week
 Radio’s 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 advertiser’s 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 NAB’s new new ad campaign says it best : “Radio. You hear it here first.”