The POWER AND value of radio SPEAKER NOTES: MATT OPENING COMMENTS: Today we’re here at the invitation of the Southern California Broadcasters Association to share with you some insights into the power of the radio medium as we see it. Los Angeles and surrounding cities make up the largest radio market in the country in both geographical reach and, most importantly, ad revenue. What happens in Southern California radio impacts the entire radio industry as a whole, and almost exactly a year after Nielsen acquired Arbitron and created Nielsen Audio, we’ve brought radio onto equal footing with other mediums by being able to create single-sourced ROI tools that connect what consumers are listening to with what they actually buy. It’s been a really exciting year and it was very important to Nielsen to make such a large investment in audio because its such an integral part of the daily lives of consumers everywhere. I have a lot to share with you today, so let’s get started. Tony Hereau Vp, Audience Insights tony.hereau@nielsen.com June 18, 2016

LISTEN BUY SINGLE SOURCE We can now link radio listening data to the actual transactions of more than 125 MILLION consumers and 80% of all American credit card holders. LISTEN BUY Nielsen PPM Panel 72,000 panelists 125 MILLION Consumers 80% of all U.S. credit card transactions SINGLE SOURCE

OBJECTIVE Consumer Packaged Goods 10 Brands Test Period: Q3 2013 To measure the sales impact of radio advertising in six major spending categories Telco Provider 1 Brand Test Period: Q2 2014 Department Stores 4 Brands Test Period: Q3 2014 Mass Merchandisers 2 Brands Test Period: Q2 2014 Home Improvement 2 Brands Test Period: Q2 2014 QSR/Fast Food 3 Brands Test Period: Q3 2014

QUESTION: For every dollar spent in radio advertising, how much revenue should your business generate? CHOICES: (last was work for a big box retailer. We linked Nielsen audio data with credit card data. We looked at a radio campaign that ran over a 4 week period. The consumers who were exposed to the radio advertising campaign were 11% more likely to come back and shop again. With this example, frequency mattered. A consumer was 7% more likely to come back with 1 radio ad exposure but with 2+ exposure, the likelihood increased to 11%. While we only looked at one campaign, the improvement demonstrated by radio “shows well” versus what our seasoned researchers have previously seen for TV) $1 $3 $6 $10

CPG $6:$1 Advertisers achieved over $6 of incremental sales for every $1 spend on radio Key issue in the past is that advertisers couldn’t get a clear read on radio’s ROI. New ROI work from Catalina shows we can get a sense of radio’s ROI with solid positive results. Results of the Radio ROI from Catalina are positive and in line with findings from other media (TV and Digital). 6:1 is a very strong ROI but certainly influenced by the specific brands and cases (mix of retail and CPG) in the study so careful not to generalize Average of 3:1 among the CPG brands in the study are higher than we typically see with other media at 2.5:1 (but still generally in line) Sometimes ROI results can be negative and neutral so we won’t always see results like this. We need more ROI studies like this to gain more insight about radio and we encourage broadcasters and advertisers to contact NCS and do more

OVER $6 OF INCREMENTAL SALES FOR EVERY $1 SPENT Key issue in the past is that advertisers couldn’t get a clear read on radio’s ROI. New ROI work from Catalina shows we can get a sense of radio’s ROI with solid positive results. Results of the Radio ROI from Catalina are positive and in line with findings from other media (TV and Digital). 6:1 is a very strong ROI but certainly influenced by the specific brands and cases (mix of retail and CPG) in the study so careful not to generalize Average of 3:1 among the CPG brands in the study are higher than we typically see with other media at 2.5:1 (but still generally in line) Sometimes ROI results can be negative and neutral so we won’t always see results like this. We need more ROI studies like this to gain more insight about radio and we encourage broadcasters and advertisers to contact NCS and do more Ratio of incremental sales revenue per thousand to advertising cost per thousand = Payback

Methodology: EVALUATE SALES IMPACT for aggregate category ad spending and sales DATA SOURCES MEASURE THE IMPACT RADIO AD EXPOSURE: Nielsen Portable People Meter (PPM) Panel matched to Media Monitors commercial occurrence data PURCHASE BEHAVIOR: Credit & Debit Card Expenditures of 125 MM unique cardholders 80%+ US credit card transactions 30% of US debit card transactions 12B transactions accounting for a total of $1.2 trillion spent annually SINGLE SOURCE DATABASE: ~40,000 Persons 18+ AD SPENDING: SQAD ANALYSIS APPROACH: Analysis Measures the Sales Impact of Aggregate Ad Spending and Aggregate Sales for all Brands Measured in the Category EXPOSED GROUP: Listeners exposed to radio advertising on PPM measured stations for any of the brands measured in each category during the Test Period. UNEXPOSED GROUP: Listeners not exposed to radio advertising on PPM measured stations for any of the brands measured in each category during the Test Period. KEY METRICS: Total Sales/Spend lift Buyer Penetration Transactions/Trips per Buyer $$ per Transaction $$ per Buyer ROAS - Sales Return per Advertising Dollar

EXPOSED to radio advertising Methodology: EVALUATE SALES IMPACT for aggregate category ad spending and sales WEIGHTING FACTORS Groups EXPOSED and UNEXPOSED to radio advertising were weighted to be identical on the following characteristics: Age Gender Race Education Employment status HH size Presence of children Buying history (prior spending/transactions) Audience EXPOSED to radio advertising Audience UNEXPOSED to radio advertising Key issue in the past is that advertisers couldn’t get a clear read on radio’s ROI. New ROI work from Catalina shows we can get a sense of radio’s ROI with solid positive results. Results of the Radio ROI from Catalina are positive and in line with findings from other media (TV and Digital). 6:1 is a very strong ROI but certainly influenced by the specific brands and cases (mix of retail and CPG) in the study so careful not to generalize Average of 3:1 among the CPG brands in the study are higher than we typically see with other media at 2.5:1 (but still generally in line) Sometimes ROI results can be negative and neutral so we won’t always see results like this. We need more ROI studies like this to gain more insight about radio and we encourage broadcasters and advertisers to contact NCS and do more After weighting, the key difference in the two groups is RADIO EXPOSURE. Each group has an equal opportunity to be exposed to other media where the campaign is running. 

Payment Methods used most often SHARE OF WALLET: CREDIT & DEBIT CARDS USED MOST OFTEN FOR PURCHASES IN MAJORITY OF CATEGORIES Payment Methods used most often 73% of people use Credit or Debit cards most often for department stores purchases 68% of people use Credit or Debit cards most often for mass merchandiser purchases Credit Card Debit Card Cash/Check 72% of people use Credit or Debit cards most often for home improvement purchases Other 46% of people use Credit or Debit cards most often for QSR purchases 56% of people use Credit or Debit cards most often for telecom purchases Nielsen 2014 Share of Wallet Study

3 pillars that drive Return on Advertising Spend MORE BUYERS BUYERS SHOPPING MORE OFTEN BUYERS SPENDING MORE PER TRIP

TELCO PROVIDER $14 OF INCREMENTAL SALES FOR EVERY $1 SPENT Consumers who heard the radio ad campaign spent an average of $8 more per month on the Telco services than those who were not exposed The average Millennial who heard the ad spent $16 more per month than those who did not $14 ROAS IMPACT OF RADIO EXPOSURE RADIO AD INVESTMENT: $210,000,000 Incremental spend for customers exposed to the radio campaigns in Q1 2014 $15,300,000 Total Q1 2014 radio ad spend

QSR/FAST FOOD $3 OF INCREMENTAL SALES FOR EVERY $1 SPENT EXPOSURE TO RADIO CAMPAIGNS DROVE A 6% INCREASE IN SALES OVERALL RADIO DROVE MORE PEOPLE INTO THE RESTAURANTS AND THEY SPENT MORE EACH TIME 6% increase in total number of buyers 1% increase in $ spent per buyer $3 ROAS IMPACT OF RADIO EXPOSURE RADIO AD INVESTMENT: $87,302,965 Incremental spend for customers exposed to the radio campaigns in Q3 2014 $29,044,889 * Total Q3 2014 radio ad spend Q3 2014 for Three brands compared to prior 3 months * Ad spend source is SQAD

DEPARTMENT STORES $17 OF INCREMENTAL SALES FOR EVERY $1 SPENT EXPOSURE TO RADIO CAMPAIGNS DROVE A 10% INCREASE IN SALES OVERALL RADIO BROUGHT IN MORE SHOPPERS AND THEY SPENT MORE EACH TIME THEY SHOPPED 3% increase in total number of buyers 6% increase in $ spent per buyer $17 ROAS IMPACT OF RADIO EXPOSURE RADIO AD INVESTMENT: $356,966,946 Incremental spend for customers exposed to the radio campaigns in Q3 2014 $20,999,788 * Total Q3 2014 radio ad spend Q3 2014 for Four brands compared to same time prior year * Ad spend source is SQAD

Home improvement $9 OF INCREMENTAL SALES FOR EVERY $1 SPENT EXPOSURE TO RADIO CAMPAIGNS DROVE A 4% INCREASE IN SALES OVERALL RADIO CAMPAIGN EXPOSURE DROVE MORE PEOPLE TO SHOP AND TO SHOP MORE OFTEN 8% increase in total number of buyers 2% increase in $ spent per buyer $9 ROAS IMPACT OF RADIO EXPOSURE RADIO AD INVESTMENT: $368,666,119 Incremental spend for customers exposed to the radio campaigns in Q2 2014 $38,885,290 * Total Q2 2014 radio ad spend Q2 2014 for two brands compared to same time prior year * Ad spend source is SQAD

MASS MERCHANDISER $16 OF INCREMENTAL SALES FOR EVERY $1 SPENT EXPOSURE TO RADIO CAMPAIGNS DROVE A 1% INCREASE IN SALES OVERALL RADIO WAS SUCCESSFUL AT GETTING MORE PEOPLE INTO THE STORES AND THEY SPENT MORE WHEN THEY SHOPPED 2% increase in total number of buyers 2% increase in $ spent per buyer $16 ROAS IMPACT OF RADIO EXPOSURE RADIO AD INVESTMENT: $227,707,290 Incremental spend for customers exposed to the radio campaigns in Q4 2014 $13,908,650 * Total Q4 2014 radio ad spend Q4 2014 for two brands compared to same time prior year * Ad spend source is SQAD

Radio advertising positively impacts BOTTOM LINE SALES for many categories RADIO PAYBACK PER $1 AD INVESTMENT RETAIL (B) $23.21 DEPARTMENT STORES $17.00 MASS MERCHANDISERS $16.37 TELECOM $14.00 RETAIL (A) $11.15 HOME IMPROVEMENT $9.48 SNACKS (A) $7.33 SNACKS (B) $4.33 BEER $4.17 SOFT DRINK (A) $3.81 CANDY $3.12 QSR $3.01 SOFT DRINK (C) $1.97 BREAKFAST BAR $1.81 SOFT DRINK (B) $1.38