The indisputable facts Radio is everywhere What We’ll Cover The indisputable facts Radio is everywhere On-air Online On-site On-demand Accountability

Reach • Relevance • Receptivity The indisputable facts: Reach • Relevance • Receptivity

the largest number of potential customers REACH: the largest number of potential customers Radio reaches up to 233MM 95 % People reached by Radio every week Consumers across all demographic segments Radio and broadcast television are the only media that independently reach nearly everyone PPM in Philadelphia shows individual station reach increasing as much as 145%, with average growth of approximately 70% Radio consistently delivers high cume reach (90%+) among teens, adults and seniors Radio garners 22% share of weekly consumers’ media time, more than broadcast TV, newspaper and Internet pure-play More people listen to Radio than log on to the internet every day Listenership increased 122 % Weekly A/C listenership PPM vs. Diary

RELEVANCE: target and engage consumers in the market to buy with the right message Radio reaches Radio reaches Radio reaches 95 90 90 % % % planning to buy a new car within 12 months with household incomes of $50,000+ spending $150 per week on groceries Radio offers … 87% TSL retention since 1998 Diverse content with the ability to mass reach while narrowcasting Behavioral targeting with local and national qualitative research The most personal of media, connecting with consumers one-on-one Ads that are perceived to be more honest and more relevant More than 12,000 unique station brands with the most loyal audience in media Personal, relevant and emotional connections with listeners

RECEPTIVITY: 92% of consumers listen through commercial breaks Radio has eliminated clutter by reducing commercial content by 13% over the past year (vs. broadcast and cable increasing by 2-5%)

It’s Everywhere. It’s Free.

RADIO On-Air 12,000+ established brands with the most loyal consumers in the media industry Relevant content for all lifestyles and demographics Available everywhere: home, car, cabs, computer, retail, restaurants, iPods….. Creatively deployed using: The most powerful, award winning creative that has successfully built brands (Budweiser, On Star, Snapple, Motel 6) Industry talent, creative services and radio creative training Roadblock techniques Daypart mass targeting Swarm marketing platforms Commercial length flexibility Station full-day, prime time takeovers Quickly and more deeply engaging consumers through HD technology

FM for the next generation RADIO On-Air Significantly improved audio Expanded content via multicasting Interactive/data/visual/time shifting $200M ad campaign to drive consumer awareness and adoption Available to 80% of the U.S. population Projected 2 million receivers in play by the end of 2008 1,500 HD Radio stations, a 50% increase over 1 year ago Nearly 750 HD-2 channels, a 50% increase over 1 year ago Display-screen text-messaging FM for the next generation

RADIO On-Air Rolling out in 2008 Surround-sound On-demand features Store & replay Instant access to news, weather, sports scores and more iTunes tagging Real-time traffic reports on automotive navigation systems Commitments from10 auto manufacturers across 53 models, including: BMW and MINI full-line launch Ford dealer-installed program in all lines Hyundai and Volvo

RADIO Online Delivering over 36MM monthly unique users 75% of U.S. stations have Websites Brand extension ad integrated advertiser platform Allows listener/station/marketer dialogue platform Of the estimated 30 million users of wireless access technology in the U.S.: 75% or 23 million have wirelessly accessed Internet radio 48% of those accessing the Internet via wireless technology seek out Internet radio. Streaming Nearly 4000 stations stream 30MM streaming listeners per week Online AM/FM listening is up nearly 30% in ’06

RADIO Online Podcasting Time shifting of local and national radio shows Reached 18.5MM listeners in 2007; 65MM+ projected by 2012* Content and interactive applications that enhance increased consumer engagement Text messaging Mobile applications Robust loyal listener CRM initiatives iTunes and MP3 tagging/FM tuners Creatively deployed for listeners and advertisers: Microsite and promotional splash page creation/production Rich and interactive advertising units Visual online promotion

RADIO Online An unprecedented number of technology partnerships iTunes and Emmis Radio Google radio investment CBS, Vibes Media and iRadio CBS and mSPOT Clear Channel and iRadio Katz and Net Radio Sales Total Traffic and Microsoft

RADIO On-Site On-Site Marketing Invented here Evolving with consumer needs and advertiser demands Enhances the stations’ loyal listener communities while creating experiential opportunities for marketers

before On-Demand Existed RADIO On-Demand On-Demand before On-Demand Existed

RADIO On-Demand MP3 players and mobile phones that are Radio-ready FM adapters for the iPod are a result of consumer demand for Radio access Technological advancements that have given Radio a visual element Station web-sites and display-screen text-messages expanding the definition of Radio Mobile phones have opened the door for more two way-communications HD Radio technology that allows consumers to store and tag content

RADIO On-Demand Expanded Radio distribution through new and emerging media channels With industry and consumer adoption of digital and wireless technologies, Radio will continue to lead in … Audio mobility Portability Content

Accountability

RADIO Measurement Improved Audience Measurement Portable People Meters (Arbitron) 99% of the radio industry signed on, major agencies supporting PPM Houston and Philadelphia are “live,” with 12 additional markets slated for implementation in 2008 Smart Cell Phone (Media Audit/IPSOS) Houston test pending

RADIO Measurement Electronic Transaction Platforms Posting Invoicing Ordering Avails Posting Guidelines/criteria to be developed by media trading partners

RADIO Measurement Funded by the Radio industry and directed by leaders from the advertising community Research and published materials: Radio Ad Lab Research Compendium Radio Ad Lab Guide to Commercial Testing Primary Research Studies: Relevance One and Two, Synergy, ROI, Engagement

RADIO Measurement Applied Knowledge, Insights Gained Critical findings confirm: Radio is both personal and emotive Radio ads are more personally relevant than ads in all other media Ads are better accepted (annoyance factor) on Radio vs. all other media Inclusion of Radio in a media plan significantly boosts unaided recall and facilitates increased brand preference Radio campaigns deliver a 49% ROI advantage over TV The emotional impact of Radio ads is equal to TV Radio ads generated significantly higher emotional impact than TV

RADIO 2020 RADIO 2020 Unprecedented marketing campaign via cooperative effort between the NAB, RAB and the HD Digital Radio Alliance Radio 2020 focuses on 4 key initiatives: Accessible technology Playlist variety and format diversity Building for the future Reigniting consumers RADIO2020

The Future of RADIO Is Now Available RADIO provides reach, relevance and receptivity RADIO is everywhere, it’s easy to use and free to the consumer RADIO will continue to impact consumers’ lives through: Accessible technology and portability Playlist variety and format diversity Multi-platform distribution RADIO will launch a campaign this year to reignite consumers about the benefits of the medium RADIO is a strong partner for marketers looking to reach consumers on-air, online, on-site and on-demand with innovative and robust marketing solutions