1. NPR Audience Segmentation and Growth Opportunities September 2010

2. Study Context

3. Source Broadcast: Arbitron Nationwide/Act 1, Persons 25+, NPR Stations and US Total Mon-Sun 6a-Midnight, Spring 2009 Source Online: Nielsen Online, May 2010. Population estimates are of “Active Users,” who are people who have used the Internet in a given time period. NPR Reach – Broadcast & Online 49 Million Opportunity

4. College Education Less of a Factor Among Diverse Audiences Percent College Education by Format News, Talk & Info Stations63% Source: National Regional Database/Tapscan, Persons 12+ and P12+ College Educated, Fall 2009, Monday – Sunday 6a-Midnight; PPM Analysis Tool for Ethnicity percentages. *** Sample too small to measure % Hold 4-Year College Degree

5. Source: Arbitron Data; AudiGraphics Spring data; major markets only. US Census and American Community Survey for US Median Age Median Age Public Radio News Stations vs. US (Major Market Stations) Public Radio News Audience Aging News US Median

6. NPR’s New Products Reach Younger Audiences RadioNPR.org Podcast On-Demand NPR News iPhone App NPR iPad App Median Age 5647333842 Reach 27.1 million weekly listeners 3.5 million weekly unique users (Nielsen) 4 million weekly downloads 240,000 weekly unique users 300,000 downloads since its release Source: multiple internal and external survey sources

7. Today’s Media Paradigm Average 9.4 sources for news/information weekly & 3.8 sources daily Daily Platform Use – Overall and for News/Information

8. Methodology and Goals

9. Research Questions Is there growth potential? Who could be part of our future audience? How do we grow the audience on all platforms while continuing to serve our core? What would attract diverse and younger news and information consumers?

10. Methodology This research was conducted in four key phases: PHASE 1 PHASE 2 PHASE 3 PHASE 4 Executive and editorial team meetings at NPR to establish project goals Conference calls with external stakeholders n=3,710  n=2,010 national sample  n=1,355 market-specific sample across 13 key markets  n=345 core listeners from the NPR panel Median completion time: 42 minutes Moderated message boards include 3 days of discussion on the role of media, NPR, and NPR programming (including digital properties) 7 key target groups: NPR core listeners, “Lookalikes,” ethnically diverse target audiences, Conservative/Republican target audiences In-home interviews with members of 3 key audience segments Total of 13 interviews held over 4 days in San Francisco, Dallas, Atlanta, and Philadelphia Kickoff meetings (November 2009) Quantitative online survey (March/April 2010) Online Message Board Forums (April/May 2010) In-Home Ethnographic Interviews (June 2010)

11. Who Participated? Survey Screening Criteria Ages 18 to 64 50 – 50 Male / Female Either:  Casual or core NPR consumers  News/information consumers  Non-consumers of NPR open to public radio & interest in at least one NPR topical category If no 4-year college degree, place importance on community leadership, education, and/or lifelong learning

12. Study Findings

13. The big question Is there growth potential? Yes! And it represents a sizeable opportunity. Perhaps more than double existing audience (keeping consistent with our mission).... But who are they?

14. Awareness A significant opportunity exists to raise NPR’s profile Strong promotional opportunity! News/Information Consumers’ Familiarity with NPR

15. Our current and future audience Who could our future audience be? We have identified three categories of listeners Each with distinct news and information habits and needs. Team Captains Dutiful Aggregators Voracious Voyagers

16. Our current and future audience Team Captains Dutiful Aggregators Voracious Voyagers Motivation: Obligation to be informed important “It’s important to learn about and understand the world around me.” 39% = weekly NPR Listeners 53% weekly any public radio 30% = weekly NPR Listeners 44% weekly any public radio 27% = weekly NPR Listeners 34% weekly any public radio Motivation: Leadership share information “I want to be informed so that I can share information with others.” Motivation: Curiosity passion for learning “I have a passion for learning and discovering.”

17. 17 Segments: Deeper Look Dutiful Aggregators (19% of sample) Team Captains (21% of Sample) Voracious Voyagers (21% of Sample) 45% Age 18-34 40% non-white Even political split Avid media consumers Overwhelmed - much to know and do 39% top news – local TV “Education is important to me”; “I don’t believe in absolutes” Opportunity: simplifying their chaotic media life 50% age 18-34 25% non-white Liberal and science- minded Prone to dive deep Technology, culture 54% top news – web portal Public radio evangelists “There are so many things I still have left to do in life” Opportunity: love depth; increase listening occasions 45% age 45-64 37% non-white 41% conservative Optimistic, self-confident, enthusiastic Strong opinions 52% top news – local TV “I believe there’s something out there that is bigger than all of us”; “Spending time with my family is important to me” Opportunity: balance and headlines

18. 18 Segments: Deeper Look Dutiful Aggregators (19% of sample) Team Captains (21% of Sample) Voracious Voyagers (21% of Sample) 45% Age 18-34 40% non-white Even political split Avid media consumers Overwhelmed - much to know and do 39% top news – local TV “Education is important to me”; “I don’t believe in absolutes” Opportunity: simplify chaotic media life 50% age 18-34 25% non-white Liberal and science- minded Prone to dive deep Technology, culture 54% top news – web portal Public radio evangelists “There are so many things I still have left to do in life” Opportunity: love depth; increase listening occasions 45% age 45-64 37% non-white 41% conservative Optimistic, self-confident, enthusiastic Strong opinions 52% top news – local TV “I believe there’s something out there that is bigger than all of us”; “Spending time with my family is important to me” Opportunity: balance and headlines

19. Dutiful Aggregators VALUE MOTTO: “I check a variety of news sources. Everybody should be informed.”

20. Dutiful Aggregators All pictures on slide are from Dutiful Aggregators’ Ethnographies

21. Team Captains Business oriented Have enthusiasm for life Sense of optimism Seen as leaders Self-confident “I’m leading my ideal life” VALUE MOTTO: “Life is good!” and “cut to the chase”

22. Voracious Voyagers “I’m curious about the world around me.” VALUE MOTTO: “I want to experience that”, “Go hard or go home!”

23. Universal Life Attitudes Beyond media, the context of consumers ’ life attitudes lend remarkable insight: even in today ’ s economy, audiences are optimistic about their lives. Top 10 News Audience Attitudes - % Strongly Agree

24. Family

25. More questions answered How do we grow the audience, while continuing to serve our core? In two words… Increased Accessibility

26. The Accessibility Prism Growth Strategy: 3 Pillars of Accessibility Brand Do they know about us? What do they know? Are we telling potential audiences that NPR is for them? Content Are we delivering what they’re looking for? Physical Can target listeners access us?

27. 27 The Accessibility Prism Current Accessibility Limitations Brand Content Physical We’re insightful and intelligent, NPR lacks energy, urgency, balance, and personal relevance. And we take ourselves too seriously at times. More up-to-the-moment news, frequent updates, and local news. More fun/humor. Our target audiences are busy; they can’t always fit long form radio into their day. They’d like to consume us online. Behavior isn’t matching intent.

28. Brand Accessibility “I hesitated for years [to become] a regular listener. I believed that its programming outlook was very exclusive, highbrow and catered to Ivy League dispositions….. What I found at NPR was well spoken, intelligent and welcoming hosts who instantly made me feel that I was in the right place to learn. My opinion of exclusion, however, is generally shared when I bring up NPR.” – Current NPR Listener

29. “If a robot were a radio it would be NPR.” -Male, age 35-44, White/Caucasian, Lookalike Accessibility “ NPR I feel is mostly for educated adults from middle class and up. That is my impression.” -Male, age 25-34, Hispanic/Latino, Emerging Platform User Perception of Who NPR is For Chart based to those familiar with NPR “ ” “ ”

30. Brand Accessibility Based to those familiar with NPR Top Positive Perceptions of NPRTop Negative Perceptions of NPR

31. Which Personalities Speak to Consumer Values? Top 10 Most Relevant Personalities (% Saying “Completely for you”) “Below are a number of different personalities you might know from TV, radio, print publications, and the web. Please indicate how much each of the following personalities is for you.”

32. The Messenger Does Matter Top Personalities that are “Completely for You”, By Ethnicity

33. Favored News Personalities Dutiful AggregatorsTeam CaptainsVoracious Voyagers Which of the following personalities is for you? (of the news personalities) Anderson Cooper 23% Brian Williams 19% Matt Lauer 17% Soledad O’Brien 15% Anderson Cooper 22% Brian Williams 21% Matt Lauer 20% Soledad O’Brien 13% Anderson Cooper 22% Brian Williams 14% Rachel Maddow 13% Soledad O’Brien 12%

34. Brand Mass-tige – Not Prestige Dutiful AggregatorsTeam CaptainsVoracious Voyagers If NPR could reflect the qualities of any of these different names below, which would you chose for it to reflect? Walmart 49% Target 49% Discovery 48% Discovery 60% Target 52% Marriott 50% Discovery 59% Target 50% Independent Booksellers 40% Dutiful AggregatorsTeam CaptainsDutiful Aggregators

35. Content Accessibility “This ty pe of story could be interesting, but the reporter's voice and intonation is soooo affected, upper class, wasp, PhD student-like, it detracts from the story. She speaks like she is writing a novel, too overly descriptive.” – NPR Non-Listener

36. 36 Conversational Tone A balance of humor with thoughtful, serious discussion A program tone that introduces new information while remaining lively, energetic, & enthusiastic Impact of Potential NPR Personality Traits (% More interested)

37. Breaking News % “Very” Interested in Type of Media Programming and Coverage Urgency without frenzy…

38. Content & Topic Interest Dutiful AggregatorsTeam CaptainsVoracious Voyagers Content Interest Breaking News 53% News from your city 48% Quick news updates 46% Topic Interest Current events 41% Entertainment 38% Health and wellness 37% Content Interest Breaking News 78% National News 68% News from your city 66% Topic Interest Technology/gadgets 57% Current events 57% Health and wellness 51% Content Interest Breaking News 69% Quick news updates 58% National news 57% Topic Interest Current events 53% Technology/gadgets 48% Science 45% Dutiful Aggregators

39. Breadth of Perspective & Balance Top 5 Strongly Agree Media Statements 47% of Team Captains strongly agree “Hearing both sides of the story is very important.” -Prospective Listener “ ”

40. Physical Accessibility “ The only thing really holding me back is time in the day. I try very hard to get everything I need to get done completed and really don't have much time for anything else. I think NPR would be a good fit for me, but I have too many other things to do to find time to listen.” – NPR Non-Listener

41. One in four core listeners say that NPR is “difficult to fit into their day”. Physical Accessibility

42. Internet Replaces TV News Primary News Source by Age

43. Tune-In Intent by Platform  Consumers already seek access through multiple platforms  Voracious Voyagers: “online” intent eclipses “radio” intent “ My commute is less than 5 minutes, which is less than the time of a lot of NPR news stories. I don't have a radio in my house, and I don't have internet on my phone. I guess I've never thought to go to their website - maybe that is something I would do in the future.” – NPR Non-Listener

44. Physical Accessibility Top 10 Web Destinations (% A few times/week or more) Excludes Facebook /Twitter. 8% report that they visit NPR social networking pages daily, 4% report that they visit NPR.org daily. A distribution outlet

45. 45 The Diversity Question What would attract diverse and younger news and information consumers? Wait, Wait… Don’t Tell Me! could it be? Yes! Awareness & Increase Accessibility But remember…hearing yourself authentically on-the- air is critical.

46. Why Does This All Matter? NPR Tune-In Hurdles (% Major Reason) Based to NPR casuals and prospects Don’t Go!

47. Next Steps

48. 48 Recapping Growth in audience requires growth in awareness and familiarity It also means communicating relevance and executing on accessibility –Brand –Content –Physical/platform Gone are the days of single platform media – but a setback to TV and print news is an opportunity for radio Diversity is not a standalone initiative, it is a thread into all operational and promotional efforts

49. NPR Next Steps Detailed findings to be shared across public radio community At conferences: PRPD, ERPM, WSPR Webinars: PRPD, DEI, PRNDI Online: NPR Member Station site Timing: September – November NPR Work Integration Senior leadership and editorial leadership Internal and external work teams Action plans across news, digital media, programming, communications and member & program services One down.. Tell your friends!

50. Lori Kaplan, NPR Director Audience Insight & Research lkaplan@npr.org Kerry Edelstein, SmithGeiger VP Research kerry@smithgeiger.com September 2010