1. 2011 Industry Campaign Radio content is both engaging and relevant

2. 1.Neuro Insight Study – radio’s high engagement levels 2.The Hoop Research Group – engagement leads to effectiveness and high response rates 3.Radio’s reach – reaching more people, more frequently. 4.Radio surveys and supplementary data capture project

3. Radio Engagement & Connection Neuro Insight Radio Engagement Study Recap of 2011 Phase 1 Campaign

4. Radio Engagement & Connection Neuro Insight Radio Engagement Study - Definition Engagement Personal relevance Involvement with content Connection with content Neurostate The degree to which people engage with that content.

5. Radio Engagement & Connection Neuro Insight Radio Engagement Study - Methodology Neuro data was captured via brain wave monitoring equipment and compared to effectiveness norms 64 respondents were tested for 26 minutes each Respondents listened to various real radio program formats, content and ad breaks

6. Radio Engagement & Connection Memory Detail versus Memory Global Memory Left – Detail The ‘Micro’ Rational The Facts Offers / Prices / Retail ‘Call 1300 *** ***’ ‘Go to www.for....’ Executional elements eg. Pause Memory Right – Global The ‘Macro’ Emotional The Big Picture Branding campaigns Mnemonics Music/Jingles ‘Imagine you’re…’ Mood & connotation * Source: Neuro Insight Pty Ltd Radio Engagement Study 2010

7. Radio Engagement & Connection Overall 32% Higher than the Neuro Global Average “Radio Average’ engagement levels are 32% higher than the ‘Neuro Global Average’ (average of other media consumption) * Source: Neuro Insight Pty Ltd Radio Engagement Study 2010 Low High Ave

8. Radio Engagement & Connection Neuro State of Radio Listeners Example Talk Radio * Source: Neuro Insight Pty Ltd Radio Engagement Study 2010

9. Relevant content caused a peak in engagement. This level was sustained throughout the break and as content resumed. Radio Engagement & Connection Radios powerful content drives engagement

10. Radio Engagement & Connection Neuro State of Radio Listeners Example Music * Source: Neuro Insight Pty Ltd Radio Engagement Study 2010 Memory Left = Rational, Detailed Memory Right = Emotional, Big Picture

11. Radio Engagement & Connection Neuro State of Radio Listeners Memory Left = Rational, Detailed Memory Right = Emotional, Big Picture

12. Radio Engagement & Connection Key findings The Neuro Insights Study showed that people are engaged with both radio content and advertising People were engaged on both a Macro (brand / big picture) and Micro (offers/facts) levels On average respondents were 32% more engaged then they were with other media. This went up to 43% higher when content was especially relevant or controversial.

13. Radio Relevance “Phase 2” The Hoop Group was appointed to conduct research into consumption and relevance of commercial radio in 2010 The Hoop Group has an extensive experience in developing media and consumer insights across media sectors.

14. Radio Relevance Underlying hypothesis: Radio is a relevant and important part of consumers’ media consumption

15. Radio Relevance Panel Details- 1200 people. 80% online Surveys, 20% phone Interviews participants also invited to an online discussion forum where media, in particular radio listening, habits and issues were discussed.

16. Radio Relevance Objectives What do we mean by consumption? Time spent with radio Relevance and importance of radio Role of radio - has consumption changed and why? Radio consumption in tandem with other media & in comparison to ‘new’ media Listening to radio content across various platforms Radio maintains relevance and importance as source of "community", news, information,entertainment

17. Radio Relevance 83% of Australians respond to what they hear on commercial radio

18. Radio Relevance Key Message 64% of listeners take action as a result of radio advertising

19. Radio Relevance What this means for Radio Advertisers Consumers still believe in radio. Listening habits are evolving with technology. Connection & interaction with radio stations are strong. Strong engagement means effectiveness leading to high response rates.

20. Radio Relevance Key Findings A number of quantitative facts have been determined and qualified by touch point statements based around the interactions consumers have with radio stations and how they manifest. Radio puts your brand in the conversation 83% of people respond to something they hear on radio 64% of people respond to radio advertising 6 out of 10 people discuss the radio with others

21. Radio Relevance Radio is an effective medium in driving audiences online TNS study: over 80% of people who hear a relevant radio commercial referring to a website have visited the website as a result

22. Radio Relevance That Radio Bloke Trial Featured comedian Mark Mitchell talking with media experts, listeners and advertisers, in a humorous take on the effectiveness of radio at promoting an advertiser’s website. Listeners are encouraged to visit Mark’s website in the ads: thatradiobloke.com – and see what happens. With the running theme of 'thatradiobloke.com' the current campaign serves as an entertaining 'product demonstration' of radio driving online access as well. The ads generate a lot of positive feedback from listeners so the opportunity to see the voice behind the campaign (Mark Mitchell) adds an interesting dimension.

23. Radio Relevance That Radio Bloke Trial The campaign launched on 18 February, since then the website thatradiobloke.com has received; total 126,001 visits average of 692 visits per day highest amount of activity on Tuesday 26 February with 2,565 visits

24. Radio Relevance Research Findings ** Source: Hoop Group radio relevance Study. Radio is both friendly and trusted. 94% of respondents agreed that radio was current and up to date 76% go to the radio for their news and weather updates.

25. Radio Relevance Research Findings. Marketers and advertisers can use radio to target consumers during specific times, and while they are engaged in specific tasks. This ensures high response rates as the message reaches the target audience at key times and points in the decision making process. Tabatha (Female, 22, Student, Melbourne): ‘Yes, I do. I really would not want to have to do without it. My nana always listened and my mum and now me. The radio is my daytime friend, it keeps me company when I'm driving or on the internet and studying. :) Radio has a totally different feel to my iPod. My iPod took over for a few years but I always seem to come back to the radio.’

26. Radio Relevance Phase 2 Campaign ‘Wrong Hands’ ‘Tour’ ‘Urgent Message’ The new ads feature “that radio bloke” and will be highlighting the findings from both studies. The commercials are aimed at advertisers, marketers, planners and clients. They will play four times a week on each station from July 4 th until Oct 30 th

27. Over ½ the respondents (58%) listen to radio when ‘out & about’ A large proportion of that listening is via analogue devices, the diversity of devices used is increasing Of the out and about listening – around 17% is via a smartphone Radio’s use of a range of platforms ensures radio’s relevance, eg, podcasting, streaming 82% of radio listeners listen at home (avg 12 hrs a week), 22% of listeners listen at work (avg 15.2 hrs a week). No matter who you are targeting or where you are targeting them, they are more likely to hear your ad more frequently on radio. ** Source: Hoop Group radio relevance Study. * Source: Nielsen Radio Ratings Survey #4 2011. 5 Metro Markets, Mon-Sun 12am to 12mn. Radio Relevance

28. Radio Relevance Time Spent Listening On average people are consuming over 19 hrs of radio per week * Source: Nielsen Radio Ratings Survey #4, 2011. 5 Metro Markets, Mon-Sun 5.30am to 12mn. All People 10+ unless otherwise stated.

29. Weekly Metro Audience is Growing * Source: Nielsen Radio Ratings Survey #4, 2011. 5 Metro Markets, Mon-Sun 0530 to 12mn.And Same survey for 2010,2009, estimated for 2008 due to lack of corresponding survey etc.. ** Source: Hoop Group radio relevance Study. Weekly Audience has grown on STLY (1.15 million) and on 2009 (1.11 million in 2009). This growth has been spread across all demos. Radio and online are the only two mediums to grow their audience in 2010**. The continued relevance of radio and its lasting appeal is seen in this sustained growth. As the TV market fragments and print circulations shrink, radio maintains its high reach and engagement levels.

30. 23% of respondents were listening to more radio (2nd highest after online,with TV :3rd). Younger listeners driving the increase -18-24 yr olds, students and those living at home. Respondents to the Hoop Research showed that all other media with the exception of the internet were in nett decline. 35% of those surveyed also stated that they listened to the radio while browsing the web. Radio Relevance ** Source: Hoop Group radio relevance Study.

31. * Source: Nielsen Radio Ratings Survey #4, 2011. 5 Metro Markets, Commercial only, Mon-Sun 5.30 am to 12MN. All People 10+ unless otherwise stated. Radio provides high, cost effective reach across all demos and in all markets. Radio Relevance

32. Radio Relevance Summary People are more engaged with radio content then they are with other media content. Levels of engagement remain high through content and ad breaks. People trust radio People respond to what they hear on the air with 63% respond to advertising Listening habits are evolving with technology, not being left behind by it Cost effective reach and frequency in a medium that is engaging and ensures response!

33. Radio Relevance Radio Data Capture Diary methodology is the global currency for radio audience measurement. Improvements made in the current contract include one to a household diary placement; measurement of platform of listening and quota sampling of the difficult to reach 10-17 and 18-24 year age groups. There is no credible, cost effective and universally accepted electronic device available for radio audience measurement. However, CRA is seeking to improve the current process even further and to that end has written to over 20 research companies requesting proposals for tests of supplementary data collection methods to enhance the diary survey data. CRA will involve the media industry in any such tests through the MFA and AANA.

34. Radio Relevance Support Material for Stations Brochure Presentation All downloadable plus more on commercialradio.com.au For further information regarding the CRA Brand Strategy, Campaign and Supporting Research contact: Dan O’Callaghan E : daniel.ocallaghan@commercialradio.com.au P: 02 9281 6577