1. Amplifying Audio Marketing
The Audio Consumer Demand Landscape

2. Farshad Family SVP, Local Product Leadership Nielsen
John Rountree Principal, The Cambridge Group
#Consumer360

3. Audio listening is as Strong As Ever
Audio Remains Among the Leading Entertainment Choices
75%
Listen to Music
57%
YouTube (Music)

4. Audio is a Valuable Companion
Unique Media Due to Complementary Nature and Captive Audience
Perfect for Multitasking
Though Strong for Advertising
% Indicating
Top 2 Box
% Indicating as Typical Concurrent Activity
% Indicating Who
Listen with
% Indicating
Top 2 Box
65%
72%
56%
11%
“When I listen to audio, I’m usually doing something else at the same time”
“Nothing”
“Alone”
Limited/no distraction
from others
“When I hear something interesting, I will shift my focus
to pay more attention to the audio I’m listening to”
Will disengage from activity
and engage in audio
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis

5. audio Drives Compelling ROI
6.21
11.15
23.21
7.33
4.33
4.17
3.81
1.38
1.97
3.12
1.81
Ratio of incremental sales revenue per thousand to advertising cost per thousand = Payback

6. Tremendous Growth in Audio Options
AM/FM Broadcast
Radio
Streaming Online
Broadcast Radio
Satellite Radio
Personalized / Custom
Streaming Services
#Consumer360

7. The cambridge group

8. Overview of The cambridge group
Who We Are
Growth Strategy
Consultants
Nielsen Subsidiary
What We Do
Help Clients
Identify and
Drive Profitable
Growth
How We Do It
Proprietary
Insights into
Current,
Emerging and
Latent Demand
How We
Are Different
Combine
Consumer
Insights,
Strategy and
Economics
Who We
Work With
Leading
CPG, Retail,
Media and
Financial
Services
Companies
#Consumer360

9. Understanding Audio Consumers
Nielsen commissioned The Cambridge Group to understand the overall landscape of consumer demand for audio across multiple platforms
Identify the different consumer segments and define the listening need states across different audio platforms
Assess the different ways that consumer listening and the overall audio market could evolve in the future
Understand the most attractive market opportunities for advertisers and broadcasters

10. Insights Include All major broadcast and digital audio PLATFORMS
AM/FM
Broadcast Radio
AM/FM broadcast radio received via over-the-air AM/FM signal
Satellite
Radio
Programming received via satellite signal requiring a subscription
Streaming Online
Broadcast Radio
AM/FM or online-only broadcast radio streamed over the Internet
Personalized
Streaming Services
Music streamed over the internet via an app or a website that
tailors content to the listener’s tastes
Custom
Streaming Services
Music streamed over the internet via an app or a website that allows the listener to select specific songs or playlists
Talk or music content, generally in episode format, downloaded or streamed via the Internet
Podcast

11. Developed from Extensive Quantitative Consumer Research
Sample
Methodology and Timing
Survey Topics
5,000 consumers
Ages 18-74
Past week listeners
Decision makers for audio format, content, etc.
45 minute survey
Fielded in English with online panel
Survey fielding 3/18-3/27
Listener category motivations and behaviors
Benefit-driven listening need states/occasions
Audio platform usage trends, associations, satisfaction, etc.
Listener spending and potential value
Other media behaviors
Lifestyle/demographics
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis

12. Consumer behavior is Evolving Rapidly
AM/FM Radio is Most Listened To
Younger Audiences Also Use Alternatives
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis
#Consumer360

13. Demand landscape: To Whom, For What
Demand Analysis Identifies Consumer Segments and Listening Need States
Information Seeking Loyalists
Convenience Seeking Traditionalists
Background Driving Defaulters
Discriminating Audiophiles
Techie Audio Enthusiasts
Music Loving Personalizers
Motivation
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
Relaxation
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
“To Whom”
Consumers grouped by their underlying
motivations for audio listening
Enjoyment
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
Distraction
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
Knowledge
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
“For What”
Listening occasions with a distinct combination
of rational and emotional benefits
Basic Information
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
Background Sound
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis

14. Consumer Segments Seek Different Benefits
Audio Demand Landscape Consumer Segments
Information Seeking Loyalists
15% of population
Convenience Seeking Traditionalists
17% of population
Background Driving Defaulters
14% of population
Discriminating Audiophiles
18% of population
Techie Audio Enthusiasts
13% of population
Music Loving Personalizers
23% of population
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis

15. distinct Motivations AND Behaviors
Audio Demand Landscape Segment Example
Information Seeking Loyalists
% of Population
% Share of Audio Hours
Audio Listening Hours Index
Motivational Description
PLATFORM DISTINCTIONS
Median Age
Household Income Index
Other Demographic Distinctions
Consumer Spending
15%
25%
170
Heavy listeners
AM/FM Radio 53 95
Male, Caucasian, Retired
Lower
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis

16. distinct Motivations and Behaviors
Audio Demand Landscape Segment Example
Music Loving Personalizers
% of Population
% Share of Audio Hours
Audio Listening Hours Index
Motivational Description
PLATFORM DISTINCTIONS
Median Age
Household Income Index
Other Demographic Distinctions
Consumer Spending
23%
22% 97
Avid music consumer
Streaming Platforms 32 82
Female, Student
Lower
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis

17. distinct Motivations and Behaviors
Audio Demand Landscape Segment Summary
Traditional Platforms
Alternative Platforms
Information Seeking Loyalists
Convenience Seeking Traditionalists
Background Driving Defaulters
Discriminating Audiophiles
Techie Audio Enthusiasts
Music Loving Personalizers
% of Listeners
% Share of Audio Hours
Audio Listening Hours Index
Motivational Description
PLATFORM DISTINCTIONS
Median Age
Household Income Index
Other Demographic Distinctions
Consumer Spending
15%
25%
170
Heavy listeners
AM/FM Radio 53 95
Male, Caucasian, Retired
Lower
17%
16% 94
Convenient options
AM/FM Radio 43 92
Female, Homemaker
Average
14% 7% 51
Less engaged
AM/FM Radio 57
104
Caucasian
Average
18% 97
Highly engaged
Satellite Radio 47
124
Male, Most Educated
Higher
13%
12% 91
Early adopters
Streaming Platforms 32
111
Male, Ethnic, Educated
Higher
23%
22% 97
Avid music consumer
Streaming Platforms 32 82
Female, Student
Lower
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis
#Consumer360

18. For example: Information Seeking Loyalists
Information Seeking Loyalists are heavy listeners of AM/FM radio for news, information and education
15% of Listeners, 25% Share of Listening, Average Weekly Audio Hours = 40
Distinguishing Motivations
Audio Platform Distinctions
Distinguishing Demographics
Description
Audio Benefits
Audio is source for US/world news (53%/168)
Audio is source for local info (56%/162)
Use audio for education (48%/162)
Love audio talk programs/news (44%/161)
Have a daily listening routine (56%/159)
Primary Benefits Sought
Up-to-date information (20%/195)
Enjoyable experience (19%/95)
Additional Distinguishing Benefits Sought
Intellectual stimulation (10%/195)
More likely older: yr (70%/152)
More likely retired (29%/146)
Slightly more Caucasian (76%/115)
Slightly more male (58%/113)
AM/FM Radio (126 Index)
Information Seeking Loyalists are heavy listeners who routinely listen to favorite talk programs for news, education and to stay informed of current events.
Streaming Broadcast
(103 Index)
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis
#Consumer360

19. For example: Music Loving Personalizers
Music Loving Personalizers are the heaviest users of streaming services but also listen to AM/FM radio nearly 1/2 the time
Platform Behaviors
Access Behaviors
Listening Behaviors
Content Behaviors
Platform % of Hours
Primary Devices
Car AM/FM Radio (81%/95)
Laptop Computer (52%/131)
Smartphone (52%/131)
Streaming Services Used
Personal: Pandora (85%/109)
Custom: Spotify (61%/128)
Radio: iHeartRadio (52%/99)
% of Audio Hours by Location
At Home (40%/112)
In the Car (29%/77)
At Work/School (22%/129)
Top Activities while Listening
Chores around the house (66%/126)
Errand/short trip (60%/100)
Using the internet/an app (56%/132)
% Content Hours
Music (87%/114)
Talk (13%/55)
Primary Formats
Top 40 (60%/115)
Classic Rock (57%/108)
Alternative Rock (51%/136)
Oldies (47%/93)
100%
Index 3%
103
Podcasts 4% 65
Satellite
126
Broadcast
197
Custom Streaming
Streaming
214
AM/FM Radio 69
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis
#Consumer360

20. seven Distinct Listening need states
Audio Demand Landscape Need States
Motivation
15% of occasions
Relaxation
15% of occasions
Enjoyment
13% of occasions
Distraction
16% of occasions
Knowledge
15% of occasions
Basic Information
13% of occasions
Background Sound
12% of occasions
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis
#Consumer360

21. Demand landscape: To Whom, For What
Demand Analysis Identifies Consumer Segments and Listening Need States
Information Seeking Loyalists
Convenience Seeking Traditionalists
Background Driving Defaulters
Discriminating Audiophiles
Techie Audio Enthusiasts
Music Loving Personalizers
Motivation
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
Relaxation
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
“To Whom”
Consumers grouped by their underlying
motivations for audio listening
Enjoyment
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
Distraction
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
Knowledge
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
“For What”
Listening occasions with a distinct combination
of rational and emotional benefits
Basic Information
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
Background Sound
Information Seeking Loyalists
Discriminating Audiophiles
Background Driving Defaulters
Convenience Seeking Traditionalists
Techie Audio Enthusiasts
Music Loving Personalizers
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis

22. Key Listening Need States for each Segment
Information Seeking Loyalists
Convenience Seeking Traditionalists
Background
Driving Defaulters
Discriminating Audiophiles
Techie Audio
Enthusiasts
Music Loving Personalizers
Background Sound
Motivation
Knowledge
Distraction
Relaxation
Basic Information
Enjoyment
Background Driving Defaulters
Techie Audio Enthusiasts
19%
Information Seeking Loyalists
Convenience Seeking Traditionalists
Background Driving Defaulters
Techie Audio Enthusiasts
13%
Information Seeking Loyalists
Convenience Seeking Traditionalists
Opportunity to work with advertisers and broadcasters to identify the “high value” listening need states and occasions for segments and how best to engage them
Which platforms, formats, genres?
Where (location) and when (daypart)?
When are they most receptive to advertising?
Background Driving Defaulters
Techie Audio Enthusiasts
14%
Background Driving Defaulters
19%
Convenience Seeking Traditionalists
Background Driving Defaulters
Discriminating Audiophiles
Techie Audio Enthusiasts
Music Loving Personalizers
14%
Background Driving Defaulters
Discriminating Audiophiles
Techie Audio Enthusiasts
Music Loving Personalizers
12%
Information Seeking Loyalists
Convenience Seeking Traditionalists
Background Driving Defaulters
Discriminating Audiophiles
Techie Audio Enthusiasts
Music Loving Personalizers 9%
25%
16% 7%
18%
12%
22%
100%
= one percentage point of total audio listening
= 3%+ of total audio listening
= 5%+ of total audio listening
Note: Based on custom primary consumer research, not Nielsen measured data sources
Source: Audio Demand Landscape (2014); TCG Analysis

23. Summary Insights AM/FM radio maintains strength in key
audience segments
Growing interest
in alternative audio services
Services attracting consumers
with purchasing power
#Consumer360

24. Implications: Higher ROI for Everyone
Audio providers can deliver more tailored, targeted content to listeners
Advertisers can optimize their budgeting and platform mix planning
Alternative audio providers can develop more precise targeting capabilites
#Consumer360