1. Extreme Internet Radio and Internet Done Right John Potter VP/Director, Radio Training Academy jpotter@rab.com John Potter VP/Director, Radio Training Academy jpotter@rab.com Dave Casper SVP, RAB Services dcasper@rab.com Dave Casper SVP, RAB Services dcasper@rab.com

2. Why Are You Here? Show Me The Money!

3. Why Are You Here? Local Online Advertising Source: Borrell Associates, 2006 $1.17 $1.39 $1.65 $2.08 $2.69 $3.73 $4.78 $0.91 $0.35

4. Why Are You Here? Local Media Comparison Sources: Internet from Borrell Associates, Traditional from Universal McCann, 2004

5. Local Revenue Media Mix 2004 Source: Borrell Associates, 2005

6. Local Revenue Media Mix 2004 Source: Borrell Associates, 2005

7. Local Revenue Media Mix 2005 Source: Borrell Associates, 2006

8. “Interactive is Becoming the Center of the Media Universe.” Newspaper Broadcast TV Radio Interactive Direct Marketing Magazine Cable TV Yellow Pages

9. “Interactive is Becoming the Center of the Media Universe.” Newspaper Broadcast TV Radio Interactive Direct Marketing Magazine Cable TV Yellow Pages Newspapers repurpose content Magazines followed Yellow Pages provide phone numbers Spam is replacing direct marketing Audio streaming Video On Demand Newspapers repurpose content Magazines followed Yellow Pages provide phone numbers Spam is replacing direct marketing Audio streaming Video On Demand

10. 7 Predictions for 2006 1.Online advertising will pass 5% mark (Radio has been just below 8%) 2.Retail e-commerce will grow 21% ($87 to $105 Billion) 3.Broadband will grow 18% (105 to 124 million users) 4.US video-based online advertising will be up 71% (Reaching $385 million) 5.Video on phones will more than double (1.2 million to 3 million) 6.Search engine portal reach will increase 5% (Already Yahoo!, Google, MSN and AOL reach 30% of the world’s Internet users each month) 7.IP telephony will have 14.5 million users in US (Up from 10 million) 1.Online advertising will pass 5% mark (Radio has been just below 8%) 2.Retail e-commerce will grow 21% ($87 to $105 Billion) 3.Broadband will grow 18% (105 to 124 million users) 4.US video-based online advertising will be up 71% (Reaching $385 million) 5.Video on phones will more than double (1.2 million to 3 million) 6.Search engine portal reach will increase 5% (Already Yahoo!, Google, MSN and AOL reach 30% of the world’s Internet users each month) 7.IP telephony will have 14.5 million users in US (Up from 10 million) Sources: eMarketer, January 11, 2006

11. Where Do You Stand? “All systems are go!” “Nothing, but show.” “Systems, no dough.”

12. What Advertisers Want… Accountability Reach Targetability Tracking Knowledgeable, solutions-oriented sales reps Accountability Reach Targetability Tracking Knowledgeable, solutions-oriented sales reps

13. …And What They Don’t Want! Uninformed sales reps Lack of measurement No guaranteed delivery Length of time to traffic – worse yet, missed deadlines Pricing confusion Clutter Poor website design – unattractive and hard to navigate Inconsistent ad sizes Uninformed sales reps Lack of measurement No guaranteed delivery Length of time to traffic – worse yet, missed deadlines Pricing confusion Clutter Poor website design – unattractive and hard to navigate Inconsistent ad sizes

14. Writing A Good Proposal 1.Advertiser’s objectives 2.Advertiser’s competitive situation 3.Consumer research 4.Media analysis 1.Advertiser’s objectives 2.Advertiser’s competitive situation 3.Consumer research 4.Media analysis

15. “Old-Liners Are Becoming Onliners” 68% of Men 66% of Women 67% of Hispanics 55% of African-Americans 93% of HH with income > $75K 49% of HH with income < $30K 89% of those with college degree 30% of those without HS degree 68% of Men 66% of Women 67% of Hispanics 55% of African-Americans 93% of HH with income > $75K 49% of HH with income < $30K 89% of those with college degree 30% of those without HS degree Sources: PEW Internet and American Life Project, 12/05 Media Analysis: Interactive

16. Week ending January 16, 2006 in USA HomeWork Sessions per person 10 18 Domains visited per person 25 40 PC time per person 09:08:48 18:57:15 Duration of webpage viewed 00:00:47 00:00:54 Active digital universe 115,029,293 55,683,023 Total digital universe 205,327,148 61,805,007 Week ending January 16, 2006 in USA HomeWork Sessions per person 10 18 Domains visited per person 25 40 PC time per person 09:08:48 18:57:15 Duration of webpage viewed 00:00:47 00:00:54 Active digital universe 115,029,293 55,683,023 Total digital universe 205,327,148 61,805,007 Sources: Nielsen NetRatings, USA “Old-Liners Are Becoming Onliners” Media Analysis: Interactive

17. Writing A Good Proposal 1.Advertiser’s objectives 2.Advertiser’s competitive situation 3.Consumer research 4.Media analysis 5.Benefits of Radio and Interactive 1.Advertiser’s objectives 2.Advertiser’s competitive situation 3.Consumer research 4.Media analysis 5.Benefits of Radio and Interactive

18. Benefits of Radio 1.Reach 2.Frequency 3.Targetability 4.Consumer Influence 5.Power of Sound 1.Reach 2.Frequency 3.Targetability 4.Consumer Influence 5.Power of Sound The Top 5 Reasons To Buy Radio

19. Benefits of Internet 1.Provide detailed information 2.Show/demonstrate the product 3.Interactive 4.Direct response 5.Accountable 6.Increase brand awareness 7.Immediate and flexible 8.Test creative concepts 9.Generate trial by new customers 10.Increase repeat purchases by existing customers 1.Provide detailed information 2.Show/demonstrate the product 3.Interactive 4.Direct response 5.Accountable 6.Increase brand awareness 7.Immediate and flexible 8.Test creative concepts 9.Generate trial by new customers 10.Increase repeat purchases by existing customers The Top 10 Reasons To Buy Interactive

20. Writing A Good Proposal 1.Advertiser’s objectives 2.Advertiser’s competitive situation 3.Consumer research 4.Media analysis 5.Benefits of Radio and Interactive 6.Benefits of your station and your site 7.Creative strategy 8.Recommendation 1.Advertiser’s objectives 2.Advertiser’s competitive situation 3.Consumer research 4.Media analysis 5.Benefits of Radio and Interactive 6.Benefits of your station and your site 7.Creative strategy 8.Recommendation

21. Recommendation Display advertising (banners)

22. Recommendation Display advertising (banners) Sponsorships Display advertising (banners) Sponsorships

23. Recommendation Display advertising (banners) Sponsorships Streaming –Audio ads –Gateway ads – audio or video –Player sponsorship –Display ads –Links Display advertising (banners) Sponsorships Streaming –Audio ads –Gateway ads – audio or video –Player sponsorship –Display ads –Links

24. Recommendation Display advertising (banners) Sponsorships Streaming –Audio ads –Gateway ads – audio or video –Player sponsorship –Display ads –Links Auctions Display advertising (banners) Sponsorships Streaming –Audio ads –Gateway ads – audio or video –Player sponsorship –Display ads –Links Auctions

25. Recommendation Display advertising (banners) Sponsorships Streaming –Audio ads –Gateway ads – audio or video –Player sponsorship –Display ads –Links Auctions Webpage design Display advertising (banners) Sponsorships Streaming –Audio ads –Gateway ads – audio or video –Player sponsorship –Display ads –Links Auctions Webpage design

26. Recommendation Display advertising (banners) Sponsorships Streaming –Audio ads –Gateway ads – audio or video –Player sponsorship –Display ads –Links Auctions Webpage design Directories Display advertising (banners) Sponsorships Streaming –Audio ads –Gateway ads – audio or video –Player sponsorship –Display ads –Links Auctions Webpage design Directories

27. Recommendation Display advertising (banners) Sponsorships Streaming –Audio ads –Gateway ads – audio or video –Player sponsorship –Display ads –Links Auctions Webpage design Directories Pop-ups and pop-unders Audio gateway ads Display advertising (banners) Sponsorships Streaming –Audio ads –Gateway ads – audio or video –Player sponsorship –Display ads –Links Auctions Webpage design Directories Pop-ups and pop-unders Audio gateway ads

28. Most Popular Ad Sizes Leaderboard (728x90) Full banner (468x60) Medium Rectangle (300x250) Wide Skyscraper (160x600) Button #2 (120x60) Square Button (125x125) Rectangle (180x150) Leaderboard (728x90) Full banner (468x60) Medium Rectangle (300x250) Wide Skyscraper (160x600) Button #2 (120x60) Square Button (125x125) Rectangle (180x150) 14,519 10,155 9,515 7,174 3,709 3,674 3,082 14,519 10,155 9,515 7,174 3,709 3,674 3,082

29. Best Local Ad Categories 1.General merchandise 2.Business-to-business 3.Credit and mortgage services 4.Government 5.Automotive sales 6.Telecommunications 7.DotCom businesses 8.Hospitals 9.Computer-related services 10.Pharmacies 1.General merchandise 2.Business-to-business 3.Credit and mortgage services 4.Government 5.Automotive sales 6.Telecommunications 7.DotCom businesses 8.Hospitals 9.Computer-related services 10.Pharmacies Source: Borrell Associates Inc and Ad Audit Services, 2005

30. Pricing Sponsorship fee Cost-per-thousand Percentage of Radio Comparable to newspaper Sponsorship fee Cost-per-thousand Percentage of Radio Comparable to newspaper

31. Online Media Kits Products list Details of each –Ad sizes –File sizes –Locations Metrics –Quantitative –Qualitative Products list Details of each –Ad sizes –File sizes –Locations Metrics –Quantitative –Qualitative Pricing Creative services Testimonials Contact information –Call letters –City, state, USA –Phone –E-mail address –Home page address

32. Geek Speak Metrics Page views Unique users Session length Reach Frequency Domain name CPM Display ad (banner) Metrics Page views Unique users Session length Reach Frequency Domain name CPM Display ad (banner) Ratings AQH Cume TSL Reach Frequency Dial position CPM Commercial Ratings AQH Cume TSL Reach Frequency Dial position CPM Commercial Interactive Radio

33. Who’s Making Money? Our guest: Roger Utenheimer Nicollet Broadcasting Sturgeon Bay, WI Our guest: Roger Utenheimer Nicollet Broadcasting Sturgeon Bay, WI [spelling???]

34. Who’s Making Money? Cox Interactive is growing “double- digits” and is now profitable with “several million dollars” in revenues. ~ Marc Morgan, Cox EVP/COO Cox Interactive is growing “double- digits” and is now profitable with “several million dollars” in revenues. ~ Marc Morgan, Cox EVP/COO

35. Resources www.rab.com www.iab.net –Standard ad sizes –Proof Internet works www.borrellassociates.com www.webopedia.com Google: “free website content” www.rab.com www.iab.net –Standard ad sizes –Proof Internet works www.borrellassociates.com www.webopedia.com Google: “free website content”

36. Interactive Making Money With Download a copy of this presentation at: www.rab.ocom/rab06/interactive Download a copy of this presentation at: www.rab.ocom/rab06/interactive