1. © 2011 Arbitron Inc., Media Monitors, Coleman Insights What Happens When the Spots Come On? 2011 Arbitron Client Conference Philippe Generali, President/CEO, Media Monitors Warren Kurtzman, President/COO, Coleman Insights Bill Rose, SVP/Marketing, Arbitron Inc.

2. 2 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Weak Brand Strong Brand Positive “In The Moment” Performance Negative “In The Moment” Performance Study Focuses on One-Half of the Brand-Content Matrix

3. 3 © 2011 Arbitron Inc., Media Monitors, Coleman Insights If a radio station has 100 listeners one minute before a commercial break, how many listeners would you estimate it has on average during that commercial break? What Happens When the Spots Come On?

4. 4 © 2011 Arbitron Inc., Media Monitors, Coleman Insights What Happens When the Spots Come On? 70

5. 5 © 2011 Arbitron Inc., Media Monitors, Coleman Insights What Happens When the Spots Come On? 70 60

6. 6 © 2011 Arbitron Inc., Media Monitors, Coleman Insights What Happens When the Spots Come On? 70 60 50

7. 7 © 2011 Arbitron Inc., Media Monitors, Coleman Insights 70 60 50 Fewer? What Happens When the Spots Come On?

8. 8 © 2011 Arbitron Inc., Media Monitors, Coleman Insights N = 362N = 1,178 Industry Insiders Believe That Radio Audience Levels During Commercial Breaks Are Much Lower Than Their Lead-in Audiences

9. 9 © 2011 Arbitron Inc., Media Monitors, Coleman Insights How We Did It »Studies October 2010 through September 2011 »Every spot break that ran on Media Monitors-observed stations in PPM TM markets »Spot breaks defined as featuring back-to-back recorded commercials of at least 30 seconds each Does not include “live reads” Does not include station promos or breaks featuring only 10- or 15-second commercials

10. 10 © 2011 Arbitron Inc., Media Monitors, Coleman Insights 48 PPM Markets How We Did It

11. 11 © 2011 Arbitron Inc., Media Monitors, Coleman Insights 866 Radio Stations How We Did It

12. 12 © 2011 Arbitron Inc., Media Monitors, Coleman Insights 17,896,325 Spot Breaks How We Did It

13. 13 © 2011 Arbitron Inc., Media Monitors, Coleman Insights 61,902,473 Commercial Minutes How We Did It

14. 14 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Six-minute commercial break Noncommercial content How We Did It

15. 15 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Lead-in audience How does the audience level compare? Average of each minute in break How We Did It

16. 16 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Monday-Sunday, 5AM-5AM Analysis Covered a Wide Distribution of Commercial Break Lengths

17. 17 © 2011 Arbitron Inc., Media Monitors, Coleman Insights 3.5 Average Minutes per Spot Break Analysis Covered a Wide Distribution of Commercial Break Lengths

18. 18 © 2011 Arbitron Inc., Media Monitors, Coleman Insights 2.6 Average Spot Breaks per Hour Analysis Covered a Wide Distribution of Commercial Break Lengths

19. 19 © 2011 Arbitron Inc., Media Monitors, Coleman Insights 8.9 Average Commercial Minutes per Hour Analysis Covered a Wide Distribution of Commercial Break Lengths

20. 20 © 2011 Arbitron Inc, Media Monitors, Coleman Insights Commercial Audience Is Like a Subway

21. 21 © 2011 Arbitron Inc, Media Monitors, Coleman Insights Commercial Audience Is Like a Subway

22. 22 © 2011 Arbitron Inc, Media Monitors, Coleman Insights Commercial Audience Is Like a Subway

23. 23 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Weighted Average: 93% On Average, Radio Delivers 93% of Its Lead-in Audience During Commercial Breaks

24. 24 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Radio Audience Levels During Commercial Breaks Relative to Their Lead-in Audiences Are Far Higher Than Industry Insiders Believe

25. 25 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Radio Delivers Slightly Fewer Younger Listeners During Commercial Breaks Relative to the Lead-in Audience

26. 26 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Highest Markets: Pittsburgh: 95% New York: 95% Washington: 95% Lowest Markets: Salt Lake City: 91% San Diego: 91% Sacramento: 91% Very Little Fluctuation in the 93% Average Audience Level During Commercial Breaks Across Markets

27. 27 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Virtually No Fluctuation in Audience Levels During Commercial Breaks Between Months

28. 28 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Audience Levels During Commercial Breaks Relative to the Lead-in Minute Higher on Spoken Word Versus Music Stations

29. 29 © 2011 Arbitron Inc., Media Monitors, Coleman Insights High Audience Levels During Commercial Breaks on Spoken Word Stations Driven by Format, Not Age Demographics

30. 30 © 2011 Arbitron Inc., Media Monitors, Coleman Insights The Audience Level for Music Stations During Commercial Breaks Is Somewhat Lower Among Young Persons

31. 31 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Audience Delivery During Commercial Breaks Among Music-Oriented Stations Reflects the Demographic Profile of the Format

32. 32 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Audience Levels High During Commercial Breaks Among Black and Hispanic Listeners and on Ethnic-Targeted Music Stations

33. 33 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Audience Levels During Commercial Breaks Relative to Lead-in Audiences Are Highest During Morning Drive

34. 34 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Six-minute commercial break Noncommercial content What Happens When Noncommercial Content Comes On?

35. 35 © 2011 Arbitron Inc., Media Monitors, Coleman Insights What Happens When Noncommercial Content Comes On?

36. 36 © 2011 Arbitron Inc., Media Monitors, Coleman Insights What Happens When Noncommercial Content Comes On?

37. 37 © 2011 Arbitron Inc., Media Monitors, Coleman Insights What Happens When Noncommercial Content Comes On?

38. 38 © 2011 Arbitron Inc., Media Monitors, Coleman Insights What Happens When Noncommercial Content Comes On?

39. 39 © 2011 Arbitron Inc., Media Monitors, Coleman Insights New insights coming in 2012 What Happens When Noncommercial Content Comes On?

40. 40 © 2011 Arbitron Inc., Media Monitors, Coleman Insights Take-Away Points »The radio industry should reinforce the fact that audience levels remain very high during commercial breaks by promoting the 93% finding. »Advertisers should recognize that radio is a commercial- friendly medium. »Radio programmers should not obsess about the negative impact of running commercials. This is especially true for those programming spoken word formats. Programmers of stations that cater to younger audiences should be more aware of potential audience loss due to commercials, but even they should not obsess over the issue.

41. 41 © 2011 Arbitron Inc., Media Monitors, Coleman Insights www.arbitron.com www.ColemanInsights.com www.MediaMonitors.com Download the Full Report for Free