RadioRadioThe Medium

for the

New Millennium

The MediumThe Mediumfor thefor the

New MillenniumNew MillenniumMike Mahone, RAB Executive VP/ Services, Dallas, TexasMike Mahone, RAB Executive VP/ Services, Dallas, Texas

The Radio Advertising Bureau presents...The Radio Advertising Bureau presents...

Marketing Challenges Marketing Challenges of the New Millenniumof the New MillenniumMarketing Challenges Marketing Challenges of the New Millenniumof the New Millennium

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Media Strategies Media Strategies for the New Millenniumfor the New Millennium

Media Strategies Media Strategies for the New Millenniumfor the New Millennium

Increase ad Increase ad reachreach

Target best Target best prospectsprospects

Generate needed Generate needed frequencyfrequency

Reach mobile Reach mobile consumersconsumers

Increase ad Increase ad reachreach

Target best Target best prospectsprospects

Generate needed Generate needed frequencyfrequency

Reach mobile Reach mobile consumersconsumers

Build relationshipsBuild relationships Stimulate Stimulate

purchasespurchases Maximize media Maximize media

investmentsinvestments Create effective, Create effective,

affordable affordable messagesmessages

Build relationshipsBuild relationships Stimulate Stimulate

purchasespurchases Maximize media Maximize media

investmentsinvestments Create effective, Create effective,

affordable affordable messagesmessages

A Few Radio A Few Radio Facts...Facts...

A Few Radio A Few Radio Facts...Facts...

95%95%95%95%Radio Reaches

of All ConsumersEvery Week

of All ConsumersEvery Week

Radio Reaches 75% of Radio Reaches 75% of All Consumers Every All Consumers Every

DayDay

Radio Reaches 75% of Radio Reaches 75% of All Consumers Every All Consumers Every

DayDayAverage daily reach: persons

Source: RADAR ® 63, Fall 1999, (c) Copyright Statistical Research, Inc.(Monday-Sunday, 24 hours, based on daily cume)

Radio is the Medium of Radio is the Medium of Choice All DayChoice All Day

Radio is the Medium of Radio is the Medium of Choice All DayChoice All Day

Average daily share of time spent with each mediumPersons 12 and older, Monday-Friday 6 a.m. to 6 p.m.

Source: Arbitron/RAB - Media Targeting 2000

Radio Reaches Radio Reaches Customers EverywhereCustomers Everywhere

Radio Reaches Radio Reaches Customers EverywhereCustomers Everywhere

Radio listening by location

Source: RADAR ® 63, Fall 1999, (c) Copyright Statistical Research, inc.Numbers are Monday-Sunday, 24 hours

Radio Listeners Listen…Radio Listeners Listen…Radio Listeners Listen…Radio Listeners Listen…

Source: Fall 1999 Arbitron American Radio Trends Time Spent-Listening Estimates, Monday-Sunday 6 a.m.-midnight; Average Weekday (Monday-Friday 6 a.m.-midnight); and Saturday/Sunday 6 a.m.-midnight.

Based on Arbitron’s 94 Continuous Measurement Markets.

Persons

Total Week Time Spent Listening Hrs:Min

Average Weekday Time Spent Listening Hrs:Min

Total Weekend Time Spent Listening Hrs:Min

12+ 20:45 3:06 5:15Teens

12-17 14:15 1:56 4:45Adults

18+ 21:30 3:14 5:3018-34 21:30 3:15 5:0025-54 21:45 3:17 5:0035-64 21:45 3:17 5:1565+ 20:45 3:00 5:45

Men18+ 22:15 3:24 5:1518-34 22:15 3:24 5:1525-54 22:45 3:27 5:1535-64 22:30 3:25 5:1565+ 20:15 2:58 5:30

Women18+ 21:00 3:10 5:1518-34 20:45 3:06 5:0025-54 21:00 3:12 5:0035-64 20:45 3:06 5:1565+ 21:15 3:10 6:00

3:14

20202020Consumers

spend more than

Hours

listening to Radioevery week!

63%63%63%63%Radio ReachesRadio Reaches

25 to 54 year-old consumers within one hour

of making their largest purchase of the

day.

25 to 54 year-old consumers within one hour

of making their largest purchase of the

day.

Radio Revenues Radio Revenues Radio Revenues Radio Revenues

02468

101214161820

92 93 94 95 96 97 98 99 2000 2001

Annual Revenues ($ billions)Annual Revenues ($ billions)

Source: Universal McCannSource: Universal McCann

$19.8B$19.8B

Radio Revenues Radio Revenues Radio Revenues Radio Revenues

0

5

10

15

20

25

92 93 94 95 96 97 98 99 2000 2001

Annual Revenues ($ billions)Annual Revenues ($ billions)

Source: Universal McCann / Veronis, Suhler & AssociatesSource: Universal McCann / Veronis, Suhler & Associates

$19.8B$19.8B

$20.7B$20.7B

Radio Revenues Radio Revenues Radio Revenues Radio Revenues Local: -4%

National: -21%

Combined: -8%

Local: -4%

National: -21%

Combined: -8%

Circle of DoomCircle of DoomCircle of DoomCircle of Doom

“Regrettably, cutting advertising leads to a circle of doom. It happened to us, and now we have to restore support to our franchises and reconnect to consumers once again.”

“Regrettably, cutting advertising leads to a circle of doom. It happened to us, and now we have to restore support to our franchises and reconnect to consumers once again.”

15% increase in market spending ($200M) in 2002 Renewed emphasis on advertising

15% increase in market spending ($200M) in 2002 Renewed emphasis on advertising

Douglas Conant, CEO Campbell Soup Company

Ad Age, July 2001

Douglas Conant, CEO Campbell Soup Company

Ad Age, July 2001

And now, a few words And now, a few words from our sponsors ...from our sponsors ...

And now, a few words And now, a few words from our sponsors ...from our sponsors ...

RadioRadio

Effectively promote BMW in a crowded Effectively promote BMW in a crowded (foreign car)market(foreign car)market

Earn a “safety” position in mind of Earn a “safety” position in mind of consumersconsumers

Weaken competition from other Weaken competition from other importsimports

Differentiate from LexusDifferentiate from Lexus

Effectively promote BMW in a crowded Effectively promote BMW in a crowded (foreign car)market(foreign car)market

Earn a “safety” position in mind of Earn a “safety” position in mind of consumersconsumers

Weaken competition from other Weaken competition from other importsimports

Differentiate from LexusDifferentiate from Lexus

BMW AutomobilesBMW AutomobilesBMW AutomobilesBMW Automobiles

““All the things you All the things you are…”are…”

BMW AutomobilesBMW AutomobilesBMW AutomobilesBMW Automobiles

Suburban Minneapolis, MinnesotaSuburban Minneapolis, Minnesota Radio exclusively for past 12 yearsRadio exclusively for past 12 years 7 area stations, 25 spots per week7 area stations, 25 spots per week Soft-sell, creative approachSoft-sell, creative approach

Suburban Minneapolis, MinnesotaSuburban Minneapolis, Minnesota Radio exclusively for past 12 yearsRadio exclusively for past 12 years 7 area stations, 25 spots per week7 area stations, 25 spots per week Soft-sell, creative approachSoft-sell, creative approach

Jim Paul Jim Paul Valley Olds, Pontiac, Valley Olds, Pontiac,

GMCGMC

Jim Paul Jim Paul Valley Olds, Pontiac, Valley Olds, Pontiac,

GMCGMC

““Gorilla”Gorilla”““Gorilla”Gorilla”

Jim Paul Jim Paul Valley Olds, Pontiac, Valley Olds, Pontiac,

GMCGMC

Jim Paul Jim Paul Valley Olds, Pontiac, Valley Olds, Pontiac,

GMCGMC

Jim PaulJim PaulJim PaulJim Paul

Radio: “The driving force”Radio: “The driving force” No TV, little printNo TV, little print Purchased 3 additional dealershipsPurchased 3 additional dealerships ““Have your dealers call me!”Have your dealers call me!”

Radio: “The driving force”Radio: “The driving force” No TV, little printNo TV, little print Purchased 3 additional dealershipsPurchased 3 additional dealerships ““Have your dealers call me!”Have your dealers call me!”

Discount store chain (851 stores)Discount store chain (851 stores) 75% of sales of Dayton-Hudson75% of sales of Dayton-Hudson More upscale than Wal-Mart, KmartMore upscale than Wal-Mart, Kmart Slow women’s apparel salesSlow women’s apparel sales Heavy traditional print advertiserHeavy traditional print advertiser Moving into new markets: ChicagoMoving into new markets: Chicago

Discount store chain (851 stores)Discount store chain (851 stores) 75% of sales of Dayton-Hudson75% of sales of Dayton-Hudson More upscale than Wal-Mart, KmartMore upscale than Wal-Mart, Kmart Slow women’s apparel salesSlow women’s apparel sales Heavy traditional print advertiserHeavy traditional print advertiser Moving into new markets: ChicagoMoving into new markets: Chicago

““The place to The place to hit…”hit…”

““The place to The place to hit…”hit…”

New market: 10 new stores at onceNew market: 10 new stores at once ““Radio Roadblock” for Chicago openingRadio Roadblock” for Chicago opening Coordinated by Radio Broadcasters of Coordinated by Radio Broadcasters of

Chicagoland (24 stations @ 7:40 AM)Chicagoland (24 stations @ 7:40 AM) ““Most successful grand opening ever”Most successful grand opening ever” ““Sales exceeded expectations by 55%”Sales exceeded expectations by 55%”

New market: 10 new stores at onceNew market: 10 new stores at once ““Radio Roadblock” for Chicago openingRadio Roadblock” for Chicago opening Coordinated by Radio Broadcasters of Coordinated by Radio Broadcasters of

Chicagoland (24 stations @ 7:40 AM)Chicagoland (24 stations @ 7:40 AM) ““Most successful grand opening ever”Most successful grand opening ever” ““Sales exceeded expectations by 55%”Sales exceeded expectations by 55%”

2nd oldest orchestra in US2nd oldest orchestra in US Competition from other Competition from other

entertainmententertainment– New football team (from LA)New football team (from LA)– New hockey arenaNew hockey arena

Comp from other “charities”Comp from other “charities”

2nd oldest orchestra in US2nd oldest orchestra in US Competition from other Competition from other

entertainmententertainment– New football team (from LA)New football team (from LA)– New hockey arenaNew hockey arena

Comp from other “charities”Comp from other “charities”

““Beethoven”Beethoven”““Beethoven”Beethoven”

First property in 1962First property in 1962 Target: Budget-minded Target: Budget-minded

travelerstravelers Original price: $6 per nightOriginal price: $6 per night Three bankruptciesThree bankruptcies

First property in 1962First property in 1962 Target: Budget-minded Target: Budget-minded

travelerstravelers Original price: $6 per nightOriginal price: $6 per night Three bankruptciesThree bankruptcies

““Europe”Europe”““Europe”Europe”

AUDIOAUDIO

760 properties today760 properties today $700-million revenue $700-million revenue $34 average rate per room$34 average rate per room Largest Largest

company-owned/operated company-owned/operated lodging chain in USlodging chain in US

Higher occupancy than Higher occupancy than Sheraton, Hilton, HyattSheraton, Hilton, Hyatt

760 properties today760 properties today $700-million revenue $700-million revenue $34 average rate per room$34 average rate per room Largest Largest

company-owned/operated company-owned/operated lodging chain in USlodging chain in US

Higher occupancy than Higher occupancy than Sheraton, Hilton, HyattSheraton, Hilton, Hyatt

Rampant bank consolidationRampant bank consolidation California:California:

– Bank of AmericaBank of America– Wells Fargo (1st Interstate)Wells Fargo (1st Interstate)

Fight the “mega-bank” imageFight the “mega-bank” image

Rampant bank consolidationRampant bank consolidation California:California:

– Bank of AmericaBank of America– Wells Fargo (1st Interstate)Wells Fargo (1st Interstate)

Fight the “mega-bank” imageFight the “mega-bank” image

““Voice Mail”Voice Mail”““Voice Mail”Voice Mail”

AUDIOAUDIO

The Pine Street InnThe Pine Street InnThe Pine Street InnThe Pine Street Inn

Homeless shelter in Boston, MAHomeless shelter in Boston, MA Cutbacks in government fundingCutbacks in government funding Cutbacks in corporate charityCutbacks in corporate charity Public aversion to “homeless Public aversion to “homeless

problem”problem” Public lack of appreciation of severity Public lack of appreciation of severity

of conditionsof conditions

Homeless shelter in Boston, MAHomeless shelter in Boston, MA Cutbacks in government fundingCutbacks in government funding Cutbacks in corporate charityCutbacks in corporate charity Public aversion to “homeless Public aversion to “homeless

problem”problem” Public lack of appreciation of severity Public lack of appreciation of severity

of conditionsof conditions

““Stephen King”Stephen King”

The Pine Street InnThe Pine Street InnThe Pine Street InnThe Pine Street Inn

1969: one shelter; 250 men1969: one shelter; 250 men 1999: 25 shelters; 1,000 men, 1999: 25 shelters; 1,000 men,

women and children each nightwomen and children each night ““A hot meal and a safe place to A hot meal and a safe place to

sleep”sleep” Health care, counseling, and job Health care, counseling, and job

trainingtraining

1969: one shelter; 250 men1969: one shelter; 250 men 1999: 25 shelters; 1,000 men, 1999: 25 shelters; 1,000 men,

women and children each nightwomen and children each night ““A hot meal and a safe place to A hot meal and a safe place to

sleep”sleep” Health care, counseling, and job Health care, counseling, and job

trainingtraining

The Pine Street InnThe Pine Street InnThe Pine Street InnThe Pine Street Inn

#1 athletic shoe and apparel #1 athletic shoe and apparel sellerseller

Shares slippingShares slipping Adidas gaining market shareAdidas gaining market share Supporting 20,000 retail outletsSupporting 20,000 retail outlets Radio-approved co-op support Radio-approved co-op support

programprogram

#1 athletic shoe and apparel #1 athletic shoe and apparel sellerseller

Shares slippingShares slipping Adidas gaining market shareAdidas gaining market share Supporting 20,000 retail outletsSupporting 20,000 retail outlets Radio-approved co-op support Radio-approved co-op support

programprogram

““Hubble Telescope”Hubble Telescope”““Hubble Telescope”Hubble Telescope”

Bobby Moore - Wieden & Bobby Moore - Wieden & KennedyKennedy

Belief in his creativeBelief in his creative Mercury Award Grand Prize Mercury Award Grand Prize

WinnerWinner $100,000 cash$100,000 cash

Bobby Moore - Wieden & Bobby Moore - Wieden & KennedyKennedy

Belief in his creativeBelief in his creative Mercury Award Grand Prize Mercury Award Grand Prize

WinnerWinner $100,000 cash$100,000 cash

The $100,000 Grand The $100,000 Grand Prize Radio-Mercury Prize Radio-Mercury

AwardsAwards

The $100,000 Grand The $100,000 Grand Prize Radio-Mercury Prize Radio-Mercury

AwardsAwards

a few more words from our a few more words from our sponsors ...sponsors ...

a few more words from our a few more words from our sponsors ...sponsors ...

RadioRadio

Chevy’s

C-Net

Georgia Department of Transportation

Budweiser

Radio /TV

Chevy’s

C-Net

Georgia Department of Transportation

Budweiser

Radio /TV

MobileMobile TargetedTargeted IntrusiveIntrusive PersuasivePersuasive Cost-effectiveCost-effective High frequency High frequency Medium of choice for busy consumersMedium of choice for busy consumers

The Medium The Medium

for thefor the

New MillenniumNew Millennium

The Medium The Medium

for thefor the

New MillenniumNew Millennium

RadioRadioThe Medium The Medium

for thefor the

New New MillenniumMillennium

The Medium The Medium

for thefor the

New New MillenniumMillennium

Mike Mahone, RAB Executive VP/Services, Dallas, TexasMike Mahone, RAB Executive VP/Services, Dallas, Texas

The Radio Advertising Bureau presents...The Radio Advertising Bureau presents...