THE POWER AND  VALUE OF RADIO IN  SOUTHERN CALIFORNIA NIELSEN & SOUTHERN CALIFORNIA  BROADCASTERS ASSOCIATION RADIO EVENT October 30, 2014

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

TODAY’S TOPICS •

The power of radio in a fragmented world

•

Southern California’s radio landscape

•

Connecting listening + buying = RADIO ROI 

•

Radio’s new precision targeting

•

Digital audio measurement

•

Q&A

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THE POWER OF RADIO  NATIONWIDE

243 MILLION AMERICANS USE RADIO EACH WEEK

91%

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

MORE THAN OF EVERYONE AGE 12 AND OLDER

Source: Nielsen RADAR 122, September 2014. Mon‐Su Mid‐Mid, Persons 12+

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RADIO IS STRONG IN A FRAGMENTED MEDIA WORLD

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

The average US adult consumes 66 hours of content each week across TV,  radio, online and mobile.

33.5 HRS

13.1 HRS

6.5 HRS

3.3 HRS

5.7 HRS

1.6 HRS

1.5 HRS

Watching Traditional Television

Listening to AM/FM Radio

Using any App/Web on Smartphone

Watching  Time‐Shifted  Television

Using the Internet on Computer

Game Console

Video on the Internet

20% of their time is spent listening to radio. Source: The  Nielsen Cross‐Platform Report Q3 2014 / Base: Total US Population P18+

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RADIO REACHES CONSUMERS AWAY FROM HOME  WHEN THEY’RE READY TO BUY. Nationwide radio listening by location AWAY FROM HOME

64.5%

M‐SU 6AM‐MID

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

AM DRIVE 6AM‐10AM

AT HOME

53.6%

35.6% 46.4%

MID DAY 10AM‐3PM

73.5%

26.5%

PM DRIVE 3PM‐7PM

74.1%

25.9%

EVENINGS 7PM‐MID

WEEKENDS 6AM‐MID

Source: Nielsen Audio Today Report, Q1 2014.  National AQH Composition, Persons 12+

59.4% 57.4%

40.6% 42.6%

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Copyright ©2014 The Nielsen Company. Confidential and proprietary.

A FOCUS ON SOUTHERN CALIFORNIA

The combined  population of  Los Angeles,  San Diego and  Riverside is 

16 MILLION Source: Nielsen Audio Fall 2014 Metro Populations 12+

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94% OF SOUTHERN CALIFORNIANS ARE REACHED BY RADIO EACH WEEK

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

THAT’S 14.9 LISTENERS

•Source: Nielsen National Regional Database, Spring 2014, Mon‐Sun 6a‐Mid, Persons 12+

MILLION

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DESPITE FRAGMENTATION, THE RADIO AUDIENCE  IN SOUTHERN CALIFORNIA IS GROWING SPRING  2014

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

SPRING 2013

SPRING 2012

14.6 MILLION

14.9 MILLION

14.8 MILLION The weekly  radio audience has grown by more than 

300 THOUSAND in the last two years

Source: Nielsen National Regional Database,  Spring 2012‐2014, Mon‐Sun 6a‐Mid, Persons 12+ Weekly Cume

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RADIO’S REACH EXTENDS ACROSS ALL MAJOR  DEMOGRAPHICS IN SOUTHERN CALIFORNIA… Weekly Radio Listeners

3.8 Million Listeners 4.5 Million Listeners

95.9% of Gen X 

3.2 Million Listeners

94.5% of Millennials 

use radio

94.3% of Boomers 

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

use radio

MILLENNIALS  (18‐34)

use radio

GENERATION X  (35‐49)

Source: Nielsen National Regional Database, Spring 2014, Mon‐Sun 6a‐Mid, Persons 12+

BOOMERS (50‐64) 10

…AND RADIO REACHES A DIVERSE AUDIENCE Weekly Radio Listeners

HISPANICS (12+) 6.4 Million Listeners

96.8%  Copyright ©2014 The Nielsen Company. Confidential and proprietary.

of Hispanics  use radio

Source: Nielsen National Regional Database,  Spring 2014, Mon‐Sun 6a‐Mid, Persons 12+

AFRICAN AMERICANS (12+) 1 Million Listeners

91.1% of African  Americans use radio

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12.6 MILLION

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

SOUTHERN CALIFORNIANS USE RADIO AWAY FROM HOME DURING COMMUTING HOURS

•Source: Nielsen National Regional Database, Spring 2014, Mon‐Fri 6a‐10a + 3p‐7p, Persons 12+

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Copyright ©2014 The Nielsen Company. Confidential and proprietary.

THIS AUDIENCE WOULD BE THE 

7TH LARGEST STATE IN AMERICA… 1. 2. 3. 4. 5. 6. 7. 8.

California ‐ 37.2 million Texas ‐ 25.1 million New York ‐ 19.3 million Florida ‐ 18.3 million Illinois ‐ 12.8 million Pennsylvania ‐ 12.7 million SOCAL Commuter Listeners ‐ 12.6 million Ohio ‐ 11.5 million

AND IS 

BIGGER THAN EVERY OTHER  MARKET IN THE  UNITED STATES

EXCEPT  NEW YORK.

Source: Nielsen National Regional Database, Spring 2014, Mon‐Fri 6a‐10a + 3p‐7p, Persons 12+. 2010 US Census State Populations.

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REACHING CONSUMERS WHEN THEY’RE READY TO  BUY: SOUTHERN CA OUTPERFORMS THE NATION Percentage of radio audience listening away from home 100.00%

NATIONAL AVERAGE

RADIO AUDIENCE

90.00%

80.00%

74%

70.00%

60.00%

50.00%

77%

79%

74%

68%

63%

59%

66% 57%

54%

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

40.00%

30.00%

20.00%

10.00%

0.00%

MORNING

MID‐DAY

Source: Nielsen National Regional Database, Spring 2014, Mon‐Sun 6a‐Mid, Persons 12+

PM

NIGHT

WEEKEND 14

SOUTHERN CALIFORNIA NEVER SLEEPS— AND NEITHER DO RADIO LISTENERS Night and weekend away‐from‐home listeners are a valuable, sizeable audience

THAT’S MORE THAN A THIRD OF 

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

THE OUT‐OF‐HOME  NIGHT AND WEEKEND  AUDIENCE IS

12.5 MILLION  LISTENERS

THE ENTIRE STATE  OF CALIFORNIA’S  POPULATION TUNING IN ON NIGHTS  AND ON THE WEEKENDS.

Source: Nielsen National Regional Database, Spring 2014, Mon‐Sun 6a‐Mid, Persons 12+. 2010 US Census State Populations

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76%

OF SOUTHERN CALIFORNIA RADIO LISTENERS ARE IN THE WORK-FORCE

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

THAT’s 8.2 MILLION QUALIFIED CONSUMERS LISTENING EVERY WEEK

Source: Nielsen National Regional Database, Spring 2014, Mon‐Sun 6a‐Mid, Persons 12+

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Copyright ©2014 The Nielsen Company. Confidential and proprietary.

THIS AUDIENCE WOULD BE THE 

3rd LARGEST MARKET IN AMERICA… 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

New York – 16.1 million Los Angeles – 11.2 million SOCAL Working Listeners – 8.2 million Chicago – 7.9 million San Francisco – 6.4 million Dallas – 5.6 million Houston – 5.3 million Washington, DC – 4.7 million Philadelphia – 4.5 million Atlanta – 4.5 million

Source: Nielsen National Regional Database, Spring 2014, Mon‐Fri 6a‐10a + 3p‐7p, Persons 12+. Nielsen Audio Fall 2014 Metro Populations 12+ 

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WHY CONSUMERS ENJOY RADIO IN LOS ANGELES

Relieves Stress

Good Music

STAY IN TOUCH

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

DIVERSE Balanced

CURRENT and  Up to date

FEELS LIKE HOME

TRAFFIC Lighten my mood

LISTEN EVERYWHERE Relatable Innovative ENTERTAINING

fair

Companion

LOCAL NEWS

Great at night

Variety

Connected

SPORTS

FUN

Nielsen Harris Poll October 15‐23, 2014

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RADIO’S LOCAL CONNECTION IN LOS ANGELES Nielsen Harris Poll October 15‐23, 2014

“Radio personalities in LA are entertaining and  talk about things meaningful to me.”

6 in 10  agree

“I feel a strong personal connection to the radio  station in LA I listen to the most.”

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

“Radio connects me to local products, stores  and events in my community.”

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THE VALUE OF RADIO

PROVIDED THE  FINAL PIECE TO  DEVELOP THE  “HOLY GRAIL”

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

THE NIELSEN  ACQUISITION OF  ARBITRON

RADIO ROI

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CONNECTING LISTENING AND BUYING A breakthrough collaboration between Nielsen and various partners  creating the first single‐source ROI tool for radio.

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

CONSUMER DATA NIELSEN  AUDIO  DATA

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CPG

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

$6:$1 Advertisers achieved over $6 of incremental sales for every $1 spend on radio

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MEDIA Radio  demonstrated 

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

16%

conversion rate  for promos

Nearly 1 in 5 listeners  who heard the spot  tuned into the TV  broadcast.

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MEDIA Cable Drama Premier: Promo Campaign. % of campaign reach by platform

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

14 WEEKS??

In JUST ONE WEEK, radio  delivered nearly a quarter  of what TV took 14 weeks  to reach. 25

RETAIL

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

Radio  works well  for driving  loyalty

Radio increased  retention by  as much as 

11%

for a big box retailer

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We can now link PPM listening data to the actual  transactions of more than 125 MILLION consumers  and 80% of all American credit card holders.  BUY

LISTEN

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

Nielsen PPM  Panel

125 MILLION  Consumers

72,000  panelists

80% of all  U.S. credit card  transactions

SINGLE SOURCE 27

PRECISION TARGETING RETAIL

CPG

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

MEDIA

ENTERTAINMENT

RESTAURANT

TRAVEL

TELECOM

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LOS ANGELES ENTERTAINMENT SPENDING  BY FORMAT PPM Data + Spending and Visit Data 

Annual dining spending,  ranked on amount spent.

Annual trips to the movies,  ranked on # of trips.

$1,317

5.39

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

URBAN

$1,190

$1,197

5.05

ROCK/ALTERNATIVE

OLDIES/CLASSIC HITS

4.74

SPORTS ROCK/ALTERNATIVENEWS/TALK

Source: Nielsen Buyer Insights Data, Los Angeles Metro.

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LOS ANGELES AUTO BUYING BY FORMAT PPM Data + Polk Automotive Registration Data

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

Chevrolet Buyers ranked  162,000 161,676 161,352 161,028 160,704 160,380 160,056 159,732 159,408 159,084 158,760 158,436 158,112 157,788 157,464 157,140 156,816 on persons  156,492 156,168 155,844 155,520 155,196 154,872 154,548 154,224 153,900 153,576 153,252 152,928 152,604 152,280 151,956 151,632 151,308 150,984 150,660 150,336 150,012 149,688 149,364 149,040

148,716 148,392 148,068 147,744 147,420 147,096 146,772 146,448 146,124 145,800 145,476 145,152 144,828 144,504 144,180 143,856 143,532 143,208 142,884 142,560 142,236 141,912 141,588 141,264 140,940 140,616 140,292 139,968 139,644 139,320 138,996 138,672 138,348 138,024 137,700 137,376 137,052 136,728 136,404 136,080 135,756 135,432 135,108 134,784 134,460 134,136 133,812 133,488 133,164 132,840 132,516 132,192 131,868 131,544 131,220 130,896 130,572 130,248 129,924 129,600 129,276 128,952 128,628 128,304 127,980 127,656 127,332 127,008 126,684 126,360 126,036 125,712 125,388 125,064 124,740 124,416 124,092 123,768 123,444 123,120 122,796 122,472 122,148 121,824 121,500 121,176 120,852 120,528 120,204 119,880 119,556 119,232 118,908 118,584 118,260 117,936 117,612 117,288 116,964 116,640 116,316 115,992 115,668 115,344 115,020 114,696 114,372 114,048 113,724 113,400 113,076 112,752 112,428 112,104 111,780 111,456 111,132 110,808 110,484 110,160 109,836 109,512 109,188 108,864 108,540 108,216 107,892 107,568 107,244 106,920 106,596 106,272 105,948 105,624 105,300 104,976 104,652 104,328 104,004 103,680 103,356 103,032 102,708 102,384 102,060 101,736 101,412 101,088 100,764 100,440 100,116 99,792 99,468 99,144 98,820 98,496 98,172 97,848 97,524 97,200 96,876 96,552 96,228 95,904 95,580 95,256 94,932 94,608 94,284 93,960 93,636 93,312 92,988 92,664 92,340 92,016 91,692 91,368 91,044 90,720 90,396 90,072 89,748 89,424 89,100 88,776 88,452 88,128 87,804 87,480 87,156 86,832 86,508 86,184 85,860 85,536 85,212 84,888 84,564 84,240 83,916 83,592 83,268 82,944 82,620 82,296 81,972 81,648 81,324 81,000 80,676 80,352 80,028 79,704 79,380 79,056 78,732 78,408 78,084 77,760 77,436 77,112 76,788 76,464 76,140 75,816 75,492 75,168 74,844 74,520 74,196 73,872 73,548 73,224 72,900 72,576 72,252 71,928 71,604 71,280 70,956 70,632 70,308 69,984 69,660 69,336 69,012 68,688 68,364 68,040 67,716 67,392 67,068 66,744 66,420 66,096 65,772 65,448 65,124 64,800 64,476 64,152 63,828 63,504 63,180 62,856 62,532 62,208 61,884 61,560 61,236 60,912 60,588 60,264 59,940 59,616 59,292 58,968 58,644 58,320 57,996 57,672 57,348 57,024 56,700 56,376 56,052 55,728 55,404 55,080 54,756 54,432 54,108 53,784 53,460 53,136 52,812 52,488 52,164 51,840 51,516 51,192 50,868 50,544 50,220 49,896 49,572 49,248 48,924 48,600 48,276 47,952 47,628 47,304 46,980 46,656 46,332 46,008 45,684 45,360 45,036 44,712 44,388 44,064 43,740 43,416 43,092 42,768 42,444 42,120 41,796 41,472 41,148 40,824 40,500 40,176 39,852 39,528 39,204 38,880 38,556 38,232 37,908 37,584 37,260 36,936 36,612 36,288 35,964 35,640 35,316 34,992 34,668 34,344 34,020 33,696 33,372 33,048 32,724 32,400 32,076 31,752 31,428 31,104 30,780 30,456 30,132 29,808 29,484 29,160 28,836 28,512 28,188 27,864 27,540 27,216 26,892 26,568 26,244 25,920 25,596 25,272 24,948 24,624 24,300 23,976 23,652 23,328 23,004 22,680 22,356 22,032 21,708 21,384 21,060 20,736 20,412 20,088 19,764 19,440 19,116 18,792 18,468 18,144 17,820 17,496 17,172 16,848 16,524 16,200 15,876 15,552 15,228 14,904 14,580 14,256 13,932 13,608 13,284 12,960 12,636 12,312 11,988 11,664 11,340 11,016 10,692 10,368 10,044 9,720 9,396 9,072 8,748 8,424 8,100 7,776 7,452 7,128 6,804 6,480 6,156 5,832 5,508 5,184 4,860 4,536 4,212 3,888 3,564 3,240 2,916 2,592 2,268 1,944 1,620 1,296 972 648 324 0

153,917

Hyundai Buyers ranked  220 on index 200

197

180

133,724

160

117,321

140 120 100

120

120

COUNTRY

ALL NEWS

100

80 60 40 20 0

ALL SPORTS CLASSIC HITS

POP CHR

Source: Nielsen Audio and Polk Automotive Insights, Adults 18+, October 2013, M‐F 6AM‐MID

ACTIVE ROCK

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MEASURING DIGITAL AUDIO

EXPANSION OF CHOICES  CONTINUES TO ACCELERATE

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

THE LAST  50 YEARS

THE LAST  10 YEARS

THE LAST  5 YEARS

THE  FUTURE?

Vinyl

AM/FM  RADIO

HD RADIO

?

FM

DIGITAL  RADIO

MUSIC  APPS

?

AM

CD

TABLETS

?

MP3

SMART  PHONES

?

SATELLITE  RADIO

CLOUD  STORAGE

? ?

32 32

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

NIELSEN’S APPROACH TO MEASURING DIGITAL  AUDIO: THE SOFTWARE DEVELOPER KIT REACH Number of Listeners, Sessions,  or Quarter Hours

DEMOGRAPHICS Gender & Age by Daypart

NIELSEN SDK

DURATION Time Spent Listening

LOCATION By Metro or DMA

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MEASURING DIGITAL AUDIO

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

NIELSEN SDK COLLECTED DATA: Station ID Duration Time Stamp

ADVERTISING IDENTIFIER

DEMOGRAPHICS (Facebook)

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Copyright ©2014 The Nielsen Company. Confidential and proprietary.

NIELSEN’S DIGITAL AUDIO SDK TECHNOLOGY  IS READY NOW

COMPUTER READY

NIELSEN SDK

iOS READY

ANDROID READY 35

PROGRESS AND MOMENTUM

• 30+ luminary clients  integrating the SDK

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

• Accepting all audio clients  for onboarding • Preliminary data collection and  calibration underway NIELSEN SDK

• Reporting tools  in development 36

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

NIELSEN SDK Southern California  Radio is Strong

Radio Delivers  Solid ROI

SOCAL Radio reaches  90%+  across all key  demos

Radio delivers  a $6:$1 Return  on Ad Spend

SOCAL Radio Reaches  12.6M consumers  when they are ready  to shop and buy

Radio drives listeners to tune‐in to TV programs

Top clients  integrating the SDK

Radio delivers repeat  shoppers

Collecting data now

SOCAL Radio Reaches  8.2M working  consumers with  money to spend

Nielsen Digital Audio  Measurement  is on the way Software  tested and ready

New precision targeting helps focus advertising  on the right consumers 37

Copyright ©2014 The Nielsen Company. Confidential and proprietary.

Q&A

Source: Nielsen National Regional Database, Spring 2014, Mon‐Sun 6a‐Mid, Persons 12+

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