This is an introduction to how radio works, comparisons with other forms of media and how to buy radio in the Palm Springs Market

1. The Power of Radio to Reach Customers

2. RADIO is the most accessible medium in our daily lives Where do people spend their media usage time on a typical day?

3. Hours per person per week USA Radio: America’s #2 Leisure Activity *Recorded Music, Newspaper and Magazine categories do not include those downloaded or viewed on the internet – those are included in Internet category. **Home Video includes VHS & DVD’s only. PPV & VOD are included in Cable; DVR viewing is included in appropriate TV category. Cable includes satellite. Source: Veronis Suhler Stevens Communication Industry Forecast 2008 and AMS Study August 2008.

4. Which Media Do People in the Coachella Valley Use? Media Availability % Household Penetration – Coachella Valley Source: AdReaction Study Aug 2008; "U.S. Broadband Forecast, 2007 to 2012; hi speed internet Pew conducted telephone interviews with 2,251 18+ adults between April 8, 2008 and May 11, 2008; Cable/ADS/TV HH Penetration – Nielsen, July 2008

5. Adults spend about 20 hours per week with RADIO! Listening habits are consistent. Radio Listening Trends in the Coachella Valley Source: Arbitron, Spring 2005 – Spring 2009, Palm Springs Metro, Monday-Sunday 6am-mid. 19:28 21:45 20:51 18:31 22:11 13:23 19:32 2005 21:36 21:21 24:01 22:41 17:45 15:46 21:02 2006 20:18 22:15 21:43 21:02 20:41 12:16 20:05 2007 19:58 19:38 22:20 21:36 18:15 10:52 19:27 2008 2009 Persons 12+ 20:34 Teens 12-17 13:16 Adults 18-24 18:41 Adults 25-34 20:39 Adults 35-44 24:57 Adults 45-54 21:37 Adults 55+ 21:07

6. So where and why are we using radio? And what roles does it play in our lives?

12. What Makes Radio Different for Advertisers? People use their radios as Virtual Neighborhoods to replace some of the social networks, the physical neighborhoods they just don’t have time for anymore.

23. What are your Strategies and Goals? Long-term Kevin Jewelers (Buy Gold campaign) High Depends Build Top of Mind Awareness : Create a unique marketing identity Continuous Cell phones; Grocery; Cable Television; Internet Service Providers High High Competitive Strategy : The more Competition, the greater the need for Reach and Frequency Long-term Financial or service categories Lower Lower Brand Loyalty : For products that already have high Brand Loyalty, the need for Reach and Frequency is reduced Short-term Cash for Clunkers; Ross Shoe Week Lower Lower Established Product : Already has high Awareness, so it requires lower Reach and Frequency Short-term Grand opening or new product line (McCafe) High High New Business or Product : Build Awareness Campaign Length Examples Frequency Reach Campaign Strategy

26. RAB Instant Background Report For Pest Control

30. Source: Arbitron PPM, October - November 2008, Los Angeles Metro Ratings, Monday – Friday, 5am-8pm. Used with permission from The Arbitron Company. About 9 out of 10 Working People listen to the radio out of home between 5A and 8P . Los Angeles 87.7% 92.3% 95.0% 97.0% 94.8% 95.1% 95.1% 92.7% 96.5% 95.0% 94.7% Average Weekly Total 78.7% 86.0% 90.3% 92.0% 87.5% 89.9% 87.4% 85.6% 90.2% 89.5% 89.2% Average Weekly Total Out of Home 2:30 2:15 Working Adults 18-34 3:00 2:30 Working Men 25-54 2:30 2:15 Working Men 18-34 2:30 2:00 Working Adults 25-54/ HHI $75K+ 2:45 2:15 Working Adults 18+ 3:00 2:45 Hispanic Working Adults 25-64 2:30 2:00 African-American Adults 18-49 2:45 2:15 Working Adults 25-64 2:45 2:30 Hispanic Working Adults 18-34 Hispanic Working Adults 18+ Working Adults 25-54 3:00 2:30 2:45 2:30 Average Daily Time Exposed Total Average Daily Time Exposed Out of Home

37. About Half of TV Viewing Time is Spent With DVR’d Programming

38. Radio Beats the Internet Source: Gallup Poll from Marketingcharts.com, January 27, 2009, and Arbitron, December 2008 PPM, Atlanta, Chicago, Dallas, Detroit, Los Angeles, New York, Philadelphia, San Francisco, and Washington. * About the poll: Internet results are based on telephone interviews with 1,009 national adults, aged 18 and older, conducted December 4-7, 2008. Interviews are conducted with respondents on land-line telephones (for respondents with a land-line telephone) and cellular phones (for respondents who are cell-phone only). ** Radio data is based on an electronically monitored, year round base of over 30,000 people in the top 9 markets in the country. % of People who spend an hour or more each day with Internet or Radio More people spend more time with Radio each day than they do with the Internet

39. Where They Really Are Source: Scarborough, February 2007 – January 2008, Los Angeles and Arbitron PPM, October – November 2008, Los Angeles Metro ratings, Monday – Friday, 5am-8pm. Note: Primetime TV Monday-Saturday is 8pm-11pm and Sunday 7pm-11pm, over 100 different TV programs (vs. 64 different radio formats) Networks included : CBS, CW, NBC, FOX, and ABC . Workday Radio reaches more people than Primetime Network TV

43. Younger People Don’t Read Print Younger, Heavy Online-News Consumers Don't Read Newspapers Source: comScore Plan Metrix study March 15, 2008 Segments were defined based on the number of days respondents said they read a print version of a newspaper in an average week, excluding the Sunday edition: Heavy newspaper readers: 6 times per week Medium newspaper readers: 3-5 times per week Light newspaper readers: 1-2 times per week Non-readers: 0 times per week

44. Source: MRI Spring 2006; SRDS Circulation 2006 Prepared by Newspaper Association of America Business Analysis and Research Department, Media Audit March – May 2008, Los Angeles - Weekday Newspaper (net), Sunday Newspaper (net), and Arbitron, PPM September 2008, Los Angeles Metro, Monday-Friday, 5am-mid. % Adults who Los Angeles is Different… The younger your target, the more you need radio to reach your prospective customers. Los Angeles 73% 76% 80% 79% 77% 68% National Los Angeles DMA Age Group Daily Sunday Daily Sunday 18-24 years 37% 47% 22% 26% 25-34 years 42% 52% 26% 26% 35-44 years 53% 63% 33% 43% 45-54 years 65% 72% 47% 55% 55-64 years 72% 76% 51% 56% 65+ years 75% 80% 65% 71% Read Newspaper Used Radio Yesterday Avg. Day

45. Consumers’ Media Choice Changes The change in people’s media choices reflects what’s possible for them in their daily lives. The number of people listening to Radio in Los Angeles since 2003 has increased while the number of people reading the L.A. Times or the Orange County Register has gone down. Radio L.A. Times Orange County Register Source: Arbitron, Spring 2003 – Spring 2007, Los Angeles Metro, Monday-Sunday, 5a-mid, Adults 18+ and RAB Newspaper Performance Reports, Audit Period Ending September 30, 2008, (Circulation numbers from Audit Bureau of Circulations). *Arbitron, PPM, November 2008, Monday-Sunday, 5a-mid, Adults 18+. Note: Between 2002-2005, the reader per copy (RPC) varied from 2.2 to 2.3 per the Newspaper Association of America. To be as fair as possible, we have elected to use the higher, 2.3 RPC, for this comparison. Bottom Line: LA Times, down 21.1% . Radio, up 5.4%

46. Consumers’ Choice The change in people’s media choices reflects what’s possible for them in their daily lives. The number of people listening to Radio in Los Angeles since 2003 has increased while the number of people reading the L.A. Times or the Orange County Register has gone down. Radio - Hispanic Adults 18+ L.A. Times – Total Market Orange County Register - Total Market Radio - Spanish Dominant Hispanic Adults 18+ La Opinion Source: Arbitron, Spring 2003 – Spring 2007, Los Angeles Metro, Monday-Sunday, 5a-mid, Adults 18+ and RAB Newspaper Performance Reports, Audit Period Ending September 30, 2008, (Circulation numbers from Audit Bureau of Circulations). *Arbitron, PPM, November 2008, Monday-Sunday, 5a-mid, Adults 18+. Note: Between 2002-2005, the reader per copy (RPC) varied from 2.2 to 2.3 per the Newspaper Association of America. To be as fair as possible, we have elected to use the higher, 2.3 RPC, for this comparison.

47. Recommended Proportion of Ad $ Based on Ability of Medium to Influence Auto Purchase Source:, Prosper Media Allocation Model/BIGresearch SIMM with Medill School at Northwestern U. Based on 18,000 participants and a 6 year study December 16, 2008 Radio is Stronger Media Option For Selling Cars * % of Total U.S. Advertising Spend in 2007 ** Media influence weighted by consumption and media cost for people planning to buy/lease a car/truck in the next 6 months. People planning to buy/lease a car/truck in the next 6 months are more influenced by Radio than any other media. Prosper Technologies developed a new Media Allocation Model that utilizes the SIMM Survey of over 18,000 consumers to determine “what” and “ which” media forms are most influential to consumers for buying a car , the consumption of the media and pricing of various measured media. 17.3% Television 15.6% Magazines 16.3% Other 8.5% Internet 21.5% Radio Outdoor Newspaper Medium 14.6% 6.2% Prosper Allocation Model**

49. Automotive Current Ad Spend vs. Prosper Media Recommended Allocation Model Source: Ad Age Domestic Ad Spending by Category (2007)/Measured media from TNS Media Intelligence’s Strategy, Prosper Media Allocation Model/BIGresearch SIMM with Medill School at Northwestern U. Based on 18,000 participants and a 6 year study December 16, 2008. Radio is Stronger Media Option For Selling Cars * % of Total U.S. Advertising Spend in 2007 ** Media influence weighted by consumption and media cost for people planning to buy/lease a car/truck in the next 6 months. BIGresearch Recommend Reallocation of Ad $ Distribution to Improve Sales and ROI People planning to buy/lease a car/truck in the next 6 months are more influenced by Radio than any other media. 31.5% 7.0% 3.5% 39.1% 1.5% 5.0% 12.4% General Motors Spend Share* 34.5% 6.5% 2.3% 38.9% 0.7% 5.2% 11.9% Ford Spend Share* 17.3% 43.2% Television 15.6% 10.5% Magazines 16.3% 34.0% Other 8.5% 3.0% Internet 21.5% 1.9% Radio Outdoor Newspaper 14.6% 0.5% 6.2% 6.9% Prosper Allocation Model** Chrysler Spend Share*