Within this presentation….

• 15 Weeks not 15 years

• Challenges we have faced

• What’s next?

Just a few numbers…

PR to a combined global circulation of 341m

After 15 weeks, not 15 years…

In ‘active’ terms Absolute overtook Virgin late September

Search Traffic

0

20

40

60

80

4Aug

11Aug

18Aug

25Aug

1Sep

8Sep

15Sep

22Sep

29Sep

6Oct

13Oct

20Oct

27Oct

3Nov

10Nov

17Nov

24Nov

1Dec

8Dec

15Dec

22Dec

29Dec

5Jan

12Jan

Per

cent

age

of to

tal s

earc

h tr

affic

“absolute”

“virgin”

Source: Google Analytics

Site visits are rising

Average daily site visits

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q2 2008 Q3 2008 Q4 2008

Qua

rter

ly a

vera

ge d

aily

vis

its

Launch marketingLaunch marketingLaunch marketingLaunch marketing

Source: Google Analytics

Our music policy is clear

We are in pole position in London

We know we are playing more music

Source Neilson

And doing more live…

Zoo SessionsZoo SessionsZoo SessionsZoo SessionsThe CoralThe CoralThe CoralThe Coral

IgluIgluIgluIglu and Hartleyand Hartleyand Hartleyand HartleyThe KooksThe KooksThe KooksThe Kooks

The Ting TingsThe Ting TingsThe Ting TingsThe Ting TingsSeasick SteveSeasick SteveSeasick SteveSeasick Steve

Billy BraggBilly BraggBilly BraggBilly BraggColdplayColdplayColdplayColdplay

(Archive Session)(Archive Session)(Archive Session)(Archive Session)DelaysDelaysDelaysDelays

Jon AllenJon AllenJon AllenJon AllenJersey BuddJersey BuddJersey BuddJersey Budd

The FrayThe FrayThe FrayThe FrayTravisTravisTravisTravis

The RiflesThe RiflesThe RiflesThe RiflesPaul WellerPaul WellerPaul WellerPaul Weller

Kings of Leon Kings of Leon Kings of Leon Kings of Leon (not Zoo (not Zoo (not Zoo (not Zoo ––––

from Birmingham from Birmingham from Birmingham from Birmingham NIA)NIA)NIA)NIA)

Jason Jason Jason Jason MrazMrazMrazMrazKitty, Daisy Kitty, Daisy Kitty, Daisy Kitty, Daisy and Lewisand Lewisand Lewisand LewisStarsailorStarsailorStarsailorStarsailor

InterviewsInterviewsInterviewsInterviewsKings of LeonKings of LeonKings of LeonKings of LeonSimon Simon Simon Simon PeggPeggPeggPeggNoel GallagherNoel GallagherNoel GallagherNoel GallagherTravisTravisTravisTravisGiles MartinGiles MartinGiles MartinGiles MartinKaiser ChiefsKaiser ChiefsKaiser ChiefsKaiser ChiefsThe Ting TingsThe Ting TingsThe Ting TingsThe Ting TingsGrace JonesGrace JonesGrace JonesGrace JonesTom JonesTom JonesTom JonesTom JonesStereophonicsStereophonicsStereophonicsStereophonicsAdam AntAdam AntAdam AntAdam AntSlashSlashSlashSlashTom from KeaneTom from KeaneTom from KeaneTom from KeaneSnow PatrolSnow PatrolSnow PatrolSnow PatrolRicky Ricky Ricky Ricky GervaisGervaisGervaisGervaisAC/DCAC/DCAC/DCAC/DCStatus QuoStatus QuoStatus QuoStatus QuoSeasick SteveSeasick SteveSeasick SteveSeasick SteveBilly BraggBilly BraggBilly BraggBilly BraggSimple MindsSimple MindsSimple MindsSimple MindsPaul McCartneyPaul McCartneyPaul McCartneyPaul McCartneyBlurBlurBlurBlurStarsailorStarsailorStarsailorStarsailor

Involvement is up

• VIP sign-ups now over 500,000

• Over 600,000 podcast downloads since launch

• Streaming has increased steadily since launch – now up to 20,000 daily

Plus our initiativesPlus our initiativesPlus our initiativesPlus our initiatives

• Open playlist meetings

• OGS.com

Source : internal log files

Time spent on our website dwarfs competitors

Average time spent on site

00:00:00

00:07:12

00:14:24

00:21:36

00:28:48

00:36:00

00:43:12

00:50:24

AbsoluteRadio

Magic105.4

GalaxyRadio

PlanetRock

talkSPORTRadio

Whatson Classic FMHeart FM XFMOnline

CapitalRadio

Ave

rage

leng

th o

f vi

sit

(min

)

Source comscore

Rock Off exceeded expectations

c.143,000 new usersc.143,000 new usersc.143,000 new usersc.143,000 new users

31 forums debated 31 forums debated 31 forums debated 31 forums debated –––– 26 participated26 participated26 participated26 participated

c.50,000 votesc.50,000 votesc.50,000 votesc.50,000 votesc.10,000 postsc.10,000 postsc.10,000 postsc.10,000 posts

75% uplift in buzz75% uplift in buzz75% uplift in buzz75% uplift in buzznearly 10% of web trafficnearly 10% of web trafficnearly 10% of web trafficnearly 10% of web traffic

We created The Rock-Off: a competition to define the ultimate playlist of all time. A competition which would play on the competitive spirit of the forums and their passion for music. Each band forum would create its ultimate playlist which would be pitted against the playlists of rival forums and subjected to the raw scrutiny of a public vote. The forum to emerge victorious would won their own radio show broadcast live on Absolute Radio on Christmas Eve 2008.

Seeing strong marketing results

Base: All respondents - Other Lines

‘Yes’ response (%)

Thinking of radio stations, have you Thinking of radio stations, have you Thinking of radio stations, have you Thinking of radio stations, have you heard of Absolute Radio?heard of Absolute Radio?heard of Absolute Radio?heard of Absolute Radio?

12.4%

28.2%

Pre Post

Top % agree (8,9,10)

29.0%

15.3%19.5%

15.1%

PreLondon

PostLondon

Pre non-London

Post non-London

Is full of Energy...Is full of Energy...Is full of Energy...Is full of Energy...

Especially in London...

Top % agree (8,9,10)

22.6%

8.5%

12.8%

16.7%

PreLondon

PostLondon

Pre non-London

Post non-London

A station IA station IA station IA station I’’’’d recommendd recommendd recommendd recommend…………

Base: All respondents - Other Lines

TV beating benchmarks

Base: All respondents

54.7%

42.7%

Absolute Radio - Post Average

To put the ad recall into context we have used benchmarking data from similar research projects we have conducted. The average figure is taken from 11 research projects. Each project involved a media owner advertising their own radio station on TV. In some cases story board prompts were used, or in others the TV ad was played to respondents to aid recall.

Already getting cut through

Listeners say we are improving…

Base: Listened to Absolute or Virgin Radio in the p ast week

…but the journey has only just begun

The ‘name game’ is tough

Base: Aware of Virgin or Absolute

The listening is there – just sometimes mis-attributed

Remember – there was no time to use the Virgin Radio brand name beyond 90 days after acquisition.

And we live by RAJAR rules

1111stststst Absolute labeled diaries Absolute labeled diaries Absolute labeled diaries Absolute labeled diaries placed Sept 14placed Sept 14placed Sept 14placed Sept 14thththth

Name changed Sept 29Name changed Sept 29Name changed Sept 29Name changed Sept 29thththth

The card must ‘conform’

And there are up to And there are up to And there are up to And there are up to 60 cards for each 60 cards for each 60 cards for each 60 cards for each respondent to look respondent to look respondent to look respondent to look at at at at –––– choose choose choose choose –––– then then then then sticker the diarysticker the diarysticker the diarysticker the diary

And our card does conform but is complex

…………By nameBy nameBy nameBy name

…………By platformBy platformBy platformBy platform

…………By FM/AM By FM/AM By FM/AM By FM/AM

RAJAR Thursday 29th January

• Six months of data (3mths Virgin/3mths Absolute)

• We have planned for churn in listening – more so in reach than in hours

We know we are on track

RAJAR

Weekly music researchWeekly music researchWeekly music researchWeekly music research

Harris MthlyHarris MthlyHarris MthlyHarris Mthly

VIPsVIPsVIPsVIPs

IPSOS WklyIPSOS WklyIPSOS WklyIPSOS Wkly

Other Lines Ad TrackingOther Lines Ad TrackingOther Lines Ad TrackingOther Lines Ad Tracking

KPIKPIKPIKPI’’’’ssss

Edison Brand WorkEdison Brand WorkEdison Brand WorkEdison Brand Work

IPSOS IPSOS IPSOS IPSOS RajarRajarRajarRajar rererere----contactcontactcontactcontact

So… onwards 2009 and beyond

Our ambition remains…

““““Create an international music Create an international music Create an international music Create an international music and entertainment brand with and entertainment brand with and entertainment brand with and entertainment brand with

audio at its coreaudio at its coreaudio at its coreaudio at its core””””

Targeting growth via 30+ men

Strong volume potential Strong volume potential Strong volume potential Strong volume potential

Builds on perceived Builds on perceived Builds on perceived Builds on perceived strengthsstrengthsstrengthsstrengths

Differentiates Differentiates Differentiates Differentiates vsvsvsvsCommercial Radio Commercial Radio Commercial Radio Commercial Radio

Be known for something Be known for something Be known for something Be known for something

Source TGI

…………30303030----45 men45 men45 men45 menc.2,573,000c.2,573,000c.2,573,000c.2,573,000

And of course – more of the good stuff

Believe your own ears