The State of Radio, Newspapers & Magazines

An In-Depth Look at How “Traditional” Media Compares to Television

State of Media Summary

State of Radio• Radio’s audience shrinks – all daypart cumes down, especially early morning (-9%) • Time spent on radio declines – down 1 hour (P2+)• Top online radio sites are trending down; Computer online is down double digits • Radio’s ad spending slows – projected to grow 1% next year• Time spent with TV is 2X the time spent with radio• TV’s reach surpasses Radio’s by far across all demos in primetime

State of Newspaper• Newspaper circulation projected to decline – down 9% by 2018• Ad revenue down; online ad revenue is not covering print ad losses• Readership is down across all ethnicities• TV triumphs Newspapers in time spent by 15X• TV viewers spend significantly more on products/services than newspaper readers

State of Magazine• Number of magazine brands remains stagnant• Ad spending projected to plateau• TV triumphs magazine time spent by 19X

Radio’s Audience Continues To Shrink -All Daypart Cumes Are Down

Source: Radio Cumes: MRI Doublebase 2015 vs 2004

-9%

-5%

-4%

-9%-5% -4%

-3%

-6%

6AM-10AM 10AM-3PM 3PM-7PM 7PM-12AM 12AM-6AM

% Change In Cume Adults 18+ by Daypart (Weekday)

(2015 v. 2014)

Source: Nielsen Total Audience Report; 3Q15

Overall, Time Spent With Radio Is On

the Decline

3Q14 3Q15 (+/-)

Composite P2+ 58:53 57:53 -1:00

Black P2+ 61:03 59:37 -1:26

Hispanic P2+ 58:10 57:01 -1:09

P2+ Monthly Time Spent With AM/FM Radio (Hrs: Mins)

28

Daily time spent listening to the radio per capita (in minutes)

Source: ZenithOptimedia; Nielsen; P2+

135.7130.6

125.5120.5

115.4112.2

109105.8

2010 2011 2012 2013 2014 2015* 2016* 2017*

…and Radio’s Listernship Is Projected To

Dwindle Even More

Are Viewers Migrating To Online Radio? Online

Desktop Radio is Struggling – Especially Among The

Young

Source: comScore: Radio category ; Desktop Only(defined group in ComScore… includes Pandora, iHeartRadio, TuneIn, Spotify etc..)

-16% -16%

-18%-17% -17% -17%

-16%

-21%

-13%

P2+ P13-24 P18-34 P18-49 P25-54 M13-24 F13-24 M18-49 F18-49

% Change in Online Radio

Total Unique Visitors (Nov ‘15 vs Nov ‘14)

Source: ComScore, Avg. Min per Visitor for Ranked Online Radio sites; Desktop only

Average Minutes Spent Per Visitor

0

200

400

600

800

1000

1200

1400

Nov-2014 Dec-2014 Jan-2015 Feb-2015 Mar-2015 Apr-2015 May-2015 Jun-2015 Jul-2015 Aug-2015 Sep-2015 Oct-2015 Nov-2015

Pandora TuneIn iHeart Radio Slacker.com

Pandora, Top Online Radio Source Is in Decline

Advertising 36

Radio Advertising Spending (in billion)

Source: PwC

16.05 16.32 16.48 16.74 17.18 17.43 17.66 17.84 18.01 18.14

2010 2011 2012 2013 2014 2015* 2016* 2017* 2018* 2019*

Overall, Radio’s Ad Spending Slows –

Projected To Increase Only 1% Over The Next Year

Weekly Time Spent In Hours: Min

Source: Nielsen Cross Platform; 3Q15

Time Spent With TV Dominates Radio; 2X The

Time Among Young Adults

P2+ P18+ T12-17 A18-24 A25-34 A35-49 A50-64 A65+

RADIO 12:09 12:41 6:54 9:53 11:17 13:24 14:51 12:00

TV 29:26 32:02 17:00 15:30 21:10 28:41 39:21 47:33

23

In Primetime, TV’s Reach Surpasses Radio

By Far

Source: Nielsen Audio; Radio Advertising Bureau; TV Reach=Npower 6/15

56% 55% 56%62% 62% 61% 61% 58%

46%40%

93% 91% 93%

81%86%

90% 93% 95% 97% 97%

12+ 12-17 18+ 18-24 18-34 18-49 25-54 35-64 55+ 65+

Reach % in Primetime

Radio TV

TV Is Top Choice For Breaking News

“Among the Internet, Newspapers, Radio and Television, which one do

you turn to first in the event of a major news story?” 201550%

40%

6%3%

Television Internet Radio Newspaper

Source: Edison Research; Base: Total Population, 12+;2015

32

Source: 2015 GFK MRI Database

…and TV Is Paramount For Keeping Consumers

Up To Date & Entertained

30%

44% 43%

51%

57%

83%

64% 63%

Good source of learning Pure entertainment Keeps me informed/up todate

Relaxes me

Radio TV

Source: SNL Kagan Media Trends

Newspaper Circulation Projected To Drop;

Down 9% by 2018

Newspaper Circulation

(in Millions)

2012

2014

2016

2018

2020

43.4

42.1

40.9

39.7

38.5

Year

Total Daily Ad Revenue (Print/Online)

(in Millions)

Source: SNL Kagan Media Trends

Print & Online Newspaper Ad Revenue

Projected to Decline 4% in Next Two Years

2,851

2,778

2,721

2,677

3,706

3,582

3,474

3,380

$8,470

$9,070

$8,731

$8,268

2015

2016

2017

2018

Retail ad revenue National ad revenue

Classified ad revenue

Ad Revenue By Sector

(in Millions)

All Main

Sectors Down

2015 $19,161

2016 $18,688

2017 $18,330

2018 $18,062

Source SNL Kagan; total print+online

-8.6%

-5.5%

-4.4%

-3.4% -2.8%

1.5%

1.6% 1.7% 1.8% 1.9%

2013 2014 2015 2016 2017

Print Online

Online Revenue Growth Not Covering

Print Ad Losses

For Every Digital Ad Dollar Gained,

15 Print Ads Lost

% Growth/Loss

Share of consumers who read daily newspapers

Source: Pew Research Center; Nielsen Scarborough; percentage nationally who read any daily newspaper the day before

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

White African American Asian Hispanic Other

Newspaper Readership Steady Decline

Persists - Among All Ethnicities

Source: ZenithOptimedia; Various sources (Media Dynamics);* Forecasts

24

21

17

14

2011 2013 2015* 2017*

Time Spent Reading Newspaper Per Capita Daily

(In Minutes)

…and Time Spent With Newspapers Is

Projected To Drop 18% By 2017

Online Newspaper Readership Is Down

Across The Board

% Change in Online Newspaper Category: 11/15 v. YAG

Source: comScore desktop only; 11/15 v. 11/14

% Change in Unique Visitors A18+

11/15 v. YAG

The New York Times -17%

Washingtonpost.com -40%

Mail Online/Daily Mail -13%

Hearst Newspapers -11%

The Guardian +18%

Top Online Newspaper Brands

Unique Visitors

A18+ -6%

A18-49 -8%

A18-34 -7%

A18-24 -2%

A25-54 -8%

A50+ -5%

31

Daily time spent with Newspaper v. TV in Oct’15

(in minutes)

Source: eMarketer; U.S. Oct 2015, A18+

TV Triumphs Newspapers in Time Spent by 15X

TV,

251 min

Newspaper,

17 min

TV Branded News Networks Provide The Latest Breaking

News Around The Clock – Online & Offline

Top 5 Online General News Category

A18+ A18-49 A18-24 A25-54

ABC News CNN Buzzfeed ABC News

CNN ABC News CNN CNN

NBC News NBC News CBS News NBC News

CBS News CBS News NBC News CBS News

USA Today USA Today CBS News USA Today

Source: VAB analysis of multi-platform comScore data, November 2015

…and Ranking in the Top 5 General

News Category Online

…and Out of 1 Million + iPAD Apps, Ad-Supported

TV Brands are Among the Top 5 Downloaded

From Over 1,000,000 Apps:

Top 5 iPad Apps Downloaded For News

1. FOX News

2. BBC News

3. CNN App for iPhone

4. Google News and Weather

5. Flipboard

Source: Apple app store 9/18/15; Most popular iPAD apps by category search term (excluding gaming apps)

For Breaking News, TV Is Top Choice

“Among the Internet, Newspapers, Radio and Television, which one do

you turn to first in the event of a major news story?” 201550%

40%

6%3%

Television Internet Radio Newspaper

Source: Edison Research; Base: Total Population, 12+;2015

In General, Newspapers Only Have a Modest Push On Consumer’s Action

Source: MRI Doublebase 2015

Shopped At Advertised Store

20%

Purchased Advertised

Product

17%

Requested Add. Info on Product

14%

Cut Ad Out For Later

2%

Action Taken As A Result of Reading Newspaper/Last Month: A18+

% Of Weekday Newspaper Sections Read

A18+ A18-24 A18-49

Main news/Front page 42 22 28

Local News 41 20 27

Weather 24 12 15

International/National News 23 8 12

Sports 22 13 15

Entertainment/Lifestyle 18 8 11

Comics 17 11 10

Editorial Page 17 4 6

Food/Cooking 17 6 9

Circulars/Inserts/Fliers 16 3 9

Health 16 5 8

Classified Advertising 14 8 11

Business/Finance 13 4 7

Advertisements 12 4 7

Movie Listings & Reviews 12 6 8

TV Listings 11 5 5

Home/Furnishings/Gardening 10 3 5

Science & Technology 9 5 5

Travel 9 3 5

Fashion 7 4 4

…and Few Consumers Read Beyond The Front

Page - Especially A18-24

Source: MRI Doublebase 2015

Targeting Millennials? Newspapers Under-Delivers;

TV Has Practically 2x As Many

Source: MRI Doublebase 2015

A18-246% A25-34

9%

A35-4919%

A50+66%

Newspaper Reader Television Viewer

A18-2411%

A25-3417%

A35-4926%

A50+46%

6 out of 10 readers

Are over 50+

A18-34

15% A18-34

28%

32

Source: 2015 GFK MRI Database

…and TV Is Top For Entertainment and

Keeping Consumers Informed

54%

10%

52%

10%

57%

83%

64% 63%

Good source of learning Pure entertainment Keeps me informed/up todate

Relaxes me

Newspapers TV

% of A18+

Source: MRI Doublebase 2015; index to gen pop

In General, TV Viewers Spend More Money On

Products/Services

TV Viewer Newspaper Reader

Index Index

Spent Last Year -Marine/Boating Attire $150+ 105 82

Women's Spent Last Year-Cloth Coat $250+ 104 96

Shoes Spent Past Year-Basketball Shoes $75+ 103 97

Men's Designer Jeans Past Year $100+ 102 97

Cologne for Men Spent Past Year as a Gift $250+ 101 97

Most Recent Vehicle Purchase/Lease $50,000+ 101 99

Gasoline Spent Last Month $200+ 101 96

# of Magazine Launches

Slowdown of Magazine Launches

60

190

185

227

239

193

275

2015

2014

2013

2012

2011

2010

2009

Source: number of magazines=MPA; Magazine Launches=Oxbridge Communications

5,340

6,234

7,188

6,325

6,734 6,809

7,3837,110 7,163 7,179

7,3907,240 7,289

0

1000

2000

3000

4000

5000

6000

7000

8000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Number of Magazine Brands Has Remained

Stagnant Number of magazines

Magazine Advertising Spending (in billions)

Source: eMarketer

15.13 15.09 15.05 15.1 15.15 15.23

3.523.77 3.96 4.08 4.21 4.34

2013 2014 2015* 2016* 2017* 2018*

Print Digital

Magazine Ad Spending Projected To Plateau

Daily time spent reading magazines per capita (in minutes)

Source: ZenithOptimedia; Various sources (Media Dynamics);

24.723.6

22.521.3

19.618.6

17.616.5

2010 2011 2012 2013 2014 2015* 2016* 2017*

Tim

e in

min

utes

Consumers Are Spending Less Time With

Magazines

Average annual expenditure per consumer unit (in U.S. dollars)

Source: Bureau of Labor Statistics

46.03

39.90 39.6

34.1

14.45

12.6310.88

8.08

2008 2010 2012 2014

Newspaper, magazine by subscription Newspaper, magazine non-subscription

…and Spending Less Money On The

Publications

Top Online Magazines Erode – Down Double

Digits

Online Magazine Total Unique Viewers (000)

Taste of Home -18%

Southern Living -11%

Reader’s Digest -19%

Woman’s Day -18%

National Geographic -9%

Family Circle -28%

A18+ Nov 2015 vs Nov 2014

Source: November 2015 v 14, ComScore % Change Media Trend

Daily time spent with Magazine v. TV in Oct’15

(in minutes)

Source: eMarketer; U.S. Oct 2015, A18+

Comparing To TV - TV Triumphs Magazine In

Time Spent by 19X

251

13

TV Magazines

32

Source: 2015 GFK MRI Database

Overall, TV Is Top For Entertainment and

Keeping Consumers Informed

54%

32%

24% 26%

57%

83%

64% 63%

Good source of learning Pure entertainment Keeps me informed/up todate

Relaxes me

Magazines TV

% of A18+

32:02

12:41

8:196:00

1:28 1:11 0:54 0:21

Time Spent Per Week (Hrs:Min) Among P18+

Source: Nielsen Total Audience report 3Q15; Print=

newspaper+magazines emarketer, 4/15

Television Captures More Than Half of Consumers

Total Media Time In An Average Week

Television’s Reach Remains Undeniable Across

The Board

98.8 98.9 98.6 97.7 98.9 99.2 99.6

P2+ CH2-11 T12-17 A18-34 A35-49 A50-64 A65+

Total Day Reach %

Source: Nielsen Npower, 9/22/15-12/27/15

TV Is Top Spare-Time Activity For Most -

Especially Among Millennials

37%

27%

21%

19%

27%

20%

24%

29%

42%

23%

31%

38%

42%

40%

19%

28%

30%

28%29%

18%

22% 22%

25%

Generation Z (15-20) Millennials (21-34) Generation X (35-49) Boomers (50-64) Silent Generation (65+)

Listen to Music Read Watch TV Connect with Friends/Family Travel

Source: Nielsen Generational Lifestyle Survey, Q1 2015

Ads On TV Are Most Trusted Advertising Format

Percent of Global Respondents who Trust Advertising Format (Completely or Somewhat)

Source: Nielsen Global Trust in Advertising Survey, Q1 2015 & 2013

Paid – Traditional

2015

Paid – Online/Mobile

2015

54%

54%

55%

56%

58%

60%

63%

Ads on the Radio

Ads Before Movies

TV Program Product Placement

Billboards and other outdooradvertising

Ads in Magazines

Ads in Newspapers

Ads on TV

Difference

from 2013

+1%

-1%

+2%

+1%

0%

-3%

-2%48%

47%

45%

43%

42%

38%

Online Video Ads

Ads in search engine results

Ads on Social Networks

Ads on Mobile Devices

Online Banners Ads

Text Ads on Mobile Phones

Difference

from 2013

0%

-1%

-2%

0%

-1%

-2%

TV Ads Are Powerful, Driving Consumers To Take Action

Percent of Global Respondents who Completely or Somewhat Trust Advertising Format

Percent Who Always or Sometimes Take Action on Format

46%

50%

50%

53%

56%

58%

58%

39%

62%

62%

63%

63%

69%

69%

36%

43%

42%

48%

46%

47%

56%

55%

58%

68%

56%

60%

63%

68%

Text Ads on Mobile Phone

Ads on Mobile Devices

Online Banner Ads

Online Video Ads

Ads on Social Networks

Ads Served in Search Engine Results

Billboards and Other Outdoor Advertising

TV Program Product Placements

Ads in Magazines

Brand Sponsorships

Emails I signed up For

Ads in Newspapers

Ads on TV

Consumer Opinions Posted Online

Trust Action

Action Exceeds Trust

Source: Nielsen Global Trust in Advertising Survey, Q1 2015 & 2013

Largely, TV Ads Have Strong Impact On

Buying Decisions

Buying decision Influence

4

4

5

4

5

5

7

6

6

6

5

7

7

9

7

6

12

11

17

18

38

14

15

15

17

19

20

19

25

30

31

32

34

35

34

37

38

34

39

44

47

43

A Tweet/Post by company/brand you do not follow

A tweet/Post by someone you do not already follow (not and ad)

SMS/Text Message ad

Ads delivered on mobile apps, including location-based ads

An endorsement from an online personality

An endorsement from a celebrity

Video game advertising (all forms of games)

Ads delivered through social media platforms

Billboards and posters

An email from a company/brand

Radio ads

Newspaper ads

Manufacturer or vendor website

A reseller or channel partner website

Products or services/featured in a TV show or movie

Magazine ads

In-theater advertising (pre-movie)

Online review by someone you do not know in real life

Online review or recommendation from someone within your social media circle

Television ads

Recommendations from a friend/family/known acquaintance

High Influence Medum Influence

Source: Deloitte Digital Democracy Survey 9th edition; Question: To what defree do the following influence your buying decisions?

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