Put Your Market in the Race for National Buys

direct Consumer Data from Scarborough USA+ Demonstrate the Buying Power of Cable Viewers Put Your Market in the Race for National Buys In direct response to the needs of Arbitron clients for national consumer information, Scarborough Research has expanded the scope of its market surveys to offer Scarborough USA+, an expansive database of consumer behavior across the country. Scarborough has built upon its established local market research to provide a database of more than 200,000 adult consumers. This versatile research and sales tool will be particularly helpful in convincing national advertisers why your market or your region should be included in a national buy, says Carol Edwards, vice president, Cable Sales. Scarborough USA+ takes you beyond ratings and market population and lets you quickly determine and demonstrate the areas where cable and your market excel in delivering customers. Comparisons That Count Customers With Scarborough USA+, you can easily rank your market versus other markets, a region or the entire nation across hundreds of Scarborough qualitative retail and demographic categories, including product consumption, retail (continued on page 5) Conference Sharpens Scarborough Skills... 2 PPM Ratings Higher for Cable Adding Graphics to Your Presentations... 2 Corporate Broadband Market Heats Up... 3 Software Manual Offered Online... 3 Get Your MaxQualitative SM Data Early... 4 Clients Find Treasures in Coronado Springs... 5 Carol Edwards Focused on Customers... 6 The first two ratings results from the Philadelphia market trial of the Portable People Meter (PPM), Arbitron s multimedia audience measurement device, are particularly encouraging for cable. Even with the trial s small sample size, the PPM reported significantly higher AQH cable audiences compared to the Nielsen meter-diary system. The ratings results are logical when you consider the audience measurement capabilities designed into the PPM, explains Kevin Patrick Smith, senior vice president, Cable Services & PPM Business Development. It is the first electronic measurement device that automatically collects a person s exposure to encoded cable, TV and radio programming no matter when and where it occurs. The PPM eliminates the need for people to constantly track their listening or viewing behavior by writing something down in a diary. The initial PPM ratings, which were released in July and September, reported higher totalday average quarter-hour audiences and higher AQH audiences for all dayparts for cable (continued on page 4) cable

direct Scarborough Conference Gives Cable Clients New Skills and Ideas Arbitron Cable clients from across the country attended the Television Sales Research and Management (TVSRM) Conference hosted by Scarborough Research in August. At our request, Scarborough extended an invitation to the cable industry to take part in the TVSRM Conference for the first time, and nearly 20 percent of the research directors and sales managers attending the conference were Arbitron Cable clients, including cable networks and systems. The TVSRM Conference provided many opportunities to exchange ideas, including dinner at a restaurant on the Potomac River where (from left) Rod Wheeler, research trainer, Comcast Cable; Michelle Davidson, manager, Southern accounts, Arbitron; Gina Messick-Masepohl, research manager, Infinity Radio; and Amy Olson, director of research, Cox Target Media, got together. The conference provided sales, research and management professionals with skills to make the most of their Scarborough investment. It included general and breakout sessions on How to Add Graphs to Your Presentations Arbitron s Max- Qualitative software has a feature that allows you to copy a displayed graph directly into a Microsoft PowerPoint or Word file. You only need to follow a few simple steps to make the most of the research you present to current and potential advertisers. Here s what you do: Click on Edit while your MaxQualitative graph is displayed on your screen. Select Copy to Clipboard. Open your presentation document (Word or PowerPoint) and set your cursor in the location where you want to import the graph. Select Edit. Select Paste. For assistance in using MaxQualitative software, you can call Sheena Lewis at (410) 312-8631 or Arbitron Customer Service at (800) 543-7300. current industry trends, new ways for using Scarborough, interactive workshops and innovative applications. Many of the conference presentations focused on strategies in using local qualitative research to build revenue. The presentations can be viewed and downloaded from Scarborough s home page at www.scarborough.com/ conferences/wewantyou/downloads.html. Given current economic conditions, the presentation on developing nontraditional revenue by Arbitron s Carol Hanley may be of particular interest. Hanley provided the key steps to follow in tapping sales, marketing and promotion budgets. Plans are already under way for the 2002 conference, which will be held August 7-9 on the West Coast. You can cast your vote for the location you d prefer by going to www.scarborough.com/ conferences/wewantyou. Attendance at the 2002 conference will again be expanded to provide a forum for you to interact and exchange ideas with other media industry leaders from radio, television and sports programming affiliates. We urge you to include this conference as part of your marketing plans for 2002, says Carol Edwards, vice president, Cable Sales. Your Arbitron Cable account manager can provide details on the benefits of attending the conference, and Scarborough s Joanna Tuohy, (212) 593-4154, can provide you with registration information. 2

Arbitron Study Points to Potential of Corporate Broadband Market According to a recent study by Arbitron, the corporate marketplace may well offer MSOs more opportunities and be more fertile than the residential market for broadband Internet access. That s just one of the valuable insights that can be found in a series of free studies sponsored by Arbitron that explore the broadband revolution, Internet users and webcast audiences. All of the studies can be downloaded free of charge from our Web site at http://www.arbitron.com/cable/ home.htm. In Broadband Revolution 2: The Media World of Speedies, Arbitron found that nearly 64 percent of Internet users who have broadband access ( speedies ) are connected through their workplace, while only slightly more than 37 percent have access at home. Little overlap was found between those with broadband at work and at home in the study, which was conducted with Coleman, a media research firm specializing in music, trends and branding. Of consumers with access to broadband at home and/or work, 58 percent have access only at work and 27 percent have broadband access only at home. Only 15 percent have access at both locations. With broadband, most of the attention has been focused on the growth of the residential market, but the large number of Internet users who have broadband at work represents a larger potential market for streaming audio and video providers, said Warren Kurtzman, vice president, Coleman. Radio and television broadcasters can extend their brands and bring compelling content to consumers in exciting new ways by concentrating on speedies at work in addition to at home. The study also found that college speedies are likely to get residential broadband service in the future. More than one-third (38 percent) of college speedies say they are either very likely or somewhat likely to get broadband at home if they were no longer in school. More than one-fifth (22 percent) use broadband as a source of entertainment. In contrast, work speedies are even more likely to think of the Internet as a source of information (82 percent) versus entertainment (eight percent). Overall, three-quarters of all speedies view the Internet as a source of information. We believe that today s college market is an early indicator of how consumers will embrace broadband in the near future, said Bill Rose, vice president and general manager, Arbitron Webcast Services. Since college students are more likely to view the Internet as an entertainment medium, it will be crucial for the industry to develop compelling new forms of online entertainment in order to drive broadband adoption. An earlier broadband study, How Superfast Internet Access Changes Media Habits in American Households, and Arbitron s recent Internet study, The Internet & Streaming: What Consumers Want Next, are both available on Arbitron Cable s home page. Software Manual Available Online As part of Arbitron Cable s commitment to providing customer service when you need it, Arbitron now offers the MaxQualitative manual online at www.arbitrontraining.com. To view or print the manual on your PC, simply enter the training Web site. In the search box, type Manuals and click on Submit Search. A list of software manuals will be displayed. Click on the link to the MaxQualitative manual. If you need additional assistance, you can contact Customer Service at (800) 543-7300. Of course you can always request additional manuals and have them delivered the old-fashioned way by contacting your Arbitron Cable account manager or Sheena Lewis at (410) 312-8631. 3

direct PPM Ratings (from page 1) and television compared to ratings reported by Nielsen. The increases, says Smith, are due, in part, to the PPM s ability to track cable and broadcast TV viewing for men (18+) and people under age 35 as well as the PPM s ability to track viewing out of home. For radio, the PPM reported equivalent total-day AQH audiences compared to ratings reported by the Spring and Summer Arbitron diaries. While the PPM reported an increase in radio s average daily cumulative audience, it showed a reduction in time spent listening per day. It also reported shifts in listening patterns by daypart. Morning-drive AQH ratings were down according to the PPM, while Monday- Friday overnight and weekend AQH audience levels were up. On a 24-hour-day, total-week basis, the PPM reported higher average quarter-hour audiences for all the combined electronic media. The first round of PPM ratings and comparisons were compiled for the eight cable networks, eight TV stations and 35 radio stations serving the Philadelphia DMA that were encoding their audio signals in April, Combined Cable and Broadcast TV Average Quarter-Hour Ratings for July 2001 Persons 12+, PPM and Nielsen Philadelphia DMA, Encoded Media Outlets 35 30 25 20 15 10 5 0 5AM-10AM 10AM-4PM 4PM-8PM 8PM-Mid Mid-5AM Average Quarter-Hour (AQH) Ratings Persons 12+, Encoded Media Outlets in July 2001 Monday-Sunday, Portable Conventional Total Day People Meter Ratings* Combined Media 24.8 21.0 Broadcast TV 9.9 8.8 Cable 4.6 2.1 Radio 10.3 10.1 * From Arbitron Radio Diary for Wilmington Metro and Nielsen Media Research for broadcast TV and cable for Philadelphia DMA. May and June. The second ratings and comparisons released in September were for 15 cable outlets, seven broadcast television stations and 38 radio stations that were encoding their audio full time in July. Based on these first ratings results, the meter system performance and the participation of consumers who, on average, carry their meters for more than 15 hours a day we are moving forward with the next phase of the market trial, adds Smith. We will be talking with our customers and Nielsen Media Research about our schedule going forward. Get Your MaxQualitative Data Early With Arbitron Data Express SM, MaxQualitative users can access their Scarborough, RetailDirect and RetailDirect Lite data two days sooner than with traditional diskette delivery. This free program allows registered Arbitron clients to transfer survey data within minutes from Arbitron s server directly to their computer. Details on using Arbitron Data Express can be found at www.arbitrontraining.com. After you enter the training site, type Arbitron Data Express. PPM Nielsen PH DMA If you need further assistance, you can contact Arbitron s Customer Service division at (800) 543-7300. 4

Arbitron Unlocks Possibilities for the Industry At the Local Cable Sales Management Conference Arbitron offered a treasure trove of information and fun at the 2001 Local Cable Sales Management Conference in Coronado Springs, FL. During the conference, Arbitron Cable shared detailed information on their full range of cable-specific qualitative services, including the Scarborough, RetailDirect and RetailDirect Lite products. A great deal of interest was generated by enhancements to the RetailDirect Lite product, offering consumer insights into the viewers of 24 cable networks in the country s smaller markets ranked 100+. The enhancements to RetailDirect Lite include the addition of seven more networks Cartoon Network, CNBC, Comedy Central, E! Entertainment, ESPN2, History Channel and TLC to the consumer survey. This qualitative service for cable systems is available in 165 markets. There were also demonstrations of other qualitative services offered by Arbitron Cable, including the Scarborough database. Scarborough offers the most comprehensive lifestyle and market-specific survey data available for major markets. Networks and systems were also able to get a look at the multimarket database and learn about a new product called Scarborough USA+, which encompasses the entire U.S. CAB attendees were drawn to the Arbitron Cable booth, where they tried their luck at unlocking a treasure chest. There were 30 lucky winners who walked away with great prizes, including Palm handhelds, digital cameras, CD writers and Walt Disney World gear. The fun and the dancing continued well after midnight on the last full day of the Conference as Arbitron hosted its annual afterhours celebration featuring a high-powered Blues Brothers band. Arbitron Cable is currently making plans to bring some additional excitement to the 2002 Local Cable Sales Management Conference in Salt Lake City, slated for June 22-24. Tom Jacob, regional director of advertising sales, Charter Media, (shown at right) proudly shows Tina Hatfield, manager, Northeastern accounts, the prize he plucked from Arbitron s treasure chest at the Local Cable Sales Management Conference. Scarborough USA+ (from page 1) shopping and lifestyle behavior. Your rankings can be by: index cume persons percent composition With national and regional data available at your fingertips, you can quickly develop the compelling comparisons that will open eyes and doors. Consider, for example, how helpful it would be to know that 66 percent of frequent Wal-Mart shoppers across the country subscribe to cable while 59 percent read a Sunday paper. Or that Orlando residents are 84 percent more likely to dine at Subway as compared to the rest of the nation, or that 27.2 percent of Milwaukee residents have money-market accounts. Demonstrating Cable s Reach Scarborough USA+ also provides the cablespecific data needed for detailed media profiles, including weekly viewership of more than 40 specific cable networks or services as well as any cable included in network TV viewing data. Cable s reach can also be compared to weekly cume radio listening by format, radio network and ownership groups; national magazine and national newspaper readership; and any Sunday newspaper readership. Since Scarborough USA+ provides information relevant to all markets, local media and local retail data are not included. Scarborough USA+ is available through all major software platforms used by the cable industry. As with any product offered by Arbitron Cable, it comes with personalized training and 24/7 customer support. For a specific example of how Scarborough USA+ could help you, contact your Arbitron Cable account manager. 5

Cable Direct is published by Arbitron Inc. as an information service. Arbitron Inc. 9705 Patuxent Woods Drive Columbia, MD 21046-1572 (410) 312-8000 E-mail: newsletter@arbitron.com www.arbitron.com Publisher: Thom Mocarsky, Vice President, Communications Managing Editor: Elizabeth Jo Bruen, (410) 312-8116 Editorial Staff: Sheena Lewis Design: Kelli Hill, Wendy Hildebrand, Kathy Weisse Arbitron Data Express SM, MaxQualitative SM and RetailDirect are marks of Arbitron Inc. DMA is a registered service mark of Nielsen Media Research, Inc., and is used pursuant to a license from Nielsen Media Research, Inc. PowerPoint is a registered trademark of Microsoft Corporation. Palm TM is a trademark of Palm, Inc. Walt Disney World is a registered mark of Disney Enterprises, Inc. The contributions of Arbitron clients may not necessarily reflect the opinions of Arbitron Inc. 2001 Arbitron Inc. 01-CAB-031 10/01 Printed in the USA on recycled paper. Carol Edwards Positioned to Ensure Customer Satisfaction In order to fulfill our commitment to continually improve and expand our services, Arbitron Cable has promoted Carol Edwards to the newly created position of vice president of Cable Sales. In this position, Carol has one overriding goal: ensuring that Arbitron Cable meets your needs. She is the point person for customer satisfaction as well as the leader of Arbitron Cable s national sales team. We want all of our customers to receive a maximum return on their investment in qualitative research, and we hope to exceed their expectations for service by providing unparalleled cable-focused sales training and consultation, says Carol. Carol joined Arbitron 10 years ago and was one of the first staff members appointed to the division formed in 1994 to serve the cable industry. As she honed her knowledge of cable advertising sales and gained expertise in using research to sell cable television, she rose through the ranks from account executive and trainer, to senior account manager and sales manager. Carol has demonstrated skill and resourcefulness throughout her career, along with a willingness to take on responsibility for achieving personal and team-targeted goals. She has also established solid relationships with her clients and earned their trust and respect, said Kevin Patrick Smith, senior vice president, Cable Services & PPM Business Development. Based in Arbitron s Columbia, MD, office, Carol is actively seeking input and suggestions from our customers. In addition to taking part in our formal customer satisfaction survey, I hope our customers know how important it is for us to hear from them, says Carol. We can only be successful when we play a role in our customers success. Carol Edwards can be contacted at (410) 312-8431 and at carol.edwards@arbitron.com. Arbitron Inc. 9705 Patuxent Woods Drive Columbia, Maryland 21046-1572 FIRST CLASS U.S. POSTAGE PAID Columbia, MD Permit No. 359 6