iHeartMedia 2002 Annual Report Download - page 6

relative to viewers in other demographic groups, they are one of the most sought-after target audiences for advertisers. With such
programming, these stations are able to attract advertisers that would not otherwise use them.
Media Representation
We own the Katz Media Group, a full-service media representation firm that sells national spot advertising time for clients in the radio and
television industries throughout the United States. Katz Media represents over 2,500 radio stations and 350 television stations.
Katz Media generates revenues primarily through contractual commissions realized from the sale of national spot advertising airtime.
National spot advertising is commercial airtime sold to advertisers on behalf of radio and television stations. Katz Media represents its media
clients pursuant to media representation contracts, which typically have terms of up to ten years in length.
Sports Representation
We operate in the sports representation business. Our full-service sports marketing and management operations specialize in the
representation of professional athletes, integrated event management and marketing consulting services. Among our clients are many
professional athletes, including Michael Jordan (basketball), Kobe Bryant (basketball), Roger Clemens (baseball), Jason Giambi (baseball),
Greg Norman (golf), Andre Agassi (tennis), Jerry Rice (football) and David Beckham (soccer – UK).
Our sports representation business generates revenue primarily through the negotiation of professional sports contracts and endorsement
contracts for clients. The amount of endorsement and other revenues that our clients generate is a function of, among other things, the clients’
professional performances and public appeal. The sports marketing businesses primarily earn revenue ratably over the year.
Company Strategy
Our strategy is to focus our efforts at the local level, where we work within each of our markets to contribute to the needs of our
communities. We believe this strategy will help us grow shareholder value by distributing our products to our audiences within each of our
segments.
In radio and television we are trusted with the public airwaves. This trust requires constant focus and determination to deliver the best
product in order to attract listeners and viewers. We attract listeners and viewers by providing musical, news and information content on our
stations. We conduct research to determine what they want and deliver it to them on a continuous basis. We strive to maintain compelling
programming to create listener and viewer loyalty. In addition, we bring content to our outdoor business to make our products interesting and
informative for consumers. In our live entertainment segment, we bring diverse entertainment to the communities in which we operate by
delivering musical tours, Broadway shows, family entertainment, motor sports, museum exhibits and sporting events. Our ability to package
and deliver entertainment events across our markets contributes to the arts, culture and the quality of lifestyle in many of our communities.
We focus on helping our clients distribute their marketing messages in the most efficient ways possible. We believe one measure of our
success is how well we assist our clients in selling their products and services. To this end, we offer advertisers a geographically diverse
platform of media assets designed to provide the most efficient and cost-effective ways for our clients to reach consumers. Our entrepreneurial
managers work creatively and expertly to help their customers, at all levels, market their goods and services. If we are successful helping
advertisers and sponsors reach their consumers, we will gain their continued business and long-term commitments. Those commitments build
our revenue and ultimately build value for our shareholders.
A portion of our growth has been achieved by mobilizing the radio and television broadcasting, outdoor advertising and live entertainment
segments for the advertiser’s benefit. Additionally, we seek to create situations in which we own more than one type of media in the same
market. We have found the access to multiple media assets gives our clients more flexibility in the distribution of their messages. Aside from
the added flexibility to our clients, this allows us ancillary benefits, such as the use of otherwise vacant advertising space to cross promote our
other media assets, or the sharing of on-air talent and news and information across our radio and televisions stations.
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