iHeartMedia 2005 Annual Report Download - page 7

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are radio stations in Australia, New Zealand and Mexico. We own a 50%, 50% and 40% equity interest in
companies that have radio broadcasting operations in these markets, respectively.
Radio Networks
In addition to radio stations, our radio broadcasting segment includes a national radio network that produces or
distributes more than 70 syndicated radio programs and services for more than 5,000 radio stations. Some of our more
popular radio programs include Rush Limbaugh, Delilah and Bob and Tom Show. We also own various sports, news
and agriculture networks serving Georgia, Ohio, Iowa, Kentucky, Arkansas, Illinois, Oklahoma and Florida.
Outdoor Advertising
Strategy
We seek to capitalize on our global network and diversified product mix to maximize revenues and increase
profits. We believe we can increase our operating margins by spreading our fixed investment costs over our broad asset
base. In addition, by sharing best practices from both the Americas and internationally, we believe we can quickly and
effectively replicate our successes throughout the markets in which we operate. We believe that our diversified product
mix and long-standing presence in many of our existing markets provide us with the platform necessary to launch new
products and test new initiatives in a reliable and cost-effective manner.
We seek to enhance revenue opportunities by focusing on specific initiatives that highlight the value of outdoor
advertising relative to other media. We have made significant investments in research tools that enable our clients to
better understand how our displays can successfully reach their target audiences and promote their advertising
campaigns. Also, we are working closely with clients, advertising agencies and other diversified media companies to
develop more sophisticated systems that will provide improved demographic measurements of outdoor advertising. We
believe that these measurement systems will further enhance the attractiveness of outdoor advertising for both existing
clients and new advertisers.
We continue to focus on achieving operating efficiencies throughout our global network. For example, in most
of our U.S. markets, we have been transitioning our compensation programs in our operations departments from hourly-
wage scales to productivity-based programs. We have decreased operating costs and capital needs by introducing
energy-saving lighting systems and innovative processes for changing advertising copy on our displays. Additionally, in
certain heavy storm areas, we have converted large format billboards to sectionless panels that face less wind resistance,
reducing our weather-related losses in such areas.
We believe that customer service is critical, and we have made significant commitments to provide innovative
services to our clients. For example, we provide our U.S. clients with online access to information about our inventory,
including pictures, locations and other pertinent display data that is helpful in their buying decisions. Additionally, in
the United States we recently introduced a service guaranty in which we have committed to specific monitoring and
reporting services to provide greater accountability and enhance customer satisfaction. We also introduced a proprietary
online proof-of-performance system that is an additional tool our clients may use to measure our accountability. This
system provides our clients with information about the dates on which their advertising copy is installed or removed
from any display in their advertising program.
Advances in electronic displays, including flat screens, LCDs and LEDs, as well as corresponding reductions in
costs, allow us to provide these technologies as alternatives to traditional methods of displaying our clients'
advertisements. These electronic displays may be linked through centralized computer systems to instantaneously and
simultaneously change static advertisements on a large number of displays. We believe that these capabilities will allow
us to transition from selling space on a display to a single advertiser to selling time on that display to multiple
advertisers. We believe this transition will create new advertising opportunities for our existing clients and will attract
new advertisers, such as certain retailers that desire to change advertisements frequently and on short notice. For
example, these technologies will allow retailers to promote weekend sales with the flexibility during the sales to make
multiple changes to the advertised products and prices.