iHeartMedia 2007 Annual Report Download - page 6

Broadcasting segment, with the remaining half comprised of our Americas and International business segments, as well as other support
services and initiatives. We believe we offer advertisers a diverse platform of media assets across geographies, radio programming formats and
outdoor products. We enjoy substantial diversity in our radio business, with no market greater than 9%, no format greater than 18%, and no ad
category greater than 19% of 2007 radio revenue. We also enjoy substantial diversity in our outdoor business, with no market greater than 8%
and no ad category greater than 8% of our 2007 outdoor revenue. We are able to reduce revenue volatility resulting from softness in any one
advertising category or geographic market because of this diversity.
Experienced Management Team and Entrepreneurial Culture. We have an experienced management team from our senior executives
to our local market managers. Our executive officers and certain radio and outdoor senior managers possess an average of 21 years of industry
experience, and have combined experience of over 250 years. The core of the executive management team includes Chief Executive Officer
Mark Mays, who has been with the Company for over 18 years, and President and Chief Financial Officer Randall Mays, who has been with
the Company for over 14 years. We also maintain an entrepreneurial culture empowering local market managers to operate their markets as
separate profit centers, subject to centralized oversight. A portion of our managers’ compensation is dependent upon the financial success of
their individual market. Our managers also have full access to our centralized resources, including sales training, research tools, shared best
practices, global procurement and financial and legal support.
Our Strategy
Our goal is to strengthen our position as a leading global media company specializing in “out-of-home” advertising. We plan to achieve
this objective by capitalizing on our competitive strengths and pursuing the following strategies:
Radio
Our radio broadcasting strategy centers on providing programming and services to the local communities in which we operate and being
a contributing member of those communities. We believe that by serving the needs of local communities, we will be able to grow listenership
and deliver target audiences to advertisers, thereby growing revenue and cash flow. Our radio broadcasting strategy also entails improving the
ongoing operations of our stations through effective programming, promotion, marketing and sales and careful management of costs.
Drive Local and National Advertising. We intend to drive growth in our radio business via a strong focus on yield management,
increased sales force effectiveness and expansion of our sales channels. In late 2004, we implemented price and yield optimization systems and
invested in new information systems, which provide station level inventory yield and pricing information previously unavailable. We shifted
our sales force compensation plan from a straight “volume-based” commission percentages system to a “value-based” system to reward success
in optimizing price and inventory. We believe that utilization of our unique systems throughout our distribution platform will drive continued
revenue growth. We also intend to focus on driving advertisers to our radio stations through new sales channels and partnerships. For example,
we recently formed an alliance with Google whereby we have gained access to an entirely new group of advertisers within a new and
complementary sales channel.
Continue to Capitalize on “Less is More.” In late 2004, we launched the Less is More initiative to enhance listener experience, reduce
advertising clutter and improve radio’s attractiveness as a medium for advertisers. On average, we reduced advertising inventory and promotion
time by approximately 20% and 50%, respectively, across our stations which led to more time for our audiences to listen to our programming.
In addition, we changed our available advertising spots from 60 second ads to a combination of 60, 30, 15 and five second ads in order to give
advertisers more flexibility.
Continue to Enhance the Radio Listener Experience. We will continue to focus on enhancing the radio listener experience by offering a
wide variety of compelling content. We believe our investments in radio programming over time have created a collection of leading on-air
talent. Our Premiere Radio Network produces, distributes or represents approximately 70 syndicated radio programs and services for
approximately 5,000 radio stations across the United States. This distribution platform allows us to attract talent and more effectively utilize
programming, sharing the best and most compelling content across many stations. Finally, we are continually expanding content choices for
our listeners, including utilization of HD radio, Internet and other distribution channels with complementary formats. Ultimately, we believe
compelling content will improve our audience share which, in turn, will drive revenue growth and profit margins.
Deliver Content via New Distribution Technologies. We intend to drive company and industry development through new distribution
technologies. Some examples of such innovation are as follows:
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