iHeartMedia 2010 Annual Report Download - page 6

Each radio station’s local sales staff solicits advertising directly from local advertisers or indirectly through advertising agencies.
Our ability to produce commercials that respond to the specific needs of our advertisers helps to build local direct advertising
relationships. Regional advertising sales are also generally realized by our local sales staff. To generate national advertising sales, we
engage one of our units, Katz Media, which specializes in soliciting radio advertising sales on a national level for Clear Channel
Radio and other radio companies. National sales representatives such as Katz Media obtain advertising principally from advertising
agencies located outside the station’s market and receive commissions based on advertising sold (see “Media Representation”).
Advertising rates are principally based on the length of the spot and how many people in a targeted audience listen to our
stations, as measured by independent ratings services. A station’s format can be important in determining the size and characteristics
of its listening audience, and advertising rates are influenced by the station’s ability to attract and target audiences that advertisers aim
to reach. The size of the market influences rates as well, with larger markets typically receiving higher rates than smaller markets.
Rates are generally highest during morning and evening commuting periods.
Competition
Our stations compete for listeners and advertising revenues directly with other radio stations within their respective markets, as
well as with other advertising media, including satellite radio, broadcast and cable television, print media, outdoor advertising, direct
mail, the Internet and other forms of advertisement. In addition, the radio broadcasting industry is subject to competition from
services that use new media technologies that are being developed or have already been introduced, such as Internet-based media and
satellite-based digital radio services. Such services reach national and regional audiences with multi-channel, multi-format, digital
radio services.
Radio stations compete for listeners primarily on the basis of program content that appeals to a particular demographic group.
By building a strong brand identity with a targeted listener base consisting of specific demographic groups in each of our markets, we
are able to attract advertisers seeking to reach those listeners.
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adio Stations
As of December 31, 2010, we owned 260 AM and 632 FM domestic radio stations, of which 149 stations were in the 25 largest
U.S. markets. Radio broadcasting is subject to the jurisdiction of the Federal Communications Commission (“FCC”) under the
Communications Act of 1934, as amended (the “Communications Act”). The FCC grants us licenses in order to operate our radio
stations. Additional information regarding the location of our radio stations can be found within Item 2 of Part I of this Annual Report
on Form 10-K.
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adio Networks
In addition to radio stations, our Radio Broadcasting segment includes Premiere Radio Networks, a national radio network that
produces, distributes or represents more than 90 syndicated radio programs and services for more than 5,800 radio station affiliates.
Our broad distribution platform enables us to attract and retain top programming talent. Some of our more popular syndicated
programs include Rush Limbaugh, Jim Rome, Steve Harvey, Ryan Seacrest and Delilah. We believe recruiting and retaining top
talent is an important component of the success of our radio networks.
We also own various sports, news and agriculture networks serving Alabama, California, Colorado, Florida, Georgia, Iowa,
Kentucky, Missouri, Ohio, Oklahoma, Pennsylvania, Tennessee and Virginia.
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nternational Radio Investments
We own a 50% equity interest in the Australian Radio Network, which has broadcasting operations in Australia and New
Zealand and which we account for under the equity method of accounting.
Americas Outdoor Advertising
We are the largest outdoor advertising company in the Americas (based on revenue), which includes the United States, Canada
and Latin America. Approximately 89% of our 2010 revenue in our Americas Outdoor Advertising segment was derived from the
United States. We own or operate approximately 188,000 displays in our Americas segment and have operations in 49 of the 50
largest markets in the United States, including all of the 20 largest markets.
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