iHeartMedia 2014 Annual Report Download - page 5

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15 second and five second) in order to provide more effective advertising for our customers at what we believe are optimal prices
given market conditions.
Continue to Enhance the Listener Experience. We intend to continue enhancing the listener experience by offering a wide
variety of compelling content and methods of delivery. We will continue to provide the content our listeners desire on their preferred
platforms. Our investments have created a collection of leading on-air talent. For example, Premiere offers more than 90 syndicated
radio programs and services for more than 5,500 radio station affiliates across the United States, including popular programs such as
Rush Limbaugh, Sean Hannity, Glenn Beck, Ryan Seacrest, Steve Harvey, Elvis Duran, Bobby Bones and Delilah. Our distribution
capabilities allow us to attract top talent and more effectively utilize programming, sharing our best and most compelling content
across many stations.
Continue to Deliver Nationally-Recognized Live Events. We intend to continue to deliver nationally-recognized live events
to our listeners, such as the iHeartRadio Music Festival, the iHeartRadio Ultimate Pool Party, the iHeartRadio Jingle Ball Concert
Tour, the iHeartRadio Country Festival, the iHeartRadio Ultimate Valentine’s Escape and the iHeartRadio Fiesta Latina, featuring
some of the biggest names in the music industry.
Deliver Content via Multiple Distribution Technologies. We continue to expand the choices for our listeners. We deliver
music, news, talk, sports, traffic and other content using an array of distribution technologies, including broadcast radio and HD radio
channels, satellite radio, digitally via iHeartRadio.com and our stations’ websites, and through our iHeartRadio mobile application on
smart phones and tablets, on gaming consoles, via in-home entertainment, in enhanced automotive platforms, as well as in-vehicle
entertainment and navigation systems. Some examples of our recent initiatives are as follows:
Streaming. We provide streaming content via the Internet, mobile and other digital platforms. We rank among the top
streaming networks in the U.S. with regards to Average Active Sessions (“AAS”), Session Starts (“SS”) and Average
Time Spent Listening (“ATSL”). AAS and SS measure the level of activity while ATSL measures the ability to keep the
audience engaged.
Websites and Mobile Applications. We have developed mobile and Internet applications such as the iHeartRadio smart
phone application and website and websites for our stations and personalities. These mobile and Internet applications
allow listeners to use their smart phones, tablets or other digital devices to interact directly with stations, find
titles/artists, request songs and create custom and personalized stations while providing an additional method for
advertisers to reach consumers. As of December 31, 2014, our iHeartRadio mobile application has been downloaded
approximately 500 million times (including updates). iHeartRadio provides a unique digital music experience by offering
access to more than 1,900 live broadcast and digital-only radio stations, plus user-created custom stations with broad
social media integration and our on demand content from our premium talk partnerships and user generated talk shows.
Through our digital platforms, we estimate that we had more than 81 million unique digital visitors for the month of
December 2014.
Sources of Revenue
Our iHM segment generated 50%, 50%, and 49% of our revenue for the years ended December 31, 2014, 2013 and 2012,
respectively. The primary source of revenue in our iHM segment is the sale of commercials on our radio stations for local and
national advertising. Our iHeartRadio mobile application and website, our station websites, national live events and Total Traffic &
Weather Network also provide additional means for our advertisers to reach consumers.
Our advertisers cover a wide range of categories, including consumer services, retailers, entertainment, health and beauty
products, telecommunications, automotive, media and political. Our contracts with our advertisers range from less than a one-year to
multi-year terms. We also generate revenues from network compensation, our online services, our traffic business, events and other
miscellaneous transactions. These other sources of revenue supplement our traditional advertising revenue without increasing on-air
commercial time.
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. To generate national advertising sales, we leverage national sales teams and engage our Katz Media unit,
which specializes in soliciting radio advertising sales on a national level for us and other radio and television 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.