iHeartMedia 2014 Annual Report Download - page 7

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distribution capabilities enable us to attract and retain top programming talent. Some of our more popular syndicated programs include
Rush Limbaugh, Sean Hannity, Glenn Beck, Ryan Seacrest, Steve Harvey, Elvis Duran, Bobby Bones and Delilah. We believe
recruiting and retaining top talent is an important component of the success of our radio networks.
Total Traffic & Weather Network
Total Traffic & Weather Network delivers real-time local traffic flow and incident information along with weather updates to
more than 1,900 radio and approximately 180 television affiliates, as well as through Internet and mobile partnerships, reaching nearly
200 million consumers each month. Total Traffic & Weather Network services more than 200 markets in the United States, Canada
and Mexico. It operates the largest broadcast traffic navigation network in North America and has expanded its offerings to include
news and sports content.
Competition
Our broadcast radio stations, as well as our mobile and digital applications and our traffic business, compete for listeners and
advertising revenues directly with other radio stations within their respective markets, as well as with other advertising media,
including broadcast and cable television, online, print media, outdoor advertising, satellite radio, direct mail and other forms of
advertisement. In addition, the radio broadcasting industry is subject to competition from services that use media technologies such as
Internet-based media, mobile applications and satellite-based digital radio services. Such services reach national and local audiences
with multi-channel, multi-format, digital radio services.
Our broadcast radio stations compete for listeners primarily on the basis of program content that appeals to a particular
demographic group. Our targeted listener base of specific demographic groups in each of our markets allows us to attract advertisers
seeking to reach those listeners.
Americas Outdoor Advertising
We are one of the largest outdoor advertising companies in North America (based on revenues), which includes the United
States and Canada. Approximately 95% of our revenue in our Americas outdoor advertising segment was derived from the United
States in each of the years ended December 31, 2014, 2013 and 2012. We own or operate approximately 103,000 display structures in
our Americas outdoor segment with operations in 45 of the 50 largest markets in the United States, including all of the 20 largest
markets.
Our Americas outdoor assets consist of traditional and digital billboards, street furniture and transit displays, airport displays
and wallscapes and other spectaculars, which we own or operate under lease management agreements. Our Americas outdoor
advertising business is focused on metropolitan areas with dense populations.
Strategy
We seek to capitalize on our Americas outdoor network and diversified product mix to maximize revenue. In addition, by
sharing best practices among our business segments, we believe we can quickly and effectively replicate our successes in our other
markets. Our outdoor strategy focuses on leveraging our diversified product mix and long-standing presence in many of our existing
markets, which provides us with the ability to launch new products and test new initiatives in a reliable and cost-effective manner.
Promote Outdoor Media Spending. Given the attractive industry fundamentals of outdoor media and our depth and breadth
of relationships with both local and national advertisers, we believe we can drive outdoor advertising's share of total media spending
by using our dedicated national sales team to highlight the value of outdoor advertising relative to other media. Outdoor advertising
only represented 4% of total dollars spent on advertising in the United States in 2014. We have made and continue to make 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 audience metrics for outdoor advertising. For example,
we have implemented the TAB Out of Home Ratings audience measurement system which: (1) separately reports audiences for
billboards, posters, junior posters, transit shelters and phone kiosks, (2) reports for geographically sensitive reach and frequency,
(3) provides granular detail, reporting individual out of home units in over 200 designated market areas, (4) provides detailed
demographic data comparable to other media, and (5) provides true commercial ratings based on people who see the advertising.
Continue to Deploy Digital Displays. Digital outdoor advertising provides significant advantages over traditional outdoor
media. Our electronic displays are linked through centralized computer systems to instantaneously and simultaneously change
advertising copy on a large number of displays, allowing us to sell more advertising opportunities to advertisers. The ability to change
copy by time of day and quickly change messaging based on advertisers’ needs creates additional flexibility for our customers.