American Cinema Audiences Are Younger, More Affluent and Surprisingly Receptive to Pre-Movie Advertising.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 13, 2003

Multiplatform Advertising in the Cinema Can Supplement

Traditional Media Advertising Schedules

American cinema audiences regard advertising before movies as more interesting than ads seen on television and more acceptable than ads on the internet, according to a landmark study by Arbitron Inc. (NYSE:ARB).

The Arbitron Cinema Study: Appointment Viewing by Young, Affluent, Captive Audiences, reveals that over two-thirds of moviegoers and seven out of every 10 Young Adults, age 12-24, said they did not mind the advertising that plays before the movie begins. The complete study is available for free download at www.arbitron.com.

"Worldwide, nearly a billion dollars is spent in cinema advertising, little of it in the United States," said Pierre Bouvard, president, New Ventures, Arbitron Inc. "Our research indicates cinema audiences are open to advertising, and represent a large and highly attractive target audience for advertisers. The U.S. cinema advertising market is poised for growth."

How This Study Was Conducted

Four national research surveys were conducted by Arbitron to probe America's cinema advertising exposure, cinema habits and exposure to media. Research began in July 2002 and the subsequent surveys were conducted in December 2002, and January and April 2003. Audience trends for each survey were compiled using frequency of attendance, including "last week," "last month" and "last three months."

The research also includes information from Scarborough Research, the leading provider of consumer shopping and media information in the U.S.

Extended Time at the Cinema Offers Multiple Opportunities for Advertisers

Moviegoers arrive at the theater early and are aware of their enhanced media environment. Adults who frequent the theater monthly tend to arrive, on average, 19 minutes early. This allows ample time for a variety of media to reach consumers including tickets, posters, concessions, music and video programming in the lobby and the auditorium as well as high-tech interactive kiosks that allow consumers to research films and purchase tickets.

On-Screen Advertising Reaches an Available and Attentive Audience

Eighty-six percent of "last-month" moviegoers (an average of the four surveys), are aware of advertising seen before the movie. Forty percent of Americans, age 12 and older, went to the movies in the past month, during the Holiday 2002 movie season. Cinema delivers advertising frequency, reaching an attentive core audience that is highly educated, active and is much more likely to have a household income of above $75,000.

According to Scarborough Research, frequent movie goers are significantly more likely to invest their money in high-end merchandise including automobiles, entertainment technology, and telecommunications than the national average.

-- Moviegoers are 85 percent more likely to pay $35,000 or more

for a vehicle and 70 percent more likely to lease or buy a

luxury vehicle.

-- Entertainment and communication technology account for a large

portion of the cinema audience's spending. DVDs are 73 percent

more likely to be purchased, video games 52 percent and

digital cameras 44 percent.

-- Frequent movie goers are 50 percent more likely to spend $150

or more on their cellular phone bill and 41percent more likely

to be in the market for a cell phone.

Frequent Moviegoers Are Harder To Reach Using Traditional Media

Last-month cinema audiences rely less on television, radio and newspapers for advertising and are more frequent users of internet and outdoor media. Against the national average, last-month moviegoers are 29 percent more likely to be heavy internet users and nine percent more likely to be heavy users of Outdoor media.

Year-round Advertising Potential

While summer and winter holidays are considered peak movie seasons, cinema reaches large audiences throughout the year. In July 2002, 42 percent of adults, age 18 and older, went to the movies in the past month. Thirty-two percent reported going to the movies just before the holiday season, according to the December survey. Thirty-seven percent went to the movies during the peak season, according to the January survey. The study supports the conclusion that consistent, multiplatform advertising mixed with entertainment will enhance consumer impact and enjoyment.

About Arbitron

Arbitron Inc. (NYSE: ARB) is an international media and marketing research firm serving radio broadcasters, cable companies, advertisers, advertising agencies and outdoor advertising companies in the United States, Mexico and Europe. Arbitron's core businesses are measuring network and local market radio audiences across the United States; surveying the retail, media and product patterns of local market consumers; and providing application software used for analyzing media audience and marketing information data. Arbitron Internet Broadcast Services measures the audiences of audio and video content on the Internet, commonly known as webcasts. The Company is developing the Portable People Meter, a new technology for radio, television and cable ratings.

Arbitron's marketing and business units are supported by a world-renowned research and technology organization located in Columbia, Maryland. Arbitron has approximately 825 full-time employees; its executive offices are located in New York City.

Through its Scarborough Research joint venture with VNU, Inc., Arbitron also provides media and marketing research services to the broadcast television, magazine, newspaper, outdoor and online industries.

All names are the property of their respective owners.

This press release is available on the Arbitron Web site at www.arbitron.com and the KCSA Web site at www.kcsa.com. You may register to receive Arbitron's future press releases or to download a complete Digital Investor Kit(TM) including press releases, regulatory filings and corporate materials by clicking on the "Digital Investor Kit" icon at www.kcsa.com