Arbitron / Edison Media Internet Study Shows That Consumers Are Ready For Webcast Advertising.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 21, 2000

Two-Thirds of "Streamies" Say That Commercials Are A Fair Price To

Pay For Free Content on the Web

More than two-thirds of "streamies" - online listeners and viewers - agree that advertising is a fair price to pay for free Web site content, according to a new Arbitron/Edison Media Research Internet Study released here at the National Association of Broadcasters Conference.

This study found that a core strength of Internet advertising is its ability to enable quick purchases with almost half (47 percent) of those online and more than half (57 percent) of streamies identifying the Internet as the medium that "allows you to make a quick purchase." Consumers pay more attention to online video and audio ads than they do to banner ads. Nearly 60 percent of those who have seen an online video ad say they pay attention to video ads; 46 percent of those who have heard an online advertisement pay attention to audio ads and 41 percent say they pay attention to banner ads.

The study also found that listening to radio stations online more than tripled in two years, from six percent - or 14 million Americans - in 1998, to 20 percent - or 45 million Americans - in 2000. Also, Internet-only audio channels are challenging radio stations online for listeners on the Internet. One-fifth of Americans have tuned to radio stations online versus 13 percent who have now tuned to Internet-only audio channels.

Streamies are an ideal online target for advertisers according to the study. Compared to non-streamies, online listeners and viewers of streaming media are 50 percent more likely to have been online three or more years; they spend twice the time online daily; and they are 70 percent more likely to have bought online.

"This study provides rich evidence of why Webcast advertising is poised to take off," said Bill Rose, vice president and general manager, Arbitron Internet Information Services. "Consumers are using streaming media in growing numbers. They say they are ready to accept webcast advertising in exchange for free programming and streamies are a highly valuable and influential target for advertisers."

Additional study findings include:

- One quarter of Americans (57 million) have listened to Internet audio; 20
percent (45 million) listening to radio stations online and 13 percent (30
million) listening to Internet-only audio;

- Monthly and weekly listening to radio stations online is also growing, with
nearly eight percent of respondents indicating they had listened online during
the past month and over three percent listening in the past week;

- Internet audio is mostly used while listeners are at their computers, with 29
percent of respondents saying they listen while doing work on the computer, 27
percent while visiting other Web sites, 21 percent while remaining at the site
from which the audio originates and 19 percent while doing other things away
from the computer;

- Everything about the Internet is magnified enormously among 12-24 year olds.
Among teens, 83 percent are online and 45 percent have listened to Internet
audio. Among 18 to 24-year-old, 73 percent are online and 39 percent have
listened to Internet audio.

- Over eight out of 10 (81 percent) of audio streamies are interested in `side
channels,' which are additional Internet-only programming channels offered
under the brand umbrella of terrestrial radio stations.

"One of radio's core strengths has been its ability to reach young listeners," said Larry Rosin, president, Edison Media Research. "However, radio continues to focus on older demographics, leaving itself vulnerable to the changing media habits of 12-24 year olds who exhibit the most interest in `all things Internet.' This study provides powerful reasons why broadcasters need to seriously consider `side channel' programming scenarios especially for stations who target the younger audience."

Since 1998, Arbitron and Edison have conducted five groundbreaking studies of streaming media every six months.

About Edison Media Research:

Edison Media Research conducts survey research and provides strategic information to radio stations, television stations, newspapers, cable networks, record labels, Internet companies and other media organizations. Edison Media Research is the fastest growing market research company in America over the past five years according to Advertising Age. Edison Media Research works with many of the largest Radio Ownership Groups and also conducts strategic and perceptual research for a broad array of companies including AOL, Yahoo!, CBS, CNN, Entertainment Weekly, The Golf Channel, Court TV, Island Records, Maverick Records, The Cleveland Cavaliers, The Orlando Magic, Princeton University, Sony Music, The Blackstone Group and Time-Life Music. Edison Media Research also conducts research for successful radio stations in South America, Canada, and Europe. For more information about Edison Media Research contact Jason Hollins, Edison Media Research 6 West Cliff Street, Somerville, NJ 08876; telephone [phone] or visit: www.edisonresearch.com.

About Arbitron

The Arbitron Company is an international media and marketing research firm providing services to broadcasters, advertisers and advertising agencies in the United States, Europe and Japan. In the United States, Arbitron measures local radio audiences, and develops qualitative measures of local consumers through RetailDirect and through Scarborough Research, a joint venture of The Arbitron Company and VNU Marketing Information Services. Tapscan Worldwide(R), a market leader in desktop development and part of the Arbitron family, offers a host of software services that simplify both data and analysis and the buy/sell process. In the United Kingdom and Europe, Continental Research conducts market research in the media, financial and telecommunications and advertising arenas. Arbitron Internet Information Services provides survey research, consulting and methodological services including Arbitron Webcast Ratings (formerly InfoStream), America's first webcast ratings service.

Arbitron is a Ceridian company. Arbitron is a Ceridian company. Ceridian Corporation (www.ceridian.com) is a leading information services company that serves the human resources, transportation and media information markets. Ceridian's human resources businesses offer HR/benefits solutions that support organizations' complete employment life cycle and maximize their investment in people. Its Comdata business is a provider of transaction processing and information services to the transportation and other industries, and its media services business, Arbitron, is a research company serving the media industry.

All product names used are trademarks or registered trademarks of their respective owners.

This press release is available on the KCSA Web site at www.kcsa.com.