NPR Audience Segmentation and Growth Opportunities

1. NPR Audience Segmentation and Growth Opportunities September 2010

2. Study Context

3. NPR Reach – Broadcast & Online 49 Million Opportunity Source Broadcast: Arbitron Nationwide/Act 1, Persons 25+, NPR Stations and US Total Mon-Sun 6a-Midnight, Spring 2009 Source Online: Nielsen Online, May 2010. Population estimates are of “Active Users,” who are people who have used the Internet in a given time period.

4. College Education Less of a Factor Among Diverse Audiences % Hold 4-Year College Degree Source: National Regional Database/Tapscan, Persons 12+ and P12+ College Educated, Fall 2009, Monday – Sunday 6a-Midnight; PPM Analysis Tool for Ethnicity percentages. *** Sample too small to measure

5. Public Radio News Audience Aging Median Age Public Radio News Stations vs. US (Major Market Stations) News US Median Source: Arbitron Data; AudiGraphics Spring data; major markets only. US Census and American Community Survey for US Median Age

6. NPR’s New Products Reach Younger Audiences Source: multiple internal and external survey sources

7. Today’s Media Paradigm Average 9.4 sources for news/information weekly & 3.8 sources daily Daily Platform Use – Overall and for News/Information

8. Methodology and Goals

9. Research Questions • Is there growth potential? • Who could be part of our future audience? • How do we grow the audience on all platforms while continuing to serve our core? • What would attract diverse and younger news and information consumers?

10. Methodology This research was conducted in four key phases: PHASE 1 Kickoff meetings (November 2009) Executive and editorial team meetings at NPR to establish project goals Conference calls with external stakeholders PHASE 2 Quantitative online survey (March/April 2010) • n=3,710 • n=2,010 national sample • n=1,355 market-specific sample across 13 key markets • n=345 core listeners from the NPR panel • Median completion time: 42 minutes PHASE 3 Online Message Board Forums (April/May 2010) Moderated message boards include 3 days of discussion on the role of media, NPR, and NPR programming (including digital properties) 7 key target groups: NPR core listeners, “Lookalikes,” ethnically diverse target audiences, Conservative/Republican target audiences PHASE 4 In-Home Ethnographic Interviews (June 2010) In-home interviews with members of 3 key audience segments Total of 13 interviews held over 4 days in San Francisco, Dallas, Atlanta, and Philadelphia

11. Who Participated? Survey Screening Criteria • Ages 18 to 64 • 50 – 50 Male / Female • Either: • Casual or core NPR consumers • News/information consumers • Non-consumers of NPR open to public radio & interest in at least one NPR topical category • If no 4-year college degree, place importance on community leadership, education, and/or lifelong learning

12. Study Findings

13. The big question Is there growth potential? Yes! And it represents a sizeable opportunity. Perhaps more than double existing audience (keeping consistent with our mission). . . . But who are they?

14. Awareness A significant opportunity exists to raise NPR’s profile News/Information Consumers’ Familiarity with NPR Strong promotionalopportunity!

15. Our current and future audience Who could our future audience be? We have identified three categories of listeners Each with distinct news and information habits and needs. Team Captains Dutiful Aggregators Voracious Voyagers

16. Our current and future audience Team Captains Dutiful Aggregators Voracious Voyagers 39% = weekly NPR Listeners 53% weekly any public radio 30% = weekly NPR Listeners 44% weekly any public radio 27% = weekly NPR Listeners 34% weekly any public radio Motivation: Obligation to be informed “It’s important to learn about and understand the world around me.” Motivation: Leadership “I want to be informed so that I can share information with others.” Motivation: Curiosity “I have a passion for learning and discovering.”

17. Segments: Deeper Look Dutiful Aggregators(19% of sample) Team Captains(21% of Sample) Voracious Voyagers(21% of Sample) • 45% Age 18-34 • 40% non-white • Even political split • Avid media consumers • Overwhelmed - much to know and do • 39% top news – local TV • “Education is important to me”; “I don’t believe in absolutes” • Opportunity: simplifying their chaotic media life • 45% age 45-64 • 37% non-white • 41% conservative • Optimistic, self-confident, enthusiastic • Strong opinions • 52% top news – local TV • “I believe there’s something out there that is bigger than all of us”; “Spending time with my family is important to me” • Opportunity: balance and headlines • 50% age 18-34 • 25% non-white • Liberal and science-minded • Prone to dive deep • Technology, culture • 54% top news – web portal • Public radio evangelists • “There are so many things I still have left to do in life” • Opportunity: love depth; increase listening occasions 17

18. Segments: Deeper Look Dutiful Aggregators(19% of sample) Team Captains(21% of Sample) Voracious Voyagers(21% of Sample) • 45% Age 18-34 • 40% non-white • Even political split • Avid media consumers • Overwhelmed - much to know and do • 39% top news – local TV • “Education is important to me”; “I don’t believe in absolutes” • Opportunity: simplify chaotic media life • 45% age 45-64 • 37% non-white • 41% conservative • Optimistic, self-confident, enthusiastic • Strong opinions • 52% top news – local TV • “I believe there’s something out there that is bigger than all of us”; “Spending time with my family is important to me” • Opportunity: balance and headlines • 50% age 18-34 • 25% non-white • Liberal and science-minded • Prone to dive deep • Technology, culture • 54% top news – web portal • Public radio evangelists • “There are so many things I still have left to do in life” • Opportunity: love depth; increase listening occasions 18

19. Dutiful Aggregators VALUE MOTTO: “I check a variety of news sources. Everybody should be informed.”

20. Dutiful Aggregators All pictures on slide are from Dutiful Aggregators’ Ethnographies

21. Team Captains VALUE MOTTO: “Life is good!” and “cut to the chase” • Business oriented • Have enthusiasm for life • Sense of optimism • Seen as leaders • Self-confident “I’m leading my ideal life”

22. Voracious Voyagers VALUE MOTTO: “I want to experience that”, “Go hard or go home!” “I’m curious about the world around me.”

23. Universal Life Attitudes Beyond media, the context of consumers’ life attitudes lend remarkable insight: even in today’s economy, audiences are optimistic about their lives. Top 10 News Audience Attitudes - % Strongly Agree

24. Family

25. More questions answered How do we grow the audience, while continuing to serve our core? In two words… Increased Accessibility

26. The Accessibility Prism Growth Strategy: 3 Pillars of Accessibility Do they know about us? What do they know? Are we telling potential audiences that NPR is for them? Brand Physical Content Can target listeners access us? Are we delivering what they’re looking for?

27. The Accessibility Prism Current Accessibility Limitations We’re insightful and intelligent, NPR lacks energy, urgency, balance, and personal relevance. And we take ourselves too seriously at times. Brand Our target audiences are busy; they can’t always fit long form radio into their day. They’d like to consume us online. Behavior isn’t matching intent. Physical Content More up-to-the-moment news, frequent updates, and local news. More fun/humor. 27

28. Brand Accessibility “I hesitated for years [to become] a regular listener. I believed that its programming outlook was very exclusive, highbrow and catered to Ivy League dispositions….. What I found at NPR was well spoken, intelligent and welcoming hosts who instantly made me feel that I was in the right place to learn. My opinion of exclusion, however, is generally shared when I bring up NPR.” – Current NPR Listener

29. Accessibility Perception of Who NPR is For “NPR I feel is mostly foreducated adults from middle class and up. That ismy impression.” -Male, age 25-34, Hispanic/Latino,Emerging Platform User “ ” “If a robot were a radio it would be NPR.”-Male, age 35-44,White/Caucasian,Lookalike “ ” Chart based to those familiar with NPR

30. Brand Accessibility Top Positive Perceptions of NPR Top Negative Perceptions of NPR Based to those familiar with NPR

31. Which Personalities Speak to Consumer Values? “Below are a number of different personalities you might know from TV, radio, print publications, and the web. Please indicate how much each of the following personalities is for you.” Top 10 Most Relevant Personalities (% Saying “Completely for you”)

32. The Messenger Does Matter Top Personalities that are “Completely for You”, By Ethnicity

33. Favored News Personalities Which of the following personalities is for you? (of the news personalities) Dutiful Aggregators Team Captains Voracious Voyagers Anderson Cooper 23% Brian Williams 19% Matt Lauer 17% Soledad O’Brien 15% Anderson Cooper 22% Brian Williams 21% Matt Lauer 20% Soledad O’Brien 13% Anderson Cooper 22% Brian Williams 14% Rachel Maddow 13% Soledad O’Brien 12%

34. Brand Mass-tige – Not Prestige If NPR could reflect the qualities of any of these different names below, which would you chose for it to reflect? Dutiful Aggregators Dutiful Aggregators Dutiful Aggregators Team Captains Team Captains Voracious Voyagers Walmart 49% Target 49% Discovery 48% Discovery 60% Target 52% Marriott 50% Discovery 59% Target 50% Independent Booksellers 40%

35. Content Accessibility “This type of story could be interesting, but the reporter's voice and intonation is soooo affected, upper class, wasp, PhD student-like, it detracts from the story. She speaks like she is writing a novel, too overly descriptive.” – NPR Non-Listener

36. Conversational Tone A balance of humor with thoughtful, serious discussion A program tone that introduces new information while remaining lively, energetic, & enthusiastic Impact of Potential NPR Personality Traits (% More interested)

37. Breaking News % “Very” Interested in Type of Media Programming and Coverage Urgency without frenzy…

38. Content & Topic Interest Dutiful Aggregators Dutiful Aggregators Team Captains Voracious Voyagers Content Interest Breaking News 53% News from your city 48% Quick news updates 46% Topic Interest Current events 41% Entertainment 38% Health and wellness 37% Content Interest Breaking News 78% National News 68% News from your city 66% Topic Interest Technology/gadgets 57% Current events 57% Health and wellness 51% Content Interest Breaking News 69% Quick news updates 58% National news 57% Topic Interest Current events 53% Technology/gadgets 48% Science 45%

39. Breadth of Perspective & Balance Top 5 Strongly Agree Media Statements 47% of Team Captains strongly agree “ “Hearing both sides of the story is veryimportant.” -Prospective Listener ”

40. Physical Accessibility “The only thing really holding me back is time in the day. I try very hard to get everything I need to get done completed and really don't have much time for anything else. I think NPR would be a good fit for me, but I have too many other things to do to find time to listen.” – NPR Non-Listener

41. One in four core listeners say that NPR is “difficult to fit into their day”. Physical Accessibility

42. Internet Replaces TV News Primary News Source by Age

43. Tune-In Intent by Platform • Consumers already seek access through multiple platforms • Voracious Voyagers: “online” intent eclipses “radio” intent “My commute is less than 5 minutes, which is less than the time of a lot of NPR news stories. I don't have a radio in my house, and I don't have internet on my phone. I guess I've never thought to go to their website - maybe that is something I would do in the future.” – NPR Non-Listener

44. Physical Accessibility Top 10 Web Destinations (% A few times/week or more) A distribution outlet Excludes Facebook /Twitter. 8% report that they visit NPR social networking pages daily, 4% report that they visit NPR.org daily.

45. The Diversity Question What would attract diverse and younger news and information consumers? Wait, Wait… Don’t Tell Me! could it be? Yes! Awareness & Increase Accessibility But remember…hearing yourself authentically on-the-air is critical.

46. Why Does This All Matter? NPR Tune-In Hurdles (% Major Reason) Don’t Go! Based to NPR casuals and prospects

47. Next Steps

48. Recapping • Growth in audience requires growth in awareness and familiarity • It also means communicating relevance and executing on accessibility • Brand • Content • Physical/platform • Gone are the days of single platform media – but a setback to TV and print news is an opportunity for radio • Diversity is not a standalone initiative, it is a thread into all operational and promotional efforts

49. NPR Next Steps • Detailed findings to be shared across public radio community • At conferences: PRPD, ERPM, WSPR • Webinars: PRPD, DEI, PRNDI • Online: NPR Member Station site • Timing: September – November • NPR Work Integration • Senior leadership and editorial leadership • Internal and external work teams • Action plans across news, digital media, programming, communications and member & program services One down.. Tell your friends!

50. Lori Kaplan, NPR Director Audience Insight & Research lkaplan@npr.orgKerry Edelstein, SmithGeiger VP Research kerry@smithgeiger.com September 2010