Consumers Are Receptive to In-Store Audio Advertisements According to New Arbitron Study; Forty Percent of Shoppers That Heard In-Store Audio Advertising Made an Unplanned Purchase

NEW YORK--()--July 1, 2005--Consumers are receptive to in-store audio advertising, with more than half (55 percent) of shoppers recalling commercials heard while shopping, according to a new study by Arbitron Inc. (NYSE: ARB).

The Arbitron Retail Media Study: The Impact of Retail Audio Broadcasting found that nearly half (46 percent) of U.S. primary household shoppers, age 18 and older, recalled hearing retail audio or in-store audio broadcasting during their most recent grocery store visit and more than half (57 percent) think ad-supported retail audio is an acceptable form of advertising. Among these shoppers who recalled hearing a retail audio ad, more than 40 percent made a purchase they were not planning to make. More than one-third (36 percent) purchased a different brand from the one they originally intended after hearing a retail audio commercial or promotional announcement.

"It is clear that retail audio broadcasting as a national broadcast advertising vehicle is effective with a high recall rate and the power to influence consumer purchasing decisions as they shop," said Diane Williams, analyst, Custom Research, Arbitron. "With the consolidation of supermarket chains and advances in technology, retail audio broadcasts in stores can function like a broadcast network."

In-store Shopping Habits

The majority (94 percent) of primary household shoppers - who recalled hearing audio retail commercials - heard spots for sales items available in the grocery or drugstore. Nearly three-fourths (72 percent) of these shoppers recall hearing promotions for items that were not necessarily on sale. Seven in 10 of these shoppers have a positive attitude toward retail audio advertising.

The majority (93 percent) of primary household shoppers, 18 or over, visit a grocery store each week and more than two-thirds (69 percent) spend 30 minutes or more in the store during their most recent shopping trip. Women compose the majority of shoppers who recall hearing audio during their most recent trip to the grocery or drugstore. Women, age 35 and older, make up nearly 60 percent of the retail audio broadcast audience.

Methodology

A total of 1,002 people were interviewed for the Arbitron Retail Media Study: The Impact of Retail Audio Broadcasting in September 2004. Telephone interviews were conducted with primary household shoppers, age 18 and over, chosen at random from a national sample of Arbitron's Spring 2004 survey diarykeepers.

The Arbitron Retail Media Study: The Impact of Retail Audio Broadcasting and previous studies are available on www.arbitron.com.

About Arbitron

Arbitron Inc. (NYSE: ARB) is an international media and marketing research firm serving radio broadcasters, cable companies, advertisers, advertising agencies, national media representative companies 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. 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 its research and technology organization located in Columbia, Maryland. Arbitron has approximately 1,700 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, cable, magazine, newspaper and online industries.

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

Contacts

KCSA Worldwide
Yin Chang / Jennifer Handshew
212-896-1228 / 212-896-1272
917-992-1332 / 818-216-9561 (mobile)
ychang@kcsa.com / jhandshew@kcsa.com
or
Arbitron Inc.
Thom Mocarsky, 212-887-1314
thom.mocarsky@arbitron.com

Contacts

KCSA Worldwide
Yin Chang / Jennifer Handshew
212-896-1228 / 212-896-1272
917-992-1332 / 818-216-9561 (mobile)
ychang@kcsa.com / jhandshew@kcsa.com
or
Arbitron Inc.
Thom Mocarsky, 212-887-1314
thom.mocarsky@arbitron.com