1. The State of the ‘Halo Effect’: NPR Audience Perceptions of Corporate Sponsorship in 2010 Winter 2010 Vince Lampone / vlampone@npr.org / Tel: 202.513.2815

4. Background, Objectives and Methodology ………………………………………….5 NPR Audience Perceptions of Public Radio & Commercial Advertising …….…..9 The State of the Halo Effect on Public Radio ……………………………………..13 Does the Halo Extend to NPR’s Digital Platforms?............................................ 24 Audience Satisfaction with Public Radio Sponsorship Practices ………………..28 page

8. Background, Objectives and Methodology ………………………………………….5 NPR Audience Perceptions of Public Radio & Commercial Advertising …….…..9 The State of the Halo Effect on Public Radio ……………………………………..13 Does the Halo Extend to NPR’s Digital Platforms? ............................................24 Audience Satisfaction with Public Radio Sponsorship Practices ………………..28 page

9. NPR Continues to Be Seen as Unique and Personally Important to Listeners To understand how NPR listeners perceive corporate sponsorship, it is vital to understand how they value public radio as a whole. The vast majority of listeners perceive public radio to be unique from commercial offerings; 90% say it is personally important to them. Base: 601 public radio listeners 90% agree 83% agree

10. Listeners Reject Commercial Radio Advertising While NPR listeners have positive impressions of radio as a platform, they are far more likely than other adults to find commercial radio advertising as intrusive, repetitious and lacking in credibility, according to data from Mediamark Research. Source: Mediamark Research, Doublebase 2009 Quantity of Advertising is a Huge Issue In this NPR listener survey, 84% of listeners agreed that “there are too many advertisements on commercial radio these days,” reiterating a theme that emerged repeatedly in focus groups with NPR listeners throughout 2007. * Base: 601 public radio listeners

11. Public Radio Is Prized as an Oasis from Commercialism Most NPR listeners see their local public radio station(s) are very distinct from the commercialism of non-public radio and TV stations. Given their antipathy toward traditional advertising, they deeply appreciate public stations’ non-commercial values. Base: 601 public radio listeners Mean Score: 3.2 NPR Is Seen as Less Commercial than Public TV: Public radio compares favorably to public television in audience perceptions of non-commercialism. Public TV viewers gave their local station an average rating of 4.3 on the same 1-10 scale.

12. Background, Objectives and Methodology ………………………………………….5 NPR Audience Perceptions of Public Radio & Commercial Advertising …….…..9 The State of the Halo Effect on Public Radio ……………………………………..13 Does the Halo Extend to NPR’s Digital Platforms? ............................................24 Audience Satisfaction with Public Radio Sponsorship Practices.. ………………28 page

13. Public Radio’s ‘Halo Effect’ Is Intact The “halo effect” of corporate sponsorship on public radio, first identified in 2003 research among NPR listeners, remains intact. It clearly differentiates public radio in the advertising marketplace, and continues to offer a unique array of benefits to sponsors. Listeners value and appreciate public radio as a unique American institution, and a positive presence in their lives. Their favorable feeling toward public radio extends to funders who help make this programming possible. Corporate sponsors continue to benefit from public radio’s halo effect through improved awareness and recognition of their companies, a more positive image in the minds of listeners, and an increased likelihood to do business with sponsoring businesses. These sponsor benefits are especially apparent for funders who sponsor public radio for an extended period of time, as frequency of exposure to underwriting messages is a major factor in developing a strong association in the minds of listeners. IN BRIEF: HOW THE HALO BENEFITS CORPORATE SPONSORS Ha ● lo eff ● ect (noun) – the positive sentiment that listeners have towards companies that support the community service of NPR and public radio stations

14. Unprompted, Listeners Offer Positive Feedback on Sponsors When asked for their overall perceptions of public radio funders, listeners are much more likely to share positive comments than neutral or negative ones. (In this survey, unaided comments were solicited before a battery of follow-up questions explored more specific perceptions of sponsorship.) *Percentages do not equal 100%; responses could fall into more than one category. Base: 500 public radio listeners

15. Most Listeners Pay Attention to Sponsorship Credits Given the number of NPR listeners who claim to be immune to commercial advertising, it its noteworthy that a healthy majority admit actively paying attention to sponsorship messages on public radio. Base: 601 public radio listeners 59% of listeners agree In Their Own Words: ” “ “ Because they are willing to support public radio, I tend to remember and recognize the names of such businesses even if they are of a sort which I do not frequent or use.” – Male, Age 25-34 “ When they’re mentioned, it puts their name in my head. So when I’m looking to buy a product/ service, their name will come up.” – Female, Age 25-34

16. Listeners Have a Higher Opinion of Sponsors NPR listeners are likely to view sponsors as having social and cultural values that fit with their own, and a majority view them as more credible than commercial advertisers. Base: 601 public radio listeners ” “ I generally think of them as higher quality establishments.” “ They are more educated and may offer better services.” “ I think of them as benevolent and trying to better the society we live in.” “ Companies which support public radio get a gold star in my book.” In Their Own Words: Listener Perceptions of Funders “

17. Most Listeners Trust Firewall Between News & Sponsors Though some NPR listeners express concerns about public radio’s independence from its funders, most don’t see sponsors as having an undue influence on the news programming they hear. Base: 601 public radio listeners 70% of listeners disagree In Their Own Words: “ I am sometimes suspicious that there might be some level of control of the programming by these contributors, particularly if the programming seems anything less than balanced, but that is just a feeling and I’ve never really researched it to see if it proves true in any way.” – Female, Age 55-64 “ Public radio needs to take money WHEREVER they can. As long as ‘the public’ is okay with it and the [businesses] and foundation donations [come] with no or minimal strings attached.” – Male, Age 55-64

18. Halo Effect Translates to Purchase Preference When price and quality are equal, two out of three listeners choose to do business with public radio sponsors. Base: 601 public radio listeners 64% of listeners agree In Their Own Words: “ I support businesses that support public radio and encourage my friends to do so as well.” – Male, Age 35-44 “ I like to see corporations investing in public media, and where possible, I try to include those companies in my market decisions.” – Male, Age 35-44

19. Sponsorship Drives Listeners to Take Direct Action The vast majority of NPR listeners (85%) have taken some sort of action as a direct result of hearing sponsorship messages on public radio. Base: 601 public radio listeners Listeners are most likely to participate in or attend cultural activities, visit sponsors’ websites, and consider using new products and services as a result of the sponsorship messages they hear.

20. Public Radio’s Halo Is Stronger than That of Commercial Outlets Public radio’s audience is more likely than other commercial audiences to express a preference for purchasing from sponsors. Base: users of each media outlet (n=601) (n=237) (n=157) (n=772) (n=179) (n=675) (n=625)

21. Perceptions of Non-Commercialism Are Strongly Associated with Halo Effect The strength of NPR’s halo effect is closely tied to the perception of NPR as a non-commercial news outlet. Preserving this non-commercial reputation is important because, according to the data, the more that listeners view NPR as “commercial,” the less likely they are to express a preference for doing business with sponsors – and the less likely they are to view public radio as personally important to them. PERCEPTIONS OF PUBLIC RADIO COMMERCIALISM (RELATIVE TO COMMERCIAL TV/RADIO - 1-10 SCALE) Extremely Non-Commercial (1-2) Non-Commercial (3) Moderately Non-Commercial (4-5) Fairly Commercial (6-10) The programming on public radio is personally important My opinion of public radio sponsors is more positive I prefer to buy from public radio sponsors NPR news programs are influenced by sponsors % Agree:

22. Public Radio Funding Beliefs Influence Perceptions of Sponsors NPR listeners who believe that public radio is funded primarily by listener contributions are considerably more likely than others to express a preference for buying from sponsors. +16 points Difference: +15 +9 +8 +8 +0

23. Background, Objectives and Methodology ………………………………………….5 NPR Audience Perceptions of Public Radio & Commercial Advertising …….…..9 The State of the Halo Effect on Public Radio ……………………………………..13 Does the Halo Extend to NPR’s Digital Platforms? ............................................24 Audience Satisfaction with Public Radio Sponsorship Practices ………………..28 page

24. NPR.org Is Viewed as Non-Commercial Web users see a clear distinction between NPR.org and commercial news competitors. Whereas 60% of NPR.org users view the site as non-commercial, only 9% of NYTimes.com users say the same. Base: Users of each website ON A SCALE OF 1 TO 10, WHERE “1” IS “NON-COMMERCIAL” AND “10” IS “EXTREMELY COMMERCIAL, HOW WOULD YOU RATE EACH OF THE FOLLOWING SITES? % Very Commercial (8-10) % Non-Commercial (1-3) 60% 54% 17% 14% 10% 9% 12% 13% (n=140) (n=169) (n=125) (n=122) (n=197) (n=127) 29% 36% 38% 40%

25. NPR.org Also Benefits from Halo Effect Users of NPR.org are more likely than visitors from competitive sites to express a preference for doing business from corporate sponsors. PURCHASE PREFERENCE: Base: Users of each website OPINION/IMAGE: PERCEIVED SELECTIVITY: When price and quality are equal, I prefer to buy products from companies that sponsor/advertise with this site My opinion of a business is more positive when I find out it supports this site This site is selective about the businesses that can sponsor/advertise. % agree % agree % agree (n=140) (n=169) (n=125) (n=122) (n=197) (n=127)

26. The Halo Effect Extends Across NPR Platforms According to separate surveys conducted among NPR podcast listeners, and NPR News iPhone app users, the halo effect extends across all major NPR platforms. *NPR/Knowledge Networks survey on public radio sponsorship; October 2010 **NPR survey of podcast listeners, fielded through NPR Listens audience advisory panel; n=275; November 2010 *** NPR survey of NPR News iPhone app users, fielded via Survey Monkey to users who clicked on in-app banners promoting survey; n=655; October 2010 % WHO AGREE: Radio* NPR.org* Podcast** iPhone app*** NPR Platform Audience: An important note: This data comes from three separate audience surveys. Differences in methodology and sample composition for each mean that direct comparisons cannot be made between the halo effect of each NPR platform. For example, it would be inappropriate to conclude that podcasts have a stronger halo effect than radio sponsorship. Rather, the important takeaway is that NPR enjoys a similar halo effect across all platforms. When price and quality are equal, I prefer to buy from companies that support NPR 64% 69% 76% 70% My opinion of a business is more positive when I find out it supports NPR 72% 71% 85% 78% NPR is selective about the businesses and products that can sponsor 50% 52% 51% 46% Rate NPR as “non-commercial” (i.e. 1-3 on 10-point scale) 70% 60% 65% 63%

27. Background, Objectives and Methodology ………………………………………….5 NPR Audience Perceptions of Public Radio & Commercial Advertising …….…..9 The State of the Halo Effect on Public Radio ……………………………………..13 Does the Halo Extend to NPR’s Digital Platforms? ............................................24 Audience Satisfaction with Public Radio Sponsorship Practices ……………….28 page

29. Many Have Noticed an Increase in Number of Sponsorship Announcements in Recent Years About two in five listeners report that they have been hearing more sponsors during breaks on their local station these days. Among this group, a majority (59%) says it has caused them to think at least occasionally that their station was being too commercial. COMPARED TO A FEW YEARS AGO, HAVE YOU NOTICED A CHANGE IN… Impact on Perceived Commercialism: Of these three changes, a perceived increase in the number of sponsor announcements is the change most likely to have caused listeners to think their station was being too commercial. Base: 601 public radio listeners In Their Own Words: “ I hear the announcements more frequently in the past. I understand the need for them in today’s financial climate. I have noted the announcements sound a bit more like advertising than they used to.” – Female, Age 35-44 “ I don’t mind the quick sponsor credit but when it turns into a 30 second commercial I think this is not ‘commercial free’ radio.” – Female, Age 35-44 Kinds of language you hear in public radio sponsorship announcements (% Yes) 16% Types of companies that sponsor public radio (% Yes) 22% Number of sponsorship announcements you hear on public radio (% More) 36%

30. Contributors Have Rosier Perceptions of Sponsorship Practices On average, those who contribute to their local station are somewhat more likely than non-givers to be satisfied with public radio’s sponsorship practices. In contrast, listeners to Top 20 public stations (as measured by total weekly audience) are somewhat less likely to express satisfaction. ON A SCALE OF 1 TO 10, WHERE “1” IS “NOT SATISFIED AT ALL” AND “10” IS “EXTREMELY SATISFIED, WHAT IS YOUR LEVEL OF SATISFACTION WITH EACH OF THE FOLLOWING? (Mean scores are below) (n=601) (n=216) (n=381) (n=157) (n=428) Base: public radio listeners All Public Radio Listeners Contributors Non-Contributors Top 20 Station Listeners* Other Station Listeners* Number of sponsorship announcements you hear on the radio 6.6 7.0 6.5 6.4 6.7 Types of companies that sponsor public radio 7.0 7.3 6.9 6.6 7.1 Kinds of language you hear in public radio sponsorship announcements 7.5 7.8 7.5 7.2 7.6

31. Continued Support for Public Radio Sponsorship Is Not Unconditional While NPR listeners have a largely positive impression of sponsors and the corporate underwriting model as a whole, their continued support is not unconditional. In no uncertain terms, listeners express a clear expectation that underwriting practices respect non-commercial values, and that sponsors have no editorial influence on the news programming they hear. Base: public radio listeners WHAT ARE YOUR IMPRESSIONS ABOUT BUSINESSES OR FOUNDATIONS THAT SPONSOR PROGRAMMING ON YOUR LOCAL PUBLIC RADIO STATION? Respecting Listener Expectations “ Good, provided they continue to be unobtrusive.” – Female, Age 55-64 “ OK with me, as long as they don’t take too much air time with ‘commercials.’ – Male, Age 55-64 “ I think it’s a good thing as long as [sponsors] are just mentioned and don’t make a commercial of it.” – Female, Age 55-64 “ I don’t have a problem with it as long as the business or foundation has no influence on what the program plans to air.” – Female, Age 55-64 “ I think it is fine as long as [sponsors] do not try and control the programming.” – Male, Age 55-64 “ As long as it doesn’t create bias with their news broadcasts I’m fine with it.” – Female, Age 55-64 Maintaining a Strict Firewall